$Alphabet(GOOGL)$ $Alphabet(GOOG)$ ASML and memory names like MU and SNDK are getting hit hard right now. It feels like money could rotate back into GOOGL before long.
$Alphabet(GOOG)$ It closed above today's low of 325, which looks like a good sign for the rest of the week. Saw pretty solid support above 325 all day.
$Alphabet(GOOGL)$ $Alphabet(GOOG)$ 400Looking ahead to next week, I'm hoping they double capex again. The more investment the better — pouring money into AI is the best move they can make. $ASML Holding NV(ASML)$ $Amazon.com(AMZN)$ $Apple(AAPL)$ with a forward P/E of 22.5 feels kind of wild for what's essentially the top AI and tech company in the world. Wouldn't be surprised to see AI names broadly moving higher Monday.
$Alphabet(GOOGL)$ $Alphabet(GOOG)$ Volume right now is running noticeably above the average from last week, even though we're only partway through the session. Still very early, but it's giving off the impression that institutional selling is underway. If that continues, the rest of the week could just chop sideways in a tight range while edging 5-10 points lower, similar to what happened around the February earnings report. Feels like there's a decent chance of seeing somewhat lower prices over the next couple of weeks.
Photonics is picking up some solid momentum today, moving alongside oil and Treasury yields. The setup does feel a bit like March again, but the bigger story here is the AI infrastructure buildout. $Alphabet(GOOG)$ raised its capex outlook recently and pointed out that around 40% of its $44B spending is going toward data centers and networking equipment. That explains why areas like optical networking and photonics keep getting attention. AI demand isn't just about chips anymore, the whole infrastructure stack needs upgrades. It looks like the market is starting to price in the next phase of the AI cycle.
$Alphabet(GOOGL)$ Honestly, the amount of shorting on this one feels like a joke at this point. Just look at how many services we all use, both directly and indirectly, that are powered by the $Alphabet(GOOG)$ ecosystem. They're clearly winning in their core areas. From where I stand, I think we could see a healthy and consistent upward trend going forward.
$Alphabet(GOOG)$ Looking at current prices versus one-year targets, the potential upside for Google appears to be in the 25% to 40% range. For Micron, the upside looks more like 50% to 100%. Both, of course, carry their own downside risks. I'm holding positions in both.
$Alphabet(GOOGL)$ $Alphabet(GOOG)$ It seems Google might be streamlining its AI development process. The impression is they were previously cluttered with too many decision-makers. If that's the case, it could just be a matter of time before they become a leader in AI.