Artificial intelligence hype has spawned a swath of successful tech stocks — and two among them are seeing shares move into potential buying positions: Vertiv and SMCI stock.
Super Micro Computer (SMCI) popped 7% in the stock market today, with a 50% spike in shares traded vs. its 50-day average volume.
The hardware manufacturer, which specializes in server and storage used by artificial-intelligence-focused hardware manufacturers, cleared an aggressive entry above prior resistance at 298.35 and closed well in the upper half of the day’s trading range. Super Micro Computer has a perfect Relative Strength Rating of 99.
Vertiv (VRT) backed off intraday highs by day’s end but still managed a gain of more than 1% in the stock market today. Shares cleared a stage-two flat-base pivot of 40.41, with shares hovering around that entry point at Tuesday’s close.
Shares of the cooling and power equipment manufacturer, with equipment used in the servers that power artificial intelligence, have an RS-line blue dot. That underscores the stock’s outperformance vs. the S&P 500. Vertiv also has a perfect Relative Strength Rating of 99.
Vertiv saw its ownership by mutual funds grow from 425 funds in December last year to 632 by September, according to data from IBD’s MarketSmith. Meanwhile, SMCI stock saw fund ownership rise from 539 funds in December last year to 840 in September. Artificial intelligence has been gaining more and more attention by institutional investors this year. Seeing rising fund ownership is bullish.
These hot tech stocks have both gone on huge runs in 2023. Vertiv is up roughly 200% so far this year, while SMCI is up nearly 280%. With both highflying stocks, traders should be careful about where shares are in relation to their 50-day moving averages before diving in. Stocks that are extended more than 10% from that key level could be more likely to pull back.
One thing is clear: These artificial intelligence plays are tech stocks to watch. “It’s amazing how (Vertiv) has in less than a year become a big cap,” says Investor Business Daily’s David Saito-Chung.
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