Trading Opportunities in MRVL, MU & IREN: Charles Moon on AI Stock Picks

SPEAKER_1 (0:00)

I do want to turn our attention to a trio of stock picks today in the tech sector. Joining us right now, Charles Moon, stock strategist over at Prosper Trading Academy. Charles, great to talk to you in Market on Close. I'm so used to talking to you in Trading 360

But right now, you are watching Optics, you like NeoClouds and you like memory names. What are you seeing in these areas that are making them stand out to you in the current AI infrastructure trade?

Charles Moon (0:26)

Yeah, most notably, Optics has held up pretty well in regards to, especially the news yesterday with Sienna and their forward guidance that certainly boosted a lot of the optic plays higher ahead of the FOMC announcement.

They've withstood a lot of the downside pressure that we have seen in some of these names that are presented throughout the AI segments. Ultimately, if one goes, they all go.

And certainly, there are certain names that stand out. They're starting to firm up a little bit, and of course, they're starting to hit these levels where if they do break free, they could start running. So, for me, it's a segment that's widely watched by retail traders. There's great upside, the great momentum names, but most notably, the Sienna News in particular, is really kind of give a little bit more bullish forward statement, especially in terms of sentiment relative to this sector. And, you know, this is certainly the case of point, right? The market, the NASDAQ in particular, is up quite a bit today. A lot of that is largely attributed to AI rebounding. And that, for me, is where if AI firms up, these are the names, these are the segments, these are the sectors that could really stand out a little bit greater than the others as opposed to the relative whole.

SPEAKER_1 (1:44)

Dive into your first pick. You've got Marvell here. Right now, we're up 5% on the session. We're trading just north of $241 a share. You are watching $255 as a key level here.

What changes technically and fundamentally if it can decisively break above that level?

Charles Moon (2:01)

Well, in particular, as a momentum play, this is kind of where it's shut down the last two months. They've actually been a standout play relative to the optics sector, which is why they were my number one choice here. But they've tried to lift, they've pulled back, they've tried to lift, they've pulled back, and it was twice at this level, right around 255, that they've failed and have dropped. So for me, this is the kind of watch and see point.

If we break through this level, what's really notable is that there isn't much resistance. I just really see that this momentum could carry it forward really quickly. This is a stock that could really act very dynamically and very, very aggressive in terms of retail demand. And this is why I think the breakout really could shoot the stock up to around $300. That's really the kind of next focal point in my opinion. And so again, I think that if we're going to look at this sector, this is the one name that I would look to shine. This is the one that I believe has great potential for a breakout play through that price. Obviously, that's the key price right now.

They're getting shut down a little bit here at some short term resistance. But I do think that's more temporary as well. I just feel that that 250 price, it's kind of that make or break zone that a lot of these stocks, these momentum plays, especially growth plays will be facing. And again, if the market just holds up, even firms up a little bit here after digesting what the Fed News was yesterday, this is one to watch for a really, really fast quick runner.

SPEAKER_1 (3:34)

And you've got another one here that I truthfully don't think I've ever talked about that you're looking at also of Optics firm. We've got AXT here, ticker AXTi.

What's the catalyst here for AXT and what levels are you looking at?

Charles Moon (3:47)

Yeah, so they're also tied to the Optics Center, a little bit more of the testing forefront, similar to a company like AEHR, but this is very similar as well. So we've looked at the recent suppression in the sector and then we're starting to see it firm up.

If you actually look back at the calendar year, this was a stock that was single digits, they're running up to $143. So maybe fundamentally they got a little ahead of themselves. They certainly were a great momentum name, but they've proven themselves through earnings. They gapped up on their last earnings report. They've come down to test the 200 day simple moving average on the daily chart. This is a really important metric for growth stocks. They've not only held that level, but they've tested it twice and so far are starting to push away. So this is similar to where I look at MRVL as a standout play. This is where I like that they're actually now back above these key technical levels. This has the breakout potential, in my opinion, through $74.