The Boyar Value Group’s 2nd Quarter Letter 2026

Memory chips / semis: Boyar sees the greatest risk in the market's most-loved trade: SanDisk, Micron and the SOX have gone parabolic, semis now ~20% of the S&P 500's value, and they warn a stock can look cheap on today's earnings and still prove expensive if those earnings are the peak. They cite BCA's Berezin that with AI "the bubble is in earnings rather than in valuations." Software: The market has marked software down on fears AI disintermediates it, even as profits hold up; if investors are too gloomy, Boyar sees today's markdowns becoming tomorrow's opportunities. Mega caps: The valuation premium of the ten largest S&P names over the rest has collapsed to roughly 10% from nearly 40% a year ago, putting them near their three-decade average multiple; Boyar reiterates Microsoft as attractive after its June decline ("nothing about the business has changed for the worse"). Small caps: Still at a ~22% earnings-multiple discount to large caps versus a 12% decade average; the catch-up "does not appear to be finished," but more selective. Rates: Hawkish new Fed chair Warsh is their top threat to the small-cap rotation, given floating-rate borrowing. Supply: Record equity issuance plus shrinking Big Tech buybacks; heavy issuance historically clusters near tops. "Caveat emptor." MSG Sports: Up ~20% post-championship, still below their intrinsic value estimate. Bottom line: Boyar welcomes the broadening but warns broadening isn't bargains: they are leaning toward discounted mega caps, unloved software and overlooked small caps, and away from peak-earnings chip enthusiasm. Disclosed holdings include MSFT, MU, GOOGL, BRKB, MSGS.