Summary

• Nvidia remains central to the AI revolution, with Vera Rubin in full production and demand for AI compute accelerating.
• Recent volatility in semiconductor stocks reflects skepticism, but fundamentals and valuations across leaders like Nvidia, Micron, Broadcom, and AMD remain robust.
• Memory demand, fueled by AI growth, is likely underestimated. MU and SK Hynix may surpass consensus expectations.
• Semiconductor sector valuations are reasonable, with explosive growth, share repurchases, and dividends providing a compelling setup for long-term investors.
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Is the AI trade over? The volatility seen in semiconductor stocks (SOXX) as of late reflects a growing narrative regarding the potential AI bubble. Investors appear to be coming up with every excuse possible to dismiss the AI revolution. Maybe the

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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