Latest news with #JonathanKrinsky
Business Insider
7 days ago
- Business
- Business Insider
‘Party Like It's 1999,' Says BTIG as PLTR, MSTR, and Others Fuel Nasdaq Rally
The Nasdaq 100 index (NDX) just hit a major milestone by staying above its 20-day moving average for 60 straight trading days. This is the second-longest streak in the index's history, going all the way back to 1985. The only time it lasted longer was during the dot-com boom in early 1999. Indeed, BTIG strategist Jonathan Krinsky commented on the rare event by playfully saying, 'Party like it's 1999,' to highlight how unusual this level of consistency is. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. This remarkable strength in the Nasdaq 100 has also led to gains in the Invesco QQQ ETF (QQQ), which tracks the index. As a result, the ETF is now the fifth-largest in the world by assets and has jumped by 17% since June, bringing its total year-to-date return to 10%. Despite uncertainty in the broader market, this surge shows that investors still have a lot of confidence in large tech and growth stocks, which make up a big portion of the index. Therefore, many of the biggest winners in the Nasdaq 100 this year also come from the tech sector. In fact, leading the pack is Palantir Technologies (PLTR), which is up 102% so far in 2025. Other strong performers include Zscaler (ZS) (+59.7%), KLA Corp (KLAC) (+49.8%), and Strategy (MSTR) (+48.3%). In addition, well-known names like DoorDash (DASH), Constellation Energy (CEG), Lam Research (LRCX), CrowdStrike (CRWD), MercadoLibre (MELI), and Netflix (NFLX) round out the top 10 with increases of more than 37% this year. Is QQQ Stock a Good Buy? Turning to Wall Street, analysts have a Moderate Buy consensus rating on QQQ stock based on 92 Buys, nine Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average QQQ price target of $603.33 per share implies 6.8% upside potential.
Yahoo
22-07-2025
- Business
- Yahoo
Nvidia's breakneck rally shows signs of overheating
Most on Wall Street remain bullish about Nvidia's prospects on increasing positive signs about AI demand, including a robust forecast from TSMC on Thursday. Nvidia Corp traders keep getting reasons to buy the stock, but the breakneck rally is showing signs of overheating. The chipmaker's 14-day relative strength index briefly topped 80 on Friday, the highest since June 2024 when the stock dropped more than 20% over the following six weeks. The momentum gauge tracks the speed of a stock's recent price changes and a reading over 70 is a signal to some analysts that buying is at extreme levels. 'It's definitely getting overbought, and while that doesn't mean a reversal is imminent, this is something to be mindful of,' said Jonathan Krinsky, chief market technician at BTIG. 'It feels like sentiment, which had been optimistic, is getting borderline giddy.' Nvidia, which dominates the market for chips used in artificial intelligence computing, has staged a dramatic reversal since April when a broad tariff-induced selloff added to fears about a potential pullback in AI spending. Since then, the firm's biggest customers have continued to plow more money into the development of AI services and investors have flocked back to the stock, pushing it up more than 80% in less than four months. The stock fell as much as 1% on Friday. The latest leg of the rally has been driven by news that Nvidia plans to resume sales of some AI chips in China with the approval of the US government. The policy reversal from President Donald Trump's administration could help recover a large chunk of the US$15 billion ($19.2 billion) in Nvidia's fiscal 2026 data center revenue that had been at risk from US chip export restrictions, according to Bloomberg Intelligence analyst Kunjan Sobhani. This week, Trump also touted more than US$92 billion in commitments to invest in AI and energy infrastructure, while Meta Platforms Inc CEO Mark Zuckerberg affirmed plans to spend 'hundreds of billions of dollars' on data center investments. The Facebook parent is Nvidia's second-largest customer, after Microsoft Corp., according to supply chain data compiled by Bloomberg. Nvidia is on track for its eighth-straight week of gains and the rally from its April low has added roughlyUS $1.9 trillion to its market value, a figure that alone exceeds the market capitalisation of Meta. At more than US$4.2 trillion, Nvidia is again the world's most valuable company, topping second-ranked Microsoft by about US$400 billion. 'Clearly, momentum is behind it,' said James Abate, managing director and head of fundamental strategies at Horizon Investments. 