If Seize the Day was a Company: Nvidia’s Formidable RiseUnhinged demand for Nvidia’s AI chips bumped the company’s valuation to $2 trillion, adding half of that in less than four months. Read how it happened.
Table of Contents
Genesis
Compiling
Speedrun
Benchmark
Spillover
Overclock Much?
Rage Quit
More Players Exit
Wild Rivals Appeared!
Runtime
Genesis
It’s a crisp, sunny morning in 1993. You’re at your local diner in Silicon Valley, casually sipping your coffee and waiting for your meal. At the table next to you, three engineers are cranking on caffeine and dreaming up a gig that would end up changing not only their lives, but also usher in a new era of computing. It’s the three founders of a company called Nvidia (ticker: NVDA ).
A business-savvy 30-year-old Oregon graduate Jensen Huang, hardware savant Chris Malachowsky and software geek Curtis Priem spun up the business more than 30 years ago. Together, they set up their venture in a bid to bring 3D graphics to the gaming space.
Compiling
Today, the thriving company is doing much more than that. Nvidia, which traces its humble origins back to a Denny’s diner, is now the backbone of the artificial intelligence revolution.
Nvidia was for a long time shoved into the deeper corners of the gaming space and was barely known to the public. For most of its existence, it’s been making graphics cards, which are used by gamers, crypto miners, plain PC users and professionals from various industries.
The company’s booming business line right now is AI chips—hardware pieces essential for training large language models, the type that underpins systems like OpenAI’s ChatGPT.
AI chips have also underpinned another side of Nvidia—they’ve touched off a monster rally in its share price. Enough to catapult its valuation to the Top 3 of America’s biggest companies , right after iPhone maker Apple and software heavyweight Microsoft.
Speedrun
It took just about 24 years for Nvidia to step into the exclusive $1 trillion club, having started trading as a public company in 1999 at a $625 million valuation. Then in the span of just four months—November 2023 through February 2024—Nvidia added its second trillion, largely thanks to its timely expansion from its flagship products to the powerful AI chips.
Now, Nvidia is comfortably sitting in the Top 5 of the world’s largest companies .
“A whole new industry is being formed, and that’s driving our growth,” chief executive Jensen Huang told shareholders right after the company published jaw-dropping 265% revenue growth for the final quarter of 2023. The chip darling picked up $22.1 billion in sales, up from $6.05 billion a year ago. Profits swell to more than $12 billion.
Source: Stock Analysis
Benchmark
The earnings release fueled a never-before-seen $277-billion boost to the chip maker's valuation. It was the biggest one-day gain in history of the stock market, surpassing Meta’s recent $204.5 billion pump .
On the second day after the December-quarter financials were published, Nvidia went on to soar above $2 trillion in value with shares changing hands at more than $800 a pop.
Not only that, but the AI trailblazer’s report jolted markets so much it set off a buying spree on a global scale.
Spillover
In the US, the broad-based S&P 500 index notched an all-time high, joined in record territory by the Dow Jones Industrial Average. In Japan, the diverse Nikkei index broke out to a fresh record after 34 years of languishing performance.
Nvidia’s magnificent rise has propelled Huang’s personal fortune to roughly $70 billion, a reflection of his 86.6 million shares, or 3.6% of the company. Is it time for an attire upgrade away from the black leather jacket?
Shares of the company more than tripled in 2023 and pumped over 60% for the first two months of 2024.
Jensen Huang wearing his signature leather jacket—an outfit picked by his wife and daughter. Source: nvidianews.nvidia.com
Overclock Much?
The fundamentals behind the company’s breakneck growth are undoubtedly real. Demand for Nvidia’s most advanced GPUs, called H100s, is so big the chips are being delivered in armored trucks. Each one of them weighs about 290 lbs (130 kg) and will set you back about $30,000 if you’re lucky to get one.
With that said, supply isn’t too loose with Nvidia holding about 80% of that market. What’s more, a new, more powerful H200 chip will be hitting the market in the second quarter of this year.
So what does this mean for the unstoppable rally? Analysts are quick to say that as long as Nvidia maintains its tight grip over supply, outweighing demand should continue to drive the up-only narrative.
Presently, Nvidia has the capacity to develop about 1.2 million AI-focused chips a year, far insufficient to meet the insatiable demand. To illustrate, Meta chief executive Mark Zuckerberg popped on Instagram to brag about his plans of securing 350,000 units of that good H100 stuff by the end of 2024.
Besides the Facebook parent, Nvidia’s biggest customers are Microsoft, Google and ChatGPT owner OpenAI.
Rage Quit
The stampede by investors rushing to buy up stock wouldn’t be complete if it weren’t for the naysayers and doom-and-gloom forecasters. You’d be surprised to see who is on that list of permabears, slamming the chip maker and getting their short positions ready to fire. Or already fired.
Following Nvidia’s post-earnings explosion, short sellers were left nursing paper losses in excess of $3 billion. Staring at giant drawdowns might sting just as badly as missing out the ride.
Disruptive-tech investor Cathie Wood, CEO of investment firm ARK, said in 2023 that Nvidia was “ priced ahead of the curve .” By the end of the year, Wood had offloaded a stake worth more than $100 million. Estimations point that this early leave may be equal to more than $500 million in missed-out profits.
There are other notable names in the investment space who got rid of—or heavily trimmed—their Nvidia shares by the end of last year. (Hedge funds and other investment managers who oversee at least $100 million are required to disclose their holdings in public companies each quarter through a form called 13F.)
