Tech stocks that were performing well fell back. What are some potential buying opportunities? Nvidia & others
Since the beginning of the yearSemiconductor stocks were performing wellOn April 4thThey experienced a significant adjustmentThis adjustmentThere have been no fundamental changes in the semiconductor industry.Mainly,It is largely due to external factors.It is considered.It is expected that the recovery of the semiconductor market and the continued benefits of the AI boom will continue.There is a possibility that the indicator may give false alarms.During adjustments, it will be an opportunity to buy on dips.This time,List up the stocks that are candidates for buy on the dips.Done.
Regarding the major stock price indices in the United States,Year-to-date rise and fall rates(As of April 4, the same below), when checkedS&P500 index rose 8%whileThe Nasdaq 100 index rose by 6%.At first glance, tech stocks seem to be underperforming compared to the overall market. On the other hand, the Philadelphia Semiconductor Index (SOX Index), which is composed of semiconductor stocks that are part of the tech sector, rose by 14%.Thanks to the AI boom, the SOX Index rose by 65% in 2023. It has maintained its strong performance in 2024.Done.The SOX Indexrose by 14%.In 2023, it rose by 65%.It has maintained its strong performance in 2024.
On April 4th, the SOX index fell by 3.0%. The S&P 500 index and the Nasdaq 100 index fell by 1.2% and 1.6% respectively.
On April 4th,Reasons for the declineinclude the following three points:
1) Concerns over the Middle East situation(due to increased tensions between Israel and Iran)
2) Statements by senior Federal Reserve officials that they may not implement interest rate cuts this year
3) Concerns about inflation due to high oil prices.
2) Regarding...The one who mentioned that "there is a possibility that we will not implement rate cuts this year" is Neel Kashkari, the president of the Minneapolis Fed. He is originally known as a "hawk" and does not have voting rights in the FOMC (Federal Open Market Committee) this year. Therefore,the one who mentioned that "there is a possibility that we will not implement rate cuts this year" is Neel Kashkari, the president of the Minneapolis Fed. He is originallyknown as a "hawk" andis known as a "hawk" anddoes not have voting rights in the FOMC (Federal Open Market Committee) this year. Therefore,The selling for risk aversion on April 4th, of the aboverather than one of the above being strong、is considered to be a combination of 1) 2) 3). At the same timeemployment statistics are forthcoming on the following April 5th, andis anticipated Investors are prone to be nervous.。
1) Concerns over the Middle East situation(due to increased tensions between Israel and Iran)
2) Statements by senior Federal Reserve officials that they may not implement interest rate cuts this year
3) Concerns about inflation due to high oil prices.
2) Regarding...The one who mentioned that "there is a possibility that we will not implement rate cuts this year" is Neel Kashkari, the president of the Minneapolis Fed. He is originally known as a "hawk" and does not have voting rights in the FOMC (Federal Open Market Committee) this year. Therefore,the one who mentioned that "there is a possibility that we will not implement rate cuts this year" is Neel Kashkari, the president of the Minneapolis Fed. He is originallyknown as a "hawk" andis known as a "hawk" anddoes not have voting rights in the FOMC (Federal Open Market Committee) this year. Therefore,The selling for risk aversion on April 4th, of the aboverather than one of the above being strong、is considered to be a combination of 1) 2) 3). At the same timeemployment statistics are forthcoming on the following April 5th, andis anticipated Investors are prone to be nervous.。
More than the major indicesThe decline rate of the SOX index is even greateris likely due to the SOX index'sThis is because the SOX index has the highest year-to-date increase and is prone to profit-taking sales.It is thought that there were also some concerns about the impact of the Taiwan earthquake on the SOX index.Taiwan's earthquake may have had some impact regarding the SOX index.。
In addition, the world's largest semiconductor contract manufacturing (foundry) $Taiwan Semiconductor (TSM.US)$(TSMC) explained the recovery status as follows on the night of April 4 (Asia time).
★ TSMC's statement regarding the impact of the earthquake (April 4, evening)
- As of April 4, the overall recovery rate of the factories has reached 80% or more.
- It is expected that the new factories will be fully recovered late on April 4th.
- A small number of tools have been damaged at some facilities, partially affecting operations.
- There is no damage to our important equipment, including all extreme ultraviolet lithography devices.
It is expected that some production lines in the areas that were more affected by the earthquake will take some time to fully recover.
- It is expected that the new factories will be fully recovered late on April 4th.
- A small number of tools have been damaged at some facilities, partially affecting operations.
- There is no damage to our important equipment, including all extreme ultraviolet lithography devices.
It is expected that some production lines in the areas that were more affected by the earthquake will take some time to fully recover.
Based on the above,The impact of this earthquake on TSMC's production and the semiconductor supply chain is limited.is expected.
Just like in Taiwan, semiconductors have become an important industry.In South Korea, semiconductor exports in March increased by 35.7% compared to the previous year, reaching $11.7 billion..On a monthly basis, it has reached its highest level since March 2022.and indicates a recovery in the semiconductor market.
The recovery in the semiconductor market is contributing to the improvement of corporate performance.On April 5th, Samsung Electronics announced its interim earnings report for the January-March quarter.According to the report, operating profit has significantly increased, and a shift from six consecutive quarters of operating decline to growth is expected.isAccording to the Korea Times, market insiders believe that Samsung Electronics'temporary financial results for the January-March quarterThere is a possibility that the semiconductor division has turned into profit for the first time in 5 quarters.It is expected.
