ASML Holding Stock (NASDAQ:ASML), Trade Ideas

ASML Holding

ASML is the leader in photolithography systems used in the manufacturing of semiconductors. Photolithography is the process in which a light source is used to expose circuit patterns from a photo mask onto a semiconductor wafer. The latest technological advances in this segment allow chipmakers to continually increase the number of transistors on the same area of silicon, with lithography historically representing a high portion of the cost of making cutting-edge chips. ASML outsources the manufacturing of most of its parts, acting like an assembler. ASML's main clients are TSMC, Samsung, and Intel.

Tainan,,Taiwan-,September,30,,2021:,Taiwan,Semiconductor,Manufacturing,Company,(tsmc)

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TSMC announced new chip manufacturing technology A16 will start production in 2026, challenging Intel. Stock gained 62% in last 12 months.

Taiwan Semi Sets 2026 Launch for A16 Chip Technology, Aiming to Outpace Intel in Speed

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Tesla may install 85K Nvidia H100 chips by year-end, surpassing Amazon and Google as a major customer. Musk&#39;s AI initiatives rely on these chips.

Elon Musk&#39;s Big Bet: Tesla to Ramp Up AI Development with Nvidia&#39;s Powerful Chips

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Last week witnessed the largest collective loss for the &#34;Magnificent Seven&#34; technology-related stocks, with a total of $950 billion erased from their market capitalizations, as quoted on MarketWatch. This figure surpasses the previous record loss of $872 billion in January 2022.

ETF Winners Amid Last Week&#39;s Record Loss in &#34;Magnificent 7&#34;

ASML Holding N.V. - New York Registry Shares

ASML Holding NV

Taiwan Semiconductor Manufacturing Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) announced on Wednesday that its new chip manufacturing technology, &#8220;A16,&#8221; will start production in the second half of 2026.
The 1.6-nm chipmaking technology will position TSMC against&nbsp;Intel Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) in a competition to produce the world&#8217;s fastest chips.&nbsp;
TSMC, the largest contract manufacturer of advanced computing chips and a crucial supplier to&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and&nbsp;Apple Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), announced this at a Santa Clara, California conference, Reuters reports.&nbsp;
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/25032757/newplot-28.png" alt="" class="wp-image-308056" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/25032757/newplot-28.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/25032757/newplot-28-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38320280/amd-and-intel-lead-the-ai-revolution-in-data-centers-highlighting-advanced-gpu-breakthroughs" rel="noreferrer noopener">AMD and Intel Lead the AI Revolution in Data Centers, Highlighting Advanced GPU Breakthroughs</a>
TSMC executives indicated that AI chip manufacturers would likely be the first to adopt this technology, unlike smartphone companies.
Intel had already voiced the availability of 20A and 18A (2-nm and 1.8-nm) technologies by 2025, Nikkei Asia&nbsp;<a target="_blank" href="https://asia.nikkei.com/Business/Tech/Semiconductors/TSMC-aims-to-produce-ultra-advanced-1.6-nm-chips-by-2026#:~:text=TAIPEI%20%2D%2D%20Taiwan%20Semiconductor%20Manufacturing,leadership%20over%20the%20next%20decade." rel="noreferrer noopener">reports</a>.
It had showcased its 14A (1.4-nm)&nbsp;technology&nbsp;in 2024. Meanwhile,&nbsp;Samsung Electronics Co&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) is targeting&nbsp;commercialization of&nbsp;the 1.4-nm level in 2027.
Analysts speaking to Reuters said the technologies TSMC unveiled on Wednesday could challenge Intel&#8217;s February claims of surpassing TSMC with its new &#8220;14A&#8221; technology.&nbsp;
Kevin Zhang, TSMC&#8217;s Senior Vice President of Business Development, told reporters that the company accelerated the development of its A16 chipmaking process due to demand from AI chip firms.
Zhang also stated that TSMC does not see the need to use&nbsp;ASML Holding NV&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) new &#8220;High NA EUV&#8221; lithography tool machines for constructing A16 chips.&nbsp;
In contrast, Intel recently disclosed plans to be the first to use these machines, priced at $373 million each, for its 14A chip development.
Furthermore, TSMC introduced a new technology for delivering power to computer chips from the backside, which will be available in 2026 and enhance the speed of AI chips.&nbsp;
In April, TSMC reported&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38179645/taiwan-semi-clocks-double-digit-q1-revenue-growth-eyes-robust-2024-amid-ai-boom" rel="noreferrer noopener">first-quarter revenue</a>&nbsp;of $18.5 billion, up by&nbsp;16% year-on-year, versus the $18.4 billion analyst consensus estimate, thanks to the artificial technology frenzy.&nbsp;
It expects capital expenditures of $28 billion—$32 billion and revenue growth of at least 20% in 2024.
Taiwan Semiconductor&nbsp;stock gained 62% in the last 12 months. Investors can gain exposure to the stock via&nbsp;VanEck Semiconductor ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and&nbsp;IShares Semiconductor ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action:&nbsp;TSM shares are trading lower by 1.02% at $131.62 premarket&nbsp;at the last check on Thursday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38411133/samsungs-latest-3d-nand-memory-chips-transform-ai-data-centers-and-mobile-devices" rel="noreferrer noopener">Samsung&#8217;s Latest 3D NAND Memory Chips Transform AI Data Centers and Mobile&nbsp;Devices</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Jack Hong via Shutterstock

- Reuters Citing Annual Shareholders Meeting

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ASML Names Christophe Fouquet As Company's New CEO

Tesla Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) may install 85,000&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) H100 chips by year-end to train its artificial intelligence (AI) models.&nbsp;
If CEO Elon Musk proceeds with this plan, Tesla will surpass tech giants like&nbsp;Amazon.Com Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and&nbsp;Alphabet Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)&nbsp;Google&nbsp;as a significant Nvidia customer.&nbsp;
During Tesla&#8217;s first quarterly earnings report for 2024, Musk disclosed that the company currently possesses 35,000 H100 chips, the most advanced and expensive graphics processing units designed for AI applications, CNBC&nbsp;<a target="_blank" href="https://www.cnbctv18.com/technology/tesla-nvidia-h100-biggest-buyer-google-amazon-microsoft-meta-19401278.htm" rel="noreferrer noopener">reports</a>.
These chips are vital for Musk&#8217;s AI initiatives, which include the development of advanced robots like Optimus Bot and Robotaxi and a supercomputer named Dojo.
Reports indicate that&nbsp;Meta Platforms Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) is Nvidia&#8217;s largest customer.&nbsp;
According to the World Economic Forum, Nvidia produced 550,000 chips last year, and companies must wait until 2024 to secure additional supplies.&nbsp;
Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) is the second-largest buyer, as stated by Omdia, with an order of 150,000 GPUs in 2023. Other significant purchasers include Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), Tencent Holding Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), Google, and Amazon, each reportedly acquiring 50,000 chips. Meta, Microsoft, Google, and Amazon nearly account for 40% of Nvidia&#8217;s revenue. CNBC writes.&nbsp;
Musk&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38345502/elon-musk-reacts-after-nvidia-stock-plunges-10-and-erases-212b-market-cap-rookie-numbers" rel="noreferrer noopener">had mocked Nvidia&#8217;s</a>&nbsp;substantial market capitalization loss on April 19, calling the 10% stock decline &#8220;rookie numbers&#8221; on X, formerly Twitter.&nbsp;
Nvidia experienced a&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38358181/whats-going-on-with-nvidia-and-amd-stocks-on-monday" rel="noreferrer noopener">significant drop in</a>&nbsp;stock value, shedding $211 billion in market capitalization, marking the second-largest single-day loss in U.S. stock market history.&nbsp;
This steep decline&nbsp;was triggered&nbsp;by disappointing earnings from&nbsp;ASML Holdings NV&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) and a pessimistic market outlook from&nbsp;Taiwan Semiconductor Manufacturing Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).&nbsp;
Meanwhile, analysts maintained their bullish stance on Nvidia, expecting it to rule the accelerator market primarily backed by&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38388117/whats-going-on-with-nvidia-and-amd-stocks-on-tuesday" rel="noreferrer noopener">its Blackwell product</a>.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/24044332/newplot-27.png" alt="" class="wp-image-305990" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/24044332/newplot-27.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/24044332/newplot-27-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Nvidia stock gained 205% in the last 12 months. Tesla stock lost 11%.
Price Actions: TSLA shares traded higher by 11.40% at $161.21 premarket at the last check Wednesday.
Photo courtesy: Shutterstock

Elon Musk's Big Bet: Tesla to Ramp Up AI Development with Nvidia's Powerful Chips

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NXPI

Shares of semiconductor stocks are trading higher amid a continued rebound following Friday's drop.

