COMMENT
Big tech holding up so far this year?

Yes, very well. But there's a lot going on with so many new products and services coming out, especially out of the AI revolution. New products on the hardware side with chips and data going into the data centres. Now the applications are going to come into play, with processing and interpretation and so on. 

Vendors are making a heck of a lot of money, centering around generative AI. But you'll see, this year, the end users are going to make some hay out of this too. It's going to make corporations faster and more efficient. 

COMMENT
Ramping up the new tech.

Training in the new ways of AI is taking some time. Productivity does take a while to emerge, but you can see from the vendor side, especially from the chips, that they're just making a lot of money. Not only are they selling a lot, but the margins are enormous.

Take, for example, NVDA. Gross margin on the superchips is 75%. 

COMMENT
Why does AI need special chips?

The new thing is packaging the GPUs together with the CPUs. That allows the data processing to move faster, and the interpretation to be delivered very, very quickly.

COMMENT
GPUs explained.

Graphics processing unit. With NVDA 8 years ago, GPUs were huge in the gaming industry. With a lot of the crackdown, especially in China, they took a back seat. But then cryptocurrencies came along, and they had to use the GPUs. Now it's given new life to generative AI, because it requires GPUs.

The likes of NVDA, INTC, and AMD have come out with packaging combining CPUs with GPUs, making the processing and the interpretation a lot quicker.

BUY ON WEAKNESS

Processing and interpretation of massive amounts of warehousing data. Already integral in AI. Embedded in cloud. Price target should increase. Lots of revenue, but still losing money. Wait. Buy between $190-200, $180-190, and $170-180.

(Analysts’ price target is $218.00)
TRADE

Very conservative during reporting season. They lowball it, and stock rolls over. A trading vehicle. Much prefers CRWD and SentinelOne.

WATCH

Powerful, lightweight solution. Leader in the group. Prefers it to FTNT.

WATCH

An up-and-comer, has received some Upgrades. Prefers to FTNT.

BUY ON WEAKNESS

Stock took off. He took profits a couple of weeks ago. A bit rich now. Buy it under $30, at $28, and around $26.

(Analysts’ price target is $26.00)
COMMENT
Mantra for 2024.

Extreme volatility. So you have to be patient. You will get a chance to get into the high-flyers on your wishlist.

PARTIAL BUY

Still a bit of runway to his price target of $126. Rolled over a bit. Wait for a pullback. You could buy a 1/3 position today around $104, but you can probably get it around $95, and then $90 if you're lucky.

COMMENT
Tricky times in tech.

The NASDAQ's gone up about 7% in only the last couple of weeks. So it's tough.

Here we are in earnings season. Though only a handful have presented earnings so far, he thinks everyone's paused and not changing price targets, waiting for each company to independently report. Then we'll get to mid-February, and everyone will start changing their price targets. 

Even with a lot of these that have run up, he's holding on with rolling stops below. 

PARTIAL BUY

Blown through analysts' average price target. He still owns it. Will get visibility once they report. Acquired 260 companies over 10 years, cross-sell, and keep on making money. Vertical market strategy as opposed to MSFT, which integrates horizontally. Buy 1/3 here around $3700, again at $3475, and $3300.

(Analysts’ price target is $3320.00)
TRADE

Now above the average price target. If your entry was $64, write some calls upwards of $74-75 if you have more than 100 shares. Volatility's high, so calls would give you a good premium. Watch the price action -- roll up the strike if it starts to go up, or decide you want to have it taken off your hands.

(Analysts’ price target is $68.00)
PARTIAL BUY

Might want to write some calls. For quite a pretty penny, bought a company that does visualizations and simulations. You can own it here around $550, more at $520, and just south of $500.

(Analysts’ price target is $610.00)