Capital is rotating out of Magnificent 7 and crypto into AI bottleneck plays — semiconductors, memory, and space stocks. The thesis is that the picks-and-shovels layer of the AI trade has more runway than the mega-cap beneficiaries already pricing in perfection.
0 reads·7 theses
The AngleGenuinely two-sided
Bull caseAMD · TSM
NVDA's 65.5% revenue growth and 55.6% net margins confirm genuine earnings power behind the rotation thesis, and TSM's foundry capacity constraints mean pricing power is structural, not cyclical.
Bear caseAMD · TSM
All three names have already had enormous runs and carry demanding valuations — rotation into a crowded consensus trade late in a momentum cycle historically produces sharp reversals when the next catalyst (earnings, capex update) disappoints even modestly.
Both sides — weigh them yourself