☕ Chip stocks are leading the charge as the market awaits more big tech

Good morning! 👋 

It’s Hayley here today, as Keith is on the road.  

And so far, the market feels a lot the same as yesterday. 

Nothing crazy is happening as I’m scanning the headlines, just the market holding its breath and waiting on one thing: big tech earnings. 

All three indices are up in early trading with the S&P 500 and Nasdaq leading the Dow as I type. 

No surprise really given the sharp rally we are seeing in chip stocks as three major forces have come together at once: 

First, earnings strength.  

ASML delivered a strong beat on orders and forward guidance, a reminder that the semiconductor investment cycle is still very much alive. So much for the familiar “AI spending is peaking” narrative. 🤦‍♀️ 

South Korea’s SK Hynix also put in some good numbers and growth. (Read) 

Second, regulatory relief.  

China has begun granting conditional approvals for Nvidia to sell its H200 AI chips to major domestic tech firms, easing - though not eliminating - a key regulatory overhang. (Read) 

Remember, the markets love it when uncertainty is removed!  

And third, supply constraints. 

Memory remains one of the biggest bottlenecks in AI infrastructure, with shortages and pricing power continuing to build across the sector. 

Later today, we have Tesla, Meta, and Microsoft reporting after the close, alongside the Fed decision. 

So yes... volatility is likely. 

Honestly, I’d even encourage it, in my way of thinking! And I know Keith would say the same.  

But what’s also likely is that there will be lots of tremendous opportunities for those prepared and playing to win.  

Speaking of which, Keith had a great conversation yesterday with his good friend and colleague, Scott “the Cow Guy” Shellady. 

They spoke about why investors are being distracted by bubble talk and valuation noise, spent some time talking about Tesla (not as a car company, but as a data-driven AI, robotics and energy platform) and Keith also touched on “boring” companies that are quietly becoming tech businesses under the hood, all while Wall Street continues to misprice and misunderstand them. (Watch) 

I think you’ll enjoy it! 😀  

Anyway, the thing that Keith really wants you to think about today is this... 

Investing in optimism is how you make money. 

Fear feels intelligent and prudent. It even gets reinforced by headlines and naysayers.  

But it’s optimism - paired with discipline (meaning the necessary mindset, profitable strategies and repeatable tactics) - that’s what actually compounds. 

If you need help with this, you know where to find him.  

Now, let’s MAKE it a great day. 

You got this — I promise! 💯 

Hayley E 😀