UMC is a strong buy as a semiconductor play benefiting from AI, with a recent earnings-driven breakout and potential for significant gains.
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The Stock Market Is Getting Extremely Stretched
StockedUpMay 5, 2026
The stock market is experiencing a rally driven by semiconductor stocks, which are at record valuations and represent a significant portion of the market cap. While the S&P 500 hits new highs, many other stocks are down. The creator suggests riding the current rally with calls but advises looking at puts on SOXX or SOXS if a broader downtrend emerges, noting the potential for short-term choppiness despite long-term bullish signals for the NASDAQ.
Linked Mentions
Tickers discussed in this post
Palantir (PLTR) is a sell if it breaks down under $13.480 following a poor earnings report.
Qualcomm (QCOM) is a buy if it breaks above its post-market high of $18.95.
FCEL is a buy based on a recent large call option trade with a $1.5M investment.
CRK, an oil refinery ETF, is worth watching closely as it's outperforming and has potential gains.
POET is a buy if it breaks $9.72 and confirms with a $10 break, showing momentum continuation.
TME is a buy on potential upside from the upcoming Trump-Xi meeting and a recent large call option trade.
Redcat is reporting earnings after hours on Thursday.
Rocket Lab is reporting earnings after hours on Thursday.
Core is reporting earnings after hours on Thursday.
IR is reporting earnings after hours on Thursday.
Novo Nordisk is reporting earnings tomorrow morning.
Disney is reporting earnings tomorrow morning.
AMD's earnings beat and guidance were strong, but any reversal in this or other chip stocks poses the biggest risk to the market.
Home Depot is down significantly from its highs.
Apple is exploring using Intel chips, adding fuel to the semiconductor rally.
SanDisk is flying and benefiting from the AI boom.
Micron is flying and benefiting from the AI boom.
Intel is flying and benefiting from AI boom, with Apple exploring its chips.