Market review from UTEX — week 26
Memory chipmakers surged by tens of percent. Bitcoin sideways for two weeks.
The market rose again: SPY +1%, Nasdaq +3% for the week, waiting for new all-time highs.
Data storage and processing infrastructure is rocketing again: Western Digital +40%, Arm Holdings +28%, Seagate Technology +25%, SanDisk +17%. Oil companies Chevron and Exxon Mobil each lost 6%, while IBM shares fell 10%.
Bitcoin is trading in the $64,000–65,000 range. The support level is clear, $60,000, but whether anyone will buy at that level, including the US, is unclear. This week, meetings are scheduled to finalize key details of the US crypto market structure bill, the CLARITY Act. Its passage could boost institutional interest.
On Thursday, the Personal Consumption Expenditures (PCE) price index for May will be released. The Fed considers PCE a more accurate measure of price changes because it analyzes data from businesses. The index accounts for what money was actually spent on in the economy and uses a broader set of expenditures than, say, CPI. In April, PCE rose 3.8% year‑over‑year, well above the 2% target. This is the largest increase in three years.
Among the reports, the most interesting this week are FedEx, Cerebras Systems, Carnival Corporation, Micron Technology, Darden Restaurants, and TD SYNNEX.
Top ideas for trading this week
🔴 Micron (MU). The report will be released on June 24 after market close. The stock has risen over 830% over the past year. Management is highly likely to reaffirm strong demand and a solid order backlog for years ahead. The main question is how much further growth is already priced in. It will definitely be volatile. If the reaction to the report is weak, pressure could affect the entire sector: SanDisk (SNDK), Western Digital (WDC), Seagate Technology (STX).
🔴 Other space stocks: Intuitive Machines, AST SpaceMobile, Rocket Lab, Planet Labs, or the Tema Space Innovators ETF. The SpaceX IPO was quite successful, but there has been no noticeable effect on other companies in the sector yet. It seems many took profits on the event. Valuations of some companies look interesting. There is a chance that one of them could become an acquisition target, or the sector may simply continue to move on its own.
🔴 Cerebras (CBRS). The report will be released on June 23 after market close. An AI chip developer trying to compete with market leaders in computing accelerators. The company's valuation is inflated: P/E around 200 (Nvidia's is about 35). The potential could be huge, but a lot of expectations are already priced in.
🔴 FedEx (FDX). Report on June 23. A stock with a complicated history: high volatility, mixed results, and steady market interest. It's hard to predict the direction after the report, but it's worth looking at its main competitor, UPS, which historically looks more stable. FedEx could offer an interesting intraday move.
🔴 IonQ (IONQ). One of the most popular public companies in the quantum computing sector. The market is currently valuing not current results but the future potential of the technology. The company continues to post substantial losses, and it's unclear whether it will manage to build a sustainable business. If you believe in the sector, you can consider it for the medium term, but the risks here are higher than for most AI stories.
🔴 High risk — for professionals.
Profitable deals!
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