To The Moon

For the week ended June 17, US equity funds saw a record $119.2 billion inflow. Tech alone grabbed $19.2 billion — also an all-time high.

📊 Key Numbers at a Glance

• 💰 US equity funds weekly inflow: $119.2B → All-time record

• 💻 Tech sector weekly inflow: $19.2B → All-time record

• 📈 Mid-cap funds weekly inflow: $19.9B → All-time record

• 🎯 Small-cap funds weekly inflow: $12.3B → 2nd highest ever

• 🔮 2026 annualized projection: $739B → if current pace holds

• 🏦 Wells Fargo $S&P 500(.SPX)$ target: 8,600–8,800 by end of 2027

• 💵 US household stock wealth gain: +$6 trillion YTD

🔥 Three Catalysts Driving the Rally

• 1️⃣ Iran War Ends — Middle East risk cools, Trump approval stops falling, Wall Street turns bullish

• 2️⃣ AI Infrastructure Boom — $Alphabet(GOOG)$ , $Amazon.com(AMZN)$ , $Meta Platforms, Inc.(META)$ and hyperscalers keep pouring billions into AI capex

• 3️⃣ Risk Appetite Spreading — Money isn't just chasing mega-caps anymore; mid/small-caps are catching bids too. Classic FOMO.

⚠️ Two Risks to Watch

• 🗳️ Political Risk: If Republicans lose Senate majority in November midterms, BofA warns of a "triple whammy" — dollar down, yields down, stocks down

• 📉 Supply Overhang: Reddit's record $7.5B IPO, Anthropic/OpenAI heading to market, plus Alphabet/Meta/Oracle selling billions in stock to fund AI spending. Can the market absorb this flood of new supply? That's the key test for this rally's staying power.

🎯 AI Trade Rotates from "Chips" to "Equipment"

Used to be all about NVIDIA and AMD. Now money is digging upstream into the semiconductor equipment supply chain.

9 semiconductor equipment stocks with $10B+ market cap — all up 75%+ YTD, 7 have doubled:

• 🏆 1. $MKS Instruments(MKSI)$ +154.9% — Etch, deposition, ion implant core components

• 🔧 2. $Applied Materials(AMAT)$ — Global equipment leader, doubled

• ⚡ 3. $Lam Research(LRCX)$ — Etch equipment giant, doubled

• 🔍 4. $KLA-Tencor(KLAC)$ — Inspection & metrology, doubled

• 🧪 5. $Teradyne(TER)$ — Test equipment, doubled

• 🧬 6. $Entegris(ENTG)$ — Materials & contamination control, doubled

• 📐 7. $Onto Innovation Inc.(ONTO)$ — Inspection & measurement, doubled

🤔 Why Are Equipment Stocks Suddenly Exploding?

• 1️⃣ $Micron Technology(MU)$ plans to double wafer capacity in 5 years, triple by 2034. 2026 capex well above last year

• 2️⃣ $Taiwan Semiconductor Manufacturing(TSM)$ raised 2026 capex guidance to ~$56B. CEO C.C. Wei: "Even with full acceleration and early equipment procurement, supply remains tight"

• 3️⃣ SEMI data: Q1 2026 global semiconductor equipment shipments hit $36.55B (+14% YoY), quarterly record

• 4️⃣ $Citigroup(C)$ raised price targets on AMAT and LRCX, strongly bullish on NAND equipment demand

• 5️⃣ $UBS Group AG(UBS)$ sees front-end wafer equipment catching up vs. memory plays. Equipment lead times won't normalize until mid-2027

💡 Bottom line: Equipment makers are in a "seller's market" — demand outstrips supply, pricing power is theirs.

📝 One-Liner for SG Investors

Money is flooding in, AI heat is spreading from downstream applications to upstream equipment, but supply is also expanding aggressively.

Short-term FOMO is running hot; medium-term, watch the November midterms and Trump approval trajectory. Equipment stocks have run hard, but TSMC and Micron's expansion plans mean demand support is real — just don't chase here, wait for a pullback to add.