I want to consider two stocks in this post, namely Nvidia and AMD. Both reported earnings this month, with those for AMD coming out at the beginning of February, while Nvidia reported last week. One reason I want to focus on these two is they both on the list of top ten stocks benefiting from strong retail flows since the beginning of this year. Second, as chipmakers they are at the forefront of AI, a market that is likely to be worth over $300bn by 2030 compared with just $3bn in 2021.
Both stocks gained almost 40% in the first five weeks of trading but since their earnings there has been a divergence in their respective price action with Nvidia managing, so far, to hold on to its earning gap higher of 14% while AMD reversed although it is once again trying to rally.
So two stocks very much of the future with charts that are worth watching, if only from a learning perspective between price action and volume.
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By Anna Coulling
NB – This post is for educational purposes only and does not constitute financial advice and must not be taken as a recommendation to buy or sell any of the instruments mentioned.
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