Microsoft and Palantir were all but written off earlier this year.
Since the start of the third quarter, they’ve been the two best performing mega cap tech names.
Gianni Di Poce thinks Tesla could be next. It’s pretty much the only mega cap that hasn’t run in 2026.
The S&P 500 is trading right where it was on Friday. Gianni sees the index digesting sideways near its all time highs while the money moves underneath.
Semiconductors are taking a breather. Software caught the bid today as chips traded lower.
Gianni isn’t bearish on semis. He calls them dead money in the near term and expects this correction through time to lead to another bullish outcome.
He also flagged a warning sign. Utilities were the strongest sector last week, and Gianni reads those defensive flows as a rally starting to mature.
He doesn’t think the market has topped. He does think the easy money has been made.
Traders who aren’t positioned yet risk chasing names. Gianni calls that the last place you want to be.
His answer is to follow the rotation inside the market leaders. Tesla stands out because its fourth quarter seasonality has a strong track record.
In tonight’s video, Gianni breaks down where the mega cap money is heading:
- Microsoft and Palantir are the top two performing mega cap tech names since the start of the third quarter. Apple, Microsoft, and Palantir all sit at fresh all time highs.
- Software makes up around 20% of the tech sector while semiconductors make up around 40%. Gianni still sees software as the big opportunity inside tech.
- Tesla is the only mega cap without a run in 2026. Some of its biggest runs in recent years came in the last several weeks of the calendar year.
- The Mag 7 basket just hit a new all time high. Gianni sees a potential Nasdaq reset as a dip buying opportunity with an upside target of 32,000 to 33,000.
- Utilities led all sectors last week and just edged out energy. Energy hit a new all time high today.
He also covers bonds ahead of tomorrow morning’s inflation report. The dollar, crude oil, and crypto are on his list too.
