Portfolio Performance Overview
The Semiconductor Portfolio ended the week with a mixed performance. Out of 34 open positions, only a handful posted gains, led by Soitec (SLOIF) +24.6%, Credo Technology (CRDO) +5.2%, and Silicon Labs (ESTA) +3.4%. The majority of holdings declined, with Wolfspeed (WOLF) -27.2%, Camtek (CAMT) -23.5%, and Enphase (ENPH) -14.8% being the worst performers. The portfolio’s thematic focus on semiconductors remains intact, but near-term volatility has been elevated due to macro concerns and sector rotation.
Key Drivers This Week
- AI Optimism: NVIDIA (NVDA) and Credo Technology (CRDO) benefited from continued AI infrastructure spending, with NVDA up 2% and CRDO up 5.2%.
- Solar Weakness: Enphase (ENPH) and other solar-related names fell on policy uncertainty and inventory buildup.
- Silicon Carbide Struggles: Wolfspeed (WOLF) plunged after a disappointing earnings report, highlighting production delays and demand softness.
- Equipment Softness: KLA (KLAC), Onto Innovation (ONTO), and Lasertec (LSRCY) declined on concerns about capex cycles.
Portfolio Actions
We are closing two positions this week:
- Wolfspeed (WOLF): The thesis of a silicon carbide leadership has been severely compromised. With production delays, weak demand, and a 27% loss, we are cutting our losses to redeploy capital into stronger names.
- Enphase Energy (ENPH): The solar microinverter market is facing structural headwinds, and the semiconductor content thesis has not materialized. We are exiting to focus on pure-play semiconductor companies.
All other positions remain open. We believe the current drawdowns in names like Camtek (CAMT) and Siltronic (SSLLF) are temporary and do not warrant closing. The long-term demand drivers for semiconductors—AI, automotive, IoT, and 5G—remain intact.
Risk Concentration
The portfolio remains well-diversified across sub-sectors: design (NVIDIA, Credo), equipment (KLA, Onto), manufacturing (Samsung, Tower), and materials (Soitec, Siltronic). The largest single position is NVIDIA at roughly 3% weight, so no single stock poses excessive risk.
What to Watch Next
- Earnings reports from KLA, ONTO, and LSCC next week.
- US GDP and inflation data for clues on Fed policy.
- Semiconductor Equipment and Materials International (SEMI) industry data.
Risk Disclaimer: This portfolio review is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. All investments carry risk, including the potential loss of principal. Consult a financial advisor before making investment decisions.