The Hottest Sector Driving the SPY right now

Join me in the chat room

June 26, 2025

We have daily FREE LIVE trading action in the Master’s Club Chat room

Daily schedule:

👉9AM EST: Pre-market with Jeff Williams - get your head on straight for the trading day ahead (listen to him on your way to work!)

👉Hop back into Market Master’s at 3pm EST to hunt down hot penny stocks and swing trades to close out the day - hit the button to go to the room now:

Good morning all,

You know I love to trade the SPY and there is good reason for that. Not only is it the most liquid ETF in the world which helps me get excellent fills at pretty cheap prices, but it also tracks the TOP 500 companies in the USA!

So when I am trading the SPY, I also want to be paying attention to what sectors are hot and what are not right now.

Below are 6 reasons why the semiconductor industry is blazing hot, which just so happens to carry SPY giants NVDA, AGVO, SMCI, MU, AMD, ARM and many more.

1. AI Boom & Data Center Demand

  • NVIDIA, AMD, Broadcom, and others are riding a wave of unprecedented demand for chips powering AI training and inference (think ChatGPT, autonomous driving, robotics, etc.).

  • Companies and governments are investing billions in AI infrastructure, fueling demand for GPUs, high-bandwidth memory, custom silicon (ASICs), and networking chips.

2. Secular Megatrends

  • Cloud computing, edge computing, 5G, electric vehicles, IoT, and automation all rely heavily on semiconductors.

  • These trends are long-term and global, giving the sector persistent tailwinds.

3. Supply/Demand Balance is Improving

  • After the post-COVID glut in some areas (like consumer electronics), inventories are now normalizing, especially in automotive and industrial chips.

  • Companies like TSMC and ASML are forecasting stronger second-half demand.

4. Blowout Earnings & Guidance

  • Recent earnings from NVIDIA, Broadcom, and Micron have crushed expectations.

  • Strong margins and bullish forecasts make these companies look like growth engines in a high-rate environment.

5. Government Investment (CHIPS Act)

  • U.S. and other nations are pouring billions into domestic chip manufacturing to reduce reliance on Asia.

  • This has boosted sentiment for U.S.-based firms like Intel, GlobalFoundries, and equipment suppliers (AMAT, LRCX).

6. Momentum + Retail & Institutional Flows

  • Semiconductors are leaders in the S&P 500.

  • ETFs like SOXX and SMH are seeing strong inflows.

  • Investors view these stocks as “AI picks and shovels”—a safer way to play the AI gold rush.

If I were to add in the potential for “Robotics” which could be one of the massive up and coming things that NVDA will help with, then you can clearly see why markets are rocking and the semiconductor space is leading the way.

This being said, keep an eye out for NVDA, AVGO, SMCI, ARM and the likes to push higher today, if they do, I think SPY calls is a great trade idea into Friday.

Cheers

🥂Haven’t joined RB Special Events yet?  Change that by subscribing HERE.

Questions or concerns about our products? Email [email protected] © Copyright 2025, RagingBull

DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at https://ragingbull.com/disclaimer.

FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any RagingBull Service offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision.

RESULTS PRESENTED NOT TYPICAL OR VERIFIED. RagingBull Services may contain information regarding the historical trading performance of RagingBull owners or employees, and/or testimonials of non-employees depicting profitability that are believed to be true based on the representations of the persons voluntarily providing the testimonial. However, trading results of third parties have NOT been tracked or verified and past performance is not necessarily indicative of future results, and the results presented in this communication are NOT TYPICAL. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, market dynamics and the amount of capital deployed. Investing in securities is speculative and carries a high degree of risk; you may lose some, all, or possibly more than your original investment.

RAGINGBULL IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Neither RagingBull nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor(IA), or IA representative with the U.S. Securities and Exchange Commission, any state securities regulatory authority, or any self-regulatory organization.

WE MAY HOLD SECURITIES DISCUSSED. RagingBull has not been paid directly or indirectly by the issuer of any security mentioned in the Services except possibly by advertisers mentioned in this email. However, Ragingbull.com, LLC, its owners, and its employees may purchase, sell, or hold long or short positions in securities of the companies mentioned in this communication.

*Sponsored Content: If you purchase anything through a link in this email other than RagingBull (RB) services, you should assume that we have an affiliate relationship with the company providing the product that you purchase, and that we will be paid in some way. RB is not responsible for any content hosted on affiliate’s sites and it is the affiliate’s responsibility to ensure compliance with applicable laws. We recommend that you do your own independent research before purchasing anything. While we believe in the companies we form affiliate relationships with, please don’t spend any money on these products unless you believe they will help you achieve your goals.

RagingBull.com, LLC shall be entitled to recover attorneys’ fees, costs and disbursements. In the event that any suit or action is instituted as a result of doing business with RagingBull.com, LLC and/or its affiliates or if any suit or action is necessary to enforce or interpret these Terms of Service, RagingBull.com, LLC shall be entitled to recover attorneys’ fees, costs and disbursements in addition to any other relief to which it may be entitled.