Semiconductor Sector Sees Massive Profit-Taking After Earnings-Driven Rally

“She said, while many investors are waiting for ai capex to actually slow before reducing semiconductor exposure, given what is implied about the sustainability of future growth, we're taking profits now.”

“And you were there too, and I just want an updated thought from you about where that Chip States trade stands now given the sixteen percent move we've had just in a few weeks.”

“Well, clearly we did have a tremendous rally in the semiconductors and that of course led the way up for the stock market. But the fact of the matter is it's not a fomal melt up. It's been a female melt up. Foma means fear of missing out, which typically leads to very elevated evaluation multiples, which basically as a valuation lead melt up. This has been a and earnings let melt up, and I'd rather have an earnings let melt up. I think there's less downside than there's in a fomo melt up, and I think it presents more of an opportunity in the market because the fact of the matter is earnings have really justified the rally and semiconductors, and it's not just expectations, but it's expectations based on actual reality. So I would view this a lot more as an opportunity than there isn't to panic. But right now we're saying not so much panic, just massive profit taking because there have been massive profits.”

“So AGI went, then why don't you stop buying these chips, these chip names that have been beaten up in just a few weeks.”

“Well, I think we're getting pretty close. Because these things move, they don't kind of leisure to things in the leisure of fashion. They go up very quickly, they go down very quickly, and so I think there's an opportunity starting right now. I say that with some hesitation, given that I don't really know. Nobody really knows how this latest end of the seafire plays plays out. And so the war is not over, is the bottom line here, and the stock market is working on discounting that idea.”