Last week witnessed the largest collective loss for the &quot;Magnificent Seven&quot; technology-related stocks, with a total of $950 billion erased from their market capitalizations, as quoted on MarketWatch. This figure surpasses the previous record loss of $872 billion in January 2022.
High inflation, talks of higher-for-longer interest rates in the United States, flare-ups in geopolitical crisis and receding euphoria about AI investments weighed on risk-on trade sentiments. High-growth stocks were especially marred by a surge in interest rates.
Overall, the S&amp;P 500 lost 3.1%, the Dow Jones advanced 0.01% and the Nasdaq plummeted 5.5%, respectively. The benchmark U.S. treasury yield started the week at 4.63%, hit a closing high of 4.67% on Apr 16 and ended the week at 4.62%.
<h3>Individual Performances of Key Players of &quot;Magnificent Seven&quot;</h3>
&nbsp;&nbsp;&nbsp; Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>): Leading the decline in percentage terms, Tesla&#39;s stock slumped by 14%, reducing its market cap by $76 billion and losing its ranking among the largest U.S. companies.
&nbsp;&nbsp;&nbsp; Nvidia Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>): Experiencing the most significant absolute loss, Nvidia&#39;s market cap plunged nearly $300 billion due to a weekly stock drop of 13.6% and a historical single-day decline of 10% on Apr 19, 2024.
&nbsp;&nbsp;&nbsp; Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) and Microsoft Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>): Both companies contributed significantly to the overall loss, with Apple shedding $178 billion and Microsoft $169 billion in market value.
&nbsp;&nbsp;&nbsp; Amazon.com (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>): Amazon lost $118 billion in market cap after a decline of 2.56% in its stock price.
&nbsp;&nbsp;&nbsp; Alphabet Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>): Alphabet saw a reduction of $41 billion from its market valuation.
&nbsp;&nbsp;&nbsp; Meta Platforms (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>): Meta&#39;s market cap fell by $68 billion during the week.
<h3>Semiconductor Market Crash</h3>
The semiconductor sector, particularly impacted by these losses, saw a broader &quot;unwind&quot; according to industry analysts, per a MarketWatch article. Nvidia&#39;s record losses indicate the intense pressure faced by chipmakers, suggesting the likelihood of a sustained downturn in the sector.
There was also ASML Holding&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/asml#NASDAQ">ASML</a>) &mdash; a world leader in the manufacture of advanced technology systems for the semiconductor industry &mdash; announcement of a steep decline in bookings during the first quarter, catching investors off guard last week.
The news was crucial for the chip industry as ASML&#39;s key customers include TSMC, Samsung and Intel (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/intc#NASDAQ">INTC</a>), the world&#39;s top processor foundries, which, in turn, make chips for AMD (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amd#NASDAQ">AMD</a>), Nvidia, Qualcomm and Apple, per CNBC.
<h3>Heightened Volatility in Wall Street</h3>
There was heightened volatility and uncertainty in the market due to concerns over high price inflation and potential shifts in Federal Reserve policy. There were stricter remarks from Atlanta Fed president Raphael Bostic that reinforced worries about interest rate cuts not happening until the end of the year. Bond yields rose accordingly and mortgage rates topped 7%.
<h3>Upbeat U.S. Retail Sales Data</h3>
U.S. retail sales were better than expected in March after returning to a growth trajectory in February. On Apr 15, the Department of Commerce reported that retail sales grew 0.7% month over month in March, well above the consensus estimate of 0.3%. Moreover, February&#39;s data was revised upward to an increase of 0.9% from 0.6% reported earlier.
Year over year, retail sales increased 3.6% in March. Core retail sales (excluding auto) grew 1.1% month over month in March, well above the consensus estimate of 0.5%. Moreover, February&#39;s data was revised upward to an increase of 0.6% from 0.3% reported earlier.
<h3>ETFs in Focus</h3>
Against this backdrop, below we highlight the winning ETFs of last week.
AXS Short Innovation Daily ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sark#NASDAQ">SARK</a>) &ndash; Up 10.6%
The AXS Short Innovation Daily ETF seeks daily inverse investment results and is intended to be used as a short-term trading vehicle. The fund charges 75 bps in fees.
Roundhill Daily Inverse Magnificent Seven ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/magq#NASDAQ">MAGQ</a>) &ndash; Up 8.3%
The Roundhill Daily Inverse Magnificent Seven ETF seeks daily investment results, before fees and expenses, that correspond to the inverse of the performance of the Roundhill Magnificent Seven ETF. The fund charges 95 bps in fees.
USCF Aluminum Strategy Fund (ARCA:ALUM) &ndash; Up 7.2%
The USCF Aluminium Strategy Fund seeks investment results that generally correspond over the long term to the performance of the price of aluminum. The fund charges 65 bps in fees.
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF (ARCA:BCIM) &ndash; Up 6.2%
The underlying Bloomberg Industrial Metals Subindex consists of 4 commodities, which are weighted 2/3 by trading volume and 1/3 by world production with an additional criteria of global economic significance. The fund charges 40 bps in fees.
United States Copper Index Fund (ARCA:CPER) &ndash; Up 5.2%
The underlying SummerHaven Copper Index Total Return reflects the performance of the investment returns from a portfolio of copper futures contracts on the COMEX exchange. The fund charges 97 bps in fees.
<a href="https://www.zacks.com/stock/news/2258961/etf-winners-amid-last-week-s-record-loss-in-magnificent-7?cid=CS-BENZ-FT-etf_news_and_commentary-2258961">To read this article on Zacks.com click here.</a>

ETF Winners Amid Last Week's Record Loss in "Magnificent 7"

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) stocks see some redemption on Monday after a selloff Friday.
Last Friday, Nvidia faced its worst session since March 2020, losing over $200 billion of its market value.
Stocks recording windfall gains thanks to the artificial intelligence frenzy, like AMD, also lost close to 6% in stock value.
Investors grew wary of the U.S. Federal Reserve&#8217;s rate cuts fueled by retaliatory strikes between Iran and Israel, the Financial Times&nbsp;<a href="https://www.ft.com/content/e7d5852e-a310-470f-a26e-d31fa205e9a0" target="_blank" rel="noreferrer noopener">reports</a>.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/22092807/newplot-23.png" alt="" class="wp-image-302314" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/22092807/newplot-23.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/22092807/newplot-23-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38221529/whats-going-on-with-key-ai-stocks-amd-intel-nvidia-on-friday" rel="noreferrer noopener">Intel and AMD hit by China&#8217;s move to eliminate foreign tech, raising stakes for US chipmakers</a>
Nvidia&#8217;s stock price decline accounted for almost half the 0.9% fall in Wall Street&#8217;s S&amp;P 500.
Interestingly,&nbsp;Oppenheimer&nbsp;analyst Rick Schafer noted few companies are positioned to materially raise estimates this earnings season as global macro and demand lags (exAI).&nbsp;
Unsurprisingly,&nbsp;Taiwan Semiconductor Manufacturing Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) and&nbsp;ASML Holding NV&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38334748/pay-more-for-chips-made-outside-taiwan-as-ai-demand-soars-and-global-expansion-continues-taiwan-semi" rel="noreferrer noopener">recently highlighted robust</a>&nbsp;demand for AI-related fab capacity and tools.&nbsp;
According to the analyst, cloud service provider capital expenditures will likely remain strong and trend to the high end of forecasts. Schafer&#8217;s recent Asia checks suggest &gt;40% accelerated server growth this year.&nbsp;
Alphabet Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)&nbsp;Google Cloud, Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)&nbsp;Microsoft Azure, and Amazon.Com Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)&nbsp;Amazon Web Services (AWS)&nbsp;feature as the top CSPs. Nvidia and AMD GPU-powered solutions are available globally through all significant CSPs.
As per the analyst, Chip-on-Wafer-on-Substrate&nbsp;(CoWoS) capacity will likely tighten through 2024, though Nvidia GPUs H100 and H200 lead times are now roughly half of the 2023 peak of 40-50 weeks.&nbsp;
PC and handset channel inventory is lean, with the growth tempered by lukewarm demand.&nbsp;
The analyst stated that industrial troughs will likely occur in the second quarter, though the slope of the second-half recovery is uncertain.&nbsp;
Last, according to Schafer, Auto sales will likely soften in 2024, reflecting slowing EV adoption and excess inventory. His top picks include Nvidia.
Data Center AI demand continues to lead. Schafer modeled ~3.2 million Nvidia flagship GPU units this year, though he noted a path to 4 million as supply loosens.&nbsp;
The analyst flagged Nvidia&#8217;s B100 launches in the third quarter, with server ramp beginning in the fourth quarter, and AMD&#8217;s MI300 is likely 400K units this year. Schafer noted that Nvidia dominates the accelerator market.&nbsp;
Price Actions:&nbsp;NVDA shares traded higher by 2.85% at $783.72 premarket on the last check Monday. AMD shares traded higher by 0.44% at $147.29.
Also Read: <a href="https://www.benzinga.com/news/24/02/37372403/nvidias-data-center-dominance-and-amds-rising-share-foretell-bullish-future-bofa-analyst" target="_blank" rel="noreferrer noopener">Nvidia&#8217;s Data Center Dominance and AMD&#8217;s Rising Share Foretell Bullish Future: BofA Analyst</a>
Photo via Wikimedia Commons

Analyst Ratings

What's Going On With Nvidia and AMD Stocks On Monday?