More Players Exit
In its 13F filing with the Securities and Exchange Commission, George Soros’s family office Soros Capital had completely exited Nvidia in the third quarter, selling shares worth $4.9 million.
Billionaire Stanley Druckenmiller’s family office held 875,000 shares of Nvidia going into 2023’s third quarter. By the end of the fourth quarter, that hefty stash had been reduced by roughly 40%. Druckenmiller still owns some $300 million in Nvidia shares and even scooped up call options with a notional value of $242 million.
The sellers’ argument wraps around the heavily cyclical nature of chip demand. While in good times there’s euphoria and chip companies triumph, they could also be prone to setbacks once the tide turns.
A fresh example from Nvidia’s recent performance is the 60% drop in its share price in the time span April through September 2022.
Nvidia's share price endured a 60% drop between April and September 2022.
Wild Rivals Appeared!
Competitors from the hardware corner of the economy don’t sit idle while Nvidia goes on an all-out expansion mission. Advanced Micro Devices (ticker: AMD ) is already selling chips similar to the H100s and projects revenue to land at $3.5 billion in 2024. If that number is met, or even doubles, it still will be a blip compared with Nvidia’s $100 billion full-year revenue Wall Street expects.
SoftBank-backed Arm Holdings (ticker: ARM ), whose stock is just as volatile , is in the AI race too. So is Intel (ticker: INTC ) — the US tech mainstay makes and sells chips that power generative AI software.
Nvidia, meanwhile, is busy taking steps to try and cement its dominance in the AI space. It’s already in talks with big tech giants such as Microsoft, Amazon and Google over developing custom chips. Meanwhile, all three are manufacturing their own chips.
Runtime
The big question lingering on everyone’s mind is when will that dizzying AI boom come to a halt or at least pause for breath? Nvidia’s formidable rally, fueled by the rush for graphics processors, is the very definition of what seizing the day means. What’s a reason that may extend this run?
One reason is that the company keeps adding blockbuster earnings quarter in and quarter out.
A second one—Nvidia will need to find a way to work together with tech giants seeking to cut into the AI business. And thirdly, all that effort should eventually pay off by laying out the infrastructure that will foster the much-anticipated AI-driven productivity gain.
Artificial_intelligence
$TAO next stop $1000?I called out GETTEX:TAO at $250 on Feb 4. Since then it ran to $700 and has pulled back and consolidated between about $550 - $625. The chart has formed and if the market continues to move I think there is a chance the buyers come in to run this to 4-figures. This is entirely dependent on the market not nuking - but with the intense, likely institutional BTC buying over the past 48 hours and many retail investors sidelined with little exposure I think a full meltdown is unlikely. We also need the equity markets to stay hot - thats a different story in and of itself.
SMCI - builds the data centers for AI and is hotter than hotSuper Microcomputer is on hard run up trend- at its all-time high, this stock is demonstrating
a high tight bull flag pattern. In a massive move SCMI is up 180% YTD five months so on pace for
400% annualized. Most experts expect more of the same. It is currently resting in consolidation
( the tight channel of the pattern) The zero-lag MACD shows the lines about to cross over the
histogram. I will watch this stock for either a bullish continuation or a pullback. Its
fundamentals are outstanding and its collaboration with NVDA will carry it far. I will wait
for a great entry and take a big bite. This stock's P/E makes it an incredible bargain.
SOL.X in upward trendSOL.X in upward trend: 10-day moving average broke above 50-day moving average on February 03, 2024
The 10-day moving average for SOL.X crossed bullishly above the 50-day moving average on February 03, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 79%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on January 28, 2024. You may want to consider a long position or call options on SOL.X as a result. In 71 of 108 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 66%.
The Moving Average Convergence Divergence (MACD) for SOL.X just turned positive on January 29, 2024. Looking at past instances where SOL.X's MACD turned positive, the stock continued to rise in 35 of 53 cases over the following month. The odds of a continued upward trend are 66%.
Following a +3.52% 3-day Advance, the price is estimated to grow further. Considering data from situations where SOL.X advanced for three days, in 243 of 335 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
SOL.X may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
BINANCE:SOLUSDT
New Robot factory from Tickeron Trading Results for last 12 months
SOL.X
AI Robots (Signals Only)
AI Robot's Name P/L
Swing Trader: Crypto Pattern Trading at Trend Reversal Points (TA) 14.01%
Day Trader: Crypto Pattern Trading in Low-Volatility Markets (TA) 5.39%
Day Trader: Crypto Pattern Trading in High-Volatility Markets (TA) 4.15%
Market Cap
The average market capitalization across the group is 41.64B. The market cap for tickers in the group ranges from 41.64B to 41.64B. SOL.X holds the highest valuation in this group at 41.64B. The lowest valued company is SOL.X at 41.64B.
High and low price notable news
The average weekly price growth across all stocks in the group was -0%. For the same group, the average monthly price growth was -5%, and the average quarterly price growth was 294%. SOL.X experienced the highest price growth at -0%, while SOL.X experienced the biggest fall at -0%.
