Hedge Funds and Asset Managers showed increased demand for Semis this week.

In fact, US Tech stocks were the *only* net bought sector in September as long buys outpaced short sales by over 2:1.

This level of buying was driven by some big catalysts this week, specifically $Micron Tech(MU.US)'s earnings and $NVIDIA(NVDA.US) buybacks.

However, prime broker data shows that Semis demand isn't absolutely skyrocketing yet and there's significant headroom for institutional positioning.

After speaking with many investors over the past week, I would say that there's some anxiety around putting more chips in on the AI trade.

I think this is due to a few factors that are currently in-play:

1. Macro shitshow - Iran, oil, rates situation.

2. Midterms.

3. Constant shifts in the AI story (tech is moving faster than investors' brains).

That said, we're coming up to Q4 earnings in Tech/Semis Land...all while forward tech/semis valuations are relatively low right now.

So I think the issue now centers around whether we can see a re-rating in Semis as we start to see positive Q4 earnings/guidance despite the current macro and midterm hurdles.

If we can get past those hurdles unscathed, then I think my prediction of a tech rally into 2027 looks highly likely as institutions size up for 2027+.