I hope you’re sitting down, because what I’m about to share with you could be the most important financial news you read all year. As our good friend Luke Lango put it, “AI chip stocks got obliterated yesterday.” We’re talking gut-wrenching drops of 10% or more in top picks like ASML, Nova, Camtek, and Advanced Micro Devices.
But here’s the thing – this isn’t a time to panic. In fact, as Lango points out, “this is a time to be greedy when others are fearful.” The evidence suggests that this AI chip stock meltdown could be a once-in-a-decade buying opportunity for savvy investors like you.
So what caused this bloodbath? In a word: geopolitics. Leaked reports suggest the Biden administration is looking to crack down even harder on semiconductor sales to China. And former President Trump didn’t help matters with his negative comments on Taiwan.
But as Lango astutely points out, this kind of political posturing is nothing new. We’ve seen this movie before, folks. The U.S.-China trade war has been raging since 2016, but it’s been mostly bluster with minimal impact on chipmakers’ bottom lines. Just look at the SOXX ETF – even after yesterday’s plunge, it’s still up nearly 50% in the past year alone!
Lango hits the nail on the head: “The market is grossly overreacting to a bunch of political ‘hot air’ that will amount to a nothing-burger for AI chipmakers.” Mark my words – in the coming months, we’re going to see blowout earnings from these companies as the AI boom kicks into overdrive. And when that happens, yesterday’s losers will come roaring back with a vengeance.
But don’t just take my word for it. Let’s go to the charts:
As you can see, every time the SOXX ETF has dipped below its 20-day moving average envelope since the launch of ChatGPT, it’s been followed by a monster rebound rally. And guess what? We’re right on the cusp of another such dip right now.
So here’s what I’m telling my readers: get ready to back up the truck and load up on the best AI chip stocks on any further weakness. Because once the technical picture confirms the bullish setup, it’ll be off to the races.
The only question is: will you be along for the ride? If you want to know exactly which AI chip stocks are on my “must-buy” list, you need to check this out right now. Because once the mainstream herd catches on to this story, the real money will have already been made.
Don’t get left behind. Get yourself positioned today, ahead of the coming AI chip stock boom. Your future self will thank you.
P.S. For more of my latest market insights and investing ideas, make sure you’re reading my Daily Notes over at Innovation Investor and Early Stage Investor. You won’t get analysis and actionable ideas like this anywhere else!