ASML& TSM: Huge Potential to Buy!
Hello everyone! Today i want to share some trading strategies and insights with you!
1.
Here is a trading idea that I will most likely act on 👇
• Semiconductor Niche | Lithography Systems for Semiconductor Manufacturing
• Competitive Advantage: They stand out as the sole supplier of extreme ultraviolet (EUV) lithography machines, a critical technology for manufacturing the most advanced semiconductor chips. Their market advantage is deeply rooted in this unique offering, which enables the production of smaller, more powerful, and energy-efficient chips.
Q2 Earnings Thoughts
• ASML's stock fell 8% in pre-market trading following the release of its Q2 FY24 earnings, which reported a net sales decline of 10% YoY, totaling €6.2B, and a net profit drop to €1.58B. Despite the decline, bookings surged to €5.6B, fueled by a 281% increase in EUV bookings to €2.5B -- indicating strong demand for ASML's leading-edge EUV lithography systems essential for advanced semiconductor chip production.
• ASML is treating 2024 as a transitory year, maintaining a steady revenue outlook comparable to FY23, while setting the stage for significant growth in 2025. However, third-quarter revenue projections are expected to be between €6.7B and €7.3B, falling short of the €7.5B market consensus. This near-term top-line weakness is attributed in part to geopolitical headwinds, notably export restrictions that affect 10-15% of its sales in China, where 49% of ASML’s Q2 sales were made.
Key chart levels to watch 👇
• $974 -- 21-Weekly EMA
• $949 -- Average VWAP from Jan 2024 Gap Up
• $872 -- 40-Weekly SMA
2.
Why are $Taiwan Semiconductor Manufacturing(TSM)$ 's earnings MASSIVE for the continuation of this AI-related tech rally?
TSM holds ~60% of the global semiconductor industry & is the sole provider for $NVIDIA Corp(NVDA)$ , $Qualcomm(QCOM)$ & $Apple(AAPL)$ business -- companies that are at the forefront of the AI theme & consumer ecosystems.
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