Google (GOOGL) is showing strong momentum as its Gemini AI gains on competitors, prompting one analyst to set a $370 price target. The current weakness in NVIDIA (NVDA) down to the $185 level could be a buying opportunity for long-term believers, but a break below $184 would be a negative signal. High-growth themes like data centers and space are outperforming, with Applied Digital (APLD) posting strong earnings and Rocket Lab (RKLB) attempting to break the $90 resistance level. A specific bullish idea is marketing company Zeta Global (ZETA), which has a potential path to $30 on good earnings. Finally, a new tax deduction for auto loans could provide a tailwind for U.S. automakers like Ford (F) and General Motors (GM).

NVIDIA (NVDA)

• The host attended an NVIDIA event and described the sentiment and technology presented as "unbelievably bullish." CEO Jensen Huang's vision for the company is to power a future where AI is integrated into every aspect of life, turning data centers into "AI factories."
• The new Vera Rubin architecture was highlighted for its efficiency, reducing the time to assemble GPU racks from 2 hours to just 5 minutes.
• Despite the bullish company news, the stock has been flat to down, which the host finds "weird" and "confusing." The stock is down from $210 to around $185 in recent months.
• The host attributes the stock's sluggishness to its massive $4.5 trillion market capitalization, making large percentage moves more difficult compared to smaller companies. The market seems to want to see the financial results before giving the stock a higher valuation.
• China Headlines: There are conflicting reports about China. One report suggests China is preparing to approve imports of NVIDIA's H200 chips for select government use. Jensen Huang stated NVIDIA is ready to ship the chips as soon as China gives final approval.
• Partnership: Archer (ACHR) announced a partnership with NVIDIA to use its technology for an aviation-grade AI computing platform.

Takeaways

• The fundamental story for NVIDIA appears incredibly strong, with the company at the center of the AI revolution. However, the stock price is not currently reflecting this, potentially due to its large size and the market waiting for earnings to prove the story.
• For long-term investors who believe in the AI supercycle, the host suggests that patience is required. The stock's current weakness could be a buying opportunity if you trust in CEO Jensen Huang's long-term vision.
• A key technical level mentioned was $184. A break below this level could signal a broader negative sentiment shift in the market.

High-Beta & Thematic Investing

• The start of 2026 has been characterized by a strong rally in "high-beta" stocks, particularly in specific themes like data centers, energy, drones, and space.
• Companies like Bloom Energy (BE), Andas (ANDS), Rocket Lab (RKLB), and Applied Digital (APLD) have seen significant gains, with some up over 30% year-to-date.
• This rally is confusing because it's not broad-based. Other high-beta assets like Bitcoin (BTC), Tesla (TSLA), and Robinhood (HOOD) are showing weakness. Major tech stocks like NVIDIA (NVDA) and AMD (AMD) are also down.
• The host speculates this could be institutional money rotating out of last year's winners (large-cap tech) and into smaller, riskier plays to chase higher returns ("alpha").
• A major risk mentioned is that these high-beta names experienced "very, very, very ugly drawdowns" from October to December of the previous year. If the market corrects, these stocks are likely to be hit the hardest.

Takeaways

• The market is currently favoring a "stock picker's market" focused on specific, high-growth themes.
• Investors should be aware of the high volatility and risk associated with these stocks. While the upside has been significant, the potential for sharp drawdowns is also high.
• Chasing these rallies out of FOMO (Fear Of Missing Out) can be dangerous. Investors should assess their own risk tolerance before buying into stocks that have already run up significantly.

Google (GOOGL)

• Google's stock has been performing well, surpassing Apple (AAPL) to become the second most valuable company in the world.
• The positive momentum is attributed to reports that its AI chatbot, Gemini, is gaining traffic against OpenAI's ChatGPT. ChatGPT reportedly saw its second consecutive month of declining traffic.
• An analyst at "counterfeit Jarrell" upgraded Google's price target to $370.

Takeaways

• Google appears to be a beneficiary of a potential slowdown in ChatGPT's growth, positioning it as a strong competitor in the AI space.
• Unlike other mega-cap tech stocks that have been struggling, Google is showing strong upward momentum, making it a standout in the Mag 7.

Defense Sector: Lockheed Martin (LMT) & Palantir (PLTR)

• The defense sector saw extreme volatility based on comments from President Trump.
• Lockheed Martin (LMT) first dropped 5% when Trump said defense contractors should be barred from buying back their own stock.
• The stock then rallied 6% after Trump proposed increasing the U.S. military budget from $1 trillion to $1.5 trillion.
• Palantir (PLTR) also rallied on the news of a potential $500 billion budget increase, as it would be a major beneficiary.
• The host expressed skepticism about whether a $500 billion budget increase is politically feasible, suggesting the market reaction might be premature.

Takeaways

• Defense stocks are highly sensitive to political headlines from the Trump administration.
• The proposed budget increase is a significant potential catalyst for companies like LMT and PLTR. However, investors should be cautious as the proposal faces major hurdles to become reality.
• Palantir's high valuation (109x sales mentioned) makes it more vulnerable to market sentiment shifts compared to a more traditionally valued company like Lockheed Martin (1x sales).

Cryptocurrency: Bitcoin (BTC) & Ethereum (ETH)

• Bitcoin experienced a sharp $5,000 drop, falling from $94,000 to $89,000.
• Ethereum also fell from $3,300 to $3,000.
• This weakness in major cryptocurrencies is seen as a confusing signal. Typically, crypto rallies during "risk-on" periods, but it is currently lagging while other speculative assets are soaring.
• The drop in crypto is cited as a potential reason for the weakness in Robinhood's (HOOD) stock.

Takeaways

• The recent price drop in Bitcoin and Ethereum contradicts the extreme bullishness seen in other parts of the high-beta market.
• This divergence suggests that the current rally may not be a true, broad-based "risk-on" event, adding a layer of uncertainty for investors.

Other Stock Mentions

• Applied Digital (APLD): The data center company "absolutely demolished earnings," with triple-digit beats on revenue and profit. The stock was up over 9%. This is seen as a strong confirmation of the data center investment theme.
• Ford (F) & General Motors (GM): Both stocks rallied (Ford up 4-5%, GM up 3%) on news that the Treasury is implementing a policy allowing taxpayers to deduct up to $10,000 per year in interest paid on loans for new U.S.-assembled vehicles.
• Rocket Lab (RKLB): The stock has been a strong performer, attempting to break the $90 resistance level. The host notes that a potential SpaceX IPO is viewed as a major future catalyst for the stock.
• Apple (AAPL): The stock has been selling off significantly, falling from $275 to the $250s. The host questions its high valuation given its relatively slow growth, suggesting investors may be rotating out of Apple into higher-growth names.
• Zeta Global (ZETA): The host is personally bullish on this marketing CRM company, holding a position and seeing a path to $30 if they deliver good earnings. He notes it has strong valuation support compared to other high-flying stocks.
• AMD (AMD): The stock is showing significant weakness, falling to the low $200s despite the overall AI excitement. The host finds this confusing, as AMD should be a beneficiary of the AI trend.
• Blackstone (BX) & Open Door (OPEN): Both stocks took a hit after Trump stated he wants to stop large corporations and institutional investors from buying single-family homes.