The recent catch-up rallies in German stocks, financial sector stocks, China technology, and even the ARK Innovation ETF (ARKK) mean we are in a “broadening bull.” Meanwhile, Nvidia Corp. (NVDA) reports January quarter results after the close Wednesday, and again, the whole short-term direction of the stock market depends on the results, highlights Michael Murphy, editor of New World Investor.
A broadening bull is when we suddenly and very quickly have an aggressive expansion of the rally. It could be a “buy the laggards” meme or just a general broadening. But it normally happens in just a fraction of the time that the overall bull has been in place.
So, what are the next potential laggards to catch up? My guess is (1) junior miners catching up to record gold prices, and (2) biotech, driven by an acceleration in positive clinical results and increased FDA approvals under the Trump/Kennedy regime.
Nvidia Corp. (NVDA)
As for NVDA, the consensus is expecting revenues up 72.5% to $38.13 billion with earnings of $0.85 per share. March-quarter guidance should be $42 billion and $0.91 per share. I expect Nvidia to beat and guide above all four numbers, but…be ready for “didn’t beat by as much as last time” from traders hoping to shake some rubes out of their stock.
NVDA is a Buy under $125 for a $180 first target.
