The 'AI' Craze Just Got a Reality Check

The market doesn't usually depend on one company's earnings report... But two nights ago, it did. [Chaikin PowerFeed]( The 'AI' Craze Just Got a Reality Check By Vic Lederman, editorial director, Chaikin Analytics The market doesn't usually depend on one company's earnings report... But two nights ago, it did. Several industry analysts told me some variation of, "I'm waiting to see how their earnings play out." In that instant, it seemed like everyone in finance was watching one company. I'm sure you already know that I'm talking about chipmaker Nvidia (NVDA). The company's earnings report was headline news yesterday. And for good reason, too... Nvidia isn't artificial-intelligence ("AI") pioneers OpenAI, Microsoft (MSFT), or Alphabet (GOOGL). But it might be the best barometer we have for AI and machine learning... You see, Nvidia's chips are especially well-suited for AI research and development. And that made the company's earnings report a key focus. It all boiled down to a simple idea... If Nvidia is doing well, then the AI boom is real and sustaining. The company became the world's measure for the massive gains across the tech space. After all, the tech-heavy Nasdaq Composite Index has soared. It's up around 30% this year. Nvidia's earnings report provided a major reality check. And it passed the test. Better still, the Power Gauge passed as well... Recommended Links: [The Shortest Bull Market in History?!]( After soaring 40% this year, the Nasdaq is faltering. And with more bank failures on the horizon – plus the Fed's relentless push for higher rates – Wall Street veteran Marc Chaikin is ready to share a critical update with you. He called this bull market way back in January... predicted a "run on the banks" five months in advance... and today, he's preparing for one final twist before the end of this year. [Click here for Marc's important update](. [Back By Demand: "The Perfect Transaction" (94% success rate)]( Since 2010, one little-known trading strategy has booked a 94% success rate and is as close to a Holy Grail as anything we've seen. It's a way to target the best companies in the market and instantly collect payouts of $100s at a time, without ever touching a single stock upfront. By tomorrow, [click here to learn more]( (includes a free recommendation) By this point, we all know that Nvidia absolutely crushed its earnings report. The company's adjusted earnings per share rose 429% from last year. It also beat Wall Street analysts' expectations... For example, the company's quarterly revenue was expected to come in at around $11 billion. But it did much better than that. It reported roughly $13.5 billion in revenue. Not surprisingly, the earnings report pushed Nvidia's stock to a record high. It's trading at around $480 per share today. That's remarkable. But I find something else even more interesting... The Power Gauge has tracked Nvidia almost perfectly over the past two years. You can see what I mean in the following chart going back to late 2021. Take a look... [Chaikin PowerFeed] Notice that the Power Gauge signaled caution on Nvidia as the tech wreck got underway in early 2022. And over the course of the year, it flipped between "neutral" and "bearish." But something changed early this year... On February 22, the Power Gauge turned "bullish" on Nvidia. That was six months ago. If you followed that signal, you could've realized gains of more than 130% since then. Also, the Power Gauge stayed firmly "bullish" ahead of Wednesday night's earnings report. This is a huge win for our system... The Power Gauge correctly signaled caution throughout 2022. Then, when a new uptrend formed, its flip to green basically told investors, "It's time to get back into this stock." That's exactly what you want when you're tracking a high-profile name like Nvidia. The Power Gauge sidesteps the emotional part of investing. And on any given day, it provides us with a data-driven measure of whether we should invest in a stock or not. Nvidia just passed the market's AI reality check. The company is selling boatloads of chips. As a result, its stock is soaring. And even more impressive, the Power Gauge tracked it every step of the way. Good investing, Vic Lederman P.S. AI is a lot like the Internet in the 1990s... The biggest and most well-established tech companies of the past 20 years are already buying in. And as Nvidia shows, the technology is getting more powerful every day. But it's critical to find the right ways to play the AI megatrend. That's why Chaikin Analytics founder Marc Chaikin put together a brand-new presentation... Marc has identified five companies that Wall Street is focusing on in the AI boom – including one stock that's trading for 1/12th the price of Nvidia. [Watch his presentation right here](. Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -1.10% 11 14 5 S&P 500 -1.39% 118 276 105 Nasdaq -2.14% 39 50 10 Small Caps -1.34% 469 972 493 Bonds -0.68% — According to the Chaikin Power Bar, Small Cap stocks have become somewhat more Bearish than Large Cap stocks. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Information Technology +1.40% Real Estate +0.72% Utilities -0.02% Discretionary -0.12% Communication -0.21% Materials -0.35% Industrials -0.37% Financial -0.44% Health Care -0.74% Staples -1.00% * * * * Industry Focus Health Care Equipment Services 4 52 17 Over the past 6 months, the Health Care Equipment subsector (XHE) has underperformed the S&P 500 by -18.77%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #19 of 21 subsectors. Indicative Stocks [rating] NVCR NovoCure Limited [rating] TNDM Tandem Diabetes Care [rating] PRCT PROCEPT BioRobotics * * * * Top Movers Gainers [rating] FTRE +4.42% [rating] CLX +2.24% [rating] PRU +2.18% [rating] SEE +2.16% [rating] ADSK +2.08% Losers [rating] DLTR -12.90% [rating] AMD -6.97% [rating] ENPH -6.15% [rating] SEDG -6.06% [rating] MPWR -6.05% * * * * Earnings Report Reporting Today Rating Before Open After Close OKTA MRVL, VEEV PTON COTY, HEI No earnings reporting today. Earnings Surprises [rating] WDAY Workday, Inc. Q2 $2.74 Beat by $1.48 [rating] INTU Intuit Inc. Q4 $1.65 Beat by $0.21 [rating] DLTR Dollar Tree, Inc. Q2 $0.91 Beat by $0.04 [rating] MRVL Marvell Technology, Inc. Q2 $0.33 Beat by $0.01 [rating] ULTA Ulta Beauty, Inc. Q2 $6.02 Beat by $0.17 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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