Buy the SOXX Down 23% From Its Highs? Amazon, Alphabet, Meta Platforms, Microsoft, and Oracle Just Gave Investors 830 Billion Reasons to Do So.
Major cloud companies all reported stellar growth, paving the way for more AI spending.
Overview
The semiconductor sector, as summarized by the iShares Semiconductor ETF (NASDAQ: SOXX), had a rough go of it in July. The exchange-traded fund plunged a stunning 23% from its highs in just one month, with many of the ETF's components down by much more.
No doubt, these stocks had run up a stunning 112.8% in the first half of the year -- an unusually positive move for sure. Still, given the scale of the AI build-out many anticipate over the next decade, the moves higher are not unwarranted, should some current long-term AI demand estimates prove accurate.
Details
Fortunately, recent results and commentary from the big cloud hyperscalers all said the same thing: The AI build-out continues, with no signs of slowing.
Source
Originally published at www.fool.com.