To The Moon

AI stocks seem to face some upside resistance for the past week. Most of them were unable to continue to break new high. Also, U.S. markets retraced last week, as Fed officials sounded cautious on comments on the prospect of rate cuts.

Artificial intelligence (AI) spending across hardware, software, and services totaled about $200 billion last year, according to Grand View Research. But that figure is expected to soar 820% to exceed $1.8 trillion by 2030. In other words, the AI market is forecast to compound at 37% annually through the end of the decade. We know the demand is there, and it is pretty normal for the AI related stocks to pull back after rallied for few months. 

Let's look into a few famous AI counters. We will start with the AI leader, Nvidia. The company experienced a big jump in their market capitalization this year, driven by AI enthusiasm and anticipation for new products and expansion plans. Last Thursday, a bearish engulfing candle was formed as highlighted in the chart below. This might be a potential sign of more severe correction for coming week. Personally, I hope the share price will pull back towards EMA 50 area, around 800 USD before engaging into a new round of rally. Mainly due to the bearish engulfing pattern, I am$NVIDIA Corp(NVDA)$  for short term.

Nvidia daily chart

How about its rivals $Advanced Micro Devices(AMD)$ . Its share price is relatively weaker as compared to Nvidia, breaking below under EMA 50 (blue line) trendline support for the first time since December 2023. The last support will be around 160 USD before the share price heads towards 140 USD. It might be possible that this is a sign for AI stocks to take a rest now. 

AMD daily chart

Now, let's look at one of my favourite holdings, $Palantir Technologies Inc.(PLTR)$  . Pretty good and healthy technical movement for the share price after its previous earnings release. No further breakout but doing quite well in its consolidation zone between 22 to 26 USD. Last week, Palantir and Oracle announced a partnership to provide secure cloud and AI solutions aiming to power business and governments around the world, which is a good stimulus for the company share price and future.

PLTR daily chart

However, $C3.ai, Inc.(AI)$  has a totally different trend and destiny. Similar to Palantir, the share price surged after its good earnings release but the share price is unable to sustain the surge and eventually drops back to the bottom. The drop continues for a month, simply crazy! No much hope on this company, the last hope will be a dead cat rebound when it meets its triple bottom support at around 23.50 USD. A last bullish vote for C3, aiming for a technical rebound at triple bottom support.

C3 daily chart

We will end with the semiconductor index $Semiconductor Bull 3X Shares(SOXL)$  . Among all the charts shown today, I prefer SOXL the most, showing the most reliable and consistent uptrend pattern. If you look at the chart below, the share price never falls below the EMA 50 blue coloured trendline, after the golden cross in mid November 2023. Everytime it hits EMA50, it will rebound and go up further. I highlighted this behaviour in orange circle. And nowwe are at another orange circle condition again. Therefore, a rebound is highly expected for next week! 

SOXL daily chart

What is your strategy? Are you aiming some AI stocks during this round of pullback? Or do you think AI stocks have peaked? Come and share your opinions with us ya..

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