📈 Fundamentals Leading

This is an example of how you can use fundamentals to profit.

Fundamentals Leading

As we talked about in yesterday’s newsletter, the market is shifting.

Going forward, winners in the market will be determined by traders’ ability to conduct fundamental research and find the winners within leading sectors.

The perfect example of this, while in hindsight, is looking at the trajectories of AMD and NVDA.

Both companies aim to fill the AI semiconductor space, but by digging into the fundamentals, you can uncover which company is going to win and which is going to lose.

It’s needless to say, but below is the comparison of performance of the two companies:

We even saw opportunity to profit based on fundamental analysis today with META. The stock dropped today based on news out of xAI that their new Grok-3 is blowing away benchmarks of DeepSeek, Gemini, and other LLMs.

Because DeepSeek was built off of Llama (they are open-source), this was interpreted as bearish for Meta.

Whether that is the case remains to be seen.

However the point remains that doing the research into who can/will come out on top of the AI arms race has the potential to make you extremely successful as a trader.

I walk through this concept and the AI arms race in more detail here: