AI Stocks 🧠 - Retracement done?
If you're interested in AI stocks, you're not alone. However, the shine may finally be coming off AI.
If so, the rotation out of Big Tech into small caps that has emerged recently could quickly accelerate. The question then is whether outperforming laggards hold up the broader market, or does the AI selloff drive benchmark indices into the red?
Another round of upbeat results and outlooks from the second-quarter earnings season will reinvigorate the bull case for all things related to artificial intelligence and microchips.
PLTR
As you may already know, broad bullishness for AI stocks has played a significant role in Palantir's strong stock price performance as of late. Back in April and May, a wave of fear, uncertainty and doubt about the continuation of favorable GenAI demand trends led to some volatility among AI infrastructure and software stocks.
PLTR daily chart
Obviously, PLTR share price was quite tanked these few weeks as compared to other AI stocks. PLTR seems to locate its bottom somewhere nearby EMA50. Friday candle was the confirmation signal of the beginning of another rally. This round of pullback was totally healthy and I believe PLTR will challenge its 52 weeks high at 30 USD soon. Bullish for Palantir $Palantir Technologies Inc.(PLTR)$
C3
C3.ai was the world's first enterprise AI company when it was founded in 2009. It now has a portfolio of more than 40 ready-made and customizable AI applications used by businesses in 19 different industries, which helps them reap the benefits of the technology without having to build it from the ground up themselves.
C3.AI daily chart
As you can see from the chart drawn above, 23.59 USD acts as a very strong and important neckline support for C3. The share price touched this support at least 5 times, since 2024. With the great earnings released end May, C3 rebounded and gapped up strongly. After that, C3 suffered some pullback after hitting 33 USD. Recently, the share price seems to find some support at EMA200 trendline (circled in Orange in the chart above). EMA200 is the last defence for C3, therefore the share price must rebound $C3.ai, Inc.(AI)$
META
Facebook owner Meta has explored a multibillion-euro investment in eyewear group EssilorLuxottica, as the social media platform intensifies its push to develop smart glasses. Meta's chief Mark Zuckerberg has spent billions of dollars in recent years to enter the wearable technology market, such as by creating virtual reality headsets.
Meta daily chart
From the chart above, we could see that Meta successfully rebounded near the critical neckline support at 452.12 USD. Moreover, it is also close to its EMA200 trendline support now. With this round of correction, I think the recovery will be soon for Meta unless the incoming earnings is delivering some negative surprise. Anyway, I believe the upside opportunity is higher than the downside risk, therefore a bullish vote for Meta $Meta Platforms, Inc.(META)$
Amazon
Amazon said its 48-hour Prime Day event broke its own record for sales in 2024, though it didn't specify the sales amount or quantify the growth. Prime members shopped millions of deals across more than 35 categories. They also purchased more items than any previous Prime Day shopping event.
Amazon daily chart
As we can observe from the chart above, Amazon experienced a triple top pattern, which was a bearish trend reversal pattern. It was followed by a bull trap breakout before the share price plummeted in recent weeks. The situation seems worrying as Amazon starts to fall below its uptrend line for the first time since 2024. I believe with this setup, Amazon will continue to retrace $Amazon.com(AMZN)$
Microsoft
Microsoft's AI-powered Designer app is coming out of preview for both iOS and Android users. Microsoft Designer lets you use templates to create custom images, stickers, greeting cards, invitations, and more. Designers can also use AI to edit images and restyle them or create collages of images.
Microsoft daily chart
Similar to Amazon, Microsoft share price also failed to sustain above its mid term uptrend line support. Microsoft will release its earnings too next week, and this will definitely be the key decider of Microsoft share price direction for the following weeks. Anyway, 400 USD will be its near term critical support. I am bearish with Microsoft $Microsoft(MSFT)$
How do you like AI and semiconductor stocks? Which are your top picks? Are they being mentioned above, else kindly share your favourite choice in the comments below, thanks!
@TigerStars @CaptainTiger @MillionaireTiger @Tiger_comments @TigerGPT @Daily_Discussion
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Palantir Technologies Inc. (PLTR)
Business and Industry: Palantir Technologies is a software company that specializes in data analysis. They provide software solutions for organizations to analyze and interpret large amounts of data. The company operates in various industries, including government, healthcare, finance, and more. The demand for data analysis and artificial intelligence solutions is expected to grow in the future as organizations continue to rely on data-driven decision-making.
Latest Earnings and Forecast: Palantir's latest earnings report showed an EPS of $2.95 for the 2024Q3 period. The company has a forecasted EPS of $11.81 for the full year 2024. The gross profit margin is 70.08%, and the net profit margin is 35.47%. These figures indicate a healthy financial performance.
Recent Trends: The stock price of PLTR experienced a pullback recently but has shown signs of a potential rally. The support price as of July 25th is $21.37, and the resistance price is $28.31. The stock is currently trading at $27.18.
Analyst Viewpoints: Analysts have provided a target price range for PLTR, with a mean estimate of $22.26, a low estimate of $9.0, and a high estimate of $35.0. The analyst recommendation is mixed, with 3 recommending, 3 buying, 7 holding, 3 underperforming, and 3 selling.
Capital Flow Analysis: The capital flow data for the past 5 days shows mixed inflows and outflows. The total inflow and outflow amounts are not significant.
Microsoft Corporation (MSFT)
Business and Industry: Microsoft is a technology company that develops and sells software, hardware, and cloud services. They are known for their operating system, Windows, and productivity software, such as Microsoft Office. Microsoft is also involved in artificial intelligence research and development. The technology industry is expected to continue growing, and Microsoft is well-positioned in this sector.
Latest Earnings and Forecast: Microsoft's latest earnings report is not provided in the available information. However, the forecasted EPS for the full year 2024 is $0.33. The gross profit margin is 81.67%, and the net profit margin is 16.64%.
Recent Trends: The stock price of Microsoft has shown weakness and failed to sustain above its mid-term uptrend line support. The near-term critical support is at $400. The stock is currently trading at $425.27.
Analyst Viewpoints: Analysts have provided a target price range for Microsoft, with a mean estimate of $496.04, a low estimate of $436.0, and a high estimate of $600.0. The analyst recommendation is positive, with 21 recommending and 34 buying.
Capital Flow Analysis: The capital flow data for the past 5 days shows mixed inflows and outflows. The total inflow and outflow amounts are not significant.
Please note that the above analysis is based on the available information and does not constitute investment advice. It is essential to conduct thorough research and analysis before making any investment decisions.