These seven large-cap stocks were the worst performers last week. Are they in your portfolio?
<ol>
<li>Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) was the worst large-cap stock performer last week, plummeting 31.08%. The company fell alongside ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>), which reported worse-than-expected <a href="https://www.benzinga.com/news/24/04/38299189/whats-going-on-with-arm-holdings-stock" target="_blank" rel="noreferrer noopener">first-quarter FY24 results last week</a>. Exane BNP Paribas analyst David O&#8217;Connor downgraded ARM from <a href="https://www.benzinga.com/quote/ARM/analyst-ratings" target="_blank" rel="noreferrer noopener">&#8220;Outperform&#8221; to &#8220;Neutral&#8221;</a> with a $100 price target.</li>
<li>MicroStrategy Inc&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) stock lost 20.07% last week. Most crypto stocks fell last week due to the volatility in Bitcoin (CRYPTO: BTC/USD) price.</li>
<li>Coinbase Global Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) stock lost 15% last week due to weakness in Bitcoin&#8217;s (CRYPTO: BTC/USD) price. Economist and crypto skeptic Peter Schiff&nbsp;<a target="_blank" href="https://www.benzinga.com//node/38265256" rel="noreferrer noopener">expressed skepticism</a>&nbsp;regarding the apex crypto blasting off in line with predictions by some bulls.</li>
<li>Prologis, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLD#NYSE">PLD</a>) declined 13.73% as the company&#8217;s first quarter FY24 rental revenue of $1.83 billion missed the consensus and lowered the FY24 outlook for EPS and core FFO/share due to anticipated lower <a href="https://www.benzinga.com/news/earnings/24/04/38292399/why-prologis-shares-are-trading-lower-today" target="_blank" rel="noreferrer noopener">average occupancy and competitive leasing</a>.</li>
<li>Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) fell 13.6% last week. The Elon Musk-led company had a tough week on <a href="https://www.benzinga.com//node/38346490" target="_blank" rel="noreferrer noopener">multiple counts</a>. It faces falling EV demand, a Cybertruck recall, employee layoffs, and price cuts.</li>
<li>Equifax Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EFX#NYSE">EFX</a>) stock decreased 13.54%. The company reported worse-than-expected first-quarter sales results and issued adjusted&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38333254/equifax-analysts-cut-their-forecasts-after-q1-results" rel="noreferrer noopener">guidance below estimates on Wednesday</a>.</li>
<li>Bruker Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BRKR#NASDAQ">BRKR</a>) has had a tough week, losing 11.90% in value after announcing NanoString Technologies&#8217;s acquisition&nbsp;for $392.6 million in cash.</li>
<li>Live Nation Entertainment, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LYV#NYSE">LYV</a>) was down 11.76%. The company&#8217;s shares took a hit following a report indicating the Justice Department will file an antitrust&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38265894/live-nation-entertainment-groupon-and-other-big-stocks-moving-lower-in-tuesdays-pre-market-session" rel="noreferrer noopener">lawsuit against the company</a>.</li>
<li>Arista Networks Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) fell 10.69% last week. Recently, a Rosenblatt analyst <a href="https://www.benzinga.com//node/38220808" target="_blank" rel="noreferrer noopener">double-downgraded the stock to &#8220;Sell&#8221;</a> with a $210 price target.</li>
<li>J.B. Hunt Transport Services, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBHT#NASDAQ">JBHT</a>) fell 10.47% as its first-quarter FY24 earnings missed consensus estimates due to lower segment&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38287679/why-j-b-hunt-transport-shares-are-diving-today" rel="noreferrer noopener">gross revenue and fewer loads</a>. Several analysts lowered&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/JBHT/analyst-ratings" rel="noreferrer noopener">price targets on the stock</a>&nbsp;following the earnings miss.</li>
<li>Albemarle Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALB#NYSE">ALB</a>) stock shed 9% in value last week due to lithium price volatility.</li>
</ol>
See Also: <a href="https://www.benzinga.com/news/earnings/24/04/38349264/tracking-last-weeks-top-performers-are-these-7-large-cap-stocks-in-your-portfolio">Tracking Last Week&#8217;s Top Performers: Are These 7 Large-Cap Stocks In Your Portfolio?</a>
Photo: Shutterstock

ANET

BRKR

COIN

JBHT

MSTR

Last Week's Worst-Performing Stocks: Are These 11 Large-Cap Stocks In Your Portfolio?

Tesla Inc. CEO Elon Musk ridiculed the <a href="https://www.benzinga.com/news/24/04/38341107/whats-going-on-with-nvidias-stock">sharp 10% decline</a> in Nvidia Corp.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) stock and its subsequent $211 billion market capitalization loss on Friday.
What Happened: Musk took to X, formerly Twitter, on Friday to mock the substantial decline in Nvidia's market capitalization. He referred to the 10% decline as &#8220;rookie numbers."
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Rookie numbers
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1781479341366362115?ref_src=twsrc%5Etfw">April 20, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
On Friday, Nvidia&#8217;s stock took a significant hit, resulting in a $211 billion loss in market capitalization. This was the second-largest single-day loss in the history of the U.S. stock market.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38314733/teslas-autonomous-driving-efforts-win-praise-from-goldman-sachs-wall-street-firm-pr?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla&#8217;s Autonomous Driving Efforts Win Praise From Goldman Sachs</a>
Overall, the Magnificent 7 group of stocks, which includes Apple Inc., Alphabet Inc.'s Google, Microsoft Corp., Meta Platforms Inc., Amazon.com Inc., Tesla and Nvidia together witnessed a record $950 billion loss of market capitalization in the last week, according <a href="https://www.marketwatch.com/story/nvidias-stock-plunge-leads-magnificent-seven-to-record-weekly-market-cap-loss-8e0a55f7">to</a> MarketWatch.
Subscribe to the&nbsp;<a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">Benzinga Tech Trends newsletter</a>&nbsp;to get all the latest tech developments delivered to your inbox.
Why It Matters: The decline in Nvidia&#8217;s stock value has had a significant impact on the market.
The tech-heavy Nasdaq 100 index <a href="https://www.benzinga.com/news/large-cap/24/04/38342737/nasdaq-100-notches-worst-day-since-late-2023-worst-week-since-late-2022-as-ai-driven-chipmakers-tu">experienced its worst day</a> since late 2023, and the worst week since late 2022, with a 2.1% drop on Friday. This marked the fourth consecutive week of declines, a negative streak not seen since May 2022.
On a weekly basis, the Nasdaq 100, which is closely tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), tumbled 5.3%, marking its worst performance since October 2022. The downturn on Friday further exacerbated the already pessimistic sentiment surrounding U.S. tech stocks.
Nvidia&#8217;s stock decline was attributed to a series of events, including worse-than-expected earnings from <a href="https://www.benzinga.com/news/earnings/24/04/38341107/whats-going-on-with-nvidias-stock">ASML Holdings N.V.</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) and a reduced outlook for the chip market by <a href="https://www.benzinga.com/news/earnings/24/04/38341107/whats-going-on-with-nvidias-stock">Taiwan Semiconductor Manufacturing Company Ltd.</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).
Despite the stock decline, <a href="https://www.benzinga.com/news/24/04/38320056/whats-going-on-with-apple-supplier-taiwan-semi-stock-on-thursday">TSM&#8217;s revenue surged 16.5%</a> to $18.87 billion, surpassing the Street consensus estimate of $18.40 billion. This was attributed to robust demand from artificial intelligence firms.
Other companies in the semiconductor sector, such as Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>), also experienced stock declines on Friday, further adding to the overall negative sentiment in the market.
Check out more of Benzinga&#8217;s Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next: <a href="https://www.benzinga.com/news/24/04/38334831/think-trading-in-your-iphone-helps-keep-planet-green-turns-out-there-are-plenty-of-dirty-secrets-rep">Think Trading In Your iPhone Helps Keep Planet Green? Turns Out There Are Plenty Of Dirty Secrets, Report Reveals</a>
Disclaimer:&nbsp;This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image created via photos on Shutterstock

Equities

SMCI

Elon Musk Reacts After Nvidia Stock Plunges 10% And Erases $212B Market Cap: 'Rookie Numbers'

