S&P 500 Semiconductor, Health Care Valuations Converge Near 20x

S&P 500 semiconductor and health care stocks now trade at the same forward P/E near 20x, the first time the two groups have matched in years, down from a 35x multiple for chips in 2024.
The poster argued that investors have stopped paying up for the AI growth story and repriced it to the level of the market's most defensive sector, and that when the hottest trade and the sleepiest sector cost the same, capital tends to rotate toward the one with steadier earnings — positioning health care $XLV to lead and semiconductors to lag.