iCapital's Amoroso Tells Investors To Take Some Of Those AI Profits
- 01 mins 55 secs
iCapital's Chief Investment Strategist, Anastasia Amoroso, says it might be time for investors to lock in some profits associated with the recent surge in semi-conductor and AI stocks.Channel: Markets
ICapital chief investment strategist Anastasia Amoroso says it might be time for investors to lock in some profits associated with the recent surge in semiconductor In A I stocks, Aros says. She's a huge believer in the semiconductor and a I story. But any time you see something rise so far, so fast, so parabolic, you might be getting into over.
Look, I think in parts of the market it is absolutely the time to lock in partial profits. And in particular, I am looking at the NASDAQ.
I'm looking at the semiconductors. I mean, the rally in semiconductor stocks, for example, has been stunning. Year to date, it's up 65% and especially in the last couple of weeks, the semiconductor space has gone parabolic, which we all understand why, because semis are the key enabling technology of artificial intelligence. But any time you see something, move to the upside. So far, so fast, so parabolic Uh, you know, you get into an over bought territory, and that's exactly the way we are today. And then also John, I look at the valuations of the semiconductor stocks and the the stock index. For example, the valuation expanded from 13 times multiple at the October lows of last year to 28 times today. And don't get me wrong. I'm a huge believer in the semiconductor story and the artificial intelligence story. But if I take a tactical investor perspective near, that's a sector that's looking stretched on position,on valuation, on technicals. And so, for those reasons, I would want to take profits. And by the way, you know when you have the set up, you always are waiting for some sort of a negative catalyst, and we don't know which way the Fed is going to move in June. But I think there is scope for a hawkish surprise, given how resilient the data has been. So if we have to reprise the path of Fed policy higher, and I think that's the ultimate negative catalyst for semiconductors.