A leading sector in the current market driven by AI infrastructure demands.

Declined by 1.9% amid semiconductor sector weakness.

Historically extended from its 50-week moving average; potential for capital rotation out of this sector into small-caps and Bitcoin.

Sector is in a raging bull market but is considered incredibly overbought, suggesting a potential dip.

Nearing an absolute exhaustion point with high RSI; risk of cyclical hangover in the second half of the year.

Sector has seen 50% returns; export data suggests unprecedented demand, though niche areas like Photonics may offer higher returns.

Acts as a safety trade for growth-oriented capital; secular trend in AI compute overrides general macro weakness.

Currently the default 'risk-on' trade for AI exposure, though analysts warn of potential overextension.

Recommended as a primary vehicle to capture the growth of hardware required for supercomputing and the transition to AGI.

Bullish on semiconductors relative to software (IGV), as they are the scarce 'picks and shovels' needed for AI, applying the 'scarcity vs. abundance' thesis.