2 AI stocks that benefited from the boom in AI as much as Nvidia

The biggest names in artificial intelligence (AI) are once again beating quarterly earnings expectations.
There isn’t a hotter investment trend on Wall Street that exemplifies the FOMO trade quite like artificial intelligence (AI).

And the biggest winner was Nvidia.

Previously, we did a market analysis when the stock price of Nvidia skyrocketed to a record $1,224.40, bringing the company to hit a $3.01 trillion market cap milestone.

You can read about it here: Nvidia soars to record highs, eyes top spot by market cap

Nvidia made a move that many investors were eagerly waiting for. The tech giant completed a 10-for-1 stock split, now trading for about $120 a share compared with more than $1200 last week.

Such growth has put Nvidia on track to become the second largest company in the world.

What’s all the hype about stock splits?

When a company announces a stock split, it typically indicates strong performance in earnings and share value. This suggests that Nvidia may continue to perform well. Management is confident that, following the split, the stock has the potential to climb even higher.

But don’t expect this superior pricing power to last much longer.

The reason AI stocks have soared is simple: AI is useful in almost every industry. With more companies making A100 and H100 chips and new competitors joining the AI data center market, powerful GPUs will become less scarce. This means Nvidia might not be able to charge as much for their chips in the near future.

Nvidia may be Wall Street’s hottest AI stock right now, but investors may be better off looking at companies which are not heading for a bubble-bursting event.

Picture: Nvidia trading at 136.26 as seen on the VT Markets app (As of 19 June 2024).

Here are 2 hypergrowth stocks that you should grab now

There are currently only three S&P 500 stocks in the $3 trillion club: Nvidia, Microsoft, and Apple.

Compared to the stocks already in the $3 trillion club, Alphabet trades at the lowest valuation by far at a wide discount when compared to the others. Given its current growth and future prospects, the Alphabet currently looks very undervalued.

Alphabet’s market cap now stands at $2.19 trillion, which is approximately 47.03% lower than Nvidia’s valuation of $3.22 trillion.

Here’s why Alphabet has what it takes to push its market cap above $3 trillion

Picture: Google currently trading between 180.72 to 182.48 as of 24 June on the VT Markets app.

While Nvidia dominates the hardware sire of AI, Google Cloud takes the leading role in AI software. Running AI models takes serious computing power, and many companies either don’t have it or can’t justify spending millions of dollars on a system that may not be used enough to justify its cost. Cloud computing is the answer to this problem, allowing anyone to rent computing space from a cloud computing provider like Google Cloud.

Whether it’s data storage or processing power, Google Cloud has clients covered. With access to the latest generation of Nvidia GPUs for training models, Google Cloud is a top competitor in this space.

Up next on the list: Intel

Picture: Intel trading between 31.14 to 31.47 as of 24 June. Download the VT Markets app now.

Intel has been slower in adopting AI, but it’s starting to stand out from other chip makers by jumping into manufacturing. They’re aiming to become one of the biggest semiconductor manufacturers in the U.S. and Europe, just as the demand for chips is booming.

This might be the perfect time to invest.

Intel is on the verge of a potential comeback. Last year, they announced a shift to a foundry model and plans to build chip plants all over the U.S.

Right now, Taiwan Semiconductor Manufacturing Company (TSMC) dominates the market, making at least 60% of the world’s chips. But with tensions rising between China and Taiwan, tech companies are rethinking their reliance on TSMC.

But not for Intel. They’re seizing this opportunity to dive into the manufacturing game.

However, starting a foundry business incurs significant costs, which is why most companies prefer to outsource manufacturing. As a result, it will take time for Intel to recover its investment.

Interested to add Nvidia, Intel, or Intel to your portfolio? Try CFD Share Trading.

With the VT Markets app, you can do it with just a fraction of the trade value, while also being able to control larger positions. Unlike stocks, which require the full amount of the investment upfront, trading Share CFDs offers you the opportunity to gain access to global markets faster and at a lower cost.

