Where will we rotate our semis profits? Software? Really?

Yes, we would need to pry Micron from your cold dead hands... so consider it a thought experiment.

May 29, 2026

As I mentioned in my last piece, I don’t think the capex is going anywhere. However, the goal is to stay on theme, levered, and yet diversified within. Below are a few thoughts.

In the past week many are choosing software for this rotation. I view this as highly questionable due to the extreme cone of uncertainty, although I do hold a few potential agentic winners with operational and market momentum such as SNOW 0.00%↑, DDOG 0.00%↑ , TWLO 0.00%↑ . If there are other winners, I am happy to let you take the first leg up and scale into the success later. Open to ideas.

Let’s take a look at the menu:

Frontier labs: not easily investable, my preferred vehicle is SKM 0.00%↑ which has become an Anthropic equity holdco. Might also be a Hormuz peace dividend in there too.
Picking software winners: as mentioned above, trying to pick through the pile and ID the cleanest sure bets and avoiding the risk.
Gold miners such as GDX 0.00%↑ or GDMN 0.00%↑ - these were really beaten up by Hormuz so many have a lot of upside upon resolution. The fundamental case has only been strengthened by the conflict.
Silver: SLV 0.00%↑ as the switch-hitter narrative of energy demand, debasement, and retail frenzy with a similar Hormuz recovery story waiting in the wings. Straddles the AI trade and the debasement trade more directly than Gold
Neoclouds: they are pure plays to the inference demand which is repeatedly re-affirmed. I expected these to be the most convex and successful bet in the book but alas they have chopped around and been met with sellers on earnings beats etc. If the wall of worry fades around their economics, debt, etc. there may be a lot of energy here. ORCL 0.00%↑ has started to show signs of breaking out. I am already heavy here, so alas. NBIS 0.00%↑ has been on a roll as well, with a large 15% position shown in the Situational Awareness LP 13F.
Nuclear: such as CCJ 0.00%↑ URA 0.00%↑ - a much bigger secular story than the AI trade alone, especially in the wake of Hormuz.
Hyperscalers: consistently crushing earnings reports and sitting in the nexus of supply, demand, and application. Some of these are on sale such as MSFT (I am equal parts intrigued and concerned), some have run hard but pulled back and appear to have a 2x on the horizon such as Alphabet (personal top pick). The IV for longer dated options is also underpriced IMO considering their positioning. Through LEAPS, I play IV/RV and direction together.
Energy IPP like CEG 0.00%↑ and TLN 0.00%↑ - lacking YTD momentum, so a possible way to reduce the momentum factor.
Leaders in orthogonal sectors like Healthcare / Biotech: I love LLY 0.00%↑ as a natural pairing. Low correlation, ignores semis pullbacks.