The Kobeissi Letter(@KobeissiLetter):Retail appetite for chip stocks has eased: Retail purchases of the semiconductor ETFs, $SOXL, $SOXX, and $SMH, are now 1 standard deviation below their 1-year average. At one point in mid-June, purchases fell to 2 standard deviations below this historical norm. This metric is now well below the peak seen in November 2025 and March 2026, at 3 standard deviations above its 1-year average. Similarly, retail purchases of individual semiconductor stocks fell to more than 2 standard deviations below their historical norm last month. Retail investors are buying significantly fewer semiconductor stocks and ETFs than they were before the sector sell-off in June through July. The AI trade remains highly fluid.

2026.09.08 02:10

Retail appetite for chip stocks has eased: Retail purchases of the semiconductor ETFs, $SOXL, $SOXX, and $SMH, are now 1 standard deviation below their 1-year average. At one point in mid-June, purchases fell to 2 standard deviations below this historical norm. This metric is now well below the peak seen in November 2025 and March 2026, at 3 standard deviations above its 1-year average. Similarly, retail purchases of individual semiconductor stocks fell to more than 2 standard deviations below their historical norm last month. Retail investors are buying significantly fewer semiconductor stocks and ETFs than they were before the sector sell-off in June through July. The AI trade remains highly fluid.