Public trading strategy
Tech giants shed $2.3T as capital spending booms — buy the infrastructure dip
Thesis
Investors are dumping the Magnificent Seven mega-cap tech stocks due to AI spending concerns, wiping $2.3 trillion off their value. Yet Goldman Sachs highlights that a generational surge in capital spending continues to power the bull market, which directly contradicts the panic. Because Nvidia and Broadcom are the critical suppliers absorbing this corporate spending, the recent pullback looks like a disconnect, creating a strong opportunity to buy the dip on these semiconductor leaders.
Strategy approach
Build a mean-reversion/dip-buying strategy on AVGO and NVDA using D1 timeframe. Enter long when the stock drops 5% or more over a 5-day period while the 50-day moving average is still sloping upward. Exit on an 8% stop loss or a 10-day hold.