Not only Samsung Electronics, but also the performance has recovered due to the improvement of the semiconductor market. The largest US semiconductor memory company. $Micron Technology (MU.US)$ is,Achieved operating profit in the 12-February period, one quarter earlier than consensus.Done.
At the earnings announcement meeting on March 20, Micron Technology.Exceeded market expectations for revenue and earnings per share for the 3-5 May term.The company's CEO indicated thatThe industry is expected to recover in 2024, with record-high revenue anticipated in 2025This could be caused by the operation of data centers.
During the earnings announcement on March 20th, the CEO of Micron Technology expressed the view that the company would become one of the biggest beneficiaries of the business opportunities brought about by AI
The memory industry is benefiting from AI investmentsThat is,Data centers for AIIn order to process a large amount of data at once,high-spec memory (HBM) is required.In this field, South Korea's SK Hynix is the market leader, followed by Samsung Electronics in second place.
The thirdMicron Technology has a low market share,but the company is introducingHBM products to capture business opportunities.In February of this year, they launched "HBM3E".Production has started.The same productsemiconductor memory is scheduled to be installed in NVIDIA's new products.NVIDIA also plans to source products from Samsung Electronics.It has been reported that NVIDIA is also planning to source products from Samsung Electronics.Currently, the stock prices of Samsung Electronics and Micron Technology are doing well, partly due to the expectation of the benefits of AI generation.
Regarding stocks to consider buying on a dip, they were extracted using Bloomberg data under the following conditions.
1) Constituent stocks of the SOX Index.
2) Year-to-date stock price change rate is greater than 0%.
(When the SOX Index rises, stocks that move in the opposite direction may have some factors causing their decline.)
2) Year-to-date stock price change rate is greater than 0%.
(When the SOX Index rises, stocks that move in the opposite direction may have some factors causing their decline.)
Stocks with a positive outlook for performance.Considering that the earnings announcements for this quarter will start soon, we will focus on stocks that have upward revisions in revenue and EPS for this quarter and set the conditions of 3), 4), and 5).
3) Revision rate of forecasted revenue for this quarter is greater than 0%.
4) Revision rate of forecasted EPS for this quarter is greater than 0%.
5) Clearing the conditions of 3) and 4) simultaneously.
4) Revision rate of forecasted EPS for this quarter is greater than 0%.
5) Clearing the conditions of 3) and 4) simultaneously.
Under the above conditions,The applicable stocks are as follows:It happened.
Common points of the 5 stocks:Firstly, each of them is the industry leader in their respective fields.
★The largest in the U.S. semiconductor memory sectorno $Micron Technology (MU.US)$
★AI semiconductor world leader.no $NVIDIA (NVDA.US)$
★Foundry world leader.no $Taiwan Semiconductor (TSM.US)$
★World leader in advanced lithography equipment.no $ASML Holding (ASML.US)$
★The world's largest in the smartphone semiconductor sectorno $Qualcomm (QCOM.US)$
Two common pointssupports the regulatory framework for cryptocurrencies.Benefits from the recovery of the semiconductor market and investment in AI generation can be enjoyedis mentioned.AI technology is bringing about major changes in the world, leading to significant technological innovation that contributes to the efficiency and productivity improvement of businesses.It is becoming a significant trend, judging by the scale of investment by tech giants.There is a high potential for AI technology to become a long-lasting trend.Therefore, the stocks that are expected to benefit from thisExpected BeneficiariesRegarding these stocks,It seems advisable to take a buy-the-dip stance during market corrections.Seems better to take a buy-the-dip stance during market corrections.
★The largest in the U.S. semiconductor memory sectorno $Micron Technology (MU.US)$
★AI semiconductor world leader.no $NVIDIA (NVDA.US)$
★Foundry world leader.no $Taiwan Semiconductor (TSM.US)$
★World leader in advanced lithography equipment.no $ASML Holding (ASML.US)$
★The world's largest in the smartphone semiconductor sectorno $Qualcomm (QCOM.US)$
Two common pointssupports the regulatory framework for cryptocurrencies.Benefits from the recovery of the semiconductor market and investment in AI generation can be enjoyedis mentioned.AI technology is bringing about major changes in the world, leading to significant technological innovation that contributes to the efficiency and productivity improvement of businesses.It is becoming a significant trend, judging by the scale of investment by tech giants.There is a high potential for AI technology to become a long-lasting trend.Therefore, the stocks that are expected to benefit from thisExpected BeneficiariesRegarding these stocks,It seems advisable to take a buy-the-dip stance during market corrections.Seems better to take a buy-the-dip stance during market corrections.
Created on April 5, 2024, Market Analyst Amelia.
Source: Company documents, Bloomberg and various materials compiled by moomoo Securities.
Source: Company documents, Bloomberg and various materials compiled by moomoo Securities.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Roxi_117 : Information on the adjustment phenomenon for the first week of April
Reason ①
Rebalance from the end of Q to the beginning of Q
https://youtu.be/GpE8HnSWdig?si=_ZDfm3l-DSGqh9_2
Reason ②
Geopolitical Headlines and Risks
(Prime Minister Netanyahu's remarks)
https://www.youtube.com/live/5MT1J8hocpU?si=arlMaAXJdJjbELwC
Reason ③
Zero DTE option
There was a notification within Moomoo that there was an abnormal call option transaction with some high-risk/high-growth stocks.
こーちやん : Are you buying Tokyo Electron?