1/ Oracle Lift Off
2/ GOOGL Breaks out
3/ AI Component Stocks Lead market
4/ Google Bases Calmly
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1/
Oracle Lift Off
The AI revolution gained momentum with after-hours news that OpenAI, SoftBank, and Oracle ($ORCL) are planning a joint venture called “Stargate” to develop new AI infrastructure in the U.S., committing $500 billion over the next four years.
This groundbreaking announcement reinforces the importance of AI infrastructure stocks, including ORCL. After climbing in after-hours trading, ORCL is set to open back above its 50-day moving average. The recent market pullback has allowed ORCL to build a solid base and pull back to its long-term uptrend line. This positions the stock with substantial upside potential, supported by a strong news-driven catalyst.
AI infrastructure remains a critical focus area, with ORCL poised to benefit significantly in this developing bull market.
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GOOGL Breaks out
As discussed yesterday, GOOGL has spent the past month oscillating sideways amidst a market-wide pullback. Today, GOOGL staged a breakout on a closing basis. Continued progress in the coming days and an ability to hold above its basing range will likely confirm that GOOGL is resuming its uptrend. It’s important to remember that GOOGL is uniquely positioned in three critical tech revolutions: General AI, Autonomous Vehicles, and Quantum Computing. Few companies have the breadth and depth of exposure to these transformative areas, making GOOGL a standout as these technologies shape the future.
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AI Component Stocks Lead market
While large-cap tech often grabs the spotlight, some of the most leveraged exposure to the AI boom lies with data center component companies. These include Celestica (CLS), Ciena (CIEN), and VRT Holdings (VRT)—all current market leaders, alongside the energy infrastructure group highlighted yesterday. Today’s “Stargate” news further boosted these stocks in after-hours trading.
Leading stocks share two key traits: 1) They outperform the market during upswings, and 2) they decline less than the market during pullbacks. These three names meet those criteria and continue to demonstrate significant upside potential as AI infrastructure development accelerates.
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Dollar has “Unexpected” Downside Break
With much talk of tariffs swirling following President Trump’s re-election, the dollar has been in a multi-month uptrend. However, as he takes office, initial plans appear to focus more on growth, with a slightly more agreeable tone toward negotiating bilateral trade agreements. This softening stance has led to a breakdown in the dollar’s recent trend.
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Originally posted 22nd January 2025
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