Volume
The average weekly volume growth across all stocks in the group was -46%. For the same stocks of the group, the average monthly volume growth was -57% and the average quarterly volume growth was 163%
OXT.X Price Prediction, Orchid cryptocurrency AI RecommendationsNew Robot factory from Tickeron Trading Results for last 12 months
OXT.X
AI Robots (Signals Only)
AI Robot's Name P/L
Day Trader: Crypto Pattern Trading in High-Volatility Markets (TA) 14.37%
Swing Trader: Advanced Crypto Pattern Trading (TA) 10.22%
Swing Trader: Crypto Pattern Trading at Trend Reversal Points (TA) 4.36%
Market Cap
The average market capitalization across the group is 95.73M. The market cap for tickers in the group ranges from 95.73M to 95.73M. OXT.X holds the highest valuation in this group at 95.73M. The lowest valued company is OXT.X at 95.73M.
High and low price notable news
The average weekly price growth across all stocks in the group was 3%. For the same group, the average monthly price growth was -4%, and the average quarterly price growth was 72%. OXT.X experienced the highest price growth at 3%, while OXT.X experienced the biggest fall at 3%.
Volume
The average weekly volume growth across all stocks in the group was -64%. For the same stocks of the group, the average monthly volume growth was -78% and the average quarterly volume growth was -92%
BIOR Price Prediction, Biora Therapeutics AI RecommendationsNew Robot factory from Tickeron Trading Results for last 12 months
BIOR
AI Robots (Signals Only)
AI Robot's Name P/L
Swing Trader: High Volatility Stocks for Active Trading (TA&FA) 78.65%
Swing trader: Downtrend Protection v.2 (TA) 51.26%
Day Trader, Popular Stocks: Price Action Trading Strategy (TA&FA) 46.98%
AI Robots (Virtual Accounts)
AI Robot's Name P/L
Swing Trader ($2.5K per position): High Volatility Stocks for Active Trading (TA&FA) 106.85%
Swing Trader ($4K per position): High Volatility Stocks for Active Trading (TA&FA) 93.69%
Swing Trader ($1.5K per position): Hedge Fund Style Trading (TA&FA) 88.47%
Tickeron is a leading US-based financial technology company specializing in the use of artificial intelligence to deliver user-friendly predictive analytics and search engines, including tools by which to find trading and investing opportunities. With its suite of AI-powered tools and platforms like the automated trading with AI Robots, discovering trading patterns with AI Patterns Search Engine, forecasting market movements powered with AI Trend Prediction Engine, identifying live opportunities with AI Real Time Patterns as well as resulting actionable insights from trades with AI Buy / Sell Signals.
The products exhibit Tickeron's success in the use of artificial intelligence to avail solutions in the financial market that make it easy for day traders and long term investors alike to ease their decision making burden with astonishingly complex analysis and predictions.
SOL.X in +3.52% UptrendSOL.X in +3.52% Uptrend, growing for three consecutive days on February 02, 2024
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where SOL.X advanced for three days, in 243 of 335 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
Price Prediction Chart
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on January 28, 2024. You may want to consider a long position or call options on SOL.X as a result. In 71 of 108 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 66%.
The Moving Average Convergence Divergence (MACD) for SOL.X just turned positive on January 29, 2024. Looking at past instances where SOL.X's MACD turned positive, the stock continued to rise in 35 of 53 cases over the following month. The odds of a continued upward trend are 66%.
SOL.X moved above its 50-day moving average on January 26, 2024 date and that indicates a change from a downward trend to an upward trend.
SOL.X may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
CRYPTOCAP:SOL
Robot factory Trading Results for last 12 months
SOL.X
AI Robots (Signals Only)
AI Robot's Name P/L
Swing Trader: Crypto Pattern Trading at Trend Reversal Points (TA) 14.01%
Day Trader: Crypto Pattern Trading in Low-Volatility Markets (TA) 4.62%
Day Trader: Crypto Pattern Trading in High-Volatility Markets (TA) 3.93%
Market Cap
The average market capitalization across the group is 43.79B. The market cap for tickers in the group ranges from 43.79B to 43.79B. SOL.X holds the highest valuation in this group at 43.79B. The lowest valued company is SOL.X at 43.79B.
High and low price notable news
The average weekly price growth across all stocks in the group was 9%. For the same group, the average monthly price growth was 2%, and the average quarterly price growth was 333%. SOL.X experienced the highest price growth at 9%, while SOL.X experienced the biggest fall at 9%.
Volume
The average weekly volume growth across all stocks in the group was 27%. For the same stocks of the group, the average monthly volume growth was -53% and the average quarterly volume growth was 703%
BFRG AI penny stock ready to SHORTI have been in BFRG since the November earnings it has done 300% over that time almost all
of it in one week. There are no options on this one. The RSI indicator tells me that it is now
overextended and overbought. This is confirmed by a reversal signal triggering on this
60-minute chart with a mass index indicator below it. The topping candles with long wicks
is another hint of the price action underway. I am closing my long position over 300%
gain and instead look for a short with the profits to retrace from present price to
to the 0.382 Fib retracement at about 5.65. Stop loss above the wicks at 7.7. I expect the trade
to last this week and part of next.
AI in trading - 6 hottest topics (part 2/2)Alternative Data
ADs provide a better picture of a company's situation, raw materials, currencies. It also allows us to assess the "current state" (nowcasting) of significant indicators. Those data make trading signals better, more precise, less risky and more profitable.
It is a revolution accompanying the AI revolution and even preceding it. In my opinion, it is more important today than AI, which is only in its early stages (despite many impressive achievements). In my opinion, through AD, funds can earn more and build their competitive advantage over others.
ADs are not part of Artificial Intelligence. An example of AD is credit card sales data. This data can be used to predict the financial performance of companies. If we have historical data, then in the simplest case, to make forecasts, all we need is a spreadsheet!
