Key insights
- The article questions the rapid 10x growth in semiconductor and AI infrastructure stocks, suggesting potential euphoria and excessive optimism. It highlights specific companies like MU, SNDK, WDC, LITE, and STX. The author raises concerns about sustainability and asks about risk management strategies, such as tightening stops or using hedges, indicating a potential for sharp pullbacks and a bearish sentiment towards the current market exuberance in this sector.
Is it just me, or does it feel like it's completely normal right now for a stock to go up 10x within a year? I am asking specifically about AI infrastructure and semiconductors like MU, SNDK, WDC, LITE, and STX. Sure, there are massive fundamental drivers behind this, but isn't there a bit too much euphoria in the mix? If you browse the Reddit forums, you'd think we are only just getting started. What should we be paying attention to right now? What signs make you nervous, or is this going to keep going for a while longer? I'd also be interested to know how you are currently managing your risk. Are you tightening your stops, or are you increasingly using hedges like put options in this environment to protect yourselves against swift, sharp pullbacks?