Big tech lost $2 trillion on AI doubts but chip suppliers gained $2 trillion — f
Created
Thesis
There is a stark divergence in the tech trade: while the Magnificent Seven lost $2.3 trillion in June due to AI spending scrutiny, investors simultaneously poured $2 trillion into chipmakers like Micron, Intel, and AMD. Semiconductors now make up a record 19.7% of the S&P 500. This shows that instead of abandoning AI, money is rotating downstream to the 'pick and shovel' suppliers who profit from the build-out regardless of whether software giants monetize it. The divergence is a strong signal to buy the chipmakers.
Strategy approach
Build a strategy that enters long SMH (VanEck Semiconductor ETF) when the Magnificent Seven ETF (MAGS) closes down >1% on the day while SMH closes flat or positive (showing divergence). Exit if SMH closes below its 50-day moving average or after a 30-day max hold.
Markets and timeframes
What this public preview can establish
- The thesis and strategy approach describe a market view. They do not show whether an entry or exit condition is currently met.
- No inspectable rule definition is included in this public preview. Do not infer a trigger from the thesis or approach.
- No trade count, win rate, or P&L figure is published in this preview. It cannot establish a performance record.
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