The tech-heavy Nasdaq 100 index closed Friday&#8217;s session down 2.1%, marking the worst day since late October 2023, and the fourth consecutive week of declines, a negative streak <a href="https://www.benzinga.com/markets">not seen since May 2022</a>.
On a weekly basis, the Nasdaq 100, which is closely tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), tumbled 5.3%, notching its worst performance since October 2022.
<h3 class="wp-block-heading">Chart: Nasdaq 100 Notches Worst Week Since October 2022</h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19161211/image-129-1024x495.png" alt="" class="wp-image-300691" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19161211/image-129-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19161211/image-129-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19161211/image-129-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19161211/image-129-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19161211/image-129.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">What Happened To Tech Stocks?</h3>
Friday&#8217;s downturn echoes an already pessimistic sentiment surrounding U.S. tech stocks. 
Delays in interest rate cuts, mixed guidance from corporate earnings, and growing geopolitical risks have formed a detrimental environment for tech companies. 
During the week, Federal Reserve Chair Jerome Powell dismissed the possibility of rate cuts, citing a lack of confidence in the pace of disinflation. 
Renowned veteran Wall Street investor Ed Yardeni said: &#8220;The Fed is in no rush to lower interest rates,&#8221; suggesting the Federal Open Market Committee could afford to take &#8220;the rest of the year off.&#8221;
Adding to that, what really tanked tech stocks this week has been the broad-based losses within the semiconductor industry, triggered by weaker guidance from ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) and Taiwan Semiconductor Manufacturing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).
The VanEck Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>) experienced a 10% decline, marking its worst performance since January 2022, prompting investors to reassess the outlook for the artificial intelligence sector.
Even high-performing Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) was not immune to the downturn, plummeting by 12.9% this week, its most significant decline since August 2022.
Compounding the already complex situation were geopolitical tensions, with Israel responding to Iranian attacks within a week. Israel&#8217;s limited response eased the possibility of further escalation, yet it also underscored the failure to heed calls from President Joe Biden and other allies to refrain from retaliating.
As the week drew to a close, investors exhibited a lack of confidence in expanding their exposure to equity risks.
<h3 class="wp-block-heading">Technical Indicators Signal Bearish Trends For The Nasdaq 100</h3>
The Nasdaq 100 breached its 100-day moving average for the first time since October 2023, signaling a potential end to the six-month-long bull market.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19154345/image-126-1024x495.png" alt="" class="wp-image-300656" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19154345/image-126-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19154345/image-126-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19154345/image-126-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19154345/image-126-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19154345/image-126.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
The breadth of the tech market appears exceedingly weak, with only 22% of stocks trading above the 50-day moving average, the lowest level since late October 2023. 
Additionally, a mere 9% of stocks are trading above the 20-day moving average.
&nbsp;Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38338720/canadas-capital-gains-tax-rate-jumps-to-67-highly-indebted-western-governments-have">Canada&#8217;s Capital Gains Tax Rate Jumps To 67%: &#8216;Highly Indebted Western Governments Have Promises To Keep, Wars To Fund,&#8217; Strategist Says</a>
Photo via Shutterstock.

Large Cap

Macro Notification

Market Summary

Broad U.S. Equity ETFs

Econ #s

Nasdaq 100 Notches Worst Day Since Late 2023, Worst Week Since Late 2022 As AI-Driven Chipmakers Tumble: Fed Can Take 'The Rest Of The Year Off'

Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) shares are falling Friday after Exane BNP Paribas downgraded the stock <a href="https://www.benzinga.com/news/24/04/38299189/whats-going-on-with-arm-holdings-stock">from Outperform to Neutral</a>.
The Details:
Exane BNP Paribas analyst David O&#8217;Connor <a href="https://www.benzinga.com/quote/ARM/analyst-ratings">downgraded</a> Arm from Outperform to Neutral and announced a $100 price target on the stock.&nbsp;
Arm shares are down nearly 30% over the past five days as earnings from ASML Holdings N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) and Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) have put pressure on <a href="https://www.benzinga.com/markets/equities/24/04/38328610/tsmc-cautions-red-hot-chip-industry-growth-could-cool-amid-declining-automotive-chip-demand">the semiconductor sector</a>.&nbsp;
ASML posted worse-than-expected first-quarter results, and TSMC reduced its outlook for the chip market as it sees consumer weakness persisting which overshadowed the company's Q1 results.
Shares of semiconductor companies are falling as investors consider the latest data and the possibility of reduced revenues as the first-quarter earnings season gets underway. Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares are down approximately 10%, and Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) shares have fallen more than 23% Friday afternoon.&nbsp;
SMCI announced its third-quarter earnings date, but did not provide preliminary estimates as it has in previous quarters. Investors may be speculating the company's earnings could be less than stellar due to the absence of preliminary estimates.&nbsp;
Investors can gain exposure to Arm by purchasing shares of the First Trust Nasdaq BuyWrite Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTQI#NASDAQ">FTQI</a>) or the iShares Robotics and Artificial Intelligence Multisector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IRBO#NYSE">IRBO</a>) both of which count Arm among their holdings.&nbsp;
Related News: <a href="https://www.benzinga.com/news/24/04/38341107/whats-going-on-with-nvidias-stock">What&#8217;s Going On With Nvidia&#8217;s Stock?</a>
ARM Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Arm Holdings shares are down 17% at $87.04 at the time of publication Friday.
Image:&nbsp;wikimedia commons

FTQI

IRBO

What's Going On With Arm Holdings Stock?

Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares are trading lower Friday. Earnings from ASML Holdings N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) and Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) have put pressure on <a href="https://www.benzinga.com/markets/equities/24/04/38328610/tsmc-cautions-red-hot-chip-industry-growth-could-cool-amid-declining-automotive-chip-demand">the semiconductor sector</a>.&nbsp;
The Details:
ASML reported worse-than-expected earnings earlier in the week, followed by TSMC's<a href="https://www.benzinga.com/news/earnings/24/04/38320056/whats-going-on-with-apple-supplier-taiwan-semi-stock-on-thursday"> reduced outlook</a> for the chip market, overshadowing the company's Q1 results.
Shares of semiconductor companies are falling as investors consider the latest data and the possibility of reduced revenues as the first-quarter earnings season gets underway.
ASML and TSMC shares are down approximately 10% over the past five days.&nbsp; Nvidia shares have lost more than 11% this week and are trading below the $800 mark at $784.06 at the time of publication.&nbsp;
Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) shares are down more than 21% Friday after the company announced its third-quarter earnings release date and did not provide preliminary estimates as it has in the past. Investors are concerned that this foreshadows less-than-stellar financial results from the company ahead.&nbsp;
Related News: <a href="https://www.benzinga.com/news/24/04/38324715/whats-going-on-with-google-parent-alphabet-stock-ahead-of-earnings">What&#8217;s Going On With Google Parent Alphabet Stock Ahead Of Earnings?</a>
<h2 class="wp-block-heading">Should I Sell My NVDA Stock?</h2>
Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.
Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.
Shares of Nvidia have gained 186.87% year to date. This compares to the average annual return of 76.76%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity. 
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. NVIDIA stock currently has an RSI of 38.47, indicating neutral conditions.
For analysis tools, charting data and access to exclusive stock news, check out <a href="https://pro.benzinga.com/">Benzinga PRO. Try it for free.</a> 
NVDA Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Nvidia shares are down 8.65% at $774.81 at the time of publication Friday.
Image: Shutterstock

What's Going On With Nvidia's Stock?

Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) shares are falling Friday after the company announced its third quarter earnings release date and did not provide preliminary estimates as it has done in the past. 
The Details:
Investors are concerned that the lack of quarterly preliminary estimates may be a sign of worse-than-expected financial results for SMCI.&nbsp;
Shares of <a href="https://www.benzinga.com/news/24/04/38323516/whats-going-on-with-chipmakers-tsmc-asml-arm-stocks">semiconductor</a> companies have been trading lower amid weakness in the technology sector and following ASML Holdings N.V.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) worse-than-expected earnings report.&nbsp;
Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) also reported its quarterly results earlier this week and lowered its chip market outlook as it sees consumer weakness persisting which overshadowed its Q1 results.
Super Micro Computer is <a href="https://www.benzinga.com/pressreleases/24/04/b38333995/supermicro-to-announce-third-quarter-fiscal-2024-earnings-on-april-30-2024">set to release</a> its third-quarter financial results after the market close on April 30 and will host a conference call to discuss the results at 5:00 p.m. ET the same day. According to estimates from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, analysts expect the company to report earnings of $5.84 per share and quarterly revenue of $4.012 billion.&nbsp;
Related News: <a href="https://www.benzinga.com/news/24/04/38324715/whats-going-on-with-google-parent-alphabet-stock-ahead-of-earnings">What&#8217;s Going On With Google Parent Alphabet Stock Ahead Of Earnings?</a>
<h2 class="wp-block-heading">SMCI Stock Prediction 2024:</h2>
Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.
Shares of Super Micro Computer have an average 1-year price target of $991.93, representing an expected upside of 31.63%.
Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. One analyst has a bearish recommendation on Super Micro Computer, while 10 analysts have bullish ratings. The street high price target from Loop Capital is $1500, while the street low from Susquehanna is $250.
SMCI Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Super Micro Computer shares are down 18.4% at $757.62 at the time of publication Friday.
Image: Shutterstock

