Key insights
- The author expresses FOMO regarding semiconductor stocks, despite holding positions in hyperscalers (GOOGL, MSFT, AMZN) and other tech companies (META, RDDT). The author questions whether the cyclical nature of the semiconductor industry has changed due to AI-driven demand and considers investing despite previous reservations. This reflects a broader market sentiment shift towards semiconductors, potentially driving further gains in the sector.
Some great businesses dropped to somewhat cheap prices this year, and I've so far deployed most of my capital to buying these companies.
Bought META at $560
Bought MSFT at $370
Bought RDDT at $125
I also hold a good bit of GOOGL and AMZN bought at bargain bin prices from last year's April crash. I have conviction that my picks will deliver in the next 3-5 year time horizon. However when I see semiconductor stocks rip 10-15% in a day, and stock price of MU, TSMC, ASML increasing significantly YoY, it does make me question whether I should be riding the AI wave up more aggressively by investing in semiconductor stocks.
Unfortunate thing is that almost all of these semiconductor companies have strong financials and great growth, but the previously cyclical nature of semiconductors has prevented me from directly investing in them when prices were cheap due to risks, and led me towards putting my money on hyperscalers like GOOGL, MSFT, AMZN instead. Now that they're going to new ATHs every day, it does make me consider whether the cyclical nature of semiconductors has changed in short to medium term, with hyperscalers buying out years of production for their datacenters in advance.
What is your personal opinion on the future of semiconductor industry, and do you plan to buy any semiconductor stocks in the near future?