“If they can hold up, it will lower the odds considerably that the other big-cap momentum names will see another leg lower,” Matt Maley, equity strategist at Miller Tabak & Co., told Bloomberg. “Of course, all bets will be off if Apple gives us a lousy earnings report tonight (they’re a huge buyer of chips), but right now, the action in the semis is definitely positive.”

Solid Apple Earnings

Apple posted quarterly revenue of $53.3 billion, an increase of 17 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.34, up 40 percent. International sales accounted for 60 percent of the quarter’s revenue. Apple is the main customer of Taiwan Semiconductor Manufacturing Co.

Half of the components in iShares PHLX Semiconductor ETF (NasdaqGM: SOXX) also rely on Apple for a portion of their revenue. SOXX experienced $129 million in inflows on Monday as well.

“Even though the FAANG complex has been on fire and growing in influence, there are still been plenty of secondary and tertiary Technology names that have not broken down,” Frank Cappelleri, senior equity trader at Instinet LLC, told Bloomberg. “In order for the Growth trade to persist, the Semis must maintain their buoyancy.”

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