Key insights
- The author discusses the significant YTD gains of AMD and NBIS, attributing it to the AI boom and massive investment from major tech companies. They suggest further upside potential despite high valuations, driven by passive investing, hedge fund activity, and retail momentum. The author advises against shorting or longing based on valuations and RSI, advocating for individual stock picking based on perceived outperformance potential.
AMD stock up 95 percent YTD NBIS stock up 100 percent YTD
These stocks did the unthinkable. It’s truly impressive and a sign. It could be that AI really is this big and it’s changing everything. What I see is Mag 7 funnelling Trillions into an industry. I don’t know how these investors are holding through such insane life changing prices but honestly congratulations 👏.
I honestly think that these can go far higher. Many expect these stocks to dump, I expect a further squeeze.
Passive investing, banks,money printing, hedge funds and retail momentum control the direction of these stocks. Stocks are banks basically for companies that provide incredibly high returns. This is funding these companies to expand and grow which is what seems the US needs for this AI Push. This is what investing really is for and the purpose of the stock market.
Speculation especially negative sentiment is tricky. 230 percent on the buffet indicator, the PE of AMD is 150, NBIS is in the thousands. But in reality rationality and proper pricing have never been the stock markets game. Palantir/Tesla are examples of this having hit 400+ Pe’s and sustaining that premium price for years. Tesla isn’t even a good company on the financial balance sheet, however it’s a well connected maximum marketing strategy giant who can plant seeds of growth and potential in many individuals subconscious.
Do not short, do not long. Buy what you feel you can outperform. Don’t focus on the ludicrous valuation’s and RSI.
Hedge funds pump and dump stocks with wash trading. Blackrock,vanguard,state street can choose when to invest that lump sum of cash. Those 3 index fund companies Self Audit 😂. Rationality is not the market. The market is simply and honestly like a pyramid scheme. But every rich person, business owner and government is in on this. That’s why Index’s are so valuable, you’ll survive any downturn without worrying too much.
Gold,oil,consumer sentiment,rate hikes, tariffs, war, Declining Us Sentiment worldwide, shaky bonds , high debt, US dollar Debasement ,silver, AI fears,record high on many metrics of valuation … premium asset appreciations, bad economy and still the stock market does not flinch.
Focus on a positive mindset. The stock market is bullet proof. Nothing we do or say brings this market down.