The VanEck Semiconductor ETF (SMH) has seen signs of peak bearishness and selling pressure on chip stocks nearing exhaustion. The daily chart shows a decline from the February highs, but the shape of a correction is consistent with a larger-degree trend. The market is paying less for these earnings due to increasing interest rates, which this is a form of valuation compression. Nvidia's forward multiple is sitting on a shelf of support that has been tested three times since 2018. The forward price-to-earnings ratio over the next 12 months currently trades at 20.5-times 2027 earnings per share, compared to Costco's 46-times next year's expected earnings.