A key test looms for the AI trade this week. Here's how Mike Khouw is trading it

Why it matters

MU (Micron) · Why linked: Micron is reporting earnings after the bell Wednesday, which is the key catalyst for the AI trade discussed. Market context: Micron's earnings result will be a major near-term catalyst for the stock and broader semiconductor sentiment.

NVDA (NVIDIA) · Why linked: Micron's results are viewed as a key test for AI-driven memory/semiconductor demand, which directly affects AI bellwethers like NVIDIA. Market context: Strong Micron results could reinforce the AI trade and lift related semiconductor names; weak results could pressure the group.

SOXX (iShares Semiconductor ETF) · Why linked: A key semiconductor earnings test typically moves the broader chip ETF as a proxy for the AI trade. Market context: Semiconductor sector ETF may see elevated volatility around Micron's earnings print.

AMD (Advanced Micro Devices) · Why linked: AI-memory demand signals from Micron are broadly relevant to other AI/semiconductor names like AMD. Market context: Semiconductor peers often move in sympathy with Micron's results on AI demand signals.