Public trading strategy
Micron quadruples revenue on AI demand, Broadcom launches new AI chip — load up
Thesis
Micron's quadrupling of revenue proves that the AI hardware boom isn't slowing down; it is actually accelerating and creating a shortage of memory chips. This positive momentum is spilling over into the entire chip sector. Broadcom's new chip deal with OpenAI shows there's massive demand for alternatives to Nvidia, but Nvidia is currently trading at a bargain price relative to the rest of the sector. Buying a basket of these AI hardware stocks captures the broad growth of the sector.
Strategy approach
Build a rule-based strategy that enters long MU, AVGO, and NVDA on the daily timeframe when price is above the 20-day EMA and the 14-day RSI is below 70. Exit if the price drops below the 50-day SMA. Use a 12% stop loss and a 30-day max hold period.