The Long Case for Semiconductors
Updated
The long thesis for SOXL, Semiconductor 3x Long.
With Crypto, AI, Automation etc we will soon come to view Semiconductors as a fuel for computational power. Just like we need gas for cars and electricity for all the rest the next phase of the economy is running off of Computational Power at a mass global scale.
The internet was the mass explosion of collective knowledge onto the world. This next phase will be the democratization of computational power to go with that knowledge.
As things are the semiconductor industry is well insulated through its extreme specialization.
Governments will move to increase their own semiconductor production but this is 5-10years out and will most likely end up contracting/subsidizing Established semiconductor manufacturers.
This all points Up for Semiconductors.
With Crypto, AI, Automation etc we will soon come to view Semiconductors as a fuel for computational power. Just like we need gas for cars and electricity for all the rest the next phase of the economy is running off of Computational Power at a mass global scale.
The internet was the mass explosion of collective knowledge onto the world. This next phase will be the democratization of computational power to go with that knowledge.
As things are the semiconductor industry is well insulated through its extreme specialization.
Governments will move to increase their own semiconductor production but this is 5-10years out and will most likely end up contracting/subsidizing Established semiconductor manufacturers.
This all points Up for Semiconductors.
Note
SOXL moves to mean of established zone. would like to see consolidation within the 49.35 - 50.98 zone to establish strong support. Or if buying comes in strong we can appear above 50.98 and pursue 52.16 "top"
Trade active
As we've worked through the range I'm now looking for a bit of consolidation around $52 to create a good base to push through $55 area.Macro 2 year targets :$55.84 / $69.12 / $110.40 / $181.93 / $294.04
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