This AI infrastructure leader is setting up for a move to all-time highs, according to the charts
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 days ago
- Yahoo
Strength for the Dollar After Higher Inflation
The figure of 2.7% for non-core annual inflation in the USA in June was in line with the majority of expectations, but still provoked a fairly strong reaction by the dollar. It seems to have decreased the probability of the Federal Reserve ('the Fed') cutting in September. This article summarises the last big release and its context, then looks briefly at the charts of EURUSD and USDJPY. The latest data on inflation showed a four-month high for the annual headline figure: Food, transport and used vehicles were among the main drivers of the higher rate of inflation. This release questions further the idea that inflation is on track to return to 2% sustainably. While both the monthly and annual core figures were slightly below expectations, they also rose. Rising inflation is important because it's one of the key factors cited by the Federal Open Market Committee influencing upcoming decisions. Alongside it, the Fed's also looking at the developing situation with tariffs and governmental policy in general plus geopolitical risks. The significant shift after the last release of inflation was the rise in the probability of the Fed holding in September as well according to CME FedWatch. A hold at the current 4.25-4.5% on 30 July seems almost guaranteed with a probability of around 97%, but the probability of the Fed holding on 17 September too is now around 45%. This isn't a very surprising scenario. Since the beginning of the current cycle of loosening policy, expectations for upcoming cuts have shifted back fairly consistently, so the default expectation is for the Fed to be cautious and prefer leaving policy moderately restrictive for longer. That's broadly positive for the dollar, but the greenback's performance depends heavily on trade tension and the ebb and flow of confidence in the American government's announced and actual policies on tariffs. Euro-dollar Pushes Below $1.16 for Now The announcement of 30% American tariffs on the EU from 1 August caused some negativity on the prospects for the bloc's economy, but as with any similar announcement so far this year, it's likely that the figure can be negotiated down or just backtracked by the American government. A more immediate important factor driving euro-dollar down has been the significant rise in American annual headline inflation in June to 2.7%. The ECB is likely to cut once more this year and the Fed twice, but there's some intrigue on the timing of the latter. The retreat from the area of $1.18 – a high of nearly four years – has so far been fairly consistent with some momentum. However, $1.16 still seems to be an important battleground, with the long wick on 16 July indicating buying pressure. With the price currently oversold and there not being a clear uptick in selling volume, the 50 SMA around $1.155 might be an important short-term dynamic support. A move back up to the 38.2% monthly Fibonacci retracement around $1.166 seems possible in the next few days, depending on the volume of buying and reactions to upcoming news. For now, the movement seems more like a relatively small retracement in the context of the uptrend than the beginning of a new downward or sideways trend, but this depends on the reaction to the ECB's meeting on 24 July as well. Dollar-yen Remains at a Crossroads USDJPY gained more strongly than most other major pairs with the dollar in the aftermath of June's higher American inflation. One of the key factors here seems to be generally disappointing trade data from Japan and rising concern in some quarters of a technical recession; weaker economic figures challenge the prevailing expectations that the BoJ will continue to hike rates, but a hike on 31 July still seems fairly likely. ¥149, also the area of the 200 SMA, is a key area: a close above there might signal a push up to ¥150 or possibly even higher. However, the price still hasn't clearly broken above the previous resistance of the 38.2% weekly Fibonacci retracement slightly above ¥148. Another close above there with a higher volume of buying might give more confidence in further gains. There isn't an obvious short-term support. ¥147, the limit of 16 July's tail, is a possibility, but this isn't confirmed. The 20 SMA is a lot lower; a move beyond there into the value area with the 50 and 100 SMAs seems very unlikely for now unless there's major surprising news of tariffs or expectations for monetary policy shift dramatically. The opinions here are personal to the writer; they do not represent the opinions of Exness or FX Empire. This is not a recommendation to trade. This article was submitted by Michael Stark, an analyst at Exness. This article was originally posted on FX Empire More From FXEMPIRE: Japan's 10-Year Yield Peaks: What's Driving the Rise? Coinbase on Fire from Sustained Big Money Buys Outliers Like Intuit Can Be Found Early Spot Outliers Like AI Star Broadcom Before They Pop Some Gains for the Aussie Dollar After the RBA Unexpectedly Holds RBA Surprised by Holding Rates: How Did AUD/USD React? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Yahoo
