Is the AI euphoria going to continue this week?

Following the stellar performance of $NVIDIA Corp(NVDA)$  and Marvell Technology last week on the back of their optimistic outlooks on semiconductor chip demands to fuel the expanding adoption and rising ubiquity of artificial intelligence, I expect the bullish momentum in the semiconductor sector $Semiconductor Bull 3X Shares(SOXL)$  to continue gaining new grounds in the coming days.

As innovative and disruptive applications of AI continue to emerge, more AI-capable chips will be required to drive the AI engines. Hence, I believe that AI is going to be increasingly significant contributions to the top lines of chip makers the likes of Nvidia and Marvell, as well as semiconductor foundries such as $Taiwan Semiconductor Manufacturing(TSM)$ that supplies to them. Likewise, companies big in AI innovations like $C3.ai, Inc.(AI)$ and $Microsoft(MSFT)$ are expected to benefit from the growing AI demands too.

However, a probable disastrous default by the US government may cap or even reverse the bullish trend of the semiconductor sector that is particularly sensitive to economic cycles and interest rates. Despite a respite from an agreement between the White House and the House Speaker on a debt ceiling deal over the weekend, it still has the difficult task of passing through the Congress and essentially gaining the approval of the hardliners among the Republicans in the House of Representatives. As the dateline of 5 June for Congress to lift the debt ceiling draws nearer, the US federal government credit rating is at risk of being downgraded, plunging the already fragile US economy into a deep stagflation amidst the double whammy of recession and high inflation.

Hence, while I maintain my bullish stance on the broad semiconductor sector against the backdrop of the exploding AI demands, I’m not going to throw my kitchen sink into it, as it will be prudent to size one’s investment in a position appropriately based on his or her risk tolerance and affordability.

@CaptainTiger @MillionaireTiger @TigerWire @TigerEvents @TigerStars 

# 💰 Stocks to watch today?(28 Mar)

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  • EmilyMark
    ·2023-05-30
    TOP

    The overall economy is not rising at the gains these stock prices represent. That makes me worried for the valuations.

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    • ngph
      Nvidia’s valuation is too rich; its earnings have to catch up!
      2023-05-30
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    • pekss
      Indeed, I’m worried too that the AI theme has gotten ahead of themselves in an otherwise slowing economy!
      2023-05-30
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  • littlesweetie
    ·2023-05-30
    TOP

    I am worried, Interest in AI tech stock is nowhere near levels reached during the Pandemic Era speculative tech bubble

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    • ngph
      Risk appears higher than rewards for now
      2023-05-30
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    • pekss
      Hopefully the Al bubble still has more room to inflate!
      2023-05-30
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  • CyrilDavy
    ·2023-05-30
    TOP

    The hype in AI stocks isn't a bubble yet, and little buy in from retail investors means there's room for more upside

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    • ngph
      Up and away!
      2023-05-30
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    • ngph
      Hope so too!
      2023-05-30
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    • pekss
      Signs of exhaustion have not emerged yet :)
      2023-05-30
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  • Tongdadd
    ·2023-05-30
    TOP
    It is usually when your bros, neighbours, and the convenience store cashier all become so bullish that your should consider selling [Miser]
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    • pekss
      Indeed, sell signal if all others are greedy!
      2023-05-30
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  • intheloop
    ·2023-05-30
    TOP
    cautiously following the trends to seize opportunity if any
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    • ngph
      Uptrend!
      2023-05-30
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    • pekss
      Yeah, momentum trading!
      2023-05-30
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    • pekss
      Yeah, momentum trading!
      2023-05-30
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  • eveev
    ·2023-05-31
    TOP
    AI hype is showing no sign of easing!
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  • Aqa
    ·2023-05-30
    Good article. Lijed, shared snd comment to support my friend. 👍🏻
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    • pekss
      Thanks!
      2023-05-31
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  • Healthy Tiger
    ·2023-06-01
    Hope the AI hype continues!
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  • AuntieAaA
    ·2023-05-30
    Will perform
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    • ngph
      To the moon!
      2023-05-30
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    • pekss
      Outperform!
      2023-05-30
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