Explore our list of US blue-chip shares here

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VT Markets 致力于为客户提供更快速且稳定的交易环境，我们将于周末进行MT5 服务器升级维护及 VT Markets APP 维护。

MT5 服务器维护时间：
2024 年 07 月 20 日 (星期六) 07：00 至 10：00

VT Markets APP Social Trading 维护时间：
2024 年 07 月 20 日 (星期六) 07：00 至 10：00 及 13：00 至 20：00
上述时段采用 GMT+8

请您务必留意下列事项：
1. 维护期间，VT Markets APP Social Trading 跟单交易将无法使用，建议您避开此期间使用此功能；VT APP 其余功能不受影响。
2. 维护期间至开盘前，服务器报价将会暂停。您将无法建立新仓位、关闭或调整既有仓位。
3. 维护期间至开盘前后的市场价格可能发生跳空，在跳空范围内的挂单或止损/止盈设置将在维护结束后的市场价格成交，建议您留意仓位控管。

具体维护完毕与开盘时间请依据 MT5 / VT APP 软件为准。 望您谅解因此次升级维护为您所带来的不便，我们将继续为您提供更优质的服务。

如您有任何疑问，我们的团队将十分乐意为您解答。请留言或发邮件至 [email protected] 或联系在线客服。

Maklumat utama:

• Emas naik kepada $2,461.27 per auns, menghampiri paras tertinggi rekod $2,483.60.
• Jangkaan peningkatan pemotongan kadar faedah AS pada bulan September memacu permintaan emas.

Harga emas (Simbol: XAUUSD) meningkat, diperdagangkan pada $2,461.27 per auns. Ini adalah paras harga yang tidak jauh dari paras tertinggi rekod $2,483.60 yang ditetapkan dalam sesi sebelumnya. Dengan peningkatan jangkaan pemotongan kadar faedah AS pada bulan September, ini menjadi faktor penting yang memacu permintaan emas.

Jangkaan Pemotongan Kadar Fed

Selain daripada peningkatan kebarangkalian pemotongan kadar Fed pada bulan September, sentimen pasaran keseluruhan juga telah diperkukuhkan oleh komen dari pegawai Fed.

Gabenor Fed Christopher Waller dan Presiden Fed New York, John Williams, telah memberikan bayangan mengenai jangka masa yang lebih pendek ke arah dasar monetari yang lebih longgar. Selain itu, Presiden Fed Richmond, Thomas Barkin, menyatakan optimisme mengenai penurunan inflasi.

Kadar faedah yang lebih rendah secara umum meningkatkan tarikan bullion tanpa hasil, mendorong kenaikan harga emas.

Pilihan raya AS yang akan datang dan potensi perang perdagangan global, terutamanya di antara AS dan China, boleh meningkatkan lagi status logam berharga kerana pelabur memerlukan cara untuk melindungi pendedahan ekuiti dan mata wang mereka.

Apa Yang Akan Terjadi Kepada Harga Emas?

Oleh itu, emas boleh meningkat ke paras harga antara $2,700 hingga $3,000 dalam tempoh 6 hingga 12 bulan akan datang, tanpa mengira keputusan pilihan raya AS. Pandangan ini didorong oleh jangkaan kadar faedah yang lebih rendah dan potensi ketegangan geopolitik.

Kemungkinan untuk emas mengekalkan trajektori menaik didorong oleh peningkatan jangkaan untuk pemotongan kadar Rizab Persekutuan dan ketidakpastian ekonomi dan geopolitik. Pedagang harus bersedia untuk mengambil kesempatan daripada trend ini sambil mengekalkan pengurusan risiko mereka.

Buka akaun VT Markets anda sekarang dan mula berdagang.

“OPEC daily basket price stood at $86.51 a barrel.” 

“Al Ghais: Peak oil demand not on the horizon.” 

“37th OPEC and non-OPEC Ministerial Meeting.” 

Above are some of the headlines that oil traders would eye on every business day. For someone new to the oil as a commodity in day trading, one must wonder why the OPEC is a big deal in this market. 

The short answer: OPEC in the oil industry is almost as important as the US Federal Reserve in the currencies industry. Find out how and why. 

Who is OPEC and OPEC+? 

The Organization of the Petroleum Exporting Countries, or OPEC, is a group of oil-producing nations. Formed in 1960, its country members include Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates and Venezuela.

The main goal of OPEC is to coordinate and unify petroleum policies among member countries. This helps stabilise oil markets and secure fair prices for oil producers. 

