Last week, Lynx Equity Strategies analysts recommended a long position on Apple Inc. (NASDAQ:AAPL), based on TSM's (TSM) quarter-to-date sales aligning with or surpassing its March quarter guidance.
This recommendation was based on the premise that any potential weakness in AAPL, as suggested by market sentiment, wouldn't result in significant wafer reductions at TSM due to compensatory increases in AI wafer demand.
However, the popular trade of going long on Nvidia (NASDAQ:NVDA) and short on AAPL reversed nearly a week ago. From the market close on March 7th through midday March 14th, this strategy has yielded a negative return of approximately 7%.
As the GTC conference approaches next week, Lynx’s analysts are shifting focus from the main event to exploring opportunities in presentations by other companies within the Nvidia ecosystem.
In this context, the analysts expressed their bullishness on taking a long position in Dell Technologies (NYSE:DELL).
“The event promises to be news-y. Rather than trading on the main event, we are looking for side bets. The ecosystem surrounding the NVDA-inspired AI revolution will be out in full force at auxiliary events at GTC,” the analysts wrote.
“For maximum exposure at GTC look at the list of Diamond sponsors of the event: Amazon/AWS, Google/GCP, MSFT, SMCI, DELL, HPE, IBM, Avago/VMWare,” they recommended.
DELL, which is trading down 15% from its post-earnings high reached earlier this month, “may have a win at META, as a second source to SMCI,” the analysts added.