Semiconductor stocks SOAR as strong Microsoft outlook revives AI trade
The video argues that semiconductor and other AI-linked stocks are experiencing sharp near-term volatility, but the broader AI capex cycle remains intact. The discussion centers on Microsoft’s strong cloud-driven outlook and heavy data-center spending, which is reviving the AI trade and supporting chip demand. The guest says the market is worried about funding more than $1 trillion of projected capex next year, along with slower growth in the back half of the year. Despite short-term choppiness, he sees the August-September period as a buying opportunity, expecting fundamentals, demand, and the economy to strengthen after the Fed meeting. The commentary is constructive on mega-cap tech and semis over the medium term, even if downside persists in the near term.