My hunch was right. This AI movement is just like the Netscape IPO in 1996. That spurred a massive investment into web 1.0, telecom equipment, networking, semiconductors,etc. SMCI is up 110% in the last 12 trading days: from $311 to $650. NVDA is up 40% in the last 21 trading days: $490 to $690. The best play is to buy SMH + FNGS unlevered; if you want levered it is SOXL + FNGU. SMH +11.4% YTD FNGS +9.8% YTD QQQ +4.6% YTD IWM -4.2% YTD Just stay away from small caps. They are a disaster.
Something is going to give eventually. The trajectory of these moves is extraordinary....SMCI is up almost another 100 today... As for small caps I trade the IWM almost a few times a week. It's either the dow and spy rally pushing the iwm up or iwm falls apart bringing everything down with it. You may not believe the second part as being true but damn well its a possibility. Secondly I'm shocked with the 10yr closing in on 4.20 markets aren't down at least 2%...
SMCI has a market cap of 36 billion so I'm sure all those ai bulls are going to suggest that this company deserves a trillion dollar market cap and I'm sure they will put it up straight to trillion and they push nvda straight to 10 trillion.
I will make it known once again. I don't think anyone understands the dynamics of how quick nvda is adding market capitalization. To put it i to perspective since jan 1st up until today which is only 36 days....36 days....let me repeat 36 days!!!!! Nvda has added nearly a half a trillion in market capitalization meaning it added an entrie Walmart in 36 days. Does anyone realize the size of Walmart They have over 2 million employees, 4600 locations and yearly revenue of over $600 billion dollars, the biggest retailer on earth.... well nvda added an entire Walmart in 36 days. I understands ai is the next thing being hyped on wallstreet becsuse it's all wallstreet has to prop up markets so it's using the ai narrative to pump and fuel every angle and sector of the market..the trajectory of this run is NOT sustainable. Wake up and realize what us going on ....most won't and will ignore it just like they did last bubbles but that's how it works on wallstreet as we all know this time it's different...which we all know it never is.
More hype https://www.fool.com/investing/2024/02/05/could-super-micro-computer-become-the-next-nvidia/
Some of these stocks make make it feel like Jan & Feb 2000, although this bubble is much more limited. We know what happened in March 2000. These crazy stocks that have gone vertical will all have 50%+ crashes at some point, but they might double first.
Tonight as you are all sleeping soundly counting down the hours to the morning opening bell to once again count your unlimited free money from nvda printing press, nvda will be trading between 708-715 sitting above 700 adding yet another $40 billion plus in market capitalization or entire General Mills corporation!!!! 99.999% guarantee it's above 700 in the after-hours tonight as they need to keep it pumped.
So of course they will double however doubling a 2 trillion dollar stock is a bit harder than doubling a 2 billion dollar stock. But of course I'm sure nvda will double very quickly..... Actually according to my calculations nvda will be doubled to $1400 a share by end of June 2024 with a staggering market capitalization of $3.4 trillion!!! Should be at 3000+ by December with a market cap of over $6 trillion dollars being the biggest bloated pig in the world.
This is not true, when a stock is in a bubble it makes little difference. Especially with stock splits. Nividia could do a 10:1 stock split. And double again in a month. Traders are trading the momentum and selling to greater fools or ready to take a loss if it reverses. Few care what the market cap even is.