Semiconductor Hot Cakes in market 🍰🍰🍰

The production value of Taiwan's semiconductor sector is expected to hit a new high in 2024, up more than 17 percent from a year earlier, due to global demand driven up by artificial intelligence development. AI development extending to end user devices from cloud-based services, international brands' efforts to unveil gadgets, such as AI PCs and AI phones, are expected to boost demand for semiconductors.

NVIDIA

Nvidia's market cap had risen threefold to more than 1.2 trillion USD since the start of 2023, to notch the biggest short-term valuation jump in the history of capital markets, a rampage that drove its P/E multiple, based on the past four quarters of GAAP earnings, to well over 100. Nvidia's valuation is ridiculous. It's facing the same curse as Tesla. But when Tesla got profitable, loads of competitors entered the EV space, cutting margins and slowing sales. The same will happen with Nvidia.

Nvidia daily chart

NVIDIA continued to rally following its strong earnings result and also its stock split stimulus. The momentum remains very strong despite a crazy rally since mid May. Following its 1-10 stock split this week, NVIDIA share price has not shown any sign of weakness yet! Nothing we can do on NVIDIA except giving it a bullish vote, no? Just hold until there's a sign of peak as we never know where is the highest point $NVIDIA Corp(NVDA)$ . 

AMD

AMD was downgraded by Morgan Stanley over concerns that expectations are too high for the chipmaker's artificial intelligence products. Morgan Stanley said it saw limited upward potential for AMD's AI business, preferring Nvidia and Broadcom instead.

AMD daily chart

For AMD, its share price is much weaker as compared to NVIDIA. The stock consolidated for the past 3 weeks. The near term resistance for AMD to challenge will be at around 174.6 USD. We won't know how long the consolidation will take place, but do monitor closely, once AMD breaks out from the neckline support at 174.6 USD, it will definitely soar. However, for near term, it seems to have a higher probability to pullback towards EMA 200 trendline support at around 130 USD, therefore a bearish vote for $Advanced Micro Devices(AMD)$ .

Intel 

Intel's presence in the graphics card market had long been thought rendered moot by the advance of Nvidia, but there are signs that Intel could come roaring back. One of the biggest such reports is the so-called“Battlemage”system, which will offer up a line of new and potent graphics cards that will come without unpleasant software issues like those that plagued Intel graphics cards in the past. Breaking Nvidia's stranglehold on the market won't be easy, but with the right quality product, Intel might be able to land at least a partial win.

Intel daily chart

A mid to long term bearish sign for Intel without any doubt. However, if you look at the short term, there might have some rebound chance for Intel. The share price seems to form a short term bottom at around 30.57 USD and is able to hold well at this position. I believe the worst is over for Intel and at such price, the risk of having long is much lower than shorting the company. For such, even though the technical chart is not favourable for Intel, I remain bullish for $Intel(INTC)$ in short term, hoping for a powerful rebound.

TSM

TSMC's CEO hinted at raising prices for Nvidia's AI chip products. Nvidia's market value recently hit 3 trillion USD, driving discussions on the value of its AI chips. TSMC plans price hikes for production outside Taiwan amid geopolitical concerns.

TSM daily chart

Quite a healthy chart for TSM, comparable to the one of Nvidia, nothing much to monitor and comment other than a clear obvious uptrend. What a strong momentum by TSM as it continued to break new high this week. Supported by the strong market demand for its manufacturing capabilities, there's no reason that TSM share price will stop here right? Higher will only go higher, bullish for $Taiwan Semiconductor Manufacturing(TSM)$ ! 

SOXL

SOXL is an ETF that offers 3x daily long leverage to the PHLX Semiconductor Index, making it a powerful tool for investors with a bullish short-term outlook for semiconductor equities. Investors should note that SOXL's leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. SOXL can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.

SOXL daily chart

Following the crazy rally in semiconductor stocks mainly by Apple, NVIDIA, Broadcom for example, SOXL broke new high towards end of last week. I continue to stay bullish for $Semiconductor Bull 3X Shares(SOXL)$ and I believe it might be able to trend higher and higher as the frenzy in the semiconductor sector doesn't seem to cool down yet.

Do you like and invest in AI or semiconductor related stocks? Come and join the discussion with us.

@TigerStars  @Tiger_comments  @MillionaireTiger  @CaptainTiger  @TigerGPT