Why Super Micro Computer Stock Is Falling Friday

ASML Holding shares are trading lower on continued weakness following the company's recent earnings report.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) and ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) are trading lower Thursday on continued downward momentum among the chipmakers. Here's a <a href="https://www.benzinga.com/news/earnings/24/04/38320056/whats-going-on-with-apple-supplier-taiwan-semi-stock-on-thursday">look at what's going on. </a>
What To Know:
Shares of semiconductor companies have been trading lower amid overall market weakness and reports suggesting China has told telecom carriers to phase out foreign chips.&nbsp;
ASML released its first-quarter financials before the market open Wednesday and missed analysts' earnings and revenue estimates. ASML's shares have fallen more than 10% following the worse-than-expected earnings report.&nbsp;
Arm Holdings shares fell Wednesday <a href="https://www.benzinga.com/news/24/04/38299189/whats-going-on-with-arm-holdings-stock">in sympathy</a> with ASML and the stock is down more than 20% over the past five days. 
TSMC reported better-than-expected first-quarter top and bottom-line results Thursday. However, the company lowered its chip market outlook as it sees consumer weakness persisting which overshadowed its Q1 results.
"Macroeconomic and geopolitical uncertainty persists, potentially weighing on consumer sentiment and end-market demand," C.C. Wei, CEO of Taiwan Semiconductor, told analysts on a conference call, per Bloomberg. 
Related News: <a href="https://www.benzinga.com/news/24/04/38299189/whats-going-on-with-arm-holdings-stock">What&#8217;s Going On With Arm Holdings Stock?</a>
TSM, ARM, ASML Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Taiwan Semiconductor Manufacturing shares are down 4.73% at $132.45, Arm Holdings shares are down 2.69% at $104.67 and ASML shares are down 2% at $889.45 at the time of publication Thursday.
Image: Igor Omilaev from Unsplash

What's Going On With Chipmakers TSMC, ASML & Arm Stocks?

To gain an edge, this is what you need to know today.
<img alt="" src="https://thearorareport.com/wp-content/uploads/2024/04/2024-04-18_07h56_52.png" style="height:405px; width:700px" />
<h3>Insatiable Demand For AI Chips</h3>
Please <a href="https://thearorareport.com/stock-market-chart-analysis-insatiable-demand-ai-chips-broadening-top-pattern-tsm-mc-04182024">click here</a> for an enlarged&nbsp;chart of VanEck Semiconductor ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smh#NASDAQ">SMH</a>).
Note the following:
<ul>
<li>This is an important chart for three reasons.
<ul>
<li>Semiconductors are the epicenter of the AI revolution.</li>
<li>Semiconductors are the leading sector in the stock market.</li>
<li>Semiconductors often provide an early indication of upcoming stock market moves.</li>
</ul>
</li>
<li>The chart shows a broadening top formation.&nbsp;This is a negative.</li>
<li>The chart shows a big drop in semiconductors yesterday after ASML Holding NV (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/asml#NASDAQ">ASML</a>) earnings.&nbsp;Please see <a href="https://blog.thearorareport.com/powell-shifts-041724/">yesterday&rsquo;s article</a> for details.</li>
<li>Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tsm#NYSE">TSM</a>) reported earnings better than consensus and whisper numbers.&nbsp;Earnings from TSM are important because TSM is the biggest independent semiconductor foundry and manufactures chips for NVIDIA Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>), Advanced Micro Devices, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amd#NASDAQ">AMD</a>), and Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>).&nbsp; As full disclosure, AAPL and NVDA are in The Arora Report&#39;s ZYX Buy Model Portfolio.</li>
<li>The chart shows that last time when TSM reported earnings, semiconductors broke out.</li>
<li>This time, immediately upon the release of TSM earnings, there was a buying spike, but the buying faded, and the reaction is now muted, as shown on the chart.</li>
<li>TSM expects about 20% of its revenue from AI chips by 2028 and about 10% of its revenue this year to be from AI.</li>
<li>Of importance is that TSM says that it plans to maintain its capital expenditure of $28B - $32B this year.
<ul>
<li>This is an important data point because after ASML earnings yesterday, many analysts were projecting a drop in capital expenditure on semiconductor manufacturing equipment.</li>
</ul>
</li>
<li>The new data point is that TSM CEO C.C. Wei said that there is an insatiable AI related demand for energy efficient computing power.&nbsp;To some investors, the data from ASML earnings and TSM earnings is contradictory.&nbsp;Prudent investors know that the stock market always has crosscurrents with contradictory data points.&nbsp;Prudent investors pay attention to the data points that support their position and even more attention to the data points that go against their position.&nbsp;In contrast, the momo crowd exaggerates data points that support their position and ignores the data points that go against their position.</li>
<li>The broadening top pattern runs counter to insatiable demand.&nbsp;This again shows crosscurrents.&nbsp;The protection band takes into account hundreds of crosscurrents. </li>
<li>Loretta Mester, Cleveland Fed President, is saying that the Fed should not be in a hurry to cut rates.</li>
<li>There is significant Fed speak ahead.&nbsp;The Fed&rsquo;s John Williams, Michelle Bowman, Susan Collins, and Raphael Bostic are speaking.</li>
<li>Initial jobless claims came at 212K vs. 215K consensus. This indicates that the employment picture is strong.&nbsp;Initial jobless claims is a leading indicator and carries heavy weight in The Arora Report&nbsp;adaptive <a href="https://thearorareport.com/ALLOCATION%2BMODELS.htm">ZYX Asset Allocation Model</a> with inputs in <a href="https://thearorareport.com/unique-zyx-asset-allocation-4/">ten categories</a>.&nbsp;In plain English, adaptiveness means that the model changes itself with market conditions.&nbsp; Please <a href="https://thearorareport.com/unique-zyx-asset-allocation-3/">click here</a> to see how this is achieved.&nbsp;One of the reasons behind The Arora Report&rsquo;s unrivaled performance in both bull and bear markets is the adaptiveness of the model.&nbsp; Most models on Wall Street are static.&nbsp;They work for a while and then stop working when market conditions change.</li>
<li>Yesterday, smart money sold into the strength generated by momo crowd buying.&nbsp;This morning, the momo crowd is aggressively buying the dip.&nbsp;It is yet to be seen how smart money reacts.</li>
<li>Of important note is that money continues to flow out of AAPL.&nbsp;&nbsp;</li>
</ul>
<h3>Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Amazon.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Meta Platforms Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>), and Nvidia (NVDA).
In the early trade, money flows are neutral in Alphabet Inc Class C (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>) and Microsoft Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>).
In the early trade, money flows are negative in Apple (AAPL) and Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>).
In the early trade, money flows are mixed in SPDR S&amp;P 500 ETF Trust (ARCA:SPY) and Invesco QQQ Trust Series 1 (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>).
<h3>Momo Crowd And Smart Money In Stocks</h3>
The momo crowd is aggressively buying stocks in the early trade.&nbsp;Smart money is inactive in the early trade.
<h3>Gold</h3>
The momo crowd is buying gold in the early trade.&nbsp;Smart money is inactive in the early trade.
For longer-term, please see gold and silver ratings.
<h3>Oil</h3>
Oil was hit hard yesterday after EIA data showed that inventories were building.
The momo crowd is like a yoyo in oil in the early trade.&nbsp;Smart money is inactive in the early trade.
For longer-term, please see oil ratings.
<h3>Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is trading around $62,000 as of this writing.&nbsp;Many recent retail investors, who were lulled into buying above $70,000 on pitches about bitcoin halving from bitcoin whales&rsquo; propaganda machine, seem disappointed.
<h3>Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp;The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp;If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp;When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp;High beta stocks are the ones that move more than the market.
<h3>Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of seven year duration or less.&nbsp;Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter">Generate Wealth Newsletter</a>.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

$BTC

New Data Point Shows Insatiable Demand For AI Chips But Chart Shows Broadening Top Pattern

Intel Says Completed Assembly Of Commercial High Numerical Aperture Extreme Ultraviolet Lithography Scanner, Located At Hillsboro, Oregon, R&D Site; ASML Is Now Going Through Calibration Steps In Preparation For Production Of Intel's Future Process Roadmap

