SpaceX IPO mania spills over into AI stocks — ride the momentum on chip supplier
Thesis
When a massive IPO like SpaceX rockets 37% in a week, it brings a wave of new money into the broader technology sector. Investors who missed out on the IPO will immediately look to buy the next closest things, specifically the companies supplying the tech and infrastructure for the AI boom. With anticipation building for more AI IPOs, companies that provide the literal wiring and memory chips for data centers, like Amphenol and Micron, are perfectly positioned to ride this wave of investor enthusiasm.
Strategy approach
Build a momentum strategy that enters long on NVDA, MU, and SMCI on the Daily timeframe when the 14-day RSI is between 60 and 75 (strong momentum) and the 5-day moving average is above the 20-day moving average. Exit if the 5-day moving average crosses below the 20-day moving average, or set a 7% trailing stop loss.