Author argues the AI/semiconductor/memory rally is unsustainable and will eventually collapse due to unsustainable capex and poor AI revenue-to-profit ratios.
SMH — AVOID The author argues the semiconductor AI boom, including SMH, is unsustainable because the capex funding semis and memory is not sustainable and the revenue-to-profit ratios at companies like OpenAI and Anthropic are not sustainable. The author claims that if AI does not show ROI, the whole thing collapses, and that if capex spending slows or filings show massive losses, AI infrastructure and memory stocks could be cut in half or more. The author states they have been a long-time investor in SMH but now believe the rally must eventually end, though they do not specify timing.
EVENTUALLY (idk when), this semiconductor AI boom HAS to end (in my humble opinion).
This Reddit post, published June 18, 2026, features u/reddituserxxxxxxx7 discussing SMH. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/reddituserxxxxxxx7 · Tickers: SMH