To The Moon

Since October, the U.S. semiconductor sector has regained its strength. $NVIDIA Corp(NVDA)$ , often dubbed the "AI leader," has successfully surpassed its late August performance levels, inching closer to its historical high of $140.In September, subtle changes in market sentiment played a pivotal role in Nvidia's turnaround: 1. Earnings Expectations Nvidia's August 28 earnings report raised concerns. The management's guidance for the next quarter didn't meet analysts' highest expectations, leading to a drop in stock price, hitting a low of $100. However, this level seems to have formed a support zone, suggesting it’s tough for Nvidia to fall below $90-$100.2. Weaker Recession FearsThe outlook for a U.S. economic recession has softened. Recent dat

$Advanced Micro Devices(AMD)$ is gearing up for a major AI event on October 10th, and the focus should be on product development rather than just hunting for new financial metrics. Analysts remain optimistic about chip stocks, believing AMD has significant long-term growth potential in AI. 1.Product Launch and Market CompetitionThis event marks AMD's first major product launch, but the key challenge lies in sales and functionality. Investors are aware of $NVIDIA Corp(NVDA)$ CEO Jensen Huang’s emphasis on the "incredible demand" for the upcoming Blackwell GPU, which raises the stakes for AMD.The real question is whether AMD’s roadmap can keep pace with Nvidia's developments. Ahead of the event, AMD unveiled

For Findlay Park Partners LLP, which has outperformed 86% of its peers this year, tech stocks—especially those that have driven the market up—no longer look appealing. According to a client report, the $11.3 billion fund fully exited its $NVIDIA Corp(NVDA)$ position in Q3. At one point, Nvidia accounted for 5% of the fund’s total holdings.The report also noted that by the end of September, the fund had reduced its $Microsoft(MSFT)$ position from 4.8% in August to 3%, marking a significant shift. Microsoft had been the fund's largest holding for most of the last decade.Looking at broader data, analysts expect earnings growth for the “Mag 7” stocks to slow from 36% in Q2 to 18% in Q3. Simon Pryke, CEO of Fi

Over the past decade, semiconductor stocks have been the star performers in the U.S. market. Yet, many investors are scared off by their volatility. But if you're in it for the long haul—like five years or more—ignoring U.S. chip stocks could cost you some serious gains. After all, the rise of AI means more and more devices are using chips every year.In fact, now might be the perfect time to dive into U.S. semiconductor stocks. Here’s why:1. The reasons for the Q3 drop? Not a big dealWhile the overall market ticked up a bit in Q3, chip stocks didn’t follow. $VanEck Semiconductor ETF(SMH)$ , which tracks the top 26 companies in the sector, dropped 5.4%, and it's down 11.5% from its mid-July peak.There are several reasons for the dip, but none of the

$Micron Technology(MU)$ released its fourth-quarter fiscal year 2024 report yesterday, corresponding to the three-month results ending August 29 this year. The earnings far exceeded expectations, and the stock price soared 15% after hours.1.Profit and MarginLooking at revenue, Micron's fourth-quarter revenue was $7.75 billion, a whopping 93% increase year-on-year, exceeding analysts' expectations of $7.66 billion. The gross margin of 35.3% also surpassed forecasts of 34.7%.In terms of earnings guidance, Micron expects revenue in Q1 2025 to be around $8.7 billion, an 84% increase year-on-year. Quarterly revenue will hit a record high, significantly exceeding analysts' expectations of $8.3 billion. The expected gross margin is around 38.5%, also excee

With the Fed cutting interest rates and the stock market rebounding, many investors are wondering: is there still a chance to buy stocks without paying a premium? Absolutely, but it involves finding recent underperformers and having the patience for a long-term rebound. $Micron Technology(MU)$ presents a great "buy on the dip" opportunity. After the initial excitement around AI and chip stocks faded this year, Micron’s stock has dropped about 40% from its peak of over $150 (although it's still up around 10% year-to-date). Given the strong industry fundamentals and attractive valuation, this stock has a solid chance to bounce back.The company will report earnings on September 25, which could serve as a strong catalyst for that rebound.Why Now is the

AI stocks soared in response to the Fed's decision to cut the benchmark interest rate by 50 basis points. The federal funds rate now stands at 4.75%-5%, and the Fed hinted at two more cuts by year-end, each by 25 basis points.Despite some market volatility following the announcement, investors were thrilled, pushing major indices higher. The $S&P 500(.SPX)$ was up 1.5%, and the $NASDAQ(.IXIC)$ climbed 2.3%. Growth stocks, especially those tied to AI and capital investments, saw particularly strong performance.AI Stocks Soared $Broadcom(AVGO)$ rose 4%, $Taiwan Semiconductor Manufacturing(TSM)$ jumped 4.3%, and

Over the past two years, tech investments have been driven by AI, with $NVIDIA Corp(NVDA)$ at the forefront. Since the launch of ChatGPT in November 2022, NVIDIA’s stock has skyrocketed by 760%, pushing its market value to over $3 trillion at one point, making it the third-largest company globally, surpassing $Amazon.com(AMZN)$ $Alphabet(GOOG)$ $Alphabet(GOOGL)$ $Meta Platforms, Inc.(META)$ $Tesla Motors(TSLA)$ $Berkshire Hathaway(BRK.A)$ $Berkshire Hat

As AI trading shows signs of overheating and economic conditions shift, defensive investments are gaining attention on Wall Street. Utility stocks have surged this year, performing strongly and now rivaling tech stocks. So far, utilities and tech sectors have risen 22.08% and 25.69%, respectively.Is AI Boom Overhyped?In times of economic weakness, defensive sectors like real estate and consumer often outperform. Recent disappointing U.S. employment data and signs of a cooling economy have led investors to worry about a possible recession. As a result, more analysts are advising a shift toward defensive investments.Meanwhile, AI trading has cooled, with chip stocks struggling. The S&P Global Semiconductor Index has dropped 5.63% this month. Despite this, Bank of America advises against

Many market watchers agree that the AI sector has been a major driver of the market rebound over the past year. Meanwhile, with inflation easing, investors are closely tracking the economy. Recent economic indicators suggest that conditions for a Fed rate cut are maturing, possibly as soon as later this month.Investors are also keen on AI adoption rates and looking for signs that this trend will continue. Recent results indicate that these long-term tailwinds are set to continue.Against this backdrop, semiconductor giant $Broadcom(AVGO)$ surged 20.7% this week, AI chip leader $NVIDIA Corp(NVDA)$ jumped 17.1%, and AI cloud provider $Oracle(ORCL)$ rose 13.9%, accor