AI spending is still booming underneath the tech sell-off — buy the dip in chip makers
Despite a brutal tech sell-off, the underlying AI infrastructure companies are posting record results and making big acquisitions. Micron's blockbuster forecast and TSMC's strong earnings prove companies are still spending heavily on AI.
Idea
Micron just delivered a blowout revenue forecast that signals massive ongoing demand for memory chips in AI data centers. TSMC is showing the exact same strength in manufacturing. Meanwhile, On Semiconductor is spending $7 billion to acquire Synaptics specifically for AI. Yet all of these stocks are being dragged down in a broad tech sell-off. When fundamentals are accelerating but the stock price falls due to market-wide panic, the gap between price and value creates an opportunity. The combination of strong earnings and M&A activity shows the AI capex cycle is alive, making the dip in these chip names a potential buying opportunity.