Lumida Wealth : Non-Consensus Invest Beyond the Ordinary FSD: Semis, Semis, Semis Oh My
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May 7, 2026 A lively dive into the memory chip rally and why DRAM stocks surged on momentum and attention. Discussion of thematic rotationāselling winners to fund semiconductorsāand signs of late-stage FOMO. Practical exit rules and timing signals for cyclical names. Longer-term views on cloud and data center capex driving memory demand. A look at risk allocation, small-cap turnarounds, and who can pass rising costs to customers.
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Memory Rally Fueled By Rotation From MAG7 Sellers
- Ram explains thematic rotations fund one sector by selling others, e.g., proceeds from MAG7 and insurers funded memory stocks.
- He points to Tesla, Microsoft and NVIDIA being trimmed to reallocate into memory.
Use Market Action Rules To Trim Momentum Positions
- Use market action as exit signals: heavy-volume gap-ups that fail, single massive red bars, or moving-average breaks can trigger trimming.
- Pick exit rules (9/14/20-day) balancing false signals versus giving up gains.
Triple Leverage Volumes Signal Retail FOMO
- Ram flags record volumes in triple-levered memory ETFs as a contrarian warning of retail FOMO late in the move.
- Exploding retail volumes suggest the investor base shifted from strategic to paper-handed buyers.