OPEC+ is an expansion of OPEC that includes additional oil-producing countries, including Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan. These non-OPEC members joined forces with OPEC to better manage oil production and prices. OPEC+ was formed in 2016 to address the oversupply of oil and the resulting drop in prices.  

Source: OPEC official website 

Together, OPEC and OPEC+ control a large portion of the oil supply in the world. 

How OPEC and OPEC+ influence the oil market 

OPEC and OPEC+ influence the oil market mainly by adjusting their production levels. When they agree to cut production, it reduces the oil supply in the market. This often leads to higher oil prices. Conversely, increasing production can flood the market with oil, causing prices to drop. 

The oil embargo 1973 

In 1973, an OPEC member Saudi Arabia declared an oil embargo. This was in response to Western support for Israel during the Yom Kippur War. The embargo led to a severe shortage of oil and skyrocketing prices. In the US, gas prices jumped, and long lines formed at gas stations. This crisis showed the world how powerful OPEC could be in controlling oil prices. 

The oil glut in 2014 

In 2014, OPEC decided not to cut production despite a growing supply glut. This decision led to a rapid decline in oil prices, including WTI, as traders anticipated continued oversupply in the market.

WTI prices dropped from over $100 per barrel in mid-2014 to below $50 per barrel by early 2015. 

The COVID-19 pandemic in 2020 

In 2020, the COVID-19 pandemic caused a sharp decline in oil demand. At the same time, a price war between Russia and Saudi Arabia led to increased production. The result was a significant drop in oil prices, even turning negative for a short period.

OPEC+ then agreed to historic production cuts to stabilise the market. This action helped oil prices recover over time. 

How to day trade in the oil market 

The first thing you must understand is there are two major forms of oil asset in the world. 

Brent oil: Sourced from oil fields in the North Sea between the United Kingdom and Norway, Brent oil serves as a pricing benchmark for oil produced in Europe, Africa and the Middle East. Production decisions by OPEC and OPEC+ impacts the Brent oil directly as these changes hit the oil inventory level. 

The West Texas Intermediate (WTI) oil: In contrast, the oil inventory of WTI is primarily extracted from oil fields in Texas, North Dakota, and Oklahoma in the United States and is traded at the Cushing, Oklahoma hub, a key storage and pricing point for US crude oil. While OPEC and OPEC+ do not directly control the production by WTI, their decisions can indirectly affect WTI as the global supply proportion is large enough. 

If you are looking to do trade oil, know that supply and demand in the oil industry are mainly driven by the decisions from OPEC and OPEC+ meetings, apart from global economic data and geopolitical events.

By keeping an eye on these factors, day traders can anticipate price movements as you combine your trading strategy with technical analysis.  

Open a live account 

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VT Markets 平台的部份期货产品即将于以下时间展开新合约，如持仓过夜将对换约造成的额外盈亏进行扣补。详情请见下方表格：

由于并非市场因素所造成的价格波动，若投资者的仓位于合约切换期间包含期货原油的未平仓头寸，将依据展期方向产生相应的扣补，以此反映新旧合约之间的价差。

请留意：

• 展期时，合约将自动切换，所有持仓中的订单将可继续持有。

• 展期日未平仓的订单将对换约所产生的额外盈亏进行补扣调整，以反映到期合约和新合约之间的价格差异。

• 为避免差价合约展期，客户可以选择在展期日之前关闭任何未平仓的订单。

• 投资者应在展期前妥善控制仓位或调整相应的止盈止损设置。

• 同时，由于展期需做调整，在展期当天开盘前后半小时，我们会禁止所有同名账户内部转账。

如您有任何疑问，我们的团队将十分乐意为您解答。
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VT Markets 为进一步丰富广大客户的投资选择，我们预计将于 2024 年 07 月 15 日 (周一) 新增 1 只 Index 产品

您可以在 Meta Trader 4、5 上交易以下新产品，交易细则如下：

注意：以上数据仅供参考，具体请依据 MT4 / MT5 软件为准。

温馨提醒：

1. 隔夜库存费费率请依据 MT4 / MT5 软件为准。

如您有任何疑问，我们的团队将十分乐意为您解答。

请留言或发邮件至  [email protected] 或联系在线客服。

CURRENCIES

 Market summary:

• The Australian Dollar was slightly lower on Monday but remains near its 2024 peak due to solid and enduring monetary policy support.
• Unlike most major central banks cutting rates, the Reserve Bank of Australia is likely to maintain or even increase rates due to high inflation.
• May’s inflation numbers showed a surprising rise in consumer prices, reaching a six-month high above 4%.
• Even if rates stay unchanged through year-end, Australian yields and the Dollar remain attractive.

