To The Moon

I have shared an article yesterday (26 Sep) on which S&P 500 sector could be benefitting from the rate cut, one of the sector to watch is S&P 500 Information Technology (XLK).

Which S&P Sectors Will Continue To Gain Post Rate Cut? Or We need more time to see?

Using the RRG, the technology sector remain in the edge of the leading quadrant, and we can see that technology sector was one of the sector who has gained +0.89% as of 26 Sep coming in second place, so what are the potential stocks which is contributed to this sector?

Top 10 XLK Weightage Winner - AMD and Accenture

If we looked at the performance of the Top 10 holdings by weightage, we could see that only $Advanced Micro Devices(AMD)$ and $Accenture PLC(ACN)$ have managed to gain more than 3%.

AMD Continued To Improve Their GPU Efficiency

AMD stock price perform after their CEO Lisa Su announced that their next phase would not be a transition away from the GPUs but rather a broadening beyond that, which mean that they would still be focus on GPUs but focus on improving them.

This came at the right time especially when demand for generative AI is increasing as more companies begin to onboard their own models.

From the technical analysis, we are also seeing promising signs of upside movement for the short to mid term, MACD is showing a nice upward trend, and KDJ is also converging and looking to breakout into a strong upside J value.

I have entered AMD as I see it as the winner for developer end user computing GPUs, because many developers are looking to run their trial model and inference on local machine, before they planned for a larger scale of deployment.

Accenture Impressive Generative AI New Bookings - 1Billion For The Quarter

Accenture earnings surpass its fiscal fourth-quarter results expectations and the Q1 revenue outlook has also topped estimates. The key note is that Accenture generative AI new bookings reached $1B for the quarter, contributing to total new bookings of $20.1B.

This is a positive news which could gartner confidence from investors. From the technical analysis, we could see that ACN is forming a bullish crossover at the MACD and KDJ is also showing similar behavior.

This should give confidence that the current price could be a potential entry point. I will be looking to buy after observing the price action for ACN on 27 Sep 24.

Summary

I will be watching the technology sector closely as there are some stocks which might gain more from the generative AI demand, if we looked at AMD and ACN, they have something in common, which is generative AI comments and bookings have helped to push their stock price higher.

Appreciate if you could share your thoughts in the comment section whether you think generative AI demand would be the focus on tech stocks movement?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.