April 18, 2024 | ASML, Daily JAM, Long Term, Top 50 Stocks, Videos |
Today’s Hot Button Moves NOW video is Buy ASML Holding (ASML). ASML is the only global manufacturer of the most cutting-edge chip-making equipment, a technology called Extreme Ultra Violet Lithography (EUV). The equipment allows for a smaller chip, more transistors on the chip, and more power for less silicon. ASML’s earnings report on April 16 was disappointing, with fewer than expected orders, a situation that will likely continue into the next couple of quarters. This resulted in a big drop in earnings and the stock taking a big hit. But, this is the only game in town for this equipment, and anything chip that uses the new 2-nanometer, 3-nanometer, and 5-nanometer technologies will be made on ASML equipment. So orders will not stay down for long. I would use this weakness to buy ASML Holding. It’s not cheap, but it’s not likely not get much cheaper than this, and as geopolitical chip wars settle, orders for ASML will jump rebound. ASML Holding is a member of my long-term 50 Stocks Portolio.
March 12, 2024 | Daily JAM, Jubak Picks, QCOM, Stock Alerts, Videos |
Today’s Quick Pick is Qualcomm, (QCOM). I always look for product momentum in technology stocks, and Qualcomm’s pipeline is very promising. The company reported a good first quarter for 2024 but I’m focused on growth for their Snapdragon chip which is used in cell phones, cars, and the internet of things. Qualcomm has recently renewed its chip agreements with Apple and Samsung. Samsung’s Galaxy 24 is the first cell phone to include AI technology powered by Snapdragon and sales are up 13% year over year from 2023 and 47% from 2024. It’s likely more companies will be looking to add AI to their phones and I think Qualcomm has a leading position in that market. A new Snapdragon product, X-Elite, will put AI on PCs and is coming out this year. In 2023 the Snapdragon chip was also installed in infotainment modules for 75 new car models and the company’s automotive revenue is up about 12% this quarter. The Internet of Things is growing more slowly but is still growing. Morningstar says the stock is trading at a 22% premium, but I find that to be very, very conservative. While this stock isn’t a bargain at the moment this is a decent time to get in on an AI stock with promising pipeline momentum, and I don’t see it being more reasonable any time soon. I added Qualcomm to my Jubak’s Picks Portfolio on January 15, 2024. The position is up 23.5% since then as of the close on March 12.
February 16, 2024 | Daily JAM, NVDA, Short Term, Top 50 Stocks |
Can you hear the barkers yelling to the crowd? It’s Wall Street analysts rushing to raise their target prices for Nvidia (NVDA) ahead of next week’s quarterly earnings report. On February 21, after the close, Nvidia is expected to report earnings of $4.18 share, up from $0.65 a share in the quarter a year ago, on revenue of $20.5 billion. And even though the stock is up 47% for 2024 as of the February 15 close and up 219% for the last year, Wall Street analysts are rushing to increase their target price on the shares.
January 28, 2024 | Daily JAM, Videos |
Today’s Quick Pick is ASML Holding (ASML). ASML Holding is a chip equipment maker, specializing in high-end ultraviolet lithography. The stock released an impressive earnings report on Tuesday which sent the stock up 8.5% on that day. It’s up about 18% since I recommended the stock back in December. However, please remember, chip stocks and especially chip equipment stocks are cyclicals. They do well when demand is high, and then dip back down when demand is low. We’re currently in a big up cycle for chips with demand for new AI chips continuing to rise. ASML expects 2024 to maintain that upward swing and the stock is rising as expected. The thing I want to point out is how we know cyclical PEs to behave. The highest point for a cyclical PE tends to be down at the bottom, and as the stock goes up, the PE should go down. At the moment, the market is not at all focused on fundamentals and what we’re seeing is cyclical stocks trading like growth stocks. ASML is not a growth (forever) stock, but it’s currently trading at a PE of 39, the same as Microsoft, a definite growth stock (for comparison). There will be a top for ASML, it may not be 2024 but make sure you’re looking at fundamentals even if no one else in the market is.
January 24, 2024 | AMAT, AMD, ASML, Daily JAM, Jubak Picks, Top 50 Stocks |
Shares of ASML Holding (ASML) closed up 8.85% today after the company reported record orders for its chip-making equipment in the fourth quarter. ASML sales grew 12.5% year-over-year. And orders more than tripled from the third-quarter. I added shares of ASML Holding to my long-term 50 Stocks Portfolio on December 12, 2023. The position is up 17.6% since then as of the close on January 24.
January 22, 2024 | AMD, Daily JAM, NVDA |
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January 19, 2024 | Daily JAM, Long Term, Morning Briefing, Top 50 Stocks, TSM |
Shares in Taiwan Semiconductor Manufacturing (TSM) were up almost 10% yesterday after the company announced an unexpectedly strong return to growth. That has in turn pushed chip stocks higher across the sector. For example, shares of Advanced Micro Devices (AMD), which were already moving higher this week ahead of the news, hit a new record high today. The good news from semiconductor companies and the moves on their stock have also rallied the general market.
January 17, 2024 | AMD, Daily JAM, INTC, Jubak Picks, NVDA, Stock Alerts, Volatility |
It’s important to remember exactly how young artificial intelligence is as a market product. I certainly don’t think it’s possible to project the long-term winners on either the software or hardware side. Remember the days when Apple (AAPL) thought it was worth buying a Super Bowl add to urge consumers to smash the IBM PC empire? But I do think the hardware road map is petty clear for the next two to three years. Which is why I’m adding shares of Advanced Micro Devices to my portfolios tomorrow.
January 10, 2024 | Daily JAM, Morning Briefing |
In November global chip sales rose for the first time in more than a year. Global semiconductor revenue added up to $48 billion in November, a 5.3% increase from a year earlier, according to the Semiconductor Industry Association. Sales rose a more moderate 2.9% from October. But the good news didn’t extend to all chip segments.
December 6, 2023 | ALB, Daily JAM, GOLD, Jubak Picks, MSFT, NVDA, Special Reports, Stock Alerts, Top 50 Stocks, TSM |
Here are the first 8 picks for my GREATER Growth Stocks Special Report. More on the way.
November 18, 2023 | Daily JAM, NVDA, Short Term, Stock Alerts, Top 50 Stocks, TSM |
Nvidia’ earnings report after the close on Tuesday, November 21, will be the big event of the short Thanksgiving week.
October 16, 2023 | Daily JAM, Notes You Need |
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