Woofun AI reports that the Philadelphia Semiconductor Index has declined 20% from its peak, with the RSI nearing the oversold zone. Morgan Stanley attributes this drawdown to technical factors and position clearing rather than fundamental deterioration, noting that DRAM and NAND supply-demand tightness is expected to persist until 2028. The bank advises investors to gradually increase semiconductor exposure during the summer, highlighting that 97% of Q2 earnings reports exceeded expectations.

Additionally, equity allocation was raised to 65%, with an overweight stance on semiconductors, mining, and banking sectors.