Shawn’s Trade Idea: Global X Semiconductor ETF (SEMI) $35.49

Semiconductors and the broader “AI trade” have dominated headlines in recent weeks, as heavily leveraged positioning unwound and cascading stop-losses drove the sector into a sharp correction, even attracting the attention of Korean regulators. We aren’t expecting an immediate return to the glory days, particularly with China remaining a competitive threat, but after the recent washout, we believe bargain hunters are increasingly likely to emerge into any further weakness across this very volatile space.

• We are bullish towards the SEMI ETF, liking the risk/reward into dips after the more than 30% washout across the semiconductor space.