US-tech stocks soared another +1.8% overnight, closing above the psychological 30,000 level for the first time. Gains were led by a +19% jump by Micron Technology Inc (NASDAQ: MU), which topped a $US1 trillion valuation in the process. To give the doubters something to consider, UBS still sees more than 100% upside in the stock, citing the value of its long-term contracted revenue streams and improving earnings visibility. Wall Street kicked off the holiday-shortened week with stocks joining bonds moving higher as hopes for a peace deal between the US and Iran overshadowed military strikes in the Persian Gulf – investors are basically saying we want to get long the “AI Buildout” now and are happy to weather some war-induced volatility along the way.
US equities are building in a reopening of the Strait of Hormuz in the foreseeable future, and unless the picture deteriorates significantly, the bulls are firmly in control, despite the geopolitical uncertainty and the US 30-year still above 5%. As we often say at MM markets that can go up on “bad news” are strong and shouldn’t be underestimated.
- We remain bullish towards US tech through 2026, with the path of least resistance still on the upside.
MM is bullish towards the NASDAQ 100 around 30,000
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