Retail investors are buzzing about chip stocks Tuesday as traders on Reddit’s r/WallStreetBets continue to look for AI opportunities.
WallStreetBets Top Picks
What WSB Is Watching: Nvidia CorporationNVDA, Arm Holdings PlcARM, and Super Micro Computer, Inc.SMCI are the top three most-mentioned stocks on Reddit’s r/WallStreetBets over the past 24 hours, according to data from Swaggy Stocks.
Nvidia is a long-running favorite on WallStreetBets and the stock remained popular on Tuesday with 1,718 mentions in the last 24 hours. The chipmaker’s stock has gained more than 240% over the past 12 months, driven by growth in demand for AI-related technologies.
Anticipating Nvidia’s Earnings
Investors may be gearing up for Nvidia’s fourth-quarter earnings report, which is set to be released on Feb. 21. The company posted blockbuster third-quarter earnings results and expectations remain high. According to data from Benzinga Pro, analysts expect Nvidia to report earnings of $4.53 per share and revenue of $20.239 billion next week.
Runner-Up: Arm Holdings
Arm Holdings is a close runner-up, sitting just behind Nvidia on the list of most-mentioned stocks with 779 mentions. Arm shares are pulling back Tuesday after rising more than 100% following better-than-expected third-quarter results last week. Several so-called Redditors have compared Arm to Nvidia and may view the company as a more affordable entry into the semiconductor sector.
“Arm is the next Nvidia, 103% in a week,” u/MilesDaisy posted on Monday.
Excitement Around Super Micro Computer
Super Micro Computer is another chipmaker getting a lot of attention on WallStreetBets this week. Super Micro has a similar profile to Arm, as the stock has climbed nearly 100% since the company reported better-than-expected earnings at the end of January.
Traders on r/WallStreetBets seem to be skeptical of Super Micro’s recent gains but are pointing to high short interest in the name. 11.97% of shares are currently sold short, according to data from Benzinga Pro.
Market Response to Chip Stocks
“I’m skeptical of this one. As it starts to reach the top, volatility will set in,” u/Old-Culture-4511 said in a post.
“This will get smoked eventually. Meanwhile, enjoy the freight train ride up,” u/Omgnothingwork replied.
NVDA, ARM, SMCI Price Action: According to Benzinga Pro, Nvidia shares were up 0.15% at $723.58, Arm Holdings shares were down 17% at $123.33, and Super Micro Computer shares were up 1.7% at $786.15 at the time of publication.
Image: Sergei Tokmakov from Pixabay
