Nvidia earnings key to near-term market trend after reversal week: Berman

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With the U.S. election out of the way and Donald Trump’s administration filling out, the market will turn to Nvidia Corp. (NASDAQ: NVDA) earnings this week to see if animal spirits can keep the party going.

Senior research analyst at Rosenblatt Securities Hans Mosesmann shares his hot picks in semiconductor stocks; Nvidia, AMD and Intel.

I’m very bullish on artificial intelligence and the productivity enhancements it can bring. Part of me is terrified by the other things it can unleash in terms of being able to trust what you see and hear on social media, but I will leave that for another day. It can help with forecasting economic and market conditions. It can help tilt the odds of success a bit more in our direction. The next two hires on my investment team will be AI-enabled coders.

There is always a new technology coming. NVDA has had some challenges with fabrication capacity, quality control, and most recently reports of chips overheating. So idiosyncratic risks are high. NVDA is now 8.7 per cent of the QQQ . It recently passed Apple and Microsoft to be the largest holding.Looking at the chart of the QQQ since the pandemic low, we see a clear trend channel that has found resistance at the top of the channel in July, creating an important high.

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