“Old Tech” Or New Leaders:
Or maybe a bit of both? As the old saying goes old leaders are often left behind for new generals when a fresh bull market gets underway. No one is saying that a new bull is upon us but it is always good to be prepared if that is the case. “Old tech” has been somewhat in vogue with ORCL and GLW acting well and STX and WDC looking like they want some limelight too. Below are the two charts of NVDA and AMD, often compared as they were once the primary focus within the semiconductors. We will discuss possible new leaders later in this report, but looking at this duo there is no question which one is acting better at the moment. On a YTD basis, NVDA has gained 31% compared to AMD’s 15%, both respectable. Nvidia since breaking ABOVE a bear flag on 1/9 has not looked back, as we know from FALSE moves come fast ones in the opposite direction. As I was taught long ago you always want your best players on the field if you are looking to win a World Series/Super Bowl and it should be no different inside your portfolio. Allocate your hard-earned capital where it is treated best. NVDA fits the bill over AMD.