2024-04-03 08:55:06 ET
Summary
- In this article, I'll discuss the top 3 performers of the S&P 500 in the first quarter of 2024: Super Micro Computer, Nvidia, and Constellation Energy. What's next for them?
- As for Super Micro, its business is growing fast, but I still have doubts that its current margins can be sustainable.
- Nvidia's rally was fundamentals driven and the stock is likely still undervalued, but I'd like to see a correction to buy it lower.
- Constellation Energy is going through a business transformation fueled by regulatory support, macro tailwinds, and wide cost management. It may be undervalued even after the massive rally we saw recently.
- My favorites among the three stocks are NVDA and CEG.
S&P 500 Q1 2024 Performance
Remember all those analysts predicting a difficult start to 2024 for the technology sector and other high-beta sectors by the end of 2023? I have no right to blame them because I myself fell under the same influence of the general bearish narrative. But here we are in early April, marking the end of the first quarter - a good time to assess the results.
Once again, the market has defied consensus expectations and chosen not to react to the likelihood of a slower rate cut cycle. Instead, it's turning its attention to the inner strength of the economy- strong employment, falling inflation, all that. The rise of artificial intelligence has significantly influenced this shift as well. S&P 500 (SP500) companies rooted in this disruptive innovation have emerged as top performers:
- Super Micro Computer, Inc. ( SMCI ) +255.32%
- Nvidia Corporation ( NVDA ) +82.46%
- Constellation Energy Corporation ( CEG ) +58.14%
Read the full article on Seeking Alpha
For further details see:
The Top 3 S&P 500 Stocks Of Q1 2024