Rotation Tracker 13 min read

Sector Rotation Tracker
Which Bro Billionaire Sectors Are Hot?

Track sector momentum across AI chips, cloud computing, EV, social media, and more. Rotate capital to hot sectors and avoid laggards.

Sector Rotation Strategy

  • Hot Sectors (2024-2026): AI Infrastructure (+248%), Cloud Computing (+134%)
  • Cooling Sectors: Electric Vehicles (+87%), Social Media (+62%)
  • Cold Sectors: Hardware/Devices (+38%)
  • Rotation Signal: When sector outperforms S&P by 3x for 6+ months, it's hot
  • Strategy: Overweight hot sectors, underweight cold sectors

Current Sector Heat Map

AI Infrastructure 🔥 HOT
+248%
6-Month Performance
AI chip demand exploding. Data center buildout accelerating. Nvidia printing money. Capex from Big Tech hitting all-time highs.
Sector Stocks:
Nvidia (NVDA) +264%
Part of MSFT/AMZN +118%
Cloud Computing 🔥 HOT
+134%
6-Month Performance
Azure and AWS growing 30%+ YoY. AI workloads driving cloud migration. Enterprise adoption accelerating post-COVID.
Sector Stocks:
Microsoft (MSFT) +142%
Amazon (AMZN) +126%
Electric Vehicles ⚠️ COOLING
+87%
6-Month Performance
EV growth slowing. Price cuts hurting margins. Competition intensifying from Chinese EV makers. Still growing but momentum fading.
Sector Stocks:
Tesla (TSLA) +87%
Social Media ⚠️ COOLING
+62%
6-Month Performance
Ad spending stabilizing but not accelerating. TikTok competition. Regulatory pressure. Meta's metaverse bet still losing billions.
Sector Stocks:
Meta (META) +62%
Hardware/Devices ❄️ COLD
+38%
6-Month Performance
iPhone sales flat. Services revenue carrying Apple. Hardware market saturated. No major product cycle catalyst.
Sector Stocks:
Apple (AAPL) +38%
Data/Defense Tech ⚠️ COOLING
+93%
6-Month Performance
Government spending strong. Commercial adoption slower than expected. Valuation stretched after massive run-up.
Sector Stocks:
Palantir (PLTR) +93%

Historical Sector Rotation (2020-2026)

Period Hot Sector Performance Catalyst
2020-2021 Electric Vehicles +487% Biden climate agenda, EV adoption accelerating
2022 NONE (Bear Market) -58% Fed rate hikes, tech selloff, all sectors red
2023-2024 AI Infrastructure +328% ChatGPT launch, AI boom, data center buildout
2025-2026 Cloud Computing +134% Enterprise AI adoption, Azure/AWS dominating

How to Use Sector Rotation

1. Identify Hot Sectors

Look for sectors outperforming S&P 500 by 3x+ over 3-6 months. Example: AI chips up 248% vs S&P up 18% = 13.8x outperformance = HOT.

2. Overweight Winners

If AI Infrastructure is hot, increase allocation to Nvidia. If Cloud is hot, overweight Microsoft/Amazon. Follow momentum.

3. Underweight Laggards

If Hardware is cold, reduce Apple exposure. If Social Media is cooling, trim Meta. Avoid anchoring to losers.

4. Rebalance Quarterly

Sector leadership changes. Review quarterly and rotate capital from cooling sectors to heating sectors.

Don't Chase Extremes

When a sector is up 300%+ in 6 months, it's often LATE to rotate in. Best entry is when a sector just starts heating (up 50-100% and accelerating). Sell when it peaks and starts cooling.

FAQ

Is sector rotation timing the market?

Partially. You're not predicting crashes, just following momentum. When AI is hot, you buy AI. When it cools, you rotate elsewhere. It's trend-following, not market timing.

What if I pick the wrong sector?

Diversify across 3-4 sectors. Don't go all-in on one. Example: 40% AI chips, 30% cloud, 20% EV, 10% social media. This smooths volatility.

How often should I rotate?

Quarterly review minimum. Some aggressive traders rotate monthly. Too frequent = taxes and whipsaws. Too infrequent = miss shifts.

Ride The Hot Sectors

AI Infrastructure and Cloud are on fire. EVs and Social Media are cooling. Hardware is cold. Rotate capital to momentum winners and cut laggards. Sectors rotate every 12-18 months—stay alert.

Track Momentum. Rotate Capital. Outperform.