Taiwan Semiconductor Manufacturing (TSM), the world’s largest independent chip producer, expects revenue to grow about 30% in 2022. Sales growth this year should accelerate from 2021’s 24.9% (in dollar terms), Chairman Mark Liu said at the company’s annual shareholder meeting on Wednesday, June 8. That’s a bump higher on company guidance in April of growth topping mid- to high-20% in 2022.
On May 31 I made Taiwan Semiconductor Manufacturing (TSM) the first pick in my new Special Report: Fundamentals are back, Baby! 5 Fundamental Value Picks. The stock is already a member of my long-term 50 Stocks Portfolio (where it is up 98.75% from my October 7, 2019 buy as of the close on May 31). On June 1 I will add it to my Millennial Portfolio (for investors with more time than money).
There are bargains in this market. But how do you find them? Not, clearly, by looking to see what is cheaper than it was. The fear that’s stopping so many investors from loading up the truck now on Nvidia or Disney or Microsoft or Johnson Controls–all stocks that I really, really like for the long term–is that today’s “cheap” stocks will be tomorrow’s even “cheaper” stocks. So it’s time to dig into your investor’s toolbox and dust off those tried and true techniques for using company fundamentals to figure out the value of a stock. And for separating the real values in this sell off from those cheap stocks on the road to being cheaper.
Nvidia (NVDA) reported fiscal first quarter 2022 earnings after the after the bell close today, Wednesday, May 25, of $1.36 a share against Wall Street projections of $1.30. Revenue of $8.29 billion beat projections of $8.10 billion. Revenue fromm the data center unit was $3.75 billion, topping estimates of $3.63 billion. Game revenue of $3.62 billion beat expectations for $3.53 billion.
But the company guided lower for the fiscal second quarter with revenue of just $8.1 billion against Wall Street projection of $8.4 billings. The war in Ukraine and COVID lockdowns in Chia will cost the company $500 million in revenue, the company said.
In after-hours trading Nvidia shares were down 6.62% as of 5 p.m. today, May 25.
New registrations for electric vehicles jumped 60% in the first quarter of 2022 from the first quarter of 2021. according to Experian Automotive. Electric vehicles made up an all-time record 4.6% of the total market. The news was even more positive given that overall new vehicle registrations were down 18% in the quarter from the first quarter of 2021.
Oatly Group (OTLY) shares jumped 8% in premarket trading after the company reported fourth-quarter results before the New York open. And then, in New York trading the stock gave back the gains and was down 1.055 as of 1 p.m. New York time.
Shares of Ford Motor (F) were up 7.01% as of noon on Wednesday, March 2, on news that the company would reorganize its auto operations into two distinct businesses—one that makes its gasoline-powered vehicles and and another that produces electric vehicles. But, the company said, it has no plans at the moment to spin off the electric vehicle business.
With the Russian invasion of Ukraine about to trigger another package of tougher U.S. and European sanctions, I think we can expect Russia to delver on Vladimir Putin’s promise of retaliation. The most obvious form of that will be cyberattacks on U.S. infrastructure, like the Colonial Pipeline attack, on U.S. financial systems through hacking to steal customer information and denial of service attacks, and on attacks to break into U.S. corporate networks to either paralyze those networks or to effectively put them off line. I wouldn’t rule out attacks on government infrastructure either at local, state, and national levels.
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. My one-hundredth-and fourth YouTube video “Trend of the Week: Electric Vehicle Charging Stocks” went up today. This week I’m talking about electric vehicle charging stocks. You may have heard me talk about these in the past. However, these stocks have been hammered so far in 2022, so right now they are cheap. Why are they worth buying? Because we know that the U.S. government has already allocated $5 billion to build charging stations around the country. We haven’t seen the upside of that yet! I currently own EVGO and CHPT in my portfolios.
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. My one-hundredth-and second YouTube video “Strong hands vs. hot hands” went up today. Today I’m looking at a few stocks that exemplify what most experienced traders know: some hands are steady, and some are not. So when Nvidia announced this week that it expected to see supply chain issues (despite beating earnings and raising guidance), the stock fell. Similar things happened to chip-making equipment supplier Applied Materials and Albemarle, the lithium maker. I’m taking this opportunity to add some of these stocks into my portfolios. What about you?
This week’s trend of the week is Lidar, which is a light-based navigation technology (like radar but with lasers) that is being used for self-driving cars. Companies in this area include Luminar (LAZR), Ouster (OUST), Velodyne Lidar (VLDR), and Innoviz Technologies (INVZ). And tomorrow I’ll be adding one of these stocks to my Millennial Portfolio
Traders and investors look to be anticipating a big earnings beat from Nvidia after competitor Advanced Micro Devices delivered good news in its earnings report. The Wall Street consensus is that Nvidia will report $1.01 a share for the quarter, up from 64 cents a share in the year earlier period. But the course of the stock after earnings is likely to have more to do with news, if any, on a chip that Nvidia announced at the January 2022 Consumer Electronics Show.
