AI Stock Market Roundup w/c 16th of December

Each week I review the biggest movements within the AI stock market from last week and let you know what key market trends to look out for in the coming week, to keep you updated and ahead of the curve.

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Broader Market Update

The markets had a wild week on the lead up to Christmas as Fed Chairman Jerome Powell put a brief, but immediate halt to the Santa rally. The Federal Reserve Chairman was very cautious about the prospect of lowering interest rates prematurely, hinting at only two cuts in 2025. This was a massive surprise for investors who were expecting rates to be lowered quickly. Thus, all markets collapsed after this news on Wednesday, with the Nasdaq losing over 3% in a single session. However, data released on Thursday showed the underlying strength of the economy and the market staged a comeback rally to end the week. It seems that Fed Chairman Jerome Powell's narrative does not match the data which is causing confusion in the markets and leading to massive volatility.

Main AI Stock Market Movers

Ticker: AAPL | Price: $254.49 | Market Cap: $3.85T | Weekly Gain: 2.60% ⬆️

Apple continued to out-perform the market as it streaked ahead to fresh all-time highs and ever closer to becoming the first company to be valued at valued $4T. The resilience the stock has shown is impressive despite the overall volatility within the market this week. Despite Warren Buffet selling a significant stake, various EU commission investigations and a ban on the iPhone 16 in Indonesia, the stock is not phased and trades at a record setting valuation.

Ticker: NVDA | Price: $134.70 | Market Cap: $3.30T | Weekly Gain: 0.21% ➡️

Nvidia experienced major volatility this week, dropping aggressively on Wednesday but rallying again on Friday. Investors are nervous about the backlog of Blackwell chips that may impact revenue in 2025. Despite the recent correction analysts still remain bullish on their 2025 outlook stating that, "Nvidia fears are overdone". Mizuho analyst Jordan Klein has expressed optimism over Nvidia stock and predicts that the company will have positives to share with investors during CES in January.Additionally, Klein believes that Nvidia could unveil new products at the GPU Technology Conference in March that would take shares to the $160 to $170 level. This represents upside potential of more 30% at the peak of the range.

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Ticker: MSFT | Price: $436.84 | Market Cap: $3.25T | Weekly Loss: 2.37% ⬇️

Microsoft had a tough week of trading as the stock pulled back from the recent rally. The main catalyst was OpenAI was being fined 15 million euros ($15.6 million) by the Italian Data Protection Authority and was mandated a six-month public awareness campaign across radio, television, newspapers and the internet.The investigation, launched in March 2023, found that OpenAI violated several provisions of the GPDR, including failure to notify the regulatory about a data breach in March 2023, processing personal data for training ChatGPT without a valid legal basis, as well as the lack of age verification mechanisms, exposing children under 13 to potentially inappropriate content.

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What To Watch This Week

Look out for Unemployment Numbers being releases on Thursday @ 8:30am EST.

How will Bitcoin react after closing below the $100,000 price level?

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