Unstoppable 'record high updates'! Which stocks should we focus on amid the boiling AI feast and the reignition of interest in US rate cuts?
In the US CPI and FOMC on the 12th, the 'good news' of weak inflation seems to outweigh the 'bad news' of hawkish dot plots. The stock market continues to be enthusiastic about the artificial intelligence (AI) boom. The investment opportunities in AI are far from over. Investors should keep an eye on investment opportunities in the AI era and the future of US technology stocks amid renewed interest in US rate cuts!
On the 12th, the Federal Reserve maintained the target range for the federal funds rate at 5.25% to 5.50%, as expected by the market. According to the 'dot plot,' the midpoint of the Fed's forecast rate cut range this year is 25bp, significantly lower than the 75bp in the March meeting. Overall, the Fed's statement and Chair Powell's speech are indeed leaning towards a 'hawkish' stance.Leaning towards a 'hawkish' stanceHowever,The positive results of May CPI were not able to be offset.. S&P500 and nasdaq both hit record highs.
- Major US tech stocks also rose together. $Apple (AAPL.US)$Reached temporarily the market capitalization of the top US companies, surpassing Microsoft returning to the top. The company's stock has risen by over 27% from its low in April this year, Entering into a technical bullish marketOn the other hand, $Microsoft (MSFT.US)$Market capitalization reached 3 trillion 278 billion dollars. Nvidia rose by more than 3%, pushing its market capitalization back above the 3 trillion dollar mark. Google also rose, becoming the fourth largest market capitalization in the US stock market. TheseTop 4 companies by market capitalization all updated their record highs。
In addition, $Tesla (TSLA.US)$isMr. Musk also announced on the 13th, on X (formerly Twitter), that his remuneration and two shareholder resolutions to relocate to Texas were passed by a large margin. At the shareholders' meeting on the 13th, Cybertruck is currently delivering 1300 units per week and plans to release three new products in the future, stating that Optimus will bring huge profits to the company.It rose. In addition, Mr. Mask announced on the 13th on X (formerly Twitter) that his compensation plan and two shareholder resolutions to relocate to Texas were both approved by a wide margin. In response to this, in the pre-market on the 13throse by over 6%Is doing.
- Semiconductor stocks also collectively hit record highs.フィラデルフィア半導体指数も過去最高値を更新、年初来で32%上昇し、3大指数を大きく上回っている。エヌビディアの他、 $Taiwan Semiconductor (TSM.US)$(TSMC)と $Micron Technology (MU.US)$は4％以上上昇し、いずれもand recorded a rise of over 60% year-to-date.し、株価は史上最高値を更新した。注目すべきは、TSMCの時価総額は12日の終値で「投資の神様」バフェット氏が率いるバークシャー・ハサウェイを超えて米で7位、世界で8位となった。
In addition, $Lam Research (LRCX.US)$、 $Applied Materials (AMAT.US)$、 $ASML Holding (ASML.US)$、 $KLA Corp (KLAC.US)$Rose more than 3%,both hit all-time highs。
Of note is the semiconductor $Broadcom (AVGO.US)$Furthermore, it is after-hours.rose sharply by 14%.The company announced its earnings after market close, exceeding expectations for earnings per share, revenue, and full-year revenue forecast. Additionally,the announcement of a stock split, changing from 1 share to 10 shares.Done.The competition to build AI systems is benefiting semiconductor companies like this one.The company provides a variety of components used in computing and networking, including essential items for datacenters. The company has established its position through a series of acquisitions.It serves as a barometer reflecting the overall trends in the semiconductor industry.。
In this way, the stock market continues to buzz with the artificial intelligence (AI) boom. The investment opportunities in AI are far from over. Investors are in the midst of the AI era. Check out the noteworthy investment destinations and the future outlook for US high-tech stocks!
Following the 'Wednesday of Chaos' when the US CPI and FOMC were conducted, The 'good news' of weak inflation is overshadowing the 'bad news' of hawkish dot plots, leading to a reignition of expectations for a rate cut.Looking back at the performance of the US stock market during the transition period from interest rate hikes to interest rate cuts.During 3 out of 4 instances, the S&P500 has risen.。Rate cuts usually push tech stocks higher.For high-tech companies that require large amounts of funds for research and business expansion, a decrease in interest rates significantly reduces funding costs and increases profit margins.
From a valuation perspective, the higher the growth rate, the more cash flow potential for high-tech stocks.Meaning there will be more achievable cash flow in the future.As interest rates decrease, the value of future cash flows increases when discounted. Looking back on interest rate cuts since the 1990s,After rate cuts, tech stocks on average outperform other sectors.Is doing.
Regarding semiconductor stocks, I believe there is further upside potential for semiconductor stocks.After a 3-month correction period, I expect them to explosively rise again.and tactically and structurally are in the best position for further growth. "And thinks" is Richard Ross, Senior Managing Director and Head of Technical Analysis at Evercore ISI.
●NVIDIA's AI ecosystem - benefiting from the NVIDIA effect related stocks
NVIDIA's excellent performance leads to " NVIDIA effect" Bringing it to chips through utilities industry.Every company related to NVIDIA is performing well and benefiting from the AI boom.。
●AI semiconductor value chain- looking for the next "soaring" stocks.
Nvidia's stock price has achieved a more than 152% increase year-to-date, and it is believed that its stock price may face new adjustments and risks. Investors are actively looking for other "soaring" stocks like Nvidia in the field of AI. The list of "AI semiconductor value chain" compiled by SPEAR is,It is divided into internal and external servers, with many stocks soaring internally.。
●AI PC boom - The promising stocks of the new era of PCs.
Apple's M4 chip, $Qualcomm (QCOM.US)$from the release of "Snapdragon X" to Microsoft's announcement of "Copilot+ PC", AI PCs are gradually attracting market attention. According to Morgan Stanley,AI PCs are the next important key to driving growth in the PC market.The market penetration rate of AI PCs isexpected to grow rapidly from 2% this year to 65% by 2028.
Source: moomoo, Bloomberg, BofA
-moomoo News Sherry
This article uses auto-translation in part.
-moomoo News Sherry
This article uses auto-translation in part.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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