Tech investors are entering the Thanksgiving season with optimism as the Nasdaq rises 2.4% in a week, marking a 12% gain over three weeks—the strongest rally since April 2020. Intel stands out as the week's biggest winner among large-cap tech stocks, surging 13%, driven by robust demand for PCs following better-than-expected profit and sales reports. Mizuho Securities upgraded Intel to a buy rating, citing a renewed focus on the data center business and positive prospects in the customer pipeline.
Next week, the spotlight shifts to semiconductors, with Nvidia set to report results. The stock has surged 22% in three weeks, boasting a year-to-date gain of 237%, outpacing other S&P 500 members. Nvidia's strong performance is attributed to its role in generative artificial intelligence, providing graphics processing units (GPUs) for powerful workloads. Analysts expect revenue growth of over 170% for Q3 and anticipate Nvidia's forecast to suggest close to 200% growth in Q4.
Eric Jackson, founder of EMJ Capital, considers Nvidia his “top large-cap name” and sees the tech market in the early stages of a rebound, linked to the potential end of Federal Reserve rate hikes. The market is sensitive to interest rates, with low costs encouraging risk-taking and higher rates directing investors to safer assets.
Tame U.S. inflation data, with the Consumer Price Index (CPI) remaining flat in October, boosts the broader market. The week's large-cap gainers also include Tesla, rising 9.2%, despite CEO Elon Musk's controversial social media post. Musk's comments drew condemnation from the White House for promoting antisemitic and racist hate, contrasting with American core values.
Leave a Reply