AI Mania drove semiconductor stocks and server stocks higher for most of the year, until they got smacked in the face on July 16th. After a hard tumble, they’ve bounced back, but only partly. I suggest that the retracement is already complete, and the well-defined right triangle tops serve as powerful barriers to further price ascent. Dell is an excellent example.
If that doesn’t get your blood going fast enough, the supercharged version of this is Super Micro, whose price swings (and, even more so, options price swings) are much more dramatic than Dell’s.
Personally, I like SMCI better, because it has a squeaky-clean price gap to define the base of its triangle.
