To The Moon

Technology counters took a dive in the today as traders adopted a risk-off approach as they await the all-important earnings results due on 29 Aug from $NVIDIA Corp(NVDA)$  , the chip behemoth maker whose chips power over 90% of artificial intelligence product and service applications and that is the bellwether of the AI market outlook. $Advanced Micro Devices(AMD)$  has been playing second fiddle to Nvidia, and struggling to catch up with the leading AI chip maker and wrestling with the likes of Intel to make do with the remaining market share of the AI chip demands. Hence, I believe that the market dominance of Nvidia will continue to weigh on AMD.

It is uneasy to name a semiconductor stock that has absolutely zero association and dependency on AI today, so the earnings outcome from Nvidia is going to be pivotal on the movement of the semiconductor industry. Likewise, technology stocks like $Palantir Technologies Inc.(PLTR)$  and $C3.ai, Inc.(AI)$ have been riding on the prevailing AI frenzy, sending their stock prices to record heights, so that bursting of the AI bubble is going to be detrimental to their share prices as well.

Nevertheless, I expect demands for AI to continue to grow, so I'm cautiously optimistic that Nvidia is going to bring cheers to the market when it reports its earnings for the previous quarter tonight. With the growing prevalence of generative AI applications, I believe that AI will drive the recovery of the semiconductor industry $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$  as it emerges from earlier slump, as well as the next phase of growth for the overall technology sector.