This bull market cleared a major hurdle... This past Wednesday, AI chipmaker Nvidia (NVDA) reported third-quarter earnings.
The Naysayers Don't Care If You Miss This Trend
By Marc Chaikin, founder, Chaikin Analytics
This bull market cleared a major hurdle... This past Wednesday, AI chipmaker Nvidia (NVDA) reported third-quarter earnings. It beat guidance on earnings per share and revenue. But there's something more important... Demand. You see, Nvidia's chief financial officer said that demand for the company's newest generation of chips "is expected to exceed supply for several quarters in fiscal 2026." And analysts, like those at Goldman Sachs (GS), agree. This is important because it reveals how strong this new AI trend is. Remember, the growth in AI is more than just chatbots like ChatGPT. We're talking about the efficiency that machine learning will bring to just about every sector. That's an incredible tailwind behind this market. Nvidia's latest earnings report proves that this is more than just a flash in the pan. In fact, we're still in the early stages where companies race to buy the chips they need to build infrastructure. But it's more than just one company's earnings report that proves this...
Have you seen what's happening in Idaho, Illinois, and elsewhere? Huge groups are looking to "break off" and form new states. Recently, 33 Illinois counties passed a draft to create "New Illinois state." What does this mean for the market... and your portfolio? Porter Stansberry just stepped forward to explain everything, including how America's splintering will move enormous piles of money very soon. Here's his No. 1 recommendation (including four stocks to buy now).
According to Stansberry Research's Dan Ferris, who has predicted nearly every major market crisis of the past 25 years, a new crisis in the U.S. economy could soon cost you 50% of your portfolio or more if you don't prepare your wealth now... especially if you're sitting on large gains. Click here to see the new crisis that could abruptly end the current bull market.
Menlo Ventures is one of Silicon Valley's oldest venture-capital firms. And according to its data, spending on AI is soaring... The firm estimates that AI business spending came in at roughly $2.3 billion in 2023. Now, Menlo Ventures says that number is up to $13.8 billion so far this year. That's a 500% increase. And we're still at the very early end of this curve. Remember, it takes time for new innovations to create real productivity gains. We saw this with the early days of the Internet browser. Many early websites had little to no function. And then, during the dot-com boom, they had growth without a business plan. At the time, there were countless naysayers – folks who watched the world changing around them – that insisted it wasn't happening in real time. But history is full of people that missed the world's biggest trends... Back in 1962, Decca Records famously passed on The Beatles. The label executives reportedly told the band's manager something along the lines of "guitar groups are on the way out." That comment certainly missed the mark. The Beatles are at the top of the list for best-selling artists of all time. Steve Ballmer, Microsoft's (MSFT) CEO after Bill Gates, famously didn't like Apple's (AAPL) iPhone. As he said in 2007, "There's no chance that the iPhone is going to get any significant market share. No chance." And in particular, he said the lack of a keyboard meant the device wouldn't appeal to business customers. Obviously, history proved Ballmer wrong. Today, Apple is worth a staggering $3.5 trillion. And its iPhones are everywhere. Folks, there will always be naysayers. Their curmudgeonly claims litter history. Now, I don't pretend to have a crystal ball... But I do have data. And the data tells us that the AI boom is a major tailwind in this market. The S&P 500 Index is up about 25% this year. That means it's on track to post one of its best-performing years since 1950. And regular readers already know that I expect the year to finish strong for stocks. We've also seen that the demand for AI chips is huge. Businesses are buying the tools they need to build AI infrastructure. That means we're still in the early days of this trend. It will take time for everything to flesh out. Along the way, there will be naysayers. They don't care if you miss the trend... or if the market passes you by. Don't let them stop you from building your investing wealth. Good investing, Marc Chaikin
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
+0.95%
9
10
11
S&P 500
+0.31%
125
197
178
Nasdaq
+0.16%
26
45
30
Small Caps
+1.84%
554
708
647
Bonds
+0.06%
Consumer Discretionary
+1.44%
15
20
15
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks have turned somewhat Bearish. Major indexes are all bearish.
* * * *
Sector Tracker
Sector movement over the last 5 days
Materials
+3.08%
Utilities
+2.78%
Energy
+2.68%
Real Estate
+2.58%
Industrials
+2.54%
Staples
+2.35%
Discretionary
+2.18%
Information Technology
+2.14%
Communication
+1.82%
Financial
+1.72%
Health Care
+1.64%
* * * *
Industry Focus
Software & Services
86
47
7
Over the past 6 months, the Software & Services subsector (XSW) has outperformed the S&P 500 by +15.28%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #2 of 21 subsectors and has moved up 1 slot over the past week.
Top Stocks
ZM
Zoom Video Communica
DXC
DXC Technology Compa
OSPN
OneSpan Inc.
* * * *
Top Movers
Gainers
SMCI
+11.62%
CPRT
+10.19%
MRNA
+7.48%
DECK
+5.63%
GM
+5.12%
Losers
INTU
-5.68%
PANW
-3.61%
NTAP
-3.43%
NVDA
-3.22%
VST
-2.81%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
ZM
DDS
WWD
BBWI
A
No earnings reporting today.
Earnings Surprises
DXLG Destination XL Group, Inc.
Q3
$-0.03
Missed by $-0.06
BKE The Buckle, Inc.
Q3
$0.88
Missed by $-0.02
* * * *
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