Silicon Photonics (SiPho) is next sub-sector for explosive long term directional growth. Potential candidates of directional trade are listed below (in Alphabetical order). Do your own research!!
AMD is a good company in a right sector. Semi long term direction is up, so is AMD. The semi pie will grow long term, as a 3rd fiddle player, AMD will do ok, even though large swing is expected. The biggest issue with AMD is the quality of their deals with OpenAI, Meta and ORCL. None of them financially capable of completing the deal, without some kind of special financing. In the case of OpenAI & Meta, they need to get “free shares” from AMD hitting milestone of 1T, ~$600/share, which is about 20% share dilution. Many pumpers have strong incentive to pump it up. I am not paying for it. $600 is a DUMP!
Long Term (5+ Years) Core Candidates: NVDA, TSM, ASML or AVGO
I have held HUGE NVDA (8+ years) and large TSM (5+ years). Still like both for next 5+ years. You can choose your favorite Semi stocks, if you are confident for their long term perspective
Build up large position DCA (every 3% down) SLOWLY
The size of the investment depends on your personal situation, your financial situation, knowledge and confidence on semiconductor technology, and more importantly, your financial and physiological strength, how much volatility you can take…you must be able to sleep well, and do not need to watch them every day or even every week
Don’t take any profits if it is NOT larger than 50% and if it is NOT LONG TERM
After you build up large enough enough positions, do the following: BTFD - Buy The Fucking Dip; TTFH - Trim The Fucking High; KTFC - Keep The Fucking Cores
Shoot for multi-bagger performance and eventual all house money investment forever
Warnings: a. not suitable for people who do not have financial strength and stomach to endure up and down, up to 50% or more b. For the core holdings, don’t worry about short term performance. Focus on long term compound growth. Do what you plan to do. Be disciplined!
Stay tuned for more semi trade discussions