Semis are going crazy…
Today, Nvidia (NVDA)—the world’s largest semiconductor stock—is surging 3%. It’s hitting new all-time highs and has now rallied 14% since the start of the year!
And it’s not alone.
Advanced Micro Devices (AMD), Micron Technology (MU), and Rambus (RMBS) are just a few other semi names having huge days.
I believe this is just the beginning for semiconductors for a couple reasons.
For one, I look at hundreds of charts every day. And I see semi stocks are setting up left and right.
Semis are also mission-critical to the artificial intelligence (AI) revolution. This megatrend simply can’t happen without them.
But, as I explained last week, semis aren’t the only way to cash in on this megatrend. Software companies are also essential in bringing AI to the masses. And like semis, many software stocks are primed for explosive moves.
That’s why I recommended e-commerce pioneer Shopify (SHOP) last week. It’s also why I’m making Adobe (ADBE) my new Trade of the Week.
Adobe is one of today’s most dominant software companies. Its technology is used for everything from video and photo editing to web design—and it now supports the use of generative AI models.
We’re picking up shares of ADBE today because it looks like it’s about to begin its first major move in months. Below, we can see that ADBE recently flipped a major resistance level into support. I expect this level to act as a launchpad for ADBE:
Source: StockCharts
I suggest buying a starter position in ADBE today. I believe it can hit $700 within the next 3–6 months.
Exit your position if ADBE closes below $560. That gives us a risk-reward ratio of 3:1 on this trade.
Action to take: Buy ADBE at current market prices.
Risk management: Exit your position if ADBE closes below $560.
Justin Spittler
Chief Trader, RiskHedge
