So far this year, if you aren't in chip stocks then you've missed out.
In the nasdaq 10 out of 10 top gainers for the year are chip stocks. For the s&p500 it's a similar story with 4/5 of the top gainers being chip stocks.
And this isn't just a simple, oh yeah these companies are up 10-20% the past couple of months. These are outrageous, monstrous moves where massive gains that usually take years to happen happen in weeks to months.
Sandisk is up 500% so far this year, intel is up 200%, micron is up close to 150%, amd over doubled in value and so on and so forth.
And these gains aren't without reason. These companies will print money this year, and the next one too probably.
The demand is incredible, and it's real.
There's only so much liquidity in the market. Money rotating into chip stocks means money leaving somewhere else. One key area where this is immediately noticeable is software which has been left for dead.
Now the question is: are we at peak euphoria? Are all the hyperscalers going to keep spending this capex for many more years to come? Is this sustainable?
Chip stocks are like vortexes sucking up all the money
byu/masteryyi instocks
Posted by masteryyi
2 Comments
Was watching this happen with my portfolio and honestly been kicking myself for not jumping in earlier. Had some extra cash sitting around after selling my position in January and kept telling myself the chip run was getting too crazy to enter
The AI boom is definitely real though and these companies are basically printing money right now. But man the valuations are getting pretty wild. Like you said the money has to come from somewhere and software stocks have been absolutely destroyed. Some of my tech holdings that were solid performers last year are down 30-40% while sitting on sidelines watching chips moon
Think we might see some rotation back eventually but timing it is impossible. The hyperscalers seem committed to this AI infrastructure buildout for at least another year or two based on their earnings calls. Microsoft and Google keep talking about increasing their data center spending so demand should stay strong
Part of me wants to chase but these moves remind me too much of 2021 when everything felt unstoppable until it wasnt. Might wait for a pullback but knowing my luck it’ll just keep going up without me
Don’t worry eventually the tornado always spits the money back out.