Momentum Monday - Nvidia Did It Again And Netflix Stock Might Be Done Chilling

NVDA did it again. Another epic earnings report. Another gap to a new all-time high. This time, they also announced a 10 for 1 stock split. The CEO, Jensen mentioned that they are on a one-year cycle for their AI chips. Good luck to the competition trying to catch up. 

What other stocks are likely to benefit from the rise of AI – Anything needed to build and run bigger and more efficient data centers. This includes energy stocks, cooling equipment, storage devices, networking equipment, firewalls, transistors, routers, controllers, backup generators, etc. Some of the stocks that are benefiting or likely to benefit from the AI trend – MU, COHR, AMZN, MSFT, GOOGL, AMD, SMCI, NVT, CLS, etc.

Another big theme from the last week was the resurrection of clean energy stocks. Solar names have been perennial dogs for years. Something changed last week and we saw a massive rally in the sector. It was led by FSLR which is the only solar near its 52-week highs. The rest are dogs but even dead cats could bounce 50% if there’s a strong sector move – ENPH, JKS, CSIQ, SHLS, TAN.

Don’t forget that the market tends to surprise the majority and provide a rug pull when people become too complacent and enthusiastic – see the price action last Thursday. Everything gapped up after record Nvidia profits and then sold off hard only to recover the next day. Volatility is starting to pick up again. The good news is that money is not leaving the market. It’s merely rotating between sectors. The bull market is still on. We have to pay attention to the hot themes of the day and play where there’s action.