The story around Technology lately has centered on weakness — software breaking down, mega-cap names losing momentum, and growth stocks cooling off.
But that’s only part of the picture.
One corner of Tech has been quietly holding up.
I’m talking about Semiconductors.
These are some of the most critical companies in the global economy today — the backbone of everything from AI and cloud computing to autos and industrials.
They’re the engine that powers the entire technology ecosystem.
Here, we’re tracking Technology and Semiconductors, each relative to the S&P 500:
History shows you don’t get lasting strength in tech without chips leading the way.
When semis are outperforming, broader technology leadership usually follows.
So if semiconductors are breaking out to new highs — both in absolute terms and relative to the market — how bad can the overall tech environment really be?
Probably not very.
In fact, this kind of action suggests Large-Cap Technology as a sector may be quietly setting up for a rebound.
With semiconductors already leading the charge, it wouldn’t be surprising to see mega-cap names follow and push toward new highs.
That’s the bullish case.
The bearish scenario? Semis roll over and lose their leadership.
If that happens, it could create turbulence and open the door for broader weakness across tech.
Oh, and one more thing — Steve just released the first deep dive report for Beat Report members, covering fundamentals, risk management levels, and a LEAPS options trade.
