April 18, 2024

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Insatiable Demand For AI Chips

Please click here for a chart of semiconductor ETF (SMH).

Note the following:

• This is an important chart for three reasons.
  • Semiconductors are the epicenter of the AI revolution.
  • Semiconductors are the leading sector in the stock market.
  • Semiconductors often provide an early indication of upcoming stock market moves.
• The chart shows a broadening top formation.  This is a negative.
• The chart shows a big drop in semiconductors yesterday after ASML (ASML) earnings.  Please see yesterday’s Morning Capsule for details.