The danger of NVIDIA's “one person winning”, and the possibility of stock price fluctuations just before and after the split?!
After announcing good financial results and stock splits on 5/22, NVIDIA shares23% increaseI did (until 6/4). Meanwhile, the Philadelphia Semiconductor Stock Index (SOX index) fell 0.2%. In other words, most semiconductor stocks are weak, and they are not benefiting from NVIDIA's good performance or stock appreciation.
(Second highest rate of increase $Coherent (COHR.US)$(The special factor of taking office as a new CEO also contributed)
This isA completely different view from when financial results were announced last timethat's it. Last timeNVIDIA rose 32%Not only did you do it,The SOX index also rose 12%。 $Advanced Micro Devices (AMD.US)$ Ya $Marvell Technology (MRVL.US)$ 、 $Micron Technology (MU.US)$ 、 $Taiwan Semiconductor (TSM.US)$This is because AI-related stocks such as these have risen by 10% to 30%. In other words, at that time, the benefits of the AI boom extended to semiconductor stocks as a whole.
In a nutshell,NVIDIA's financial results stand out and are doing wellSo,Stock price valuations are also reasonableThat's because it was at such a standard.
However,Movements in AI-related stocks other than NVIDIAIf you look at it,“Is the AI market out of breath?”It makes me want to ask a simple question. When compared to when financial results were announced last time, semiconductor stocksIn the short term, there is a possibility of a break in the increase or speed adjustmentThere might be one.
The following 2 points can be cited as background factors.
1) Profit-taking selling pressure due to continued stock appreciation (*) since the beginning of the year
(*There were situations where adjustments were made from early March to mid-April, but there was a sudden backlash after mid-April)
2) Uncertainty surrounding the number of interest rate cuts and economic trends in the US
Of these, 2) has an impact on investors' risk appetite. For example,The weight of the upper price of US stocks in the past few daysisWeakness in economic indicators (ISM manufacturing business climate index, etc.)is in the background.Will the announcement of major economic indicators continue until this weekendConsidering that it is planned, it may be difficult for many investors to take risks.
Under such circumstances,On 6/7 (local time), the last day of rights to split shares for NVIDIA sharesI will greet you. In addition to good financial results, it is thought that the 20% increase after 5/22 was due to the announcement of the split. In other words, there may have been parts that were bought in anticipation of the implementation of the split. If that's the case,“Buy with expectations and sell with facts”In accordance with the investment motto ofSome investorsOn the implementation date of the splitThere is also a possibility of implementing profit-taking salesI see. If the economic indicators to be announced over this weekend are weaker than expected, $NVIDIA (NVDA.US)$ It is also expected that stocks will be accompanied by stock price fluctuations just before and after the split.
Also, from the “gain/fall rate of US high-tech stocks after the split” compiled by Moomoo Securities,”There is a possibility of short-term adjustments” has been shown. However,”Are stock prices rising over the long term” It has been suggested that there were many cases. For details, see”Check the gain/fall rate of US high-tech stocks after the split! Is NVIDIA up one more step? 5 points to keep in mind before splittingPlease refer to”. For the latest trends at NVIDIA, see”What are the stocks related to the “next wave” of AI? Semiconductors have risen due to NVIDIA CEO's statement! What did Mr. Juan talk about at the big event before the split?Please refer to”.
Created 6/5/24 Market Analyst Amelia
Source: Company materials and created by MooMoo Securities from Bloomberg
Source: Company materials and created by MooMoo Securities from Bloomberg
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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