Mega IPOs are bringing a flood of cash to AI — ride the chip stock rebound
Thesis
When massive new companies get ready to list on the stock market, it draws a huge amount of attention and fresh money into their industry. With SpaceX aiming for a near $2 trillion valuation and OpenAI targeting over $850 billion, investors are scrambling to get a piece of the AI economy before these deals officially price. Because you can't buy SpaceX or OpenAI on the open market yet, investors are buying the next best thing: the established AI chip and hardware companies that actually supply these tech giants. This 'halo effect' makes the recent dip in top AI stocks a prime buying opportunity.
Strategy approach
Build a long-only momentum strategy on NVDA, AMD, and AVGO using the daily timeframe. Enter a full position when the stock's 10-day average volume spikes by 150% or more compared to the 50-day average volume, and the price closes above the 10-day simple moving average. Exit the position if the daily close falls below the 30-day simple moving average, or after a maximum hold period of 15 trading days.