Buy 3 AI Infrastructure Stocks Backed by Past Month's Solid Momentum
The artificial intelligence (AI) infrastructure space recently gathered steam, with the DeepSeek-related fears turning out to be overblown. Moreover, chances of a trade deal between the United States and its major trading partners, the Fed's indication of two rate cuts of 25 basis points each this year and the evaporation of recession worries in the U.S. economy have boosted market participants confidence. At this stage, we have narrowed our search to three AI infrastructure stocks that have that have surged in the past month with more than 10% returns. Each of these stocks currently sports a Zacks Rank #1 (Strong Buy), indicating solid upside momentum in the near term. You can see the complete list of today's Zacks #1 Rank stocks here. These stocks are: Credo Technology Group Holding Ltd. CRDO, Jabil Inc. JBL and Lumentum Holdings Inc. LITE. AI Frenzy Flourishing The AI space remains rock solid supported by an extremely bullish demand scenario. Four of the 'magnificent 7' stocks have decided to invest a massive $325 billion in 2025 as capital expenditure for AI-infrastructure development. This marks a significant 46% year-over-year increase in capital spending on the AI ecosystem. This huge spending on AI infrastructure will dramatically change the world over the next five years in fields such as hyperscale automation, robotics, healthcare, energy, materials, financials and cybersecurity. Research firm Oppenheimer estimated that the total addressable global sovereign AI market could be a massive $1.5 trillion. The chart below shows the price performance of our five picks in the past month. Image Source: Zacks Investment Research Credo Technology Group Holding Ltd. Credo Technology is a provider of high-performance serial connectivity solutions for the hyperscale datacenter, 5G carrier, enterprise networking, artificial intelligence and high-performance computing markets. CRDO's main business is its Active Electrical Cables (AEC) product line. AEC is gaining traction owing to its increasing adoption in the data center market. The demand for AECs is increasing as ZeroFlap AECs offer more than 100 times improved reliability than laser-based optical solutions. This made AECs an increasingly attractive option for data center applications. With the demonstration of PCIe Gen6 AECs and increasing hyperscaler interest, this product line is expected to remain a growth engine. Strength in the optical business, particularly Optical Digital Signal Processors (DSPs), is another key catalyst. CRDO expects an expansion of customer diversity across lane rates, port speeds and applications to accelerate revenue growth going forward. CRDO announced that it achieved a key 800-gig transceiver DSP design win and unveiled ultra-low-power 100 gig-per-lane optical DSPs built on 5-nanometer technology. CRDO expects its 3-nanometer 200 gig-per-lane optical DSP to boost the industry's transition to 200-gig lane speeds. Supplementing these businesses is CRDO's PCIe retimers and Ethernet retimers business. This particular product line continues to witness customer interest, especially for scale-out networks in AI servers. CRDO highlighted that the retimer business delivered 'robust' performance driven by 50 gig and 100 gig per lane Ethernet solutions. This growing demand underscores the increasing importance of high-performance solutions in the rapidly expanding AI server market. Shift to 100 gig per lane solutions and higher demand for system-level expertise and software capabilities for dealing with AI-optimized architectures bode well for CRDO's retimer business. Credo Technology has an expected revenue and earnings growth rate of 85.8% and more than 100%, respectively, for the current year (ending April 2026). The Zacks Consensus Estimate for current-year earnings has improved 37% in the last 60 days. Jabil Inc. Jabil has been benefiting immensely from healthy momentum in capital equipment, AI-powered data center