To The Moon

With an all-important FOMC meeting coming up on 31 Oct - 1Nov, I expect more volatility in the market in the coming days. While most investors are expecting an end to the rate hike cycle, as rising treasury and corporate bond yields are doing much of the heavy lifting for the Fed in reining in mega expansions and investments, some are bracing for another rate increase before the end of this year as geopolitical tensions in the Middle East have led to renewed worries over rising fuel prices re-heating up otherwise cooling inflation.

Nevertheless, the on-going geopolitical conflicts appear to be giving a lift to $Palantir Technologies Inc.(PLTR)$ , as it has reported growing orders from the defence industry. I’m cautiously hopeful that the company will be releasing a set of encouraging results when it releases its latest quarterly earnings on 2 November.

However, another artificial intelligence stock $C3.ai, Inc.(AI)$ seems to be encountering much headwinds as the recent AI hype subsides and investors return to focus on fundamentals, where C3.ai has yet to demonstrate a compelling case.

Nvidia that has been the bellwether for AI chip demands and joined the trillion dollar club this year is also on the verge of leaving the prestige club after its stock was beaten down successive export bans of its most advanced AI and gaming chips to its largest market across the Pacific Ocean. Nevertheless, I’m optimistic that $NVIDIA Corp(NVDA)$ will be capable of developing new chips to circumvent the bans.

Meanwhile, the bans have adversely impacted $Taiwan Semiconductor Manufacturing(TSM)$ in a jerk knee effect, as the pure-play foundry is the leading contract manufacturer for many chip design companies. In fact, the overall semiconductor sector $Semiconductor Bull 3X Shares(SOXL)$ has already been struggling under prevailing semiconductor slump. It may be a few more rocky quarters before inventories are drained and new demands start to build up.

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