I’m not at all worried about this semiconductor drop.
AMD sold off right at the open—down 6%. NVDA is only down 2%.
Over the past year and a half, whenever semiconductors move, it’s always NVDA leading the way. This time it’s the opposite—AMD is leading the selloff downward.
Gold is still rising, while the Dow is only down 0.6%. This is rotation—money moving from story stocks to hard assets.
If NVDA can hold up, I still don’t believe AI trading is over. When it actually breaks down, I’ll consider going short.
At this level, I’m not buying AMD. The water hasn’t fully drained yet.