'It seems like every time we get incremental good news, buyers rush in and we get another leg up in the stock.' Still, Abate has used the advance to sell some Nvidia shares. In addition to the rising valuation, he said he's concerned that investors are underestimating the potential for 'the future cyclicality of the AI business.' Nvidia is priced at 34 times earnings expected over the next 12 months, up from a low of less than 20 in April, but well below the average of about 40 over the past five years. Most on Wall Street remain bullish about Nvidia's prospects on increasing positive signs about AI demand, including a robust forecast from Taiwan Semiconductor Manufacturing Co on Thursday. Of the 79 analysts tracked by Bloomberg that cover the company, just one has a sell recommendation, while nine rate the stock neutral. Investors will be paying close attention in coming weeks to earnings results from Big Tech companies for hints about capital spending plans. Alphabet Inc. is scheduled to report on July 23, followed by Microsoft and Meta on July 30. Those three companies and Inc. account for more than 40% of revenue for Nvidia, whose results are due in late August. Rhys Williams, chief strategist at Wayve Capital Management, sees no reason to take profits on Nvidia with all signs pointing to AI spending continuing. 'Nvidia has had a nice breakout, and it will need to have a good quarter and raise its outlook, but we expect that will happen,' Williams said. 'We probably have another year or two of strong data-center growth.' See Also: Click here to stay updated with the Latest Business & Investment News in Singapore NCS commits $130 mil over three years to accelerate AI adoption across Asia Pacific Nvidia hits US$4 trillion value as rally notches another milestone Chip design software makers win US reprieve in China trade deal Read more stories about where the money flows, and analysis of the biggest market stories from Singapore and around the World Get in-depth insights from our expert contributors, and dive into financial and economic trends Follow the market issue situation with our daily updates Or want more Lifestyle and Passion stories? Click hereError 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
CNBC
21-07-2025
- Business
- CNBC
Nasdaq 100 momentum unmatched since 1999 so brace for a shakeout, says BTIG
It's time to brace for a shakeout, according to BTIG. The market is flaring some near-term warning signals. As of Sunday, the Nasdaq 100 — which is comprised of the 100 largest companies excluding financials in the Nasdaq stock exchange — has gone 60 straight trading days without closing below its 20 day moving average, a short-term trend indicator. That's a troubling signal when you consider the last time the Nasdaq 100 sustained this sort of momentum was back in 1999, a little before the dot-com bubble burst. "The Nasdaq 100 has now gone 60 trading days without closing below its 20 DMA, the second-longest streak in its history (back to 1985). The longest was ended in early 1999," Jonathan Krinsky, chief market technician at BTIG, wrote in a Sunday titled "Fasten Your Seatbelts." "The main takeaway is that we may encounter some turbulence, even though it's unlikely to mark a major peak," Krinsky wrote. .NDX YTD mountain Nasdaq 100, year to date That word of caution comes with both the S & P 500 and Nasdaq Composite kicking off the week at record highs , once again, in spite of concerns ahead around the Aug. 1 trade deadline, and whether the Federal Reserve will or won't lower interest rates in their meeting next week. Earnings season is also expected to add to individual stock volatility. However, with reversal indicators showing signs of peaking, and seasonal trends weakening, the technical setup is starting to suggest greater unruliness lies ahead. Wall Street's fear gauge — the CBOE Volatility Index — has been notably quiet all month. Greater turbulence could be especially troubling for more risky assets, such as the ARK Innovation ETF , which has rallied more than 12% this month defying fears of a pullback. "We have clearly been offsides on the ARKK move, thinking a pullback was due for the last few weeks. With that said, relative to the 100 DMA it's now 38% above, only exceeded during a brief period in July '20," Krinsky wrote. "We continue to think a shakeout is overdue." The technician expects that investors could rotate into utilities. He said the Utilities Select Sector SPDR Fund has "prebreakout potential" that can carry it to the low $90s from around $84 where it was last hovering.
