Semiconductor FOMO Is Strong, how do you deal with it?
u/barnacle9999 ·
Reddit — r/ValueInvesting
· May 26, 2026 at 15:05
· ⬆ 52 pts
· 💬 99 comments
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Summary
The author expresses FOMO on semiconductor stocks (MU, TSMC, ASML) while holding a portfolio of hyperscalers (META, MSFT, RDDT, GOOGL, AMZN) purchased at lower prices.
Thesis: His chosen mega-cap tech names will outperform over 3-5 years, but he questions whether the cyclical nature of semiconductors has structurally shifted due to hyperscaler demand, causing him to second-guess not buying semis on dips.
Quality assessment: This is a sentiment/psychology post, not a piece of deep diligence. It reflects personal conviction and FOMO, not rigorous financial analysis — more noise than data-driven DD.
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Some great businesses dropped to somewhat cheap prices this year, and I've so far deployed most of my capital to buying these companies.
Bought META at $560
Bought MSFT at $370
Bought RDDT at $125
I also hold a good bit of GOOGL and AMZN bought at bargain bin prices from last year's April crash. I have conviction that my picks will deliver in the next 3-5 year time horizon. However when I see semiconductor stocks rip 10-15% in a day, and stock price of MU, TSMC, ASML increasing significantly YoY, it does make me question whether I should be riding the AI wave up more aggressively by investing in semiconductor stocks.
Unfortunate thing is that almost all of these semiconductor companies have strong financials and great growth, but the previously cyclical nature of semiconductors has prevented me from directly investing in them when prices were cheap due to risks, and led me towards putting my money on hyperscalers like GOOGL, MSFT, AMZN instead. Now that they're going to new ATHs every day, it does make me consider whether the cyclical nature of semiconductors has changed in short to medium term, with hyperscalers buying out years of production for their datacenters in advance.
What is your personal opinion on the future of semiconductor industry, and do you plan to buy any semiconductor stocks in the near future?