To The Moon

🌟🌟🌟The Semiconductor sector is sizzling hot.  Nvidia $NVIDIA(NVDA)$  has just hit an all time high today.  CEO Jensen Huang sold off a pre planned sale of 100,000 Nvidia shares.  This is part of a broader USD 865 million selling plan through to year end.

Meanwhile Broadcom $Broadcom(AVGO)$   also hit an all time high, surging on the back of its next gen Tomahawk 6 chip, reaching its USD 1 Trillion valuation.    AMD$Advanced Micro Devices(AMD)$  jumped 7% after unveiling its MI400 Series and securing bullish upgrades from analysts.

So is this the Top or just a pit stop?

Main Takeaways 

Nvidia 

Nvidia's fundamentals remain rock solid with 69% year over year revenue growth and dominance in AI infrastructure.  This is despite a USD 5.5 billion write down tied to export restrictions on China. 

The CEO's share sale?  It is just part of a 10b5-1 plan.  It is not a red flag, just smart estate planning at peak valuations. 

Broadcom

Broadcom's Tomahawk 6 is a game changer.  The world's first 102.4 Tbps switch chip is tailor made for hyperscale AI clusters, breaking the 100Tbps barrier and enabling networks with over a million XPUs.  Translation :  Broadcom isn't just riding the AI wave.  It is building the surfboard.

AMD 

AMD is heating up.  Data center revenue jumped 57% year over year to USD 3.7 billion, driven by EPYC CPUs and Instinct AI accelerators.  With hyperscalers like Amazon $Amazon.com(AMZN)$  and Google doubling down on AMD powered chips, AMD is clawing back some market share from Nvidia and Intel.

How To Trade The Rally 

Trim, Don't Bail  -  If you have been a long term investor on Nvidia, this is a good time to harvest some gains.  Lock in profits but keep a core position.  AI demand is not slowing and Nvidia's leadership is still intact. 

Rotate Within the Sector -  Nvidia may consolidate after its parabolic run, but AMD and Broadcom offer fresh upside.  AMD's valuation is leaner and Broadcom's AI infrastructure play is just starting to get priced in. 

Use Options Strategies 

Bullish?  Consider calls on AMD or Broadcom with 2 to 3 months expiry dates to ride the momentum. 

Cautious?  Hedge Nvidia exposure with protective puts or look at inverse ETFs such as $Tradr 1.5X Short NVDA Daily ETF(NVDS)$  for tactical downside coverage. 

Buy the Dip, Don't Chase the Rip 

In the high voltage world of semiconductors where Nvidia, AMD and Broadcom are evolving, Buy The Dip isn't just a catchphrase.  It is a mindset.  It means waiting for moments of weakness in strong stocks to enter positions at more favourable risk reward levels, rather than piling in after euphoric breakouts. 

Don't Chase the Rip 

When a stock like AMD jumps 7% in a day or Broadcom hits USD 1 Trillion valuation on a headline, it is tempting to jump in. 

But momentum fades fast after euphoric spikes.  Risk-rewards skews against you as you maybe buying someone's else profit taking zone.  Volatility increases and you may likely get shaken out. 

Instead wait for the dust to settle.  Let the stock digest gains, form a base or retest support.  That is when smart money goes in. 

Layer In, Don't Go All In

Use tiered entries by starting small on the first dip.  Add more if the stock confirms support or reclaims key levels.  Keep dry powder for deeper pullbacks. 

This keeps you in  the game without overexposing yourself to short term whiplash. 

Use Tools To Your Advantage 

Set alerts at technical levels.  

Use Options - Buy calls on dips or sell puts to generate income while waiting.  

Track RSI/MACD - Oversold signals can help to  time entries. 

Watch the Macro - Rate cuts, inflation numbers and geopolitical headlines can all swing sentiment.  Stay nimble. 

Bottom Line

In a market driven by AI hype and macro crosswinds, Discipline Beats FOMO.  Let others chase the rip.  You will be the one buying quality at a discount, with conviction and control. 

Concluding Thoughts 

Jensen Huang maybe cashing in but the AI Chip race is just shifting into overdrive.  With Nvidia 's dominance, Broadcom' s infrastructure leap and AMD's comeback, Semiconductors remain the market's most electrifying sector.  Just don't chase blindly.  Trade with precision, rotate with purpose and ride the AI revolution like a pro. 

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