Concerns over rising interest rates and a barrage of <a href="https://www.benzinga.com/calendars/earnings">corporate earnings reports</a> continue to affect U.S. stocks.
What Happened: On Wednesday, April 17, all three major indexes opened in positive territory. But the market sentiment quickly soured. 
<ul>
<li>The S&amp;P 500 closed down approximately 0.6%</li>
<li>Dow Jones Industrial Average posted a more modest loss of 0.1%. </li>
<li>The tech-heavy Nasdaq Composite plunged over 1% by the day&#8217;s end.</li>
</ul>
Also Read: <a href="https://www.benzinga.com/markets/equities/24/04/38306414/nvidia-stock-could-see-81-upside-by-2025-says-evercore-isi-only-in-the-beginning-phases-of-gener">Nvidia Stock Could See 81% Upside By 2025, Says Evercore ISI: &#8216;Only In The Beginning Phases Of Generating Outsized Returns&#8217;</a>
<h3 class="wp-block-heading">Tech: S&amp;P 500&#8217;s Worst Performing Segment</h3>
Tech giants played a pivotal role in driving the day&#8217;s market action. 
<ul>
<li>Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) took a notable hit, tumbling nearly 4%</li>
<li>Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) also saw a decline of over 1%. </li>
<li>The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) emerged as the worst-performing segment within the S&amp;P 500, shedding nearly 1.5%.</li>
<li>ASML Holding NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>), the Dutch semiconductor equipment giant&#8217;s shares plummeted more than 7% following a disappointing quarterly update. </li>
</ul>
Despite resilient sales to China amidst U.S. restrictions, ASML missed order estimates, sending shockwaves through the chip sector.
Investors now brace for further fallout ahead of Taiwan Semiconductor Manufacturing Co Ltd&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) earnings report on Thursday, April 18. The company&#8217;s report will likely carry significant implications for the entire industry.
<h3 class="wp-block-heading">Nvidia-Focused ETFs In The Spotlight</h3>
Exchange-traded funds (ETFs) focused on Nvidia found themselves in the spotlight.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="625" height="451" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/18025637/Screenshot-2024-04-18-at-11.57.52-AM.png" alt="" class="wp-image-297254" style="width:800px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/18025637/Screenshot-2024-04-18-at-11.57.52-AM.png 625w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/18025637/Screenshot-2024-04-18-at-11.57.52-AM-300x216.png 300w" sizes="(max-width: 625px) 100vw, 625px" /></figure>
<a target="_blank" href="https://pro.benzinga.com/dashboard" rel="noreferrer noopener">Chart: Benzinga Pro</a>
<h3 class="wp-block-heading">Top ETF Gainers On Wednesday</h3>
<ol>
<li>Direxion Daily Semiconductor Bear 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXS#NYSE">SOXS</a>) surged by 7.63%; this bearish ETF capitalized on the downturn in semiconductor stocks.</li>
<li>ETF Opportunities Trust T-Rex 2X Inverse NVIDIA Daily Target ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVDQ#NYSE">NVDQ</a>) posted a gain of 8.21%; this inverse ETF offered investors double the inverse exposure to Nvidia&#8217;s daily performance.</li>
<li>GraniteShares 2x Short NVDA Daily ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVD#NYSE">NVD</a>) spiked 8.02%; this ETF leveraged a short position on Nvidia&#8217;s daily movements.</li>
<li>ProShares UltraShort Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SSG#NYSE">SSG</a>) climbed 13.82; this ETF provided ultra-short exposure to the semiconductor sector, benefiting from the broader weakness in chip stocks.</li>
</ol>
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="625" height="451" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/18025813/Screenshot-2024-04-18-at-11.59.05-AM.png" alt="" class="wp-image-297258" style="width:800px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/18025813/Screenshot-2024-04-18-at-11.59.05-AM.png 625w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/18025813/Screenshot-2024-04-18-at-11.59.05-AM-300x216.png 300w" sizes="(max-width: 625px) 100vw, 625px" /></figure>
<a target="_blank" href="https://pro.benzinga.com/dashboard" rel="noreferrer noopener">Chart: Benzinga Pro</a>
<h3 class="wp-block-heading">Top ETF Losers On Wednesday</h3>
<ol>
<li>Direxion Daily Semiconductor Bull 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) plunged 7.71%</li>
<li>GraniteShares 2x Long NVDA Daily ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NYSE">NVDL</a>) slid 7.80%; this leveraged ETF magnified losses as Nvidia shares declined.</li>
<li>ETF Opportunities Trust T-Rex 2X Long NVIDIA Daily Target ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVDX#NYSE">NVDX</a>) dropped 8.02%; this ETF doubled the exposure to Nvidia&#8217;s daily performance, resulting in amplified losses.</li>
<li>Direxion Daily NVDA Bull 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVDU#NYSE">NVDU</a>) fell by 7.90%; this bullish ETF faced headwinds as Nvidia shares declined, eroding investors&#8217; returns.</li>
</ol>
As Nvidia-centric ETFs stole the limelight with their volatile movements, investors navigated through a landscape fraught with uncertainty. They can be seen grappling with divergent market forces and the ever-present specter of <a href="https://www.benzinga.com/topic/interest-rates">interest rate hikes</a>. 
Read Next: <a href="http://Jim Cramer Explains What Could Trigger Further Market Decline: 'If You Want To Get Out, Go Ahead ...'">Jim Cramer Explains What Could Trigger Further Market Decline &#8211; &#8216;If You Want To Get Out, Go Ahead &#8230;&#8217;</a>

NVDL

NVDQ

NVDU

ETF Opportunities Trust T-Rex 2X Long NVIDIA Daily Target ETF

NVDX

SOXL

Direxion Daily Semiconductor Bear 3X Shares

SOXS

Nvidia ETFs Take Center Stage As Bears, Bulls Duke It Out With 8%-14% Swings

Cautious optimism hangs in the air on Thursday morning as index futures traded up moderately in early hours. The&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38301893/market-reaction-to-bank-earnings-is-mixed-jpmorgan-analysts-project-further-decline" rel="noreferrer noopener">earnings season also heats up</a>&nbsp;with more financial companies and streaming giant&nbsp;Netflix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) scheduled to release quarterly results. Economic data on the housing market and the manufacturing sector, along with comments from Federal Reserve officials, may also impact the market.
Cleveland Fed President&nbsp;Loretta Mester, in a speech after the market closed on Wednesday, said the central bank needn&#8217;t rush to cut rates, but at some point when inflation eases closer to the 2% target, it could loosen its monetary policy stance. Meanwhile, Fed Governor&nbsp;Michelle Bowman&nbsp;commented that progress on curbing inflation has slowed and may have even stalled.
 Futures Performance On Thursday ( as of 6:00 a.m. EDT)
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>+0.34%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+0.24%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.22%</td>
</tr>
<tr>
<td>R2K</td>
<td>-0.01%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption"> In <a href="https://www.benzinga.com/premarket/" target="_blank" rel="noreferrer noopener">premarket</a>&nbsp;trading on Thursday, the&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) added 0.29% to $502.0,&nbsp;and the&nbsp;Invesco QQQ ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) gained 0.33% to $427.24, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.</figcaption></figure>
Cues From Previous Session:
The lean patch on Wall Street continued on Wednesday despite the bond yields coming off recent highs. The culprit this time around was the premonition of potential earnings slowdown, especially from red-hot AI-levered companies, after Dutch semiconductor-equipment maker ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) was disappointed with a first-quarter revenue miss.
Mortgage Bankers&#8217; Association&#8217;s weekly mortgage applications volume data showed that 30-year fixed mortgage rates rising to their highest level since December 2023, also stirred inflation worries and weighed down on sentiment.
The major indices opened higher but reversed course immediately after, declining through the morning and hitting the day&#8217;s low by the mid-session. Although the averages recouped some of the losses, they languished in the red for much of the remainder of the session.
The S&amp;P 500 Index and the Nasdaq Composite extended the losing streak to four and settled at fresh two-month lows.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance In (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>-1.15%</td>
<td>15,683.37</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>-0.58%</td>
<td>5,022.21</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>-0.12%</td>
<td>37,753.31</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-0.99%</td>
<td>1,947.95</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
The recent market shakeout should not sound alarm bells, according to LPL Chief Technical Strategist Adam Turnquist. But he conceded that there has been some technical damage. &#8220;The S&amp;P 500 is experiencing its first real bout of volatility this year. The April showers — bringing a 3.9% decline thus far,&#8221; he said. The analyst sees the psychological level of 5,000 as the next major downside support for the S&amp;P 500 Index.
The shorter-term breadth, according to the analyst, appeared oversold but the longer-term breadth metrics have held up well. Nearly 70% of the S&amp;P 500 constituents remained above their 200-day moving average, he noted. 
Turnquist also derived encouragement from the fact that cyclical/offensive sectors are leading the way, with financials, energy, industrials, technology, and materials reporting the highest breadth readings.&nbsp;&#8220;The lack of major damage to longer-term breadth across the offensive sectors suggests bullish leadership is still on stable ground despite the recent shakeout,&#8221; he said.
Carson Group&#8217;s Ryan Detrick pointed to another encouraging historical trend. Sharing a chart on X, formerly Twitter, the analyst said, &#8220;Election years tend to chop around until Memorial Day, then a summer rally is quite normal.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">No, you should never blindly invest in seasonality, but still worth watching. Note that election years tend to chop around until Memorial Day, then a summer rally is quite normal. <a href="https://t.co/S93LAj3t6B">pic.twitter.com/S93LAj3t6B</a>
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1780708343457411544?ref_src=twsrc%5Etfw">April 17, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Morgan Stanley&#8217;s Lisa Shalett recommended investors should consider rebalancing their portfolios, taking profits in richly valued equities, and adding yield and value. This is based on the assumption that the Fed is left with two options amid inflation that is not slowing anymore, she said.
&#8220;The central bank could either keep rates high, causing potential pain for certain sectors, or preemptively cut rates, risking policy predictability,&#8221; she said.
Upcoming Economic Data:
The Labor Department is scheduled to release its weekly jobless claims data at 8:30 a.m. EDT. The number of individuals claiming unemployment benefits may have come in at 215,000 in the week ended April 13, up from 211,000 in the previous week.
The results of the Philadelphia Fed&#8217;s manufacturing survey, due at 8:30 a.m. EDT, may show that the diffusion index of manufacturing activity slipped from 3.2 in March to 2.5 in April. A reading above &#8220;0&#8221; indicates expanding activity.
The National Association of Realtors is scheduled to release its existing home sales for March at 10 a.m. EDT. Economists, on average, expect the reading to come in at 4.17 million units, down from February&#8217;s 4.38 million units.
The Conference Board will release its leading economic index for March at 10 a.m. EDT. The index is expected to slip 0.1% month-over-month, reversing the 0.1% increase in February, when it rose for the first time in two years.
The Treasury will auction four- and eight-week bills at 11:30 a.m. EDT and 5-year TIPS at 1 p.m. EDT.
Among the Fed speeches due for the day are:
<ul>
<li>Bowman: 9:05 a.m. EDT</li>
<li>New York Fed President John Williams: 9:15 a.m. EDT</li>
<li>Atlanta Fed President Raphael Bostic: 11:00 a.m. EDT, 5:45 p.m. EDT</li>
</ul>
See also: <a href="https://www.benzinga.com/money/best-futures-trading-software">Best Futures Trading Software</a>
Stocks In Focus:
<ul>
<li>Jabil, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JBL#NYSE">JBL</a>) rose over 5% <a href="https://www.benzinga.com/premarket">in premarket trading</a> after the company&#8217;s board declared a dividend.</li>
<li>Micron Technology, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) added about 2% after a Bloomberg report said the Biden administration could announce $6 billion in grants to the company under the CHIPS Act.</li>
<li>Alaska Air Group, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>), Blackstone Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BX#NYSE">BX</a>), Comerica, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>), Ally Financial Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>), D.R. Horton, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>), KeyCorp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEY#NYSE">KEY</a>) and Marsh &amp; McLennan Companies, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMC#NYSE">MMC</a>) are among those <a href="https://www.benzinga.com/calendars/earnings">reporting earnings ahead of the market open.</a> </li>
<li>Notable names reporting after the close are Intuitive Surgical, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ISRG#NASDAQ">ISRG</a>) and Netflix.</li>
</ul>
Commodities, Bonds, and Global Equity Markets:
Crude oil futures have pulled back toward the $81-a-barrel mark, dragged by four straight sessions of losses. Gold futures, meanwhile, rebounded from Wednesday&#8217;s decline, but traded shy of the $2,400 mark. The yield on the U.S. 10-year note was little changed under the 4.60% mark.
 Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell about 2.75% over the past 24 hours and traded near the $61,600 level.
While Asian stocks recovered from their recent weakness, the European markets were mostly higher in early trading. The Euro STOXX 50 Index was up 0.40% at the last check.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38303079/most-s-p-500-stocks-no-longer-trade-above-50-day-average-healthy-pullback-or-is-the">Most S&amp;P 500 Stocks No Longer Trade Above 50-Day Average: Healthy Pullback Or Is The Bull Market Over?</a>
Photo by Andrey_Popov on Shutterstock