And when we are interested in more advanced indicators of future profitability, such as consumer spending patterns, brand loyalty, switching between products/brands, trending moods, competitors performance, models created using Machine Learning can come into play.
With the increasing number of data sources and the complication of forecasting models, traditional ones will be replaced in a considerable part or even entirely by AI/ML-based models.
For a broader discussion of Alternative Data, see the separate article in this issue.
Visualization
It is easier for humans to look than to think. "Analysis" by sight developed long before abstract thinking.
There is something severe behind this remark. It is much easier for us to understand a situation when it is shown using images rather than just a verbal description. Therefore, as much as possible, use visual aids - graphics, pictures, diagrams, or charts to illustrate data, situations and processes.
Indeed, it is good practice to consider what goal we want to achieve, define the target group and identify which parts of the message will benefit from such enhanced presentation. The same applies to respecting the simplicity of the message, playing with colours and ensuring maximum readability.
Another good practice is to provide a benchmark, or reference point, to which we compare some quantity. Our mind performs better by observing the differences between some benchmarks and the current indication.
An excellent practice is to make it easy for the audience to understand the situation quickly. Thus, when preparing visual aids, try to help them understand the situation as quickly as possible – for example: whether we are in the realm of "normal" or have already gone beyond it.
All key, critical processes should have some sort of graphic representation. It should allow for a quick assessment of the situation, especially in unusual or crises. So let’s say I give you a colour scheme, where green means everything is going well, orange – attention required, and red – we have a critical situation. Sound familiar? It should.
As AI matures, the amount of information and complexity of systems (and portfolios) will only increase. Therefore, using standardized metrics within a company to illustrate key processes is something worth developing as a valuable skill.
Let me say it another way to emphasize the particular importance of this topic - the ability to graphically present important processes for a company is a competence worth developing. It is worth discussing what indicators to use, what types of graphs, what colours, and what schemes to facilitate and enhance understanding, ability, and speed of decision making.
Visual communication is one of the essential elements of building and consolidating a company's structural intelligence.
Automatization
Automatization is the critical process underlying the use of artificial intelligence.
It involves gradually learning and automating more functions of human intelligence. The ultimate stage of AI development in trading is full machine autonomy with a level of perception, "thinking", decision-making far exceeding human capabilities in every aspect.
What does this mean for traders and funds now and in the future?
Now
Today, automatization is one of the main topics because it takes the burden of routine activities and responsibilities off the shoulders of traders. One of the main problems that traders complain about is excessive workload and information overload.
The primary candidates for automation are routine activities that require no intellectual input. And over time, more and more activities will be automated - and more about that in a moment.
Suppose we have a great trader. Only some of his activities add value, and he should focus on them. You can consider using supporting programs or someone else to help with the remaining tasks.
What should not be automated are non-routine decisions, decisions in exceptional or critical situations and those requiring synthetic expertise beyond the reach of AI tools.
Instead, you can automate the execution of decisions in critical situations with confidence.
In an extreme situation, the trader only presses the appropriate key. A program then tries to escape from the market as quickly as possible. It tries to use liquidity, reduce costs and minimize the negative impact of the large order it exits. In nine out of ten situations, it will do this better than the trader and, in the case of substantial orders, in ten out of ten.
Automatization will expand to include more and more activities, including non-routine ones, over time.
In the future
To understand what automatization in a fund will look like in the future, we must first learn the decision-making process of a discrete trader or automated system.
The decision-making process consists of all the elements that lead from the initial analysis (what to trade and where to trade it) through the choice of location, entry, position management, exit, to post-trade analysis.
There can, of course, be many more of these steps if we take a more detailed approach (and the largest funds do).
Automatization here is about taking a single element of the decision-making process and trying to refine it first (to find the best practices) and then automate it.
It would also be beneficial to provide a feedback channel so that we and, in time, the AI system can improve this element based on the incoming and analyzed data. In short, we want the system to learn on its own.
In short, we automate best practices at each step and provide feedback so that the system learns and improves.
On the other hand, entry automation may involve breaking positions into smaller ones, examining order structures above and below, creating and executing entry strategies to minimize cost and adversarial price moves. Hiding positions and maximizing positions for the best signals may also be part of the automation.
Summary
We have discussed six of the "hottest" topics currently occurring in the Artificial Intelligence field. Two are sure to be the most important: XAI and Alternative data.
The first - because it opens up a powerful new trend of adjusting the latest tools to a trader's level of understanding. We already know that a gradient descent on a differentiable manifold tells him nothing. The second - because it is alternative data that gives traders and funds their main competitive advantage today.
In conclusion, it is worth repeating one important thought: the AI revolution is just beginning. It will completely change our world and ways of investing. This process is incredibly fascinating. The New City Trader was born out of a desire to share this fascination.
If you liked this post, give it a boost 🚀 and drop a comment so we know to publish more for you. Cheers!
Follow: www.tradingview.com
NVDA at the CES Ahead of Earnings Next MonthNASDAQ:NVDA moved up on the excitement around AI at the Consumer Electronics Show. We can see that Professional Traders were anticipating a breakout.
The stock should be able to begin some pre-earnings runs soon, as long as revenues and earnings continue to improve.
Volume Oscillators and Money Flow Indicators have been improving as Derivative Developers continued to increase inventory.
AMD - Approaching All Time HighsHello Traders, welcome to today's analysis of AMD.
