Bullet Points From the Week

Semiconductor stocks remain the focus of investors and traders, with Nvidia and Super Micro Computer pushing to all-time highs. The industry is starting the week with several analyst upgrades as Wall Street continues to chase these companies higher. 🌠

Despite the growing concern that the fundamentals may not fully support these short-term surges in price, the path of least resistance remains higher.

Nvidia earnings re-ignited the animal spirits in the market, causing the stock and major indexes to reach several new milestones. Let’s check’em out. 👇

Firstly, a 16% rise in the stock today caused its market cap to rise $277 billion, the largest one-day increase of any stock in history. Secondly, today’s move put it firmly ahead of Google and Amazon as the fourth-largest stock in the world (Saudi Aramco not pictured below). It also moved it a stone’s throw away from $2 trillion. 🤩

Signs of froth in the market have been building since November and accelerated up in February, with the major indexes adding to their gains and tech giants becoming giant-er. Timing when the music will stop is a fool’s errand, but when it does end, we all inevitably look back through the lens of hindsight at the “obvious” signs things had gotten a bit crazy. 🤪

Some more of those signs of at least a short-term peak in sentiment appeared today, so let’s check them out. 👀