Earnings

Futures

Previews

Economics

Pre-Market Outlook

ALLY

ISRG

NFLX

Wall Street Looks To Snap 4-Day Losing Streak As Traders Eye Fed Speeches, Netflix Earnings: Analyst Pencils S&P 500's Next 'Major' Downside Support

A sentiment of risk aversion looms over the markets during Wednesday&#8217;s trading session, triggering midday losses across the board in stocks and cryptocurrencies and prompting a flight towards bonds, as investor confidence remains dampened by<a href="https://www.benzinga.com/topic/macro-economic-events"> geopolitical and economic risks.</a>
The situation in the Middle East remains highly uncertain, with Israeli Prime Minister Benjamin Netanyahu stating that despite advice from allies to avoid a retaliation against Iran, Israel will make its own decisions on security.
Investors also parsed through the latest remarks from Fed Chair Jerome Powell, which officially dashed hopes for imminent rate cuts amid a lack of confidence about disinflation.
The S&amp;P 500 declined by 0.5% by 1.15 p.m. EDT, while the tech-heavy Nasdaq 100 underperforming, down by 1.2%. Semiconductors were among the weakest-performing industries, with the VanEck Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>) falling by 2.5%, on track to close at its lowest level in nearly two months.
Investors sought refuge in Treasuries for liquidity, causing yields to drop by 8 basis points in the 10-year tenor, while the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) rallied by 1%. Gold softened by 0.5%, while silver managed to inch up by 0.8%.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) faced significant downward pressure, with the largest cryptocurrency plummeting by 5.2% and hitting an intraday low of $59,650, now down 18% since its peak in March.
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day Chg %</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>37,743.82</td>
<td>-0.1%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>1,963.08</td>
<td>-0.5%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,025.59</td>
<td>-0.5%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>17,524.58</td>
<td>-1.1%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:15 p.m. EDT</figcaption></figure>
The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 0.5% to $501.05, the&nbsp;SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) inched 0.1% lower to $377.69 and the tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 1.1% to $426.78, according to&nbsp;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.&nbsp;
Sector-wise, the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) outperformed, up 1.4%. The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) was the major laggard, down 1%. 
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
<ul>
<li>United Airlines Holdings, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) rose over 14%, amid stronger-than-expected financial results last quarter. Peers such as American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>), Delta Airlines Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>) rose 4.5% and 2.5%, respectively. </li>
<li>Other companies reacting to earnings reports were J.B. Hunt Transport Services, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBHT#NASDAQ">JBHT</a>), down 8%, Abbott Laboratories&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>), down 2.5%, ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>), down 7.5%, First Horizon Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>), up 2.2%, Travelers Companies, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>), down nearly 8%, Prologis Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLD#NYSE">PLD</a>), down 6.5%, and U.S. Bancorp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USB#NYSE">USB</a>), down 4%. </li>
<li>GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) rallied 6% after BNP Paribas initiated coverage with an Outperform rating and $177 price target. </li>
<li>Notable names reporting after the close are CSX Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSX#NASDAQ">CSX</a>), Alcoa Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>), Discover Financial Services&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) and Las Vegas Sands Corp.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LVS#NYSE">LVS</a>).</li>
</ul>
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38297897/fund-managers-are-the-most-optimistic-since-2022-bull-sentiment-not-quite-at-close-">Fund Managers Are The Most Optimistic Since 2022: &#8216;Bull Sentiment Not Quite At Close-Your-Eyes-And-Sell Levels&#8217;</a>
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Stocks Fall As Geopolitics, Economic Worries Spook Investors, Chipmakers Sell Off, Bitcoin Tumbles To $60,000: What's Driving Markets Wednesday?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) shares are trading lower Wednesday. ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) reported worse than expected results pre-market, and TSMC is <a href="https://www.benzinga.com/news/24/04/38288066/taiwan-bolsters-chip-diplomacy-with-canada-and-france-amid-china-tensions">set to report earnings Thursday.&nbsp;</a>
The Details:
ASML <a href="https://www.benzinga.com/pressreleases/24/04/g38284781/asml-reports-5-3-billion-total-net-sales-and-1-2-billion-net-income-in-q1-2024">reported</a> earnings of $3.38 which missed the $3.43 per share estimate and sales of $5.75 billion which missed the $6.13 billion analyst estimate.&nbsp;
TSMC is <a href="https://www.benzinga.com/quote/TSM/news">set to report</a> its first-quarter financial results before the market open Thursday and will host a conference call to discuss the results at 2:00 p.m. ET the same day. According to estimates from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, the company is expected to report earnings of $1.32 per share and quarterly earnings of $18.395 billion. 
TSMC reported fourth-quarter earnings of $1.44 per share and revenue of $19.62 billion, both figures beating analysts&#8217; estimates.&nbsp;
Related News: <a href="https://www.benzinga.com/news/24/04/38278889/whats-going-on-with-amc-entertainment-stock">What&#8217;s Going On With AMC Entertainment Stock?</a>
<h2 class="wp-block-heading">TSM Stock Forecast in 2030:</h2>
Interest rates play an important role in the equity markets. When rates are high, it can discount the present value of future cash flows, which can put pressure on growth stocks such as Taiwan Semiconductor. This is because the majority of Taiwan Semiconductor's profits are expected to be realized in the future. Higher interest rates increase a company's cost of capital. If you're curious about learning about stockholder equity and how the balance sheet is evaluated, <a href="https://www.benzinga.com/money/what-is-stockholders-equity">check out the resources here.</a>
Long-term investors should also look at a company's historical revenue growth and decide whether they think it is likely to increase, slow down or remain stagnant. Taiwan Semiconductor's revenue has grown at an average rate of 28.74% annually over the past 5 years.
Taiwan Semiconductor operates in the Information Technology sector and has a forward P/E of 22.94, suggesting it is considered a value stock. Investors in growth stocks will generally focus on the company's future plans and industry growth, while value investors will see stable revenue streams and dividend growth.
TSM Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Taiwan Semiconductor Manufacturing shares are down 0.76% at $138.74 at the time of publication Wednesday.
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<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Finding chances for investment development is crucial for investors looking to optimize their returns in the always-changing stock market environment. Three exceptional enterprises have surfaced as possible engines of substantial profits in the face of market and economic volatility.



