I also liked that Anthropic made a small profit in its last quarter. That should reduce some of the skepticism around the AI sector. Both ETFs. SMH and SOXX held their 200 day moving averages
It is good to see a decent bounce today in semis, AI and data center stocks after 3 weeks of doom and gloom.
Both ETFs. SMH and SOXX held their 200 day moving averages of 516 and 475 on Monday, and in the ensuing rally have moved up to 550 and 502, about 6% higher than their lows, the support at these levels is looking good.
I was worried about the two marquee semiconductor ETFs not holding their 200 DMAs, and wasn't keen on entering the market till these support levels held and I am encouraged with what I see.
I also liked that Anthropic made a small profit in its last quarter. That should reduce some of the skepticism around the AI sector.
They released their latest quarterly filing with the SEC before their IPO, and hidden in all the headline numbers (Large accounting write offs and adjustments) were positive gross and operating profit margins. In Q2-2026, Anthropic had a gross margin of 52% and operating profit of 8%. A good sign, and as they get more efficient this will improve. This was better than my expectations - I was expecting around 45% gross, and shows variable costs not rising faster than what they can charge their customers.
The operating profit was an even more positive surprise.
