SpaceX and OpenAI IPOsignite tech excitement — long chip stocks on the rebound
Thesis
The upcoming SpaceX IPO and the recent OpenAI filing are acting as a massive spotlight on the entire tech industry, reminding investors of the massive growth potential in artificial intelligence and space. These mega-listings tend to lift the entire sector because they generate excitement and draw fresh money into tech funds. Because chip stocks just sold off recently, they are sitting at a discount relative to this huge new catalyst. Buying the companies that supply the actual computing hardware for these AI giants is a solid way to ride the IPO wave.
Strategy approach
Build a rule-based strategy that enters long SMH (VanEck Semiconductor ETF) on a daily timeframe when the 2-day RSI drops below 30 and the price closes above the 200-day simple moving average. Exit when the 2-day RSI reaches 70, with a 10-day max hold and a 3% stop loss.