kibkibkib
09-26
$NVIDIA Corp(NVDA)$  RSI readings for Semiconductor sector as NVDA stays above $120 support. As we have correctly anticipated investors' return to NVDA stocks last week with a support at $120 (please see our pinned post), we anticipate continued rally next week as Oct will welcome back those who have exited during September's exodus.


So far the data (new home sales) has been looking good, we expect to see a less stellar jobless claim report today at 8.30pm SGT.

The tag of war between bulls and bears will continue until late Oct as businesses and consumers will slowly take in the effect of the latest 50BPS cut. More violatility would be expected if job data didn't stabilize by late Oct.

With that in mind, the market is gradually pricing in the winning odds of a soft landing and will continue to rise. We would advise caution when everyone is partying to their profits during the rallies.

In this chart, sorted by RSI, we can see which stocks are already closed to overbought. We are not predicting price action as we foresee some stocks hitting new hits by end of year or start of next year. In terms of RSI, AMD, TSM, AVGO are all over 75points now. TSM still has an attractive PE ratio for further gains. NVDA and ARM are edging up as we see NVDA hitting $140 again if this momentum continue. 

We caution that the market might enter correction again if the soft landing expectation is too high and too fast, but for now there is still room for rallies. We anticipate RSIs to hit into mid-to-high 80, and for some to enter 90 if the rallies continue.

Modified in.09-26
Can Nvidia Replicate Tesla's Post-Earnings Surge?
Nvidia will release earnings on November 20th. Revenue is expected to be $32.5 billion, plus or minus 2%. GAAP and non-GAAP gross margins are expected to be 74.4% and 75.0%, respectively, plus or minus 50 basis points. For the full year, gross margins are expected to be in the mid-70% range. ----------------- Is Nvidia the winner of big tech's AI rival? Will you add Nvidia before earnings? Can Nvidia beat and surge like Tesla did? Will Nvidia manage to meet the lofty expectations?
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