An IntroductionThe 27 AI/semiconductor chip stocks tracked in munKNEE’s 7 Portfolios (see here) have declined by 12.6%, on average, in the past 7 days (since July 15th until yesterday) with the following 9 down 14.9% or more: QBTS (-26.3%), AMD (-19.6%); ASML (-17.9%); RGTI (-17.0%), AMAT (-15.9%), MU (-15.7%), CDNS (-15.6%), IonQ (-14.9%) and LRCX (-14.9%) and the following 5 stocks down in excess of 10% in the past 7 trading days: TSM (-13.7%), QCOM (-13.0%), KLAC (-11.9%), AVGO (-11.7%) and NVDA (-11.0%). What Does the Future Hold?Some investors are of the opinion that the so-called bubble in AI/semiconductor stocks is in the process of popping but this segment of the market should rebound and reach new heights in the months ahead. Why? Because the Q2 earnings season that commences over the next few weeks should see the majority of companies report stellar earnings as a result of companies spending billions to build and deploy new AI applications. That spending spree has and will continue to translate into strong earnings reports which should reaffirm the bull thesis on tech stocks and push them to even higher highs. ConclusionWe think now is the time to buy the dip and, as they say, back up the truck and buy with both hands before the slight rebound we are experiencing today really takes hold.More By This Author:Almost All AI Stocks Declined Sharply On Wednesday – Here’s Why
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