Semiconductor poised to rise on AI hype

All eyes will be on latest US consumer and producer inflation data slated to be released tonight and tomorrow respectively, as the market gauges the extent which the Fed's monetary tightening has managed to curb rising prices, while investors brace for its rate decision at the conclusion of its FOMC meeting on Wednesday.

While the market has priced in a pause in the rate hike, as the Fed is increasingly wary of tipping the economy into a deep recession amidst tightening liquidity after the fallout of a number of regional banks, I remain cautious that the Fed may surprise the market with another interest rate increase as inflation remains unacceptably high, much higher than the 2% target.

Nevertheless, I’m hopeful that there will be a pause in rate tightening cycle, giving the high-tech industry a shot in its arm, as it offers a relief to the increasing interest rate to fuel growth and expansion.

I’m particularly optimistic of the semiconductor sector $Semiconductor Bull 3X Shares(SOXL)$ that is among the beneficiaries of the on-going hype on artificial intelligence, as chip makers rush to innovate and churn out increasingly sophisticated chips to fuel the performance-hungry AI demands.

@TigerStars @CaptainTiger @MillionaireTiger @TigerWire @TigerEvents 

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  • bubblyx
    ·2023-06-18

    Use a little common sense. The semis are doing great. More chance of rising next few quarters than falling. Same with TECL. Just my gut feeling. May be short term pullback but think we are going higher.

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  • pixiezz
    ·2023-06-18

    Been through 10 rate hikes, 2 or fewer rate hikes to go and it will be officially over, accumulations on any dip and it is a buy.

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  • cheerzy
    ·2023-06-18

    Semiconductors are near ATH while this 70% off high 72/shr. Anyone that holds 3x inverse over long term in fool.

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  • wigglyz
    ·2023-06-18

    This reminds me of the bull start after covid, many were not convinced and it did not make sense to them

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  • WebbBart
    ·2023-06-13

    RSI seems way to high. Very high chance of pullback, but still a possibility of going higher

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  • vippy
    ·2023-06-18

    Nasdaq up 200, this down should clue. .Com bubble especially in NVDA, AMD

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  • zinglee
    ·2023-06-18

    Short covering before this weekend is a good idea at these price points!!

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  • ngph
    ·2023-06-13
    I like semiconductor foundry stocks like TSMC and GFS
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  • HarryCox
    ·2023-06-13

    Are you still bullish on semiconductor? They rise too much

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  • nimbly
    ·2023-06-18

    I'm going to keep buying more until NVDA and AMD are 500PE.

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  • upin
    ·2023-06-15
    Great ariticle, would you like to share it?
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  • HarryCox
    ·2023-06-13

    Coming soon to an SOXL near you.

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  • eveev
    ·2023-06-13
    TSMC go go go!
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