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Explanation of my video analysis:
After the massive breakout in 2016 we saw a rally of more than 4.500% on AMD. This rally was perfectly followed by a correction of 70% in 2022. As mentioned in my analysis, I am now waiting for a retracement back to the previous structure and if we have enough bullish confirmation, I will then look for potential trading opportunities.
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I will only take a trade if all the rules of my strategy are satisfied.
Let me know in the comment section below if you have any questions.
Keep your long term vision.
AI's Insight from News Cross-Checked with Pattern Recognition 👁Dear Investors, I believe that PLTR might fall to $13.2 in the coming months. Here, I made a short idea from the insights of the different AI algorithms I use for speculative analytics.
News Analytics - Natural Language Processing
1 Palantir's revenue growth has slowed in recent quarters. The company's revenue grew by 31% year-over-year in the first quarter of 2023, but this was down from 54% growth in the fourth quarter of 2022. This slowdown in revenue growth could be a sign that Palantir is facing challenges in the market.
2 Palantir's gross margin has been declining. The company's gross margin was 74% in the first quarter of 2023, down from 77% in the fourth quarter of 2022. This decline in gross margin could be a sign that Palantir is having to invest more in sales and marketing to drive revenue growth.
3 Palantir has been losing market share. The company's market share in the data analytics market is estimated to be around 1%, according to Gartner. This is a very small market share, and it has been shrinking in recent years. This could be a sign that Palantir is not as competitive as its rivals.
4 Palantir's stock price has been volatile in recent months. The stock price has fallen by more than 50% from its all-time high in August 2021. This volatility could be a sign that investors are uncertain about Palantir's future.
Cross-Checking Logic
Of course, there are also some positive news about Palantir that could suggest that the stock price will not fall to $13.2. For example, the company has a strong pipeline of new business opportunities. Palantir is also investing heavily in research and development, which could lead to new products and services that could boost the company's growth.
Chart Pattern Recognition - Deep Neural Networks
Between the two red trendlines, my neural networks believe to be a bearish channel. Your human eyes can see how Palantir rejected the upper trendline on 11 October and 21 November. I marked these price points with red ellipses. The channel had some bullish aspects when the bottom trendline acted as a support on 02 November and possibly today. Look at the left green arrow. Palantir's last rally related to this point. Today, the stock is near the same trendline again, and there's a chance that it can reignite a similar rally. The white arrow shows this possible scenario. I, however, feel skeptical that history would repeat itself.
Ensembling Technical Indicators
I asked different AIs to weigh technical indicators to represent their opinions. I ensembled the results of these AI opinions and selected MACD, RSI, and volume to simulate AI's insights in a way you can reproduce on your chart without AI. From declining volume bars I suspect the continuation of the bearish trend. The price action has been bearish over the last week, and I can't see the volume to reverse it. I can see extreme sell volumes every now and then, but they seemed to escalate the bearish trend. I don't see where the orders are that could absorb the end of the bearish trend. RSI tried to make a bullish cross below the volume indicator, but it happened to be a failed cross. RSI reversed as it crossed the SMA, which suggests a lack of bullish momentum. The potential bullish signal turned out to be an indication of how weak bulls are. At the same time, MACD has been going on the bearish side with a strong momentum, and periodically pulsing bearish momentum without signs of weakening. Overall, these indicators simulate what my AI bots believe about the market. Their ensembled opinion seems to be a bearish continuation.
Chart Explanation
I already explained the red bearish channel, the channel contacts, the indicators, and a potential bullish scenario, but I think bears enjoy a better risk-reward ratio. Theoretically, channel breakdown could pull the price into the support level of 13.2. I've got a green line at this level. Thus, the target price of a short could be within the green box around this level where the bearish trajectory's red arrow shows. The stock might reverse or not at this level. I'll have to reassess if I see the playout of my bearish expectation.
Conclusion
Ultimately, the direction of Palantir's stock price will depend on a variety of factors, including the company's financial performance, the overall market conditions, and investor sentiment. It is always important to do your own research and consult with a financial advisor before making any trading decisions.
Kind regards,
Ely
ARM: Good Share, Bad DerivativeOverview
Arm Holdings PLC ( NASDAQ:ARM ) recently had its IPO back in September 2023. Since then it has bounced around between $46-$78 and I think it's gearing for a rally. Unfortunately there is not much room for a confident technical analysis because of ARM's minimal chart history but I believe this company is definitely worth adding to the Watchlist.
ARM supplies semiconductor technology and has made it a company mission to lower carbon emissions. From my understanding they are attempting to lower their technology's carbon footprint by maximizing the processing power of their chips per every one watt of energy. Imagine this as the equivalent of increasing a vehicle's total miles per gallon (MPG).
I have come under the impression that their technology is delivered to a plethora of companies including NVIDIA and Google who, in turn, use it to develop A.I. projects. It is this aspect that makes me speculatively bullish on the company's outlook.
Speculative Projections
According to their official website ARM technology can be found in nearly every modern device and is used by "70% of the world's population."
ARM's market cap currently rests around $69 billion USD which places it around 1B shares. Since its technology is fueling what is essentially an artificial intelligence bubble within the stock market, it is my personal opinion that a $500B market cap is reasonable if not conservative. This would place ARM's share price around $500 which is a 631% upside from the current share price of $68.34.
If you read my other idea on NVIDIA, I've mentioned that outsourcing may become an issue for NASDAQ:NVDA and so I believe that ARM may be able to fill that vacuum should a semiconductor crisis ever occur. A catalyst like this would definitely have the potential for propelling the stock to new highs.
