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Weekly movers:
Last week, $NVIDIA Corp(NVDA)$ surged over 15%, surpassing 1000. This spike was primarily due to its fourth-quarter earnings far exceeding expectations, with revenue reaching $22.1 billion and a forecast of $24 billion for the next quarter. Additionally, significant purchases of high-performance GPUs by tech giants like Meta and Tesla for AI projects boosted market confidence in NVIDIA. Several Wall Street analysts also raised their price targets, further enhancing investor optimism. In summary, strong financial performance and growing AI demand were key drivers of the stock's rise.
Tiger’s view @koolgal
This week $NVIDIA Corp(NVDA)$
is the darling of the stock market as it leads the AI rally to all time high of USD 1064.75 per share! Nvidia crossed the USD 1000 mark on Thursday. The good news for investors is that Nvidia is rolling out a 10 for 1 stock split effective June 7, cashing in on the AI boom it has been driving. In addition to that Nvidia has boosted its dividend by 150% to 10 cents per share versus 4 cents per share.
The announcement came as 1st quarter revenue of USD 26 billion is up 262% from the same period a year ago, beating estimates of USD 24.6 billion. Nvidia also delivered a higher than expected 2nd quarter revenue forecast of USD 28 billion compared to a USD 26 billion estimate.
CEO Jensen Huang said that the next industrial revolution has begun. Companies and countries are partnering with Nvidia to shift the Trillion Dollar data centers to accelerated computing and build a new type of data center called AI factories to produce a new commodity called AI.
Can Nvidia go higher to USD 1100? I believe it can especially with the forthcoming stock split.
Stock split does not materially change Nvidia's shares. In this case, shareholders will receive 10 shares for every 1 share held. This is the same thing as breaking up USD 10 bills into 10 USD 1 dollar bills.
However the stock split allows small investors like me to buy Nvidia.
As a result of this Nvidia AI rally, other Semiconductor stocks also went up.
Nvidia's closest rival $Advanced Micro Devices(AMD)$
is up 3.7% on Friday. AMD is now up 20% year todate and in 2023, AMD is up 38%. In April 2024, AMD announced the AMD Ryzen Pro 8040 series and the AMD Ryzen Pro 8000 Series desktop processors, capable of running AI workloads locally on a PC. Lenovo and HP are set to use the new AMD processors in their AI PC products.
$Taiwan Semiconductor Manufacturing(TSM)$
is up 1.8% on Friday and in the past 5 days TSMC has risen 5.4%. TSMC is now up 57% year todate and in 2023 it has risen 58%. TSMC is the world's largest Semiconductor foundry making state of the art nano chips. Its customers include Nvidia, AMC, Apple and many others. $Intel(INTC)$
is also up 2% on Friday but is down 3.4% in the past 5 days. Intel has dropped 35% year todate but in 2023 Intel has risen by 12%. Intel is a major beneficiary of the US Chips Act with funding from the US government of USD 20 billion in grants and loans to expand its production capacity.
Another tactical way to play the current upward momentum in Nvidia's share price is $Semiconductor Bull 3X Shares(SOXL)$
. SOXL seeks daily investment results of 300% of the daily performance of the PHLX Semiconductor Sector Index. It is a leveraged ETF and not recommended for long term hold due to its compounding nature. SOXL is up 5.3% on Friday and in the past 5 days, it has risen 11%. SOXL has jumped 83% year todate and in 2023, SOXL has skyrocketed by 168%.
Nvidia is currently King of the semiconductor stocks with its share price up 13% in the past 5 days. Nvidia has jumped by 121% year todate and in 2023, Nvidia has skyrocketed by 180%.
I am eagerly waiting for Nvidia's stock split on June 7 as I believe that Nvidia's specialised AI chips are in high demand especially the new Blackwell chips.
It is exciting times ahead for Nvidia as the AI rally has just begun.
$Li Auto(LI)$ dropped over 18% last week due to several factors. Firstly, the company reported first-quarter revenue of $3.55 billion, which missed analysts' expectations of $3.84 billion, along with lower-than-expected earnings per share. Additionally, the company is undergoing strategic adjustments, including price cuts for its L7, L8, L9, and Mega models, as well as delays in the launch of its BEV SUV model to the first half of 2025. Furthermore, Li Auto announced an 18% reduction in its workforce and adjustments to its sales network expansion, all of which contributed to investor concerns and the stock decline.
Tiger’s view @Shyon
Li stock was down about double digit% last week, mainly due to recent weaker-than-expected earnings and guidance announcement, as well as a delay in the release of more BEV models. The less expected performance of the new model Li Mega is pressuring the company share price. Li Auto's order expectations for the model within the first 24 hours of its launch were around 3,000 units, but it ended up achieving only half of its goal. Moreover, the cumulative orders for the model within half a month of its launch stood at nearly 4,000 units.
LI daily chart
Li used to be the strongest among the Chinese EV trio but this year, it has the worst chart. As we can observe from it's technical chart shared above, it is very obvious that we can conclude that Li share price is extremely bearish and being traded under a parallel downtrend channel since early March. As long as the share price doesn't break out from this downwards channel, I will be bearish for $Li Auto(LI)$
in the short term.
$GameStop(GME)$ $Faraday Future Intelligent Electric Inc.(FFIE)$ $Tesla Motors(TSLA)$ $NVIDIA Corp(NVDA)$ $SUPER MICRO COMPUTER INC(SMCI)$ $Apple(AAPL)$ $Alibaba(BABA)$ $Advanced Micro Devices(AMD)$ $PDD Holdings Inc(PDD)$ $Li Auto(LI)$
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Comments
AI is a revolutionary technology that we must learn to harness and adapt to, or risk being left behind, stuck in the dark ages, like living under a coconut husk - disconnected from the rapid pace of innovation and progress