I'm buying today's dips in all my AI names like $Sandisk(SNDK.US), $Applied Optoelectronics(AAOI.US), $Nebius(NBIS.US) etc.
Nothing's changed with AI related stocks.But for context on why today's a deep red day:-> Nonfarm payrolls increased by 172k jobs in May Vs. 85k consensus.-> So overall less layoffs in the economy = tightening labour market.-> Tight labor market = zero urgency for the Fed to cut rates.-> plus energy inflation from Hormuz standoff = Fed can't cut anyway.Then ofc yields spiked on the jobs data release.And when yields rise, the longest duration assets in the market reprice firstThat's AI:w/ AI names like $Micron Tech(MU.US), $NVIDIA(NVDA.US), $Lumentum(LITE.US) etc:Pretty much all of the value sits in future earnings / cash flows.so...higher discount rate, lower present value = downward re-rating.Just keep in mind that nothing fundamental w/ the AI trade has changed at all.Like, $Broadcom(AVGO.US) even confirmed a few days ago that supply is secured through 2027 to support next yrs rev forecasts.And we all know hyperscalers like $Alphabet(GOOGL.US) are funding AI capex aggressively rn. Which is the whole crux of the supercycle.
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