Yahoo
18-07-2025
- Business
- Yahoo
NVDA: Nvidia AI Boom Sparks Warning Bells as Pullback Risks Climb
July 18 Nvidia (NASDAQ:NVDA), the chipmaker powering the AI boom, is showing signs of an overheated rally, according to a Bloomberg report. Warning! GuruFocus has detected 4 Warning Signs with NVDA. The stock's 14?day relative strength index briefly topped 80 on Thursday, the highest reading since June 2024. The RSI is a technical momentum gauge that tracks the speed of recent price changes, and a reading above 70 often signals that a stock may be overbought. Nvidia's shares have climbed roughly 83% since early April, adding more than $1.9 trillion in market value. Yet history warns that extreme RSI levels can presage pullbacks: the last time Nvidia's RSI surpassed 80, the stock slid over 20% in the following six weeks. It's definitely getting overbought, and while that doesn't mean a reversal is imminent, this is something to be mindful of, said Jonathan Krinsky, chief market technician at BTIG. The recent leg of the rally was driven by news that the U.S. government approved renewed sales of some AI chips in China, a development that could recover a large portion of the roughly $15 billion in data?center revenue at risk under previous export restrictions. As Nvidia heads toward what may be its eighth straight week of gains, investors will watch upcoming Big Tech earnings for signs of sustained AI spending. This article first appeared on GuruFocus. 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
18-07-2025
- Automotive
- Yahoo
Nvidia Rally Shows Signs of Overheating as Gains Blow Past 80%
(Bloomberg) -- Nvidia Corp. traders keep getting reasons to buy the stock, but the breakneck rally is showing signs of overheating. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests Mumbai Facelift Is Inspired by 200-Year-Old New York Blueprint LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say The chipmaker's 14-day relative strength index topped 80 on Friday, the highest since June 2024 when the stock dropped more than 20% over the following six weeks. The momentum gauge tracks the speed of a stock's recent price changes and a reading over 70 is a signal to some analysts that buying is at extreme levels. 'It's definitely getting overbought, and while that doesn't mean a reversal is imminent, this is something to be mindful of,' said Jonathan Krinsky, chief market technician at BTIG. 'It feels like sentiment, which had been optimistic, is getting borderline giddy.' Nvidia, which dominates the market for chips used in artificial intelligence computing, has staged a dramatic reversal since April when a broad tariff-induced selloff added to fears about a potential pullback in AI spending. Since then, the firm's biggest customers have continued to plow more money into the development of AI services and investors have flocked back to the stock, pushing it up 84% in less than four months. The latest leg of the rally has been driven by news that Nvidia plans to resume sales of some AI chips in China with the approval of the US government. The policy reversal from President Donald Trump's administration could help recover a large chunk of the $15 billion in Nvidia's fiscal 2026 data center revenue that had been at risk from US chip export restrictions, according to Bloomberg Intelligence analyst Kunjan Sobhani. This week, Trump also touted more than $92 billion in commitments to invest in AI and energy infrastructure, while Meta Platforms Inc. CEO Mark Zuckerberg affirmed plans to spend 'hundreds of billions of dollars' on data center investments. The Facebook parent is Nvidia's second-largest customer, after Microsoft Corp., according to supply chain data compiled by Bloomberg. Nvidia is on track for its eighth-straight week of gains and the rally from its April low has added roughly $1.9 trillion to its market value, a figure that alone exceeds the market capitalization of Meta. At more than $4.2 trillion, Nvidia is again the world's most valuable company, topping second-ranked Microsoft by about $400 billion. 'Clearly, momentum is behind it,' said James Abate, managing director and head of fundamental strategies at Horizon Investments. 'It seems like every time we get incremental good news, buyers rush in and we get another leg up in the stock.' Still, Abate has used the advance to sell some Nvidia shares. In addition to the rising valuation, he said he's concerned that investors are underestimating the potential for 'the future cyclicality of the AI business.' Nvidia is priced at 34 times earnings expected over the next 12 months, up from a low of less than 20 in April, but well below the average of about 40 over the past five years. Most on Wall Street remain bullish about Nvidia's prospects on increasing positive signs about AI demand, including a robust forecast from Taiwan Semiconductor Manufacturing Co. on Thursday. Of the 79 analysts tracked by Bloomberg that cover the company, just one has a sell recommendation, while nine rate the stock neutral. Investors will be paying close attention in coming weeks to earnings results from Big Tech companies for hints about capital spending plans. Alphabet Inc. is scheduled to report on July 23, followed by Microsoft and Meta on July 30. Those three companies and Inc. account for more than 40% of revenue for Nvidia, whose results are due in late August. Rhys Williams, chief strategist at Wayve Capital Management, sees no reason to take profits on Nvidia with all signs pointing to AI spending continuing. 'Nvidia has had a nice breakout, and it will need to have a good quarter and raise its outlook, but we expect that will happen,' Williams said. 'We probably have another year or two of strong data-center growth.' Top Tech Stories While rival media companies are unloading assets and cutting costs, Netflix Inc. continues to thrive. The owner of the world's most popular paid streaming service on Thursday reported second-quarter results that exceeded investor expectations in every major metric, saying revenue grew to $11.1 billion and earnings jumped to $7.19 a share. The company also raised its forecast for full-year sales and profit margins. Days after a White House meeting with President Donald Trump, Jensen Huang was being hailed by an audience on a stage in Beijing. Meta Platforms Inc. hired a pair of key artificial intelligence researchers who worked at Apple Inc., shortly after poaching their former boss from the iPhone maker. Perplexity AI Inc., whose artificial intelligence-powered search engine competes with Google, has raised fresh capital in a deal that values the startup at $18 billion, according to a person familiar with the matter. Taiwan Semiconductor Manufacturing Co. plans to be cautious with capital expenditure due to tariff-related uncertainties, according to Chief Financial Officer Wendell Huang. Earnings Due Friday No major earnings expected --With assistance from Matt Turner and Subrat Patnaik. (Updates RSI data in second paragraph, share gain in fourth paragraph.) 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