Amit Kukreja

Money is rotating heavily into semiconductor stocks, making the SMH ETF a key theme to watch for early 2026. Within the sector, ASML stands out as a top conviction buy following a double upgrade and a new $1,500 price target. Memory chip stocks like Micron (MU) are also experiencing a surge in investor interest due to their critical role in the AI boom. Consider the recent dip in Palantir (PLTR) as a potential buying opportunity, as its decline seems tied to sector rotation rather than company-specific news. In cryptocurrency, momentum currently favors Ethereum (ETH), which is showing stronger performance than Bitcoin (BTC).

Consider the semiconductor sector, particularly Micron (MU), which has a $350 price target from Morgan Stanley due to expectations of sharply rising memory prices. For a high-growth fintech play, SoFi (SOFI) is a stock to watch, with a bullish analyst suggesting it could reach $32 around its next earnings report. Investors may want to explore the China theme through companies like Baidu (BIDU), which is benefiting from an AI unit spinoff, or US companies with high China exposure like Nike (NKE). The financials sector is another area of interest, with potential catalysts from M&A and IPOs benefiting names like Citigroup (C) and the regional bank ETF KRE. Finally, look for potential rebound opportunities in last year's underperformers, such as UnitedHealth (UNH) and Lululemon (LULU).