 Economic data:

• Monday: Sparse but notable data with a decline in home loans and investment lending for homes in May.
• Tuesday: Westpac’s monthly consumer confidence snapshot; June’s data showed slight improvement in consumer sentiment.

 Upcoming Events:

• Focus shifts to the US for Federal Reserve Chair Jerome Powell’s Congressional testimony.

 Technical analysis:

• The Aussie has surpassed its previous range top in the last three sessions but remains unstable.
• Bulls pushed through key resistance at the first Fibonacci retracement of AUD/USD’s rise (December 28, 2023, peak to October 25, low).
• Near-term support is at 0.67419; if this fails, a drop below 0.67133 into the previous range is likely.
• Further retracement support at 0.65704 appears solid.
• Long-term uptrends since mid-April remain intact, with little expectation of significant declines while fundamentals are supportive.

STOCK MARKET

Influence of top stocks:

• A small group of high-performing stocks, including “Magnificent Seven” tech names like Alphabet (GOOG, GOOGL), Apple (AAPL), and Tesla (TSLA), heavily influence market activity.
• The top 10 stocks contributed 75% of the index’s year-to-date returns.
• Nvidia (NVDA) alone accounted for nearly one-third of the S&P 500’s gains by late June.

Focus on quality at a reasonable price:

• Kantrowitz recommends prioritizing companies that outperform peers in earnings growth but are not the most expensive.
• He advises sacrificing some growth for quality to find reasonably priced names.
• There are 50 S&P 500 names that have beaten the index this year, not solely reliant on AI or tech.

Diverse performance:

• Large-cap and small-cap stocks are viewed differently due to their varying performances.
• Despite the S&P 500 reaching all-time highs in Q2, the average stock’s value declined.
• Year to date, the S&P 500 is up nearly 17%.

Industry shift:

• Multiple strategists raised their S&P 500 targets earlier this year due to a strong rally.
• It’s becoming challenging to keep up with the market trends, prompting more firms to reconsider their focus on the index.

Click here to open account and start trading.

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為了因应近期日渐波动的股票市场风险，VT Markets 将于 2024 年 7 月 15 日调整股票产品的部份交易设置，详请参考如下：

1. MT4、MT5 的 US 美股产品从原杠杆 33:1 调整为 20:1。

2. MT5 所有股票产品于收盘前 30 分钟和开市后 30 分钟内开立新仓位的杠杆为 5:1 ，一旦这些仓位不在前述提到的时间范围内，杠杆将恢复为 20:1 ，且不会再次更动为 5:1 。

MT4 将不受此影响。

注意：以上数据仅供参考，实际执行数据有可能会有变动，具体请依据MT4、MT5软件为准。

温馨提醒：

1. 本次调整除杠杆之外，其他所有交易细则维持不变

2. 账户内预付款比例可能因此次调整受到影响，请务必在调整前确保账户中保留足够持有仓位的资金。

如您有任何疑问，我们的团队将十分乐意为您解答。

请留言或发邮件至  [email protected] 或联系在线客服。

CURRENCIES

Euro (EUR/USD) analysis:

• French bond yields starting to move higher.
• Euro edges lower as markets wait for specifics.

French election results and market impact:

• The recent French election resulted in a shock, leaving financial markets vulnerable.
• Contrary to expectations of a strong showing by the far-right National Rally (RN) party, the left-wing New Popular Front coalition made significant gains, securing the most seats in the National Assembly.
• President Emmanuel Macron’s centrist alliance, Ensemble, underperformed but still placed second, ahead of the RN.

Political instability and market reactions:

• Resulted in a hung parliament with no outright majority.
• Likely governance challenges as Macron’s party will need to form alliances or negotiate to pass legislation.
• Jean-Luc Melenchon, leader of the New Popular Front, demands the resignation of the French prime minister and for NFP to govern.

