Chip stocks vulnerable to minor misses
The discussion noted that the semiconductor sector's massive year-to-date run-up has left it highly vulnerable to sharp corrections on even minor guidance misses.
The argument
The hosts pointed to Broadcom's recent minor guidance miss as the catalyst for a market dip, noting that when an index is up 100% year-to-date, it is priced for absolute perfection.
The thesis, stress-tested
✓ What validates it
- ✓Further earnings or guidance misses from major semiconductor firms leading to outsized downward stock movements
▸ Risks discussed
- ▸Strong underlying demand for AI chips could quickly overwhelm short-term valuation corrections
Hear it yourself
"That's why you normally leave it, obviously, as close as you can because you don't want an Iran, Israel, a Broadcom moving markets, and then putting you in a precarious position. It feels unwise, but Elon is a master, so I'm I'm not gonna. Yeah. I mean, calling someone unwise is about two days away from becoming a trillionaire is a big call, Harry. But I I think what it is is, you know, it it it it's no surprise given Elon. It's ballsy. You've got just way more error creeping. You could be wrong to the high. You could be wrong to the low."
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