US Stock market has finally recognized that there is such a thing known as AI....
First AI was being dismissed as a fad and has no substance
NVDA tried to teach skeptics that AI is a real phenomenon 3 quarters ago, everybody " yawned "
NVDA highlighted tremendous AI growth 2 quarters ago, most dubbed It, it IS " temporary "
Last quarter NVDA again tried to teach that AI is being pushed by Industries, corporations & governments all over the world in a mad mad rush to be part of AI .....many said " IT IS A BUBBLE "
BUT then was SMCI with the same message AI AI AI & super growth in Sales & EPS
Then DELL came out with its latest report 2 days ago, same story of AI super demand for servers with a huge backlog....
SO AMD jumps to all time high as there is unmet demand for many AI chips
MU also joined in AI related memory demand by moving higher....
About those millions of bubble laden skeptics of AI......means many shorts are still there....till we really reach " frothy level "
AI driven stocks are trying to catch up to real higher valuation in a hurry.....
Based on PE & RSI...we are near S&P 500 valuation....which IS LOW based on historical valuation given to " new high growth SUPERCYCLE "
On any pullback in any AI stocks, It IS time to get in or add more...
Even 2nd tier or 3rd tier AI stocks are in play NOW....
Please read up on AI super cycle & potential market as highlighted by NVDA, SMCI, DELL & AMD
Good luck with your own take on AI & your own comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Stocktrader,
Last week UP 4.78%
YTD Down 5.72%
Saleem
Hi Saleem,
Last week: +0.85% (YTD: +3.27%)
Portfolio Leaders: PSNL TNA MTRN
Portfolio Laggards: SOXS ZENV TZA
As the market rallied to new highs, the portfolio did also, albeit in a slightly more muted way due to the hedges in place. Although the sentiment and price action are both very bullish together (often a contrarian sign), we've gotten through most of the market-moving data points for now, so it is likely it will continue with few pullbacks. I am ultimately concerned how the intense runup in the semiconductor stocks resolves, so I keep a little SOXS on hand just in case. I think one potential overlooked risk to the markets is the political scene shifting towards these massive corporate profits, and maybe starting to think about taxing them more as politicians promise always more help to the general public. For now, I search for charts that have based and are starting breakouts because that's where I think the next opportunity sits, not necessarily in the overextended charts already, although prices can always get much higher than one would logically expect.
Holdings: TNX(x2) MTRN ULTA AGCO FLYW PSNL IONQ ZENV SOXS, cash 0%
Stocktrader
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