Ross Gerber, Co-founder of the investment firm Gerber Kawasaki, on Thursday, said his team was forced to sell some positions in semiconductor stocks like Micron Technology Inc (NASDAQ:MU), Nvidia Corp (NASDAQ:NVDA), and Broadcom Inc (NASDAQ:AVGO) to comply with the sector cap limit.
Diversification Rules Prompt Semiconductor Sales
In a post on X, Gerber said, “Today we had to sell a small amount of our positions in semis” – Micron, Nvidia and Broadcom.
The diversification rule has forced a reduction in semiconductor holdings even as he reiterated a bullish stance on the group. He said, “This was a requirement of diversification in my fund of 25% max in a sector, not because of my desire in any way. I am very bullish on these companies.”
The semiconductor stocks have been on a tear this year on the AI-fueled semiconductor boom. The PHLX Semiconductor Index recently reached its highest level since March 2000.
Micron
Micron has been on a remarkable surge, having gained more than 714% over the past year and 172% since the start of this year. The rally has lifted the memory chipmaker’s market capitalization near $900 billion, vaulting the …
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