Jan 28th, 2024 – Given the USA is currently entering the presidential race, it is wise for us to look at how a possible republican victory might affect the stock market, and especially, our portfolio. As it stands, Donald Trump seems to have the upper hand over Nikky Haley in the republican party, meaning we will probably see a repeat of the 2020 race, featuring Joe Biden and Donald Trump. Joe Biden has had a relatively firm stance on the export of Artificial Intelligence related technology to China, banning certain Nvidia products from being exported altogether. These bans haven’t significantly impacted Nvidia, as the Palo Alto based company has successfully managed to build replacements for every GPU that got banned. However, Trump would have a much more strict stance in regards to Chinese foreign policy, with there being a possibility that he could ban the export of both Nvidia and AMD’s products as a whole. This would result as a major loss to Nvidia, as 20 to 25% of its entire demand for data center related tech comes from China.
Google (GOOG) (Purchased 0.8 units @ $133.93) will release earnings this week. The last time they reported their quarterly earnings, Alphabet disappointed investors, as it revealed that they were behind Meta and Amazon in terms of Artificial Intelligence related cloud technology. We’re expecting Google Cloud to have caught up to speed with the rest of the Mag 7s cloud technology. Moreover, we’re expecting Microsoft (MSFT) (Purchased 0.1 units @ $374.44) to release a positive quarter in regards to its Azure cloud technology. The company has recently become the largest company in the world by market cap, so this release is a possibility for the company to reaffirm itself on the number one spot.
Author: Stefano Rizzi