Big Tech selloff masks hidden chip boom — long the forgotten suppliers
While Big Tech giants like Apple and Microsoft are getting hammered, investors are aggressively pouring money into the smaller chipmakers that actually supply the hardware. This creates an opportunity to ride the secondary chip winners that are still flying under the radar of the broader tech selloff.
Idea
The Magnificent Seven tech giants have lost $2.3 trillion in value, but investors aren't abandoning AI — they're rotating money into second-tier chipmakers like Micron, AMD, and Intel, which collectively added $2 trillion in value last quarter. This is a targeted divergence: big tech is being punished for spending uncertainty while the hardware suppliers are being rewarded. The narrowness of this rally has created elevated volatility risk, but the momentum in chip suppliers remains strong as long as AI demand keeps expanding beyond just Nvidia.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| AMD | LONG | +0.00% ✗ | +0.00% ✗ | — |
| INTC | LONG | -9.03% ✗ | -12.48% ✗ | — |
Price change since publication · updated Jul 11