Where Opportunities Could Emerge in Chip Stocks

Our top technical analyst takes a look at when to buy chip stocks.

Transcript

00:00 What happened to all the investor love that these stocks have been kind of accustomed to?

00:04 And what do you think might be coming next?

00:06 Yeah, you know, back in the end of May, when NVIDIA had its earnings, and then in June,

00:13 the SOX, the Semiconductor Index, went on to a minor higher high.

00:18 Basically, if you take a look back, almost the entire period of June, July, and now into August,

00:26 the semis have gone nowhere, despite all the love. I think you had a lot of late comers,

00:30 and I think you've had a lot of early buyers selling to the late comers. And we haven't

00:38 quite gotten to that level where I would say people are concerned about the semis,

00:44 but they're certainly been selling them for the last few months. I think if you can get,

00:49 you know, another downdraft sometime in the next few weeks on the semis, you might get people saying,

00:55 "Oh, no, I've had enough." And then we probably have enough to start buying them again.

01:01 How closely do you follow things like the CHIPS Act that passed, obviously, last year? I think

01:06 we are just past the one-year point or so. It's something Chris Versace talks a lot about in

01:10 terms of not that we get into the politics of it, but it is conceded as, conceived to be,

01:15 a major bipartisan federal government investment, specifically in semiconductor assembly,

01:21 manufacturing, testing. How big a piece is that piece of legislation on your radar as

01:28 you approach semiconductor stocks? Not at all. Honestly, because who doesn't know?

01:36 Who doesn't know? At some point it gets priced in, and at this point, I would feel everybody

01:40 sort of knows what the, you know, it's a year into it. There's no more anticipation. So I don't

01:47 think that that's as big a deal right now as, you know, as it might have been a year ago.

01:54 Absolutely. I had a sneaking suspicion you'd have a good answer to that,

01:59 and my suspicions were proved correct. So thank you for that.

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