Bullish as Breakout Nears, AI Trade Comeback, and These 5 Solid Stocks Show Robust Technical Strength and Unusual Bets

Investors may finally cheer the bull as the crypto and AI sell-off is nearing an end, with a potential breakout and brighter momentum ahead. As we suggested earlier, the resilient economy and the false narrative of an 'AI bubble' should not create anxiety about the correction and instead encourage a buy-the-dip approach, and now the positioning can be more aggressive. The market has just pivoted into a bullish pattern, and this remains a favorable entry. Here is what to expect next in the broader picture, along with five stocks that could outperform during this bullish phase due to their solid fundamentals, technical strength, and unusual option activity.

Broadly speaking, market indices are now approaching a critical bullish region, with the MA3 attempting to break above the MA7 and MA10, and price testing a key resistance level. A breakout is increasingly likely, as the market has already digested the shutdown uncertainty and the so-called AI bubble speculation. Meanwhile, the rising probability of a December rate cut and a slowing yet still resilient economy are refocusing investors on underlying fundamentals. Google's striking Gemini 3 progress signals that the AI evolution may stretch further than previously assumed, and the competitive AI race shows no sign of slowing. After the recent correction, new bullish energy is consolidating.

Crypto has also found support. BTC, after briefly touching the 80K mark, has now bounced to 87K, with the MA3 also on the verge of breaking the MA7 and MA10. The crypto sell-off triggered a broad decline in risk assets. However, the stabilization from the fire-sale, alongside the increasingly favorable macro environment with rate cuts back in play, may push crypto toward renewed optimism. With speculative momentum rebuilding, AI exposure should remain the core priority, though crypto strength may persist. As both markets regain footing, bullish sentiment grows more widespread and increasingly likely as the base case.

Some may question whether Google's rise and the potential dethroning of Nvidia could weigh on the market, given Nvidia's central role in AI and semiconductors. From our view, this appears more like another DeepSeek moment for Nvidia. Google's TPU can present competition, but it is not a major threat at this stage. As Nvidia emphasized, Google's TPU is designed for internally optimized workloads, rather than for wider adoption across companies, whereas Nvidia's GPU remains general-purpose, flexible, and integrable across countless industries. This versatility strengthens its role as a cornerstone provider for major tech players. Furthermore, Google does not sell TPU hardware externally, instead using it for its own models or leasing it through its cloud service. This structure limits both Google's ability to scale computing capacity and enterprise clients' flexibility, especially if their model architecture differs from Gemini's. While Google presents a valid challenge, Nvidia retains near-monopoly power in AI acceleration, even with ongoing headwinds.

There is still no clear winner in the AI race. Gemini excels at task execution, ChatGPT leads in reasoning and broad-sector applications, Claude specializes in coding, and Grok focuses on contextual empathy. The competition remains tight, and these rankings may completely shift again in three months. The positive factor is that AI is expanding rapidly and may deliver far beyond current expectations, carrying the potential to transform daily life and economic structure. As long as the AI story continues, investors should maintain confidence in the underlying fundamentals.

With macro technical conditions turning bullish and fundamentals intact, we see five stocks with strong short-term potential.

TSMC stands as a clear beneficiary regardless of whether Nvidia or Google dominates, as the sole advanced foundry with unmatched pricing power in high-performance computing. Investors should always be prepared to buy on weakness, as its strategic importance may surpass even Nvidia. Technically, the MA3 is crossing the MA7 and MA10, and the bounce from support can be interpreted as a buy signal. Despite the shortened trading week due to the Thanksgiving holiday, traders accumulated multiple 2000+ call contracts for 300 to 305 strike expiring this Friday, signaling short-term bullish conviction.

Micron is essential in memory technology for AI hardware, whether supporting Nvidia or Google's TPU. As a leader in HBM3E, Micron benefits from the same structural AI tailwinds as TSMC. Notably, Micron's HBM is used in Google's Ironwood TPU, which creates an opportunity for accumulation following the recent price pullback. Like other large tech names, Micron's MA3 is pressing upward toward the MA7 and MA10, showing an emerging bullish structure. Option traders have opened more than 3000 contracts at strikes of 230, 245, 250, and 270 expiring this Friday, suggesting growing upside expectations.

Amazon, similar to Google, leverages its proprietary Tranium ASIC chip, positioning it as a meaningful player in the AI cloud infrastructure race. The stock has erased much of the post-earnings gains despite accelerating cloud revenue. Given its similarities to Google, Amazon has the potential to become the next major AI platform beneficiary, with shares only up five percent this year. Traders have amassed more than 10k call positions at 230, 232.5, 235, and 240 strikes, indicating strong directional belief.

Arm supplies architecture and licensing that supports both Nvidia and Google, with Google using Arm-based CPUs in data centers alongside TPUs. The company also maintains a deeper alignment with Nvidia given SoftBank's large position. Technically, Arm has dropped to a key support region, making a rebound increasingly plausible. For those seeking greater volatility exposure, Arm presents a compelling candidate.

Meta has traded like a fallen angel since its last earnings, though we maintain confidence in its long-term prospects as social platforms become central gateways for AI monetization. The lagging AI execution and heavy spending have discouraged investors, but after a sharp reversal in recent sessions, the stock has regained positive momentum, with the MA3 officially crossing the MA7 and MA10. More than 8000 call contracts are positioned for a potential move above the 650 level this Friday. The stock now appears to have established a base, and given its user scale and monetization potential, it presents an attractive opportunity.