An investor cites AI demand and backlogs as drivers for continued upside in semis and energy despite recent rallies.
Gary Vaughan of Daily Stock Picks remains bullish on the semiconductor (SMH) and energy (XLE) sectors, arguing that AI-driven demand and substantial backlogs will sustain their upward momentum. Both sectors have experienced historic rallies but continue to show strong fundamentals, according to the investor’s analysis.
The semiconductor industry has benefited from persistent demand for AI infrastructure, while energy has seen support from supply constraints and geopolitical factors. Vaughan’s thesis aligns with broader market expectations of sustained growth in these sectors, though valuations remain elevated.
No immediate market reaction was specified, but the outlook reflects optimism among some investors about tech and energy resilience.