Market On Open, Wednesday 25 September
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Wen AI?
by Alex King, CEO, Cestrian Capital Research, Inc
Today’s psychodrama starts at 4pm Eastern with Micron ($MU) earnings. As I flagged yesterday in Slack Chat, if you’re an Inner Circle member and you bought $MU stock following trade disclosure alerts in the service, you may now be up around 8%; if you dislike earnings risk you may choose to sell before the print. Personally I plan to hold Micron into earnings because I see the company as a second-order beneficiary of the AI capex boom. Whether it moons or swoons on earnings, I cannot say, but longer term I believe the name can do well.
As bizarre as it may sound to see the market pivot around one company’s earnings, that’s how it is at present - $NVDA most of all but supporting or contrary evidence of the earnings flow of AI into other companies is of great interest to investors. Semiconductor is depressed at present, following a giant dump after the July high; if the sector recovers it can lift the Nasdaq to the new all time highs which are yet to feature at a time when the Dow and the S&P are printing them regularly.
And with that - let’s get to work.
Short- And Medium-Term Market Analysis
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