Trade Alert: Semiconductor Infrastructure
Bullish options trades on four of the less-obvious names behind the AI buildout.
Semiconductor Infrastructure Still Looks Strong
In this weekend’s free post, I argued that the AI buildout isn’t the dot-com bubble. One of the main reasons is valuation: key AI infrastructure suppliers today aren’t trading like Cisco in 2000.
The other reason is more practical: the buildout is still real.
AI needs more compute, more memory, more photonics, more power, more cooling, more semiconductor equipment, more power management, and more factory automation. Some of those themes are obvious. Others are buried deeper in the supply chain.
Less Obvious Semi Infrastructure Names
That’s where today’s trades come from.
For this alert, we used our Market Watchers → Chartmill workflow, looking for names that fit the broader AI / semiconductor infrastructure theme. These are all names highlighted by accounts on our Market Watchers X list that pass our technical screens.
For new readers, that means we’re looking at Relative Strength Index (RSI), Chartmill Setup rating, and Average Directional Index (ADX) indicators. RSI helps us avoid chasing names that are too extended or broken-down. The Chartmill Setup rating helps identify stocks with constructive consolidation patterns. And ADX highlights names were bullish pressure predominates.
The four trades below all fit that framework.
They’re not all the same kind of semiconductor exposure. One is semiconductor metrology / process-control equipment. One is broader embedded control and analog / mixed-signal exposure. One is RF / mixed-signal. One is power semiconductors.
That’s fine. The point isn’t to make four identical bets. It’s to get defined-risk exposure to several parts of the semiconductor supply chain that should benefit if the AI infrastructure buildout continues, as we expect it will.
Today’s First Market Watchers Trade
Semiconductor metrology / AI infrastructure supply-chain theme
