April came to a quick end, with the S&P 500 up by approximately 10% and breaking out to fresh highs. The near-term technicals are very bullish, pointing to additional upside by mid-year, and the 7,500 target may be easily surpassed. The underlying force is AI, and the massive data center build out underway. The fear of AI bubbles bursting has passed, as investors price in what was only a hiccup in the initial surge. The demand boom swamped NVIDIA’s (NASDAQ: NVDA) capacity to supply GPUs; that problem is about to be resolved, and the GPUs sold need to be connected. The takeaway is that NVIDIA’s price surge and the AI boom to date were merely the industry getting ready for what is about to come.