To begin with, the first has established itself as a pioneer in innovation, being a top supplier of metal payment cards. The firm expanded its product line and enhanced its competitive advantage by launching innovative items. The second, the biggest semiconductor foundry in the world, has proven remarkably resilient in the face of hardship. Furthermore, the company&rsquo;s leads in 2-nanometer tech demonstrate its dedication to being at the edge of semiconductor production.&nbsp;This&nbsp;is setting the company up for long-term lead in high-value markets.



The third, a well-known provider of lithography systems, has a healthy order book and a stable forecast for revenue growth. Businesses in the semiconductor industry hope to gain from expanding demand for their offerings.&nbsp;This&nbsp;is the result of semiconductor businesses investing more in advanced production methods. Read more to learn about the tenacity, inventiveness, and strategic vision that make these companies desirable investments for the upcoming market upswing.



<h2>CompoSecure (CMPO)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/01/creditcards1600-300x169.jpg" alt="a pile of credit cards, credit card interest rates"><div>Source: Teerasak Ladnongkhun/Shutterstock.com</div></div>In 2023, CompoSecure (NASDAQ:<a href="https://investorplace.com/stock-quotes/cmpo-stock-quote/">CMPO</a>)&nbsp;<a href="https://ir.composecure.com/news-releases/news-release-details/composecure-reports-fourth-quarter-and-full-year-2023-financial" target="_blank">released several advanced devices</a>, such as the Lux Glass Card, LED Card, and Echo Mirror Card. CompoSecure&rsquo;s competitive edge in the industry improves through these cutting-edge services that accommodate a wide range of consumer demands and preferences.&nbsp;



Additionally, ABI Research, which ranked CompoSecure as the leading producer of metal payment cards, acknowledged the company&rsquo;s focus on advancements.&nbsp;This&nbsp;confirms CompoSecure&rsquo;s shift to provide its clients with state-of-the-art solutions and intensifies its lead.



Moreover, CompoSecure&rsquo;s&nbsp;two biggest clients, JP Morgan Chase (NYSE:<a href="https://investorplace.com/stock-quotes/jpm-stock-quote/">JPM</a>) and American Express (NYSE:<a href="https://investorplace.com/stock-quotes/axp-stock-quote/">AXP</a>), renewed long-term contracts with the company.&nbsp;This&nbsp;demonstrates the solidity of the company&rsquo;s clientele and the moat it has in its offerings. Because of these long-term partnerships make the company&rsquo;s income sources stable and predictable. In 2023, CompoSecure assisted more than&nbsp;<a href="https://seekingalpha.com/article/4676474-composecure-inc-cmpo-q4-2023-earnings-call-transcript" target="_blank">150 new and existing card programs</a>. Hence, this reflects the company&rsquo;s capacity to grow its market share and meet changing client needs.



Overall, the company can adapt and change with the market. Thus, the program expansion demonstrates this and solidifies its standing as card issuers&rsquo; preferred partner.



<h2>TSMC (TSM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/04/tsm1600-300x169.png" alt="TSMC Taiwan Semiconductor Manufacturing Company (TSM) logo displayed on mobile phone screen"><div>Source: Piotr Swat / Shutterstock.com</div></div>The quick action taken by TSMC (NYSE:<a href="https://investorplace.com/stock-quotes/tsm-stock-quote/">TSM</a>) in the wake of the April 3 earthquake exemplifies its operational resilience and risk management skills. Notwithstanding the effects of the earthquake, TSMC recovered all of its tools at the end of the third day. The company had recovered almost&nbsp;<a href="https://fortune.com/2024/04/03/tsmc-taiwan-earthquake-nvidia-apple-chip-semiconductor-manufacturing/" target="_blank">70% of them in the first ten hours</a>. This quick recovery reduces the chance of income losses and minimizes production interruptions.&nbsp;



Moreover, Wafer scraps and material loss are the main causes of TSMC&rsquo;s assessment of the earthquake&rsquo;s overall impact on the second-quarter gross margin, which is around 0.50%. Stakeholders may evaluate TSMC&rsquo;s financial performance to determine the extent of the incident by quantifying its financial impact.



Furthermore, TSMC&rsquo;s focus on scientific improvement&nbsp;is shown&nbsp;in its development of 2-nanometer technology (N2) and its&nbsp;<a href="https://investor.tsmc.com/english/encrypt/files/encrypt_file/reports/2024-04/34ff75e23e53246302ce3a8d90d0423c57c6b120/TSMC%201Q24%20Transcript.pdf" target="_blank">projected volume production in 2025</a>. Thus, N2&rsquo;s expected use in AI-related applications puts TSMC in a&nbsp;solid&nbsp;position to develop in high-value markets.



Overall, TSMC&rsquo;s observations of considerable customer interest in N2 and its projections for additional tape-outs indicate strong market demand for advanced nodes. This interaction with customers highlights TSMC&rsquo;s position as an industry pioneer and proves its technology leadership.&nbsp;



<h2>ASML (ASML)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/asml-1600-300x169.png" alt="Closeup of mobile phone screen with ASML logo on computer keyboard"><div>Source: Ralf Liebhold / Shutterstock</div></div>In Q1 2024, ASML (NASDAQ:<a href="https://investorplace.com/stock-quotes/asml-stock-quote/">ASML</a>) had net system bookings of&nbsp;<a href="https://www.asml.com/-/media/asml/files/investors/financial-results/q-results/2024/q1/press-release-quarterly-results-q1-2024-hd62ba.pdf?rev=cc38cd25ff284e01a07fb90ed37e26e6" target="_blank">approximately &euro;3.6 billion</a>. The company is adding to a backlog of around &euro;38 billion. This large backlog supports future growth predictions and gives revenue visibility.



Furthermore, there is a strong demand for ASML&rsquo;s lithography equipment across client categories and geographical areas.&nbsp;This&nbsp;is reflected&nbsp;in the robust order book. Semiconductor companies continue investing in sharp production processes to fulfill the boosting demand for semiconductor chips brought on by developments like AI, 5G, driverless cars, and the Internet of Things. Moreover, in Q1 2024, ASML&rsquo;s revenue mix comprised&nbsp;63% logic and 37% memory divisions. Because of its diverse consumer base, there is less reliance on any market sector.&nbsp;This&nbsp;lowers the risk of industry swings.



Finally, ASML has maintained its projection for 2024, predicting total net sales to be comparable to 2023. This consistency shows how resilient the business is and how well it can weather changes in the market without sacrificing consistent revenue growth. To sum up, despite short-term uncertainty, ASML predicts a&nbsp;better H2 in 2024.&nbsp;This&nbsp;is in line with the industry&rsquo;s ongoing recovery from the slump.&nbsp;



As of this writing, Yiannis Zourmpanos held long positions in TSM and&nbsp;ASML. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<div>Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/04/3-stocks-set-to-surge-in-the-next-market-rally/">3 Stocks Set to Surge in the Next Market Rally</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

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<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Data analytics company GlobalData projects that the AI market will grow <a href="https://www.globaldata.com/media/technology/generative-ai-will-go-mainstream-2024-driven-adoption-specialized-custom-models-multimodal-tool-experimentation-says-globaldata/">35% annually</a> over the next few years, reaching $909 billion by 2030. Naturally, that&rsquo;s made AI chip stocks extremely popular with investors.&nbsp;



Google the words &ldquo;AI chip stocks&rdquo; in quotation marks, and you will get 39,600 results. AI is undoubtedly a priority subject for investors at the moment.



On April 1, Barron&rsquo;s reported that Microsoft (NASDAQ:<a href="https://investorplace.com/stock-quotes/msft-stock-quote/">MSFT</a>) and OpenAI plan to build a <a href="https://www.barrons.com/articles/ai-chip-stocks-microsoft-100-billion-ai-data-center-3bd3efaf">$100 billion</a> AI data center, an investment equal to Microsoft&rsquo;s capital spending over the past four years.



Investors are stocked because the AI chips required to power such a large data center would be enormous. That&rsquo;s good news for Nvidia (NASDAQ:<a href="https://investorplace.com/stock-quotes/nvda-stock-quote/">NVDA</a>) and every other major AI player.&nbsp;



Bank of America&rsquo;s Global Research analyst Vivek Arya has buy ratings on Nvidia and four other AI chip stocks. I&rsquo;d normally include Nvidia in any AI-related recommendation, but I&rsquo;ll go with three that he does not mention in his article. 



To make my selection, I looked at the Horizons Global Semiconductor Index ETF&rsquo;s holdings, which trade on the Toronto Stock Exchange. 



<h2>Taiwan Semiconductor Manufacturing (TSM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/08/taiwan-semiconductor-showdown1600-300x169.png" alt="Flag of the Republic of China or Taiwan on a processor, CPU Central processing Unit or GPU microchip on a motherboard. Taiwan manufacturing chip industry emerges as battlefront in US - China showdown. TSM stock"><div>Source: William Potter / Shutterstock.com</div></div>I&rsquo;ll admit that my picks aren&rsquo;t the most original. However