Portfolio Overview
The Semiconductor Portfolio continues to benefit from robust demand in AI accelerators, high-bandwidth memory, and advanced packaging. Over the past week, the portfolio’s performance has been driven by strong earnings and positive industry data points. Key contributors include Soitec (+36.6% since pick), SiTime (+30.7%), and Credo (+23.3%).
Performance Drivers
AI infrastructure spending remains the primary catalyst, with hyperscalers increasing capital expenditures. This has lifted demand for advanced nodes, silicon photonics, and precision timing solutions. Additionally, the memory upcycle is benefiting SK Hynix and Samsung, though their recent quotes are flat due to data availability.
Position Changes
We have decided to close our position in Silicon Labs (ESTA). The stock has declined 13.25% since our initial pick, and the thesis has weakened due to prolonged inventory digestion in IoT and industrial markets. With limited near-term catalysts and better opportunities elsewhere, we are reallocating capital to higher-conviction names.
Risk Concentration
The portfolio has a notable concentration in AI-related names, which could amplify volatility if AI spending decelerates. However, we maintain diversification across equipment, materials, and specialty chips. We are monitoring geopolitical risks, particularly export controls and supply chain disruptions.
What to Watch
Investors should watch upcoming earnings from major semiconductor companies, AI capex guidance, and memory pricing trends. Also, monitor any policy changes regarding chip exports to China.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research or consult a financial advisor before making investment decisions.