To The Moon

On Monday, the S&P 500 reached 4,850 points, the Nasdaq 100 climbed to 17,365 and the Dow Jones briefly touched a record-breaking 38,000 points, with all major U.S. averages simultaneously trading at all-time peaks. Small caps, as tracked by the iShares Russell 2000 ETF (NYSE:IWM) rose 1.7%, outperforming major indices.

⚠️ After a massive gap up last Friday, the next training day could simply chop around. Looking at NVDA calls above 600 psychological level on Tuesday after some consolidation yesterday.

Riding on support until broken

The venture capitalist and Breyer Capital founder and CEO Jim Breyer named two companies he believes are positioned to reap the benefits of widespread AI adoption.

He highlighted healthcare applications, particularly drug discovery and development, as some of the most significant use cases for AI. Breyer noted that advanced healthcare-focused AI applications, including imaging and data optimization, require high-end hardware from Nvidia Corporation (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD). 

Breyer touted Nvidia as an "underappreciated AI story" in early 2023 before the stock went on to gain more than 230% over the course of the year. He told CNBC he expects the company to continue to thrive.

"They have built a software layer around their chip that the companies I invest in just can't get enough of," Breyer said.

Tech and the rest

KeyBanc analyst John Vinh hosted investor meetings with AMD executives last November and noted management’s high confidence in the company's $2 billion outlook for its MI300 compute accelerators in 2024. The analyst also highlighted AMD's ability to compete with Nvidia, particularly in inferencing, due to its high-bandwidth memory content.

AMD shares are up more than 140% over the past year, and Breyer sees the stock continuing to climb as the demand for AI-related hardware increases. He even suggested that its market cap could grow to the size of some of the biggest mega-cap tech names.

"The ‘Magnificent Seven': I would add AMD to that list for sure," Breyer said. Nvidia shares closed Monday up 0.27% at $596.54, while AMD shares closed down 3.47% at $168.18.

Retest for 400

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