Public trading strategy
OpenAI IPO filing supercharges the AI sector — ride the wave on Nvidia and AMD
Thesis
When massive industry leaders file to go public, it brings a wave of attention and investment money to their entire sector. OpenAI going public is a landmark event that proves artificial intelligence is moving from a hyped concept to a highly profitable reality. This makes the semiconductor companies that manufacture the physical hardware for AI incredibly attractive. As Wall Street gets excited for the actual IPO, we expect the stock prices of these key chipmakers to climb steadily in the buildup.
Strategy approach
Build a long strategy for NVDA and AMD on the daily timeframe. Enter when the price is above the 20-day SMA and the 5-day RSI crosses above 50. Exit if the price closes below the 20-day SMA. Use a 5% stop loss and a 15% profit target.