📊 𝐈𝐍𝐕𝐄𝐒𝐓𝐎𝐑 𝐍𝐎𝐓𝐄: Cantor Says Semicond

📊 𝐈𝐍𝐕𝐄𝐒𝐓𝐎𝐑 𝐍𝐎𝐓𝐄: Cantor Says Semiconductor Selloff Is "Overdone," Reiterates AI Bullish View

$Micron Tech(MU.US) $Sandisk(SNDK.US) $Western Digital(WDC.US) $Seagate Tech(STX.US) $NVIDIA(NVDA.US) $Broadcom(AVGO.US) $AMD(AMD.US) $ASML(ASML.US) $Applied Materials(AMAT.US) $Lam Research(LRCX.US) $KLA(KLAC.US) $Teradyne(TER.US) $Lumentum(LITE.US) $Coreweave(CRWV.US) $Super Micro Computer(SMCI.US), $Coherent Corp.(COHR.US) $Cerebras(CBRS.US)

👉 𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀:

➤ 𝗖𝗮𝗻𝘁𝗼𝗿 says the recent semiconductor selloff is 𝗼𝘃𝗲𝗿𝗱𝗼𝗻𝗲.

➤ 𝗦𝗢𝗫 fell about 𝟯𝟬% peak-to-trough versus 𝟯% for the S&P 500.

➤ Semiconductor stocks rebounded with 𝗦𝗢𝗫 up 𝟭𝟮% this week.

➤ Firm recommends 𝗮𝗴𝗴𝗿𝗲𝘀𝘀𝗶𝘃𝗲𝗹𝘆 adding positions in semiconductor stocks.

➤ Cantor views the 𝗔𝗜 𝗶𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 buildout as durable and long-term.

➤ Top sector preference is 𝗠𝗲𝗺𝗼𝗿𝘆/𝗦𝘁𝗼𝗿𝗮𝗴𝗲, followed by Compute and Semi Cap Equipment.

➤ Top memory picks are 𝗠𝗶𝗰𝗿𝗼𝗻 (MU) and 𝗦𝗮𝗻𝗗𝗶𝘀𝗸 (SNDK).

➤ Preferred AI compute names are 𝗡𝗩𝗜𝗗𝗜𝗔, 𝗕𝗿𝗼𝗮𝗱𝗰𝗼𝗺, and 𝗔𝗠𝗗.

➤ Key upcoming catalysts include 𝗔𝗠𝗔𝗧 earnings and 𝗦𝗮𝗻𝗗𝗶𝘀𝗸 Investor Day.

👉 𝗪𝗵𝘆 𝗧𝗵𝗶𝘀 𝗠𝗮𝘁𝘁𝗲𝗿𝘀:

➤ Signals improving sentiment toward AI and semiconductor stocks after a sharp correction.

➤ Highlights continued confidence in long-term AI infrastructure spending.

➤ Identifies sectors and companies analysts believe offer the strongest recovery potential.

👉 𝗘𝘅𝗽𝗲𝗿𝘁 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁:

𝗖𝗮𝗻𝘁𝗼𝗿:

"After a massive drawdown over the last 5+ weeks (with SOX down ~30% peak to trough vs. S&P 500 -3%), Semiconductor stocks have finally caught a bid (SOX +12% this week vs. S&P500 +3%). We would be adding to positions aggressively as we view today's AI Infrastructure buildout as durable and elongated though recognize the rate of change from here is important too and that data points are no longer going to be uniformly positive. Thus, selectivity will matter. But with peak to trough declines of 32% for SMID Cap SPE, 27% for memory, 25% for Analog, and 24% for Large Cap SPE, we view the selloff as overdone. Our rank order of preference remains Memory/ Storage, then Compute, and then SPE. Our Top Picks are MU & SNDK in Memory, WDC & STX in Storage, NVDA, AVGO, & AMD in AI Compute, and ASML, AMAT, LRCX, KLAC, TER, MKSI, & ONTO in Semi Cap. Potential Catalysts: Earnings season continues with reports from covered companies CAMT and AMAT. SNDK is also hosting its Investor Day Thursday. Other key reports include LITE, CRWV, SMCI, COHR, and CBRS."