Market movements:

• French asset markets unchanged to marginally lower in early trade.
• CAC 40 attempting to push higher but gains may be limited pending further news on government composition.
• French borrowing costs elevated, potentially rising further due to proposed spending by Melenchon, including lowering the pension age to 62 and increasing the minimum wage.

Euro post-election:

• The Euro remains relatively calm post-election, holding last week’s gains.
• Benefitting from US dollar weakness, with potential to drift towards 1.0900 against the US dollar in a calm period ahead.

Trader sentiment and EUR/USD:

• Retail trader data shows 36.57% of traders are net-long, with a short to long ratio of 1.73 to 1.
• The number of traders net-long is significantly lower compared to yesterday and last week.
• Traders net-short positions have increased, indicating a contrarian bullish trading bias for EUR/USD prices.

STOCK MARKET

Key events and reports:

• Tuesday and Wednesday: Semiannual testimony from Federal Reserve Chair Jerome Powell before the Senate Banking Committee and the House Financial Services Committee.
• Thursday: Release of June’s Consumer Price Index (CPI).
• Friday: Second quarter earnings season begins with reports from JPMorgan (JPM), Wells Fargo (WFC), and Citi (C). Additional reports from PepsiCo (PEP) and Delta Air Lines (DAL) earlier in the week.

Market performance last week:

• S&P 500 (^GSPC): +2%, finished at record highs.
• Nasdaq Composite (^IXIC): +3%, finished at record highs.
• Dow Jones Industrial Average (^DJI): +0.5%, noted as a laggard.

 June jobs report:

• The US economy added more jobs than expected, but details show signs of a slowing labor market.
• Unemployment rate rose to 4.1%, highest since November 2021.
• April and May job gains were revised lower by 111,000.
• Economists predict this will lead the Federal Reserve to cut interest rates in September.

Economist insights:

• Nancy Vanden Houten (Oxford Economics): June jobs report shows labor market cooling, supports forecast for Fed rate cuts in September.
• Neil Dutta (Renaissance Macro): Report firmed up expectations for a September rate cut, suggesting Powell will set up for this in July.

Investor sentiment:

• As of Friday, 75% of investors expect a rate cut by the Fed’s September meeting, up from 64% the previous week (CME’s FedWatch Tool).

Inflation and CPI report:

• Inflation readings in May showed the slowest price increases of 2024.
• June CPI report expected to show a 3.1% annual rise, down from May’s 3.3%.
• Core CPI (excluding food and energy) expected to rise 3.4% year-over-year, unchanged from May.

Earnings season:

• Financials (XLF) will be a focus, with 40% of S&P 500 companies reporting.
• Sector expected to see 4.3% year-over-year earnings growth, placing seventh among S&P 500 sectors.
• Regional banks projected to report a 26% decline in earnings growth.

Outlook for Q2 earnings:

• S&P 500 earnings forecasted to grow 8.8% year-over-year, highest since Q1 2022.
• Caution among strategists about upside potential despite record market levels.
• Companies beating expectations saw minimal stock price impact last quarter.

Click here to open account and start trading.

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股票产品 AVGO 即将在 2024 年 07 月 12 日 休市后进行股票分割。自 2024 年 07 月 15 日开市起，AVGO 预计将会以股票分割后的合约提供投资者交易。

AVGO 股票分割后，请您留意：

1. AVGO 订单持仓量将变为原手数的 10 倍。

2. AVGO 持仓仓位的「开仓价格」与「止盈 / 止损设置价格」将变为原价格的 10 分之 1。

3. AVGO 于 07 月 15 日开市的价格预计将大约是休市价格的 10 分之 1。

4. 07 月 12 日休市后，真实账户中所有的 AVGO 挂单将会被取消。

5. 07 月 12 日休市后，模拟账户中所有的 AVGO 订单将会被取消，包括持仓以及挂单。

注意：以上数据仅供参考，实际执行数据有可能会有变动，具体请依据 MT4/MT5 软件为准。

如您有任何疑问，我们的团队将十分乐意为您解答。
请留言或发邮件至 [email protected] 或联系在线客服。