US Stock Market, Let's Focus on AI Infrastructure | Chesley Investment Advisory Vice President Choi Il-ho

Summary

Choi Il-ho, Vice President at Chesley Investment Advisory, argues that US investors should focus on AI infrastructure and semiconductors rather than the Magnificent Seven, which are underperforming. He details his concentrated portfolio in SOXX, Micron, SanDisk, semiconductor equipment leaders, and networking stocks, citing strong earnings momentum and rising CapEx. He also warns that M7 stocks face headwinds from heavy spending and diminishing shareholder returns.

• The speaker recommends focusing on the Philadelphia Semiconductor Index (SOXX) as the key benchmark.
• He holds 30% in SOXX, 20% in Micron, 10% in SanDisk, and positions in Lam Research, Applied Materials, ASML, Lumentum, and Ciena.
• Earnings estimates for semiconductor stocks are rising sharply, with some seeing triple- or quadruple-digit growth.
• The M7 (Apple, Microsoft, Amazon, etc.) is underperforming and should be avoided as a group.
• AI CapEx from big tech continues to increase, supporting the semiconductor supply chain.
• Market style has shifted from large-cap growth to mid/small-cap semiconductor beneficiaries.
• The speaker uses a flexible approach, recently pivoting his entire portfolio from diversified holdings to semiconductors.
• Macro risks (rates, oil, credit) are viewed as manageable, and any correction is seen as a buying opportunity for semiconductor core holdings.