Mizuho on Semis pullback: 'we see this as a buying opportunity with $Micron Tech(MU.US), $Lumentum(LITE.US), $Credo Tech(CRDO.US), $Sandisk(SNDK.US), $Broadcom(AVGO.US), $Dell Tech(DELL.US), and $Lam Research(LRCX.US) remaining well-positioned'.

"We look at the AI semis space after reports of Anthropic and OpenAI CEOs calling for AI development slowdown post Dario Amodei's essay, with the push for guardrails on frontier model adoption. Key points: 1) Anthropic and OpenAI seeking to potentially slow down AI development citing safety concerns, with pushback from US Chair David Sacks challenging their altruistic reasoning, 2) we believe imposing RSI limits combined with a lack of global AI consensus or coordination implies potential AI pacing ineffectiveness, as it risks ceding share to efficient Chinese competition (Ex-2) and, 3) Key to watch - No change to AI DC Capex/GW compute spend from AI labs and CSPs, while AI adoption, while early, remains positive for the AI Semis beneficiaries. With the SOX down ~6% this morning, we see this as a buying opportunity with MU, LITE, CRDO, SNDK, AVGO, DELL, and LRCX remaining well-positioned."