infrastructure, cloud, and digital commerce business verticals. Its focus on end-market and product diversification is a key catalyst. Jabil's target that 'no product or product family should be greater than 5% operating income or cash flows in any fiscal year' is commendable. JBL's high free cash flow indicates efficient financial management practices, optimum utilization of assets, and improved operational efficiency. Massive application of generative AI is set to drastically increase the efficiency of JBL's automated optical inspection machines for the automation industry. A large-scale portfolio of business sectors offers JBL a high degree of resiliency during times of macroeconomic and geopolitical disruption. Jabil has an expected revenue and earnings growth rate of 5.6% and 17.8%, respectively, for next year (ending August 2026). The Zacks Consensus Estimate for next-year earnings has improved 8.4% over the last 30 days. Lumentum Holdings Inc. Lumentum Holdings designs and manufactures optical and photonic technologies for high-speed telecommunications, data centers, and advanced manufacturing. LITE provides components, such as transceivers and lasers for fiber-optic networks, supporting the rapid growth of artificial intelligence, cloud computing, 5G connectivity, and beyond. LITE's industrial lasers are used in precision manufacturing, such as cutting semiconductors and solar cells. LITE also develops 3D sensing laser diodes for applications like facial recognition in smartphones and autonomous vehicle sensors. Shares of Lumentum have gathered momentum in the past three months boosted by growing AI demand. LITE is developing and providing photonic solutions for AI applications, particularly for data centers. LITE's major AI-enabled offerings are high-speed transceivers, optical circuit switches, and lasers that enable faster, more efficient, and scalable AI infrastructure. Moreover, LITE has a strong collaboration with NVIDIA Corp. NVDA in developing NVDA's silicon photonics ecosystem, especially for deploying the latter's Spectrum-X Photonics networking switches. Lumentum Holdings has an expected revenue and earnings growth rate of 32,8% and more than 100%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report Credo Technology Group Holding Ltd. (CRDO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
4 days ago
- Yahoo
DOGE Prints Bullish Setup With Breakout, Pullback, and Support at $0.196
What to know: DOGE rose 5.05% from $0.190 to $0.200 between July 15 05:00 and July 16 04:00, trading in a $0.011 range with 5.48% volatility. Volume spiked to 464.28 million during the 23:00–00:00 window, crushing the 24-hour average of 287.95 million. Breakouts occurred at 12:00 and again in the evening session, lifting DOGE past $0.195 resistance. Final hour showed rejection at $0.200, with short-term pullback forming a descending micro-channel into $0.196. News BackgroundDOGE's breakout follows a broader return of meme coin flows as traders rotate into volatility ahead of key macro events later this footprints were visible in volume surges above $0.195, with market makers defending support levels near $0.190 during the early setups are now aligned with Fibonacci retracement targets around $0.197 — with $0.21 flagged as the next extension if bulls regain strength. Price Action Summary Range: $0.190 → $0.200 | $0.011 move = 5.48% volatility Breakout Level: $0.195 cleared on strong volume during 12:00 and 23:00 sessions Volume High: 464.28 million (vs. 287.95 million daily average) Final Hour (03:05–04:04): DOGE declined 0.24% in $0.005 range, closing at $0.198 Resistance: Repeated rejections at $0.200; micro-channel forming with $0.196 floor Technical Analysis Volume-backed breakout confirmed above $0.195 Rejections at $0.200 show near-term supply zone Descending micro-channel between $0.196–$0.200 in late session Fibonacci retracement highlights $0.195–$0.197 as support consolidation zone Break above $0.200 with volume >400 million would confirm $0.21 push What Traders Are Watching Does DOGE hold above $0.196 to sustain breakout structure? Break above $0.200–$0.202 resistance would trigger fresh upside momentum Breakdown below $0.195 invalidates rally setup and reopens $0.190 retest Watch for 20-minute volume bars >25 million to confirm directional shift TakeawayDOGE's 5% rally was real — volume, structure, and order flow confirm institution-backed $0.195 now acting as a potential base, bulls are eyeing $0.21 — but only if $0.200 resistance breaks clean on volume. Until then, the chart remains coiled. Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy. Sign in to access your portfolio
