In just a few more hours, Trump will meet with Xi Jinping and I’ve been noticing traders getting cautious around semis and AI names again.
What makes this meeting interesting from a market perspective is how much of the current rally still depends on AI infrastructure spending staying strong. Nvidia, AMD, TSMC, SK Hynix and a lot of Asian suppliers are all tied into that same trade now. The market keeps acting like China got cut out completely, but demand for AI hardware never really disappeared. It just moved through different channels.
That’s why every Jensen Huang comment gets dissected so heavily now. Nvidia isn’t trading like a normal semiconductor stock anymore. It’s basically become a proxy for global AI capex and tech sentiment overall.
I think what traders are really watching is whether this meeting changes the tone around tech restrictions and semiconductor flows going into the second half of the year. Because positioning in AI and semis already feels extremely crowded here.
Am I the only one watching semis more than politics ahead of the Trump Xi meeting?
byu/ConferenceLow8960 inStockMarket
Posted by ConferenceLow8960
2 Comments
I think the biggest change in policies will come if Democrats win the midterms.
From my simplistic understanding, it’s essentially a binary, “will the marketshare cap for chips expand significantly or not?”