Public trading strategy
Chip panic was a false alarm — Micron's blowout earnings spark a massive AI rebo
Thesis
On June 23, a global chip sell-off pushed the Nasdaq down 2.4% and caused many to doubt the AI boom. However, overnight data shows Micron's revenue quadrupling, driving a massive rally across the sector. Strong earnings from TSMC further prove that the AI demand cycle is real. The combination of pre-existing panic selling and overwhelmingly strong fundamental data from both the memory (Micron) and manufacturing (TSMC) sides of the market creates a perfect catch-up trade for the stocks that were unfairly punished.
Strategy approach
Build a rule-based strategy that enters long SMH on D1 when MU gaps up >10% on earnings volume and the ETF is trading within 5% of its 20-day low. Exit on a 6% profit target or a 4% stop loss, with a maximum 21-day holding period.