10 Top-Traded Securities by Aussies: Is It Still a Good Time to Invest?
In the second half of the year, U.S. and Australian stock markets saw strong performance, driven by the Federal Reserve's rate cuts, the U.S. presidential election, and China's fiscal stimulus measures. In the U.S. market, the $Dow Jones Industrial Average (.DJI.US)$ rose by 14.33%, the $S&P 500 Index (.SPX.US)$ gained 10.74%, and the $NASDAQ 100 Index (.NDX.US)$ increased by 7.53% in 2H24. Meanwhile, in ASX, the $S&P/ASX 200 (.XJO.AU)$ reached record highs, posting a 9.37% gain in 2H24.
The chart below highlights the most actively traded stocks on the Moomoo Australia platform over the past 180 days, revealing three key trading themes among users: AI, Trump Trade, and Chinese assets. Benefiting from Trump's support for cryptocurrencies, the cryptocurrency-related stock $MicroStrategy (MSTR.US)$ has surged over 500% this year. Riding the wave of the AI investment boom, $NVIDIA (NVDA.US)$ has gained more than 180% year-to-date, while the leveraged ETF $GraniteShares 2x Long NVDA Daily ETF (NVDL.US)$, designed to achieve 2x the daily performance of NVIDIA's stock, has soared 383.2%. With such impressive gains already recorded, some investors might question whether these assets still offer attractive opportunities and when would be the right time to enter. In the analysis below, we delve into these popular investment themes to provide insights and guidance for investors.
Artificial Intelligence
$NVIDIA (NVDA.US)$, leveraging its GPU products, has emerged as the biggest beneficiary of the ongoing AI boom. Its stock price reached a record high of $152.89 this year, with a year-to-date gain of 183.31%.
NVIDIA's Q3 earnings showed a 94% year-over-year revenue increase to $35 billion, with net profit soaring 109% to $19.3 billion, both exceeding market expectations. However, the gross margin dropped slightly to 74.6%, and analysts interpret this decline as a potential sign of rising costs or intensifying market competition. Looking ahead to Q4 FY2025, the company forecasts revenue of $37.5 billion, with a 2% margin of error, slightly above the market consensus of $37.08 billion but falling short of the highest estimate of $41 billion. Following the earnings announcement, NVIDIA's stock price dropped by about 5% in after-hours trading.
This earnings report itself is solid, but it seems that the market's expectations were overly high. As production capacity and yield rates for Blackwell ramp up, gross margins are expected to stabilize once Blackwell reaches full production. In terms of AI chip competitiveness, NVIDIA's dominant position remains unchallenged. Following this earnings release, Wall Street analysts generally raised their target prices for NVIDIA. According to Moomoo data, the current average target price forecast by Wall Street is $177.83, implying approximately 28% upside from the latestclosing price.
Next focus: Nvidia's Q4 earnings early next year will provide a checkpoint for the company's performance； NVIDIA's 2025 GTC conference (March 17-20, 2025).
Trump Trade
As one of the biggest winners of the U.S. election, $Tesla (TSLA.US)$ has risen nearly 40% since Trump's victory. Benefiting from Trump's support for cryptocurrencies, Bitcoin spot prices recently hit a new high of $99,800, while the crypto-linked stock $MicroStrategy (MSTR.US)$ has surged 491% this year. The parent company of Trump's social media platform Truth Social, $Trump Media & Technology (DJT.US)$, saw its stock price rise to a new high in the second half of the year, driven by Trump's win, although it has since retraced as the Trump trade fades.
Recently, with the release of FSD V13, Tesla gets new street-high target. Investors have been closely monitoring the progress of Tesla's FSD, especially given its potential impact on the future launch of RoboTaxi. During Tesla's Q3 earnings call, Elon Musk stated that he aims to achieve fully autonomous, unsupervised FSD for the Model 3 and Model Y in California and Texas next year. The upgraded FSD V13 is said to reduce the need for driver intervention by six times. This major improvement is seen as a key development that could accelerate the deployment of Tesla's RoboTaxi service. In response to these developments, Stifel raised Tesla's target price from $287 to $411, citing the significant value creation potential of Tesla's AI-powered full autonomy and Cybercab RoboTaxi as the basis for its optimistic outlook.
Next Focus: Further updates on FSD, the RoboTaxi program, the Optimus project, and any deregulatory moves during Trump's presidency that might favor self-driving technology. See more details here.
MicroStrategy is the world's largest corporate holder of bitcoin, with public data showing that MSTR currently holds 402,100 bitcoins. Due to its massive holdings of bitcoin, it is widely considered to be a bitcoin proxy. So far this year, the price of Bitcoin has surged by over 130%. Undoubtedly, the biggest driver behind this cryptocurrency rally has been Trump's election victory. According to media reports, President-elect Trump's team is in discussions with the digital asset industry about creating a new position in the White House specifically responsible for cryptocurrency policy. This would be the first-ever position dedicated to the crypto industry within the White House, highlighting the growing prominence of the sector in the Trump administration. Additionally, the announcement that SEC Chairman Gary Gensler plans to step down on January 20, 2025 has sent cryptocurrency bulls into a frenzy, further driving Bitcoin closer to the $100,000 mark. With a string of positive developments in the crypto space, Wall Street generally expects Bitcoin to reach $200,000 by the end of 2025.
Next focus: The annual adjustment of the Nasdaq-100 Index constituents, which will be announced next Friday (December 13). Based on market capitalization, MicroStrategy is likely to be among the new additions.
Chinese Assets
$Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$ seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the FTSE China 50 Index, which consists of the 50 largest and most liquid public Chinese companies currently trading on the Hong Kong Stock Exchange as determined by FTSE/Russell. On September 24, China introduced a "policy stimulus package," which included both monetary and fiscal policy measures, sparking a "booming rally" in Chinese assets. On that day, YINN surged over 29% in a single day. Both Chinese and foreign institutions, including Goldman Sachs, Morgan Stanley, UBS, and Nomura, collectively raised their bullish outlooks. Recently, Trump announced an additional 10% tariff on Chinese goods, and the market anticipates that China will soon introduce policies to further support domestic demand and the development of its real economy.
Next focus: The Central Economic Work Conference is scheduled to take place on December 11-12. Institutions expect that the conference will maintain an optimistic stance on macroeconomic policies for next year and is likely to introduce new requirements and deployments in areas such as debt reduction, real estate, and consumption.
Trading is all about capturing signals and attempting to make accurate judgments in a constantly changing market. Access to reliable and more in-depth market data can make a difference. With moomoo's Level 2 data, you can stay on top of the game. This feature displays real-time buy and sell orders for a given asset, helping you grasp the ever-changing dynamics of supply and demand and make more informed trading decisions.
Source: Reuters, Bloomberg
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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