Shares of tech companies ticked up as concerns about elevated valuations subsided. Price-to-earnings multiples could be adjusted substantially if corporate tax cuts become law, said Oliver Pursche, chief investment strategist at broker-dealer Bruderman Brothers. The nitty gritty of tax legislation will be particularly important for the tech sector, which could benefit from rate cuts but is also at risk from proposed changes to research-and-development tax credits. Nvidia shares rose after analysts at brokerage RBC said the chip maker should continue to benefit from crypto-currency boom in 2018. Nvidia makes graphics cards popular among some in the crypto-currency community. Analysts at brokerage Morgan Stanley said semiconductor makers should see strong demand as tech companies continue to invest in machine learning, self-driving cars and automation. "Demand has been very healthy across most end markets, and while any strong period in semiconductors brings some inventory risks, visibility remains strong--though without obvious frothy excesses--near term," said the Morgan Stanley analysts. Still, they warned that bitcoin mining, which has become an important component of the "logic chip" business is one area where the longer-term demand picture is unclear.
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(END) Dow Jones Newswires
December 13, 2017 16:34 ET (21:34 GMT)