$SMH and $NVDA Dominance: Some more room to run for both

With NVDA and SMH above their respective ATH the focus returns to the fact how far we can expect for both to outperform and make new highs. In this Blog we floated the idea of NVDA dominance. This indicates the % of return / price movement in SMH contributed by NVDA as it is a cap weighted index. It captures the outperformance of the high momentum stocks like NVDA and $AVGO.
On May 12 I predicated that NVDA will reach 170$ before end of summer. And we are very close to our price target.

NVDA: Full on Bull mode. 170 $ before end of Summer for NASDAQ:NVDA by RabishankarBiswal — TradingView

On May 30 we also favoured SMH over HACK and said that the momentum will continue and SMH will touch new ATH. And here we are with SMH above 280$.

SMH vs HACK: Recent good correlation with breakout potential for AMEX:HACK by RabishankarBiswal — TradingView

Now the question comes , how far these 2 can go and the bigger question is will NVDA claim its Dominance in SMH ? As you can see in the chart below the NVDA Dominace in SMH peaked at 0.6 or 60% on Nov 11. Currently we are @ 57% and still below its ATH. My estimate is NVDA will claim its Dominance and go to the highs of 65% before SMH also completes it highs in this upward slopping channel with 315$ as my price target on $SMH.

Verdict: NVDA Dominance in SMH can reach 65%. SMH Target 315 $. NVDA Price target remains 170$ and above.