Risk Management
If picking a good company out of a lineup wasn't enough, now the potential gains to losses needs to be considered. For every dollar risked, I believe at least three dollars should be the reward. With ARM I believe those types of gains are possible however this is the one of those exceptions where I would consider holding shares instead of trading derivatives.
I picked through several option contracts, specifically Calls, and noticed that Open Interest was severely lacking on most contracts except for a few expiring within 90 days. Typically 90 days would suffice however with the lack of trading patterns -- and a sense of direction -- I believe this makes derivative trading too risky for ARM. To top matters off, the contracts with high open interest (>1000) would potentially only deliver 1:1 at best case scenario.
All that said, the lack of direction and amount of share value that would have to be gained within a short period of time leads me to believe that investing in ARM Calls would be reckless. The Calls worth owning and that have an expiration greater than 6 months out have a near non-existent Open Interest. While that could always change if ARM starts getting some attention from the market, this may lead to illiquidity and an inability to unload the contract.
Fundamental Analysis
Current ratio (current assets / current liabilities) = 4.33
* Any ratios under 1.00 are considered a financial risk.
Retained earnings = $2.440B which was a slight decrease from $2.457B in March 2023.
* Allows the company to invest in itself (repurchase shares, expand, etc)
Net income 6 Months Ended September 30 = ($5M) loss
* The majority of the loss appears to have come from escalated operating expenses
within the second quarter. This is a drastic 101.5% decrease from September 30,
2022 which had a net income of $339M.
I'm experiencing some difficulty interpreting the Q2 Earnings Call. I am a self-taught analyst and learn on-the-go so I will need to process this information more before coming to a confident conclusion on the fundamental analysis. However, it does seem that operating expenses increased significantly (approximately by 171.8%) in the second quarter alone.
I will make sure to provide any updates to my findings as a comment on this idea.
Navigating the Perils of AI-Driven Trading: A Cautionary TaleIn the dynamic landscape of stock trading, the allure of artificial intelligence (AI) as a shortcut to financial success captivates many new traders. However, this journey is riddled with pitfalls, as the pursuit of a magic formula can lead to dark and dangerous territories within the market, ensnaring unsuspecting traders in a web of financial peril.
"The path to profitable trading is not found in shortcuts but in the diligent pursuit of knowledge and experience." ~ by @CoffeeShopCrypto
Stage 1: Hopes and Dreams - The Gambler's Mindset
As traders embark on their quest for the elusive magic formula, the initial excitement can morph into a dangerous gambler's mindset. The allure of quick riches blinds them to the risks, and without a solid understanding of the market, they unwittingly navigate treacherous waters. The market, akin to a skilled gambler, will slowly drain their funds, leaving them disillusioned and trapped.
Stage 2: What You Don't Know Can Hurt You - The School of Hard Knocks
Reflecting on their academic experiences, traders must recognize that success in the market is not instantaneous. Just as final tests come after months of learning, mastering the intricacies of trading requires time and effort. Understanding market movements, the underlying mathematics, and recognizing unfavorable trends are skills that can only be honed through diligent study and real-world experience.
Stage 3: Selfish Views - The Ego's Bias
The selfish view that traders adopt, driven by ego, creates a biased perspective that hinders objective analysis. In the pursuit of AI-generated results, traders often fail to recognize the importance of asking market-specific questions. The ego, like a fog, obscures the reality of their limited knowledge and hampers their ability to constructively engage with the market.
Stage 4: Lazy is Easy and Anything Easy is Not Worth It - The Island of Ignorance
Imagine being stranded on an island in the middle of the vast ocean, representing the ever-changing market. Without a solid understanding of market dynamics, traders can aimlessly wander, repeatedly circling the same terrain without realizing it. The illusion of ease becomes a mirage, leading them towards financial ruin. To survive, traders must either expand their knowledge island or chart a course away from ignorance to ensure they can "think or swim" in the market.
Stage 5: How Do You Know It's Wrong When You Don't Know What Wrong Looks Like? - Recognizing the Loaded Weapon
Traders, devoid of experience, may struggle to discern poor-quality AI-generated code. Like holding a loaded weapon without knowing how to use it, the lack of expertise leaves them vulnerable to financial catastrophe. Emphasizing the importance of gaining experience, traders must realize that their inability to identify flaws in algorithms is a ticking time bomb for their trading accounts.
Stage 6: They Always Look for Someone Who Knows - Seeking Validation
Desperation sets in as traders seek help online for code they didn't write, perpetuating a cycle of external validation. It's crucial to recognize that relying on others to fix code generated by AI is a misguided endeavor. The journey towards trading success requires personal understanding, not borrowed solutions.
In the face of these challenges, the truth about AI language models emerges - they are not a panacea for trading success. New traders must abandon the notion of quick fixes, acknowledging that success in the market demands a genuine commitment to learning and understanding its complexities.
0x0: A Golden Opportunity?Hi Everyone,
As we know, the next Bullrun is near and we are excited to find some great nuggets!
I focused on 0x0 AI SMART CONTRACT AUDITOR and it seems this is a direct competitor of Tornado Cash and Uniswap... It means privacy and security protocols with an another feature... AI technology (probably the next trend for the next bullrun).
Actually, never mind about fundamental! I'm just a technical analysis and what I noticed on this chart, it's a large accumulation zone with a huge potential. Today we trade this asset around 0.15$.
1st target : 7.50$.
2nd target : 37.50$.
It appears completely crazy but these are potential targets.
