u/Low_Selection2815

The semiconductor sector has strong fundamentals, including high supplier bargaining power (ASML, TSMC), structural demand, and a lack of substitutes. The author believes the current shortage is ongoing. Despite historically high valuations, the sector has recently experienced a price drop. The author sees this as an opportunity to enter a long-term bullish trend at a better price. The author is initiating a long position in the semiconductor ETF (SOXX) with the expectation of adding more if prices continue to fall, betting on the sector's continued growth. A global recession could crush demand, geopolitical tensions (especially around Taiwan) could disrupt the concentrated supply chain, or the "supercycle" could be closer to its peak than the author assumes.