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NASDAQ REBALANCE: WHAT YOU NEED TO KNOW
On June 30th, the NASDAQ posted the strongest first six months in the index’s history, dating back to 1971. The 6-month returns of 30.5% in 2023 easily beats the prior record of 25.2% in 2019. The majority of the rally was driven by seven stocks: Apple, Microsoft, Nvidia, Amazon, Tesla, Meta, Google. These 7 stocks are up a collective 98% YTD, while the equal weight S&P 500, which provides an equal weighting to all 500 stocks in the index, is up only 9%.
Tesla Q2 Earnings – It’s About Margins
After the strong rally, it appears the market is taking profits on commentary around the outlook for margins. It’s not only that they were lower quarter-over-quarter (QoQ), but also Tesla provided zero insight as to how much lower margins can go. The market does not like uncertainty. It’s somewhat ironic that during the call Musk can wax poetic about the complexities of AI, neural net training, the 6-million dollar man, and robotic taxis yet when it comes to basic profitability drivers, he can’t say anything. The former drove the price post Q123 and the latter is driving the price today.
Semiconductor Stocks: Q2 Sector Overview
Semiconductors are the common denominator across the burgeoning technology trends of the next decade. Artificial Intelligence, 5G, high-performance computing, Internet-of-Things, gaming, electric vehicles, and robotics, among others, all require semiconductors to power them. These trends make semiconductor stocks an ideal investment and perhaps the most important space for tech investors to monitor.
Where Nvidia’s Stock Price Will Go Next
In May and June, I stated that our firm was not buying Nvidia right now. Well, similar to the weather, this has changed.
Beth Kindig Discusses AI Stocks with Tier 1 Media
Tier 1 Media outlets such as Fox Business News, Bloomberg and Real Vision interviewed Beth four times over the past month about her call on Nvidia and also picked her brain on other AI-related topics.
Renewable Energy Stocks That Benefit From $400 Billion IRA Bill
This analysis looks at First Solar, Enphase and Tesla as beneficiaries of the Inflation Reduction Act. IRA’s primary objective is to spur investments in clean energy, transport and manufacturing.
Microsoft – AI Will Help Drive $100 Billion In Revenue By 2027
Although many AI stocks will not report enough AI revenue to survive the fierce, competitive battle the tech industry faces due to AI/ML, Wall Street investors can reasonably assume that Microsoft will be a leader in this space.
Where the Market is Headed Next
When the market was selling tech last year, the I/O Fund was buying AI leaders. For example, from September 2021 through January of 2023, we initiated 9 buy alerts for NVDA below $210. The last two alerts were at $108 and $149 in late 2022. We initiated buy alerts for additional AI stocks, as well, resulting in a 45% allocation to AI going into May. Compare this to Stanley Druckenmiller, who had 29.5% allocation in AI, and has been covered by the press as the leading AI investor.
