Portfolio: Market Divergence and Semiconductor Leadership

May 26, 2023, 12:52 pm EDT

Market Divergence and Semiconductor Leadership

Market divergence and semiconductor leadership are obvious through yesterday’s Nvidia (NVDA) +26% and today’s Marvell (MRVL) 30% gains. 

As shown in the featured chart of Dow Jones ETF (DIA) vs Nasdaq-100 ETF (QQQ), the technology-focus QQQ diverged from Dow Jones DIA by a wide margin since the beginning of May. 

Investors focused on the impact introduced by ChaptGDP. AI (05/16, 05/17, 05/18) is becoming a reality by earning reports of both NVDA and MRVL. Semiconductors host the leadership but many other related industries could be benefited as well like software, social network, IT, etc. 

Therefore, it would be essential to add weights to the technology components in the portfolio for the second half of 2023.

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