Hi {{first_name}} ,
🍎 THE RETURN OF THE APPLE
Apple jumped more than 10% in the last two weeks to a fresh all time high, helped by news it finally got approval to roll out its AI features in China. Last week, Alphabet and Meta each rose around 3%. Amazon and Microsoft also climbed close to 3%. That is basically the entire index's gain coming from just five names.
Why now? For most of 2026 the Mag 7 have actually been the laggards. While semiconductor and memory stocks went on an incredible run this year, some up well over 100%, the so called safe mega caps quietly sat out most of the party. So when inflation data cooled again yesterday, June wholesale prices actually came in weaker than expected, easing worries the Fed needs to hike rates, investors used the excuse to rotate back into the names that had been left behind. It is a catch up trade, not a brand new trend, but it is a real one.
Pete's Take 👇 This is a classic. The stocks doing all the talking, semiconductors, memory, hyped IPOs, eventually run out of new buyers. Meanwhile the boring, cash rich giants everyone got bored of quietly rebuild strength underneath. Hype gets the headlines. Fundamentals get the long term returns.
🔪 CHIPS GOT SLICED
While Big Tech rallied, the semiconductor and memory names that have been the real stars of 2026 got hit hard. Micron dropped about 8% after reports that a Chinese rival is ramping up competition and could squeeze pricing. Investors are worried could happen to Micron's pricing power.
It was not just Micron. SanDisk fell more than 11%, SK Hynix dropped around 11%, and AMD, Intel and Marvell were all down 5% to 7%. This whole group has had an incredible run this year, so a big chunk of this week was simply profit taking after a huge rally.
And then there is SpaceX. The stock actually dropped below its own $135 IPO price for the first time, just weeks after its record breaking $86 billion listing last month. Coincidentally, the company's giant Starship rocket is scheduled to launch its next test flight tonight from Texas, so all eyes will be on that too.
Pete's Take 👇 Hype can push a stock to crazy levels fast, but it is rarely sustainable. Look at SPCX, still hovering right around its IPO price just weeks after being the biggest listing in history. I always get a little cautious the moment everyone is crowding into the exact same trade. Because once the hype dies down, the money tends to flow back into businesses that are actually generating serious cash. That is the whole philosophy behind Stock Market Genius and Dividend Market Genius. Buy the best. Ignore the rest.
🎯 Pete's Investment Takeaway
Yesterday was a genuine rotation day, not a full blown trend change. Money quietly moved out of the year's hottest trade, semiconductors and memory, and into the year's laggards, the Mag 7 mega caps.
👉 Today's rotation reminds us why we only buy quality inside Stock Market Genius and Dividend Market Genius. With strong fundamentals, we actually love it when prices drop. Because that is where the money is made!
Tuesday on SMG live I called out a particular stock that I'd be buying. And the earnings came in and it is amazing, stock up more than 7% since. 🎉
Congrats to all members who took action. 👏
And honestly, I think this still has room to run. Their fiscal 2027 guidance doesn't even include the latest acquisition, so the real catalyst hasn't even shown up yet.
If you want know my latest stock ideas, join me at SMG! Use “2026” for promo!
Happy Hunting!
Pete
Invest with Pete
🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!
The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.