Let's see in the futur!
Stay safe!
PS: it's not a Financial Advice. Only my plan. Just my point of view.
AI Alchemy, The Future of InvestmentsArtificial Intelligence (AI) is no longer just a futuristic concept or a element of science fiction. A revolutionary transformation in technology has propelled AI into a leading force across various sectors of human life. In this context, looking ahead is not just a trend but a necessity. From healthcare to industrial automation, AI is becoming a key element in enhancing our quality of life and providing solutions to complex problems.
For example, in healthcare, AI can speed up diagnostic processes, assist in drug research, and improve the efficiency of medical care. In the industrial sector, AI automation can boost productivity, optimize supply chains, and reduce production costs. It's no wonder that AI companies are attracting investors looking to be part of this significant change.
Investing in AI Companies as the Top Choice
Incredible Growth Potential: AI companies offer incredible growth opportunities. With the increasing adoption of AI technology across various industries, these companies can experience significant long-term value appreciation.
Inevitable Innovation: Innovation is the key to success in this digital era, and AI companies hold the most strategic position in creating revolutionary technology. By focusing on developing smart algorithms, these companies can lead in creating new solutions and enhancing competitiveness in the market.
Social and Economic Impact: AI is not just about business and financial gains. The changes brought about by AI have the potential to create significant social and economic impacts. Investing in AI companies supports a vision of creating a more efficient, sustainable, and adaptive society.
Looking Ahead: How AI Shapes the Future
Smart City Development: AI will play a central role in developing smart cities. With systems that can monitor and manage traffic, energy, and public services, smart cities will become the norm in the future.
Enhanced Education Quality: AI can be integrated into educational systems to provide personalized learning experiences, assist in evaluating student progress, and create responsive curricula.
Energy and Environmental Revolution: AI solutions can be utilized to optimize energy usage, manage waste, and develop green technologies to address climate change.
Healthcare Technology Advancements: With AI, the healthcare sector will undergo a revolution with early diagnosis, personalized treatments, and more effective drug development.
Conclusion:
Looking to the future is not just about predicting trends but understanding how technology will shape our lives. Investing in AI companies is a smart move because it not only yields financial benefits but also supports positive changes in society and the environment. By researching and understanding the impact of AI across various life sectors, investors can make informed decisions and build resilient portfolios for this future full of potential.
UiPath Stock Spikes More Than 20% After Earnings BeatKey Takeaway
1. UiPath’s stock surged more than 20% after the market opened Friday.
2. The company posted quarterly earnings Thursday that beat revenue and adjusted earnings per share expectations.
UiPath stock popped more than 20% on Friday, one day after the company released quarterly earnings that beat Wall Street’s top- and bottom-line expectations.
The enterprise automation software company posted $325.9 million in revenue for the quarter ending Oct. 31, in contrast to the LSEG, formerly Refinitiv, estimate of $315.6 million. Adjusted earnings per share came in at $0.12, more than the $0.07 analyst projection.
UiPath also raised its fourth-quarter and full-year fiscal 2024 outlook for annual recurring revenue. Its ARR was up 24% year over year to $1.38 billion. For companies like UiPath that are reliant on subscriptions, annual recurring revenue is an important metric that reveals how much money a company receives on a recurring basis.
Analysts across the board were pleased with the ARR raise and the company’s strategy to target new businesses.
“Its strategic bet, almost a year old, on driving value for big clients with the longest/broadest automation journeys is paying off; these customers are driving the lion’s share of growth,” analysts from Davidson wrote in a note to investors.
Bank of America analysts highlighted UiPath’s expansion into new verticals, such as retail, IT and manufacturing, as part of their optimistic expectations for the company’s growth.
“We expect to see a healthy reacceleration in key growth metrics such as ARR and NRR (net revenue retention), in Q1 when we reach easier comparisons in the small business segment,” Bank of America analysts wrote in a note to investors.
Davidson analysts believe that more widespread adoption can be attributed, at least in part, to UiPath’s integration of generative artificial intelligence.
The weaving of Generative AI into its broadened automation platform, is driving strong adoption amongst enterprises.
Technical Analysist
PATH is trading near the top of its 52-week range and above its 200-day simple moving average.
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
Artificial Liquid Intelligence (ALI)Artificial Liquid Intelligence is somewhat of a new AI project, with respect to other well-known artificial intelligence projects. Anyway, it seems ALI is about to repeat its previous move; a descending wave followed by price breaking the curved downtrend line, then a sharp upward move. Let's see if ALI repeats this or not.
Long NMR/USDT (Binance/KuCoin/OKX) SWING/HODLLong NMR/USDT (Binance/KuCoin/OKX) SWING/HODL
We discussed Numeraire fundamentally a few times on the live-stream and it is also included in our fundamental HODL portfolio. It is a very attractive and serious project, the token of which has not shown anything properly for a long time (even if it can shoot well from history).
His industry is part of Big Data, TradFi and also AI, that is, a very strong combination for the year 2024. This is a long trade and I personally take it to HODL without SL with a standard HODL position.
Market entry: $16.25
Re-Buy: $12.8
Duration: 3-6 months
Take profits:
TARGET 1 - $29.2
TARGET 2 - $39.49
TARGET 3 - $50.31
TARGET 4 - $61.68
Follow the specified Money & Risk management, or standard position on HODL.
1W chart:
Gold's Resistance: Parallel Channel & A-assisted Zones, VectorsWelcome Esteemed Investors,
I n the ever-evolving landscape of the financial markets, understanding the dynamics of precious metals like Gold (XAU) is crucial for informed decision-making. Today, I bring you insights into the XAUUSD market, aiming to contribute to your comprehensive research endeavors.
T he recent movements in the Gold market have been intriguing, and a closer look reveals compelling signals for investors. After a decisive bounce from the support zone, hovering around $1820, Gold (XAU) has demonstrated bullish indications. Notably, a confirmed breakout from the falling channel, depicted by the blue parallel channel in the chart, stands out as a significant development.
F alling channels are "widely" recognized as bullish chart patterns. They have a tendency to break upwards. What makes this insight even more compelling is the application of cutting-edge technology in detecting potential support zones. Leveraging a Support Vector Machine (SVM) algorithm integrated into a deep neural networking AI, the support zone was identified well in advance, dating back to 09 March. For human observers, this translates into a visually apparent double bottom pattern on the chart.
P ost-bounce from the predicted support zone and a classic breakout from the falling channel, Gold swiftly ascended to the resistance zone around $1980. However, historical selling pressure from supply, marked by the purple zone on the chart, has posed a formidable challenge. Since 04 May, XAU has been trading below this zone, reminiscent of the period from 04 May to 04 October.
Y et, the potential for a bullish scenario persists. A strong demand wave could propel Gold to break out from the current supply zone after a modest pullback within the projected purple area. It's essential to acknowledge the historical ebb and flow of demand and supply in this market; a failure to breach the resistance zone might lead Gold back to the blue support zone.
A nticipating market dynamics, it is crucial to consider external factors. Market news, with its inherent capacity to influence asset prices, might act as a catalyst for a reversal from the support zone. In the event of a downturn triggered by bearish news, the subsequent support zone is estimated to be around $1625.
I n summary, the prevailing signals for Gold appear bullish, suggesting a potential breakthrough of the resistance zone. However, the ever-present influence of market news introduces an element of uncertainty. Should bearish news materialize in the coming weeks, the $1820 support zone could offer another opportunity for bullish positions.
It is imperative to note that the insights shared here do not constitute financial advice. I am not an investment advisor. The decision to engage in financial markets should be made with careful consideration of individual risk tolerance and thorough research. While the probabilities favor long positions at present, it is essential to remain vigilant and adaptable in response to changing market conditions.
Wishing you success and prosperity in your investment journey.
Warm regards,
Ely
Altman + Microsoft: Will AI Wizardry Catapult Stocks ?Microsoft's trajectory into the future takes a compelling turn with the addition of Sam Altman, an AI luminary, to its internal team. This analysis explores the fusion of technology and finance, specifically delving into Altman's impact on AI development within Microsoft. We examine the integration of advanced AI features into Microsoft 365 and assess Microsoft's competitive position in the dynamic AI market.
On the financial front, Microsoft's robust fundamental rating sets the stage for closer scrutiny, emphasizing its stability and profitability. Altman's potential influence on Microsoft's stock value, given his renowned AI contributions, is a key focus, highlighting the pivotal role of innovation in sustaining and enhancing stock performance.
This concise analysis aims to unravel the symbiotic relationship between technological prowess and financial resilience, providing insights into Microsoft's post-Altman journey. As we navigate challenges and opportunities, the conclusion offers a holistic perspective on Microsoft's potential to lead in AI technology and maintain a competitive edge globally.
Technology Analysis:
Impact of Sam Altman Joining the Microsoft AI Team:
With Sam Altman's experience in AI development through OpenAI, his presence in Microsoft's internal team can positively influence the advancement of more sophisticated AI technology. The potential integration of Altman's ideas and strategies can strengthen innovation within Microsoft applications.
AI Technology in Microsoft 365 Applications:
Recent changes in Microsoft 365, such as the addition of Copilot features, demonstrate Microsoft's commitment to integrating artificial intelligence into its products. This can enhance user appeal and expand the user base of Microsoft applications.
Competitors and Position in the AI Market:
In the intense competition in the artificial intelligence sector with companies like Amazon, Google, and Facebook, Microsoft's strategic move with Sam Altman joining can help maintain and enhance its position in the AI market.
Financial Analysis:
Fundamental Rating of MSFT:
With a fundamental rating of 7 out of 10, Microsoft is considered highly profitable with no liquidity or solvency issues. A good dividend rating and consistent profits over the last 5 years indicate financial stability.
Impact of Sam Altman's Presence on MSFT Stock:
In addition to his contributions to technology development, Sam Altman's presence can also act as a positive catalyst for Microsoft's stock. Altman's reputation in the AI field and his connection with Microsoft can build investor confidence.
Innovation as the Key to Stock Value Increase:
In the face of tough competition, continuous innovation in AI technology is crucial to maintaining and increasing stock value. Altman's joining provides an additional potential for innovation that can influence the performance of MSFT stock.
Combined Analysis:
Synergy of Technology and Finance:
The combination of superior technology and stable financial conditions strengthens Microsoft's position in facing the future. Technological innovation is key to reinforcing the company's value, and, therefore, the potential for stock increase.
Challenges and Opportunities:
Despite Microsoft's solid fundamentals, challenges in AI competition persist. Hence, the company needs to stay focused on innovation and adapt to market developments.
With Sam Altman's support, Microsoft has the opportunity to continue leading in AI technology development. This enhancement can play a crucial role in the growth of MSFT stock value; however, long-term success also depends on the company's ability to stay competitive in the dynamic and competitive market.