What's on your mind?
$iShares Semiconductor ETF(SOXX.US)
Post 4 Ep.26
I was looking at the various companies that reported earnings this week and was very impressed with two in particular. STX and Sandisk. Bought both as well as SMH and SOXX for the more diversified tech basket.
Luckily SOXX, being a semi counter that moves along with the earnings, qualifies as an earning counter for this week’s episode.
@Captain's Treasure
$iShares Semiconductor ETF(SOXX.US)
Post 4 of Episode 26
I was talking about the two semi ETFs that I was eyeing for this pullback. Yesterday I shared SMH and this is the other one. Much like SMH, SOXX carries much of the tech world and is also one of the earning counters applicable to this week’s episode.
@Captain's Treasure
$iShares Semiconductor ETF(SOXX.US)
Context: Semiconductor equities and broader tech stocks have corrected sharply. There is widespread negative market sentiment and fear in the market. Tech stocks valuation has compressed as a result. I am still in the camp that believes in the AI multi year boom cycle supported by AI infrastructure, advanced chip design, and hardware demand.
My trade: I am holding and selectively adding to my core position in SOXX through this tech correction. Maintaining exposure to tier 1 semiconductor leaders such as Nvidia, Broadcom, and AMD allows me to ride through the market correction.
Takeaway:
Market sentiment and market correction can remain irrational for as long as it takes. Therefore, one needs to follow a plan to navigate the sharp tech correction to prevent making irrational decisions. Moving forward, I will continue to plan and DCA accordingly to add to my core positions. To me, it is more of a reset rather than collapse, but I could be wrong also. Due diligence and risk management is needed.
🚨 US$1 TRILLION WIPED OUT! Is the AI‑semiconductor boom losing steam?
It has been a tough week for semiconductor investors.
On 30 October, chip stocks saw a huge sell‑off that erased an estimated US$1.01 trillion in market value in one Single trading day.
The main trigger was Intel. Its share price dropped nearly 30% after it released weak forward guidance.
This raised worries about softer PC demand, tight memory supply and whether the company can turn out positive cash flow.😣
And the losses did not end there, it spread to other related counters too.
NVIDIA lost around US$185 billion in market value, Intel US$138 billion, TSMC US$108 billion, while Broadcom and AMD each lost roughly US$90 billion.
These five companies made up about 60% of the total estimated drop in value.😢
So what is making investors nervous?
It is not only chip demand anymore. The bigger concern is whether the massive sums poured into AI infrastructure will eventually bring in enough revenue and profit to support current stock valuations.
Tight memory supply is also creating new challenges. It pushes up component costs and weighs on regular PC demand.
Going forward, investors will keep a close eye on NVIDIA and AMD’s upcoming earnings, memory price trends, spending from large cloud‑service providers, and signs of improving cash flow.
The SOXX semiconductor ETF closed at US$471.51 on Friday, down 8.24%. Its RSI reading was 36.1, showing heavy selling pressure.😔
Is this a chance to buy the dip, or the start of a deeper market correction?🤨
AI still has strong long‑term potential but even promising sectors can become costly investments when market expectations get too high.😟
At times like this, patience matters just as much as conviction.
Check the infographic for full key figures and updates.
Disclaimer: For information only, not financial advice.
$iShares Semiconductor ETF(SOXX.US)
$iShares Semiconductor ETF(SOXX.US)
Background: SOXX tracks major semiconductor companies, benefiting from AI chip demand and data-centre spending. But after the massive rally, profit-taking and valuation concerns can trigger sharp pullbacks.
My trade: Bought at an average cost of US$489.
Takeaway: Long-term still bullish lah, as AI demand remains a key growth driver. Current price is around US$478, slightly below my cost. I would hold for the long term and avoid panic selling. If adding, do it in small batches only — semiconductor stocks can be very volatile one.
This is the flush that I was looking for. Some may even call it capitulation. Hallmarks of a 5th wave of a C wave on the SMH, SOXX as well as various tech names. Money is staying in equities and just rotating. I believe tech has bottomed out or is very close to.
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Wall Street's fear gauges just flashed their most bearish readings in months, and the S&P 500 is less than 1.5% below its record high
$Goldman Sachs(GS.US) says its risk appetite indicator turned negative for the first time since the spring, hitting its lowest level since the early days of the Iran war, per CNBC and the WSJ$Wells Fargo(WFC.US)'s buy/sell sentiment gauge crossed the -1 level last week, and Macro Risk Advisors' market sentiment score plunged to around 27 from roughly 61Investors have been dumping AI names and piling into Treasurys. $SOXX logged nine straight losing days last week, its longest losing streak in 20 yearsYet the S&P 500 is trading near 7,719 at midday, just 1.3% below its Oct 6 record close of 7,818.93, and the Dow is up more than 500 points today$Goldman Sachs(GS.US) itself frames the washout as a contrarian signal, pointing to lighter positioning, lower valuations and strong earningsThis is what a wall of worry looks like. When this many investors are already hedged and sitting in bonds, it takes a lot less good news to push the index to new highs, and the real test is whether AI earnings over the next two weeks give them a reason to come backSource: StockMarket.News
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