its hard to say that semis have topped or that capex beneficiaries have topped

but the sentiment shift has absolutely been violent away from semis/capex names

$Taiwan Semiconductor(TSM.US) $ASML(ASML.US) crush earnings, doesn’t help

big tech will most likely increase capex going into Q2 and maybe calm things down

but this selloff feels completely sentiment driven vs fundamentally driven

having said that, the sentiment going bearish doesnt have to be because semi fundamentals are bearish, but it could be because people were yolo’ing into names up 4-5x YTD…

SPY is almost at ATH, so this absolutely is a reset and maybe a needed reset even if it has been painful for semis

if you are heavy SaaS and Mag 7, not feeling as much pain as most of that selloff already happened a few months ago

are you buying any of the semis here?

Source: amit