“The Stock Market Nervousness, Fed, Elon, AI Chips”
Semiconductor sector weakness due to AI regulation fears is overblown; current prices offer a buying opportunity.
I actually think it creates an opportunity in semis. That's where if we go to the Goldman Sachs rotation piece that I keep referring to, we could see that there's been a move into software, which we've been calling for Q3, Q4 move into software. happen.
But that has come almost directly from a move out of semis because there's this belief that oh, we're going to end up seeing a slowdown in AI spending because of the hugging face incident and these calls for regulations.
I think it's complete nonsense. Uh I think the underlying basis that started all this is overblown. uh and it's likely that we have opportunities in front of us now to actually buy some of the hardware exposures that have basically given us some Black Friday pricing.