The semiconductor industry $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ led by its poster boy $NVIDIA Corp(NVDA)$ which has recently been riding on the stock market frenzy over anything that is associated with artificial intelligence suffered one of its greatest setbacks on news that the US is exploring tougher trade rules to further restrict the Chinese chip industry. The stellar earnings announced by ASML has not allayed the market's worries that more stringent crackdown on semiconductor exports to China is going to hurt future earnings of the likes of Nvidia, TSMC, AMD, ASML, etc, as they fall victim to the geopolitical conflicts between the US and China.
However, as modern lives are increasingly dependent on semiconductors to drive automation and digitization, I remain optimistic of the long-term prospects of the semiconductor industry and believe that the recent declines are healthy after the fast and furious rises of the semiconductor stocks. I'm hopeful that they will resume their ascent after the correction and grow from strength to strength. Hence, I would take advantage of the prevailing stock price weaknesses to increase my exposure to the sector.
In a precursor to the highly anticipated ether ETF launches, most applicants have submitted their final S-1 documents with the U.S. Securities and Exchanges Commission. The ETF launches in the coming weeks should lend a boost to $Coinbase Global, Inc.(COIN)$ as fresh funds rush into the cryptocurrency market. As the largest listed crypto exchange, Coinbase stands to gain from the rise in trading, that is also helped by buoyant cryptocurrency prices after a recent correction. Hence, I'm bullish about Coinbase's performance in the coming weeks.
$Faraday Future Intelligent Electric Inc.(FFIE)$ will be hosting its Investor Community Day on 20 July, ahead of its all-important shareholder meeting on 31 July when its proposal for reverse stock split will be among the agenda put to a vote. As the struggling EV maker tries to regain investors' confidence, NASDAQ has been threatening to delist the penny stock if the EV maker fails to lift its share price either naturally or via share consolidation to comply with the exchange's requirements for minimum $1 bid. With its deteriorating fundamentals and sluggish sales, I doubt the reverse stock split is going to save the day for the EV maker that has been struggling to find buyers for its ultra-expensive EVs. Hence, the stock is a ticking time bomb that I would avoid at all costs.
Its peer $Rivian Automotive, Inc.(RIVN)$ though has been celebrating its joint venture with Volkswagen whose $5 billion capital injection is lifting investors' sentiments over the long-term prospects of the Tesla-wannabe. With the automotive heavyweight Volkswagen realizing values of Rivian's EV technology, hopefully Rivian will unlock the values soon and reward its shareholders. With the launches of its next-generation vehicles, the R2 and R3 mass-market SUVs, seemingly well received in the market, hopefully its stock price will have more legs to run.
@MillionaireTiger @VideoLounge @CaptainTiger @TigerEvents @TigerWire @TigerStars
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