30Jan12:37 pmEST

Time for Chips to Finally Sober Up

Seeing as AMD earnings come out tonight alongside GOOGL and MSFT, it seems fairly easy to overlook the chip play on the eve of the FOMC. 

However, AMD, trading with a cool forward PE of 44, is no small potato in the semiconductor space. The firm has indeed been one of the key supporting actors beyond NVDA instrumental in the sector's most epic bubble since the turn of the century. 

On that note, you will see that NVDA is green today and continuing to push its abnormally steep angle of ascent higher yet despite a red sector at-large, via the SMH ETF. AMD is off by about 2% in front of its report. 

Now, regardless of what AMD does tonight, barring a total blowout coupled with an incredible spike higher, I am looking for a bonafide fade not just with this name but the sector at-large, with NVDA eventually getting the memo.

The fact that yesterday's giddy rally on the back of the Treasury funding announcement did not see SMH come close to trying to even challenge last week's highs strikes me as a tell that the air is starting to leak from an epic QE/ZIRP, pandemic, then AI bubble. 

Elsewhere, note the relative strength in uranium stocks as oil goes red-to-green amid rising WWIII tensions globally. 

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