To The Moon

The recent massive pullback across the AI and semiconductor sectors has caught my attention, and I have started collecting more Direxion Daily Semiconductor Bull 3X Shares (SOXL) gradually. The market seems to be shifting from excitement about AI growth towards concerns about monetisation and return on investment. With technology giants continuing to pour billions into AI infrastructure, investors are becoming increasingly impatient about when these massive capital expenditures will translate into meaningful revenue and sustainable profits. This has triggered selling pressure across semiconductor stocks, even among companies with relatively strong fundamentals and promising long-term growth prospects.

Another factor adding to the market uncertainty is the recent US midterm election, where Democrats made significant gains. Their stance on putting certain AI developments and data centre expansion plans under greater scrutiny has introduced another layer of policy uncertainty. Investors are now worried that tighter oversight or potential restrictions could slow down the pace of AI development and infrastructure investment. While these concerns should not be completely dismissed, I think the market may be pricing in too much uncertainty too quickly, especially when the long-term demand for computing power, advanced chips, memory and semiconductor infrastructure remains intact.

Personally, I feel this round of selloff has become increasingly driven by extreme market panic rather than a complete deterioration in the underlying AI and semiconductor growth story. When sentiment turns excessively negative, even fundamentally strong companies can get caught in indiscriminate selling. I am not saying that the bottom is already in, or that the market cannot correct further. However, the speed and magnitude of this pullback make me believe that certain opportunities are beginning to emerge. For me, this is where having patience and sufficient capital becomes important. Instead of trying to predict the exact bottom, I prefer to accumulate gradually when valuations and sentiment become more attractive.

That said, SOXL is a 3x leveraged semiconductor ETF, so I fully understand that its volatility and downside risks are significantly higher than those of ordinary semiconductor ETFs. I will continue to manage my position carefully, avoid going all in, and reserve some cash in case the correction deepens. My approach is to take advantage of market weakness without letting short-term emotions dictate my decisions. AI monetisation may take longer than expected, and the road ahead will certainly not be smooth, but I still believe the long-term semiconductor growth story remains compelling. Sometimes, the best opportunities appear when market sentiment is at its worst. I would rather accumulate with discipline during periods of fear than chase prices when optimism eventually returns.

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