Semi Analysis is probably funded by hedge funds. My observation is that the street’s expectations were too high to start with (optical replaces copper), then when the industry tried to temper that expectation with reality of gradual shift, they seemed to move to other extreme, to suggest the lack of demand or capex. They were wrong in both instances. The companies (semi as well as hyperscalers) are chugging along at high speed, andno one is sitting around taking a breeze. Some companies valuations dont make sense true, but there also seems to be a motivated push to panic AI investors
This became a pattern. A week or two before Trump’s war agenda changes, we start hearing negative news, puts look unusually expensive, and on the day of the actual war news, the market reverses from the bottom. Short covering, like it happened today.
Semi Analysis is probably funded by hedge funds. My observation is that the street’s expectations were too high to start with (optical replaces copper), then when the industry tried to temper that expectation with reality of gradual shift, they seemed to move to other extreme, to suggest the lack of demand or capex. They were wrong in both instances. The companies (semi as well as hyperscalers) are chugging along at high speed, andno one is sitting around taking a breeze. Some companies valuations dont make sense true, but there also seems to be a motivated push to panic AI investors
I would not be surprised if they had some short positions prior to publishing them.
This became a pattern. A week or two before Trump’s war agenda changes, we start hearing negative news, puts look unusually expensive, and on the day of the actual war news, the market reverses from the bottom. Short covering, like it happened today.
This in-depth article is interesting and thought-provoking. I look forward to reading your writing every single morning.
Thanks 🙏🏻
Very good one thank you. I was confused with all the terminologies when news hit.
agree with Sri. crash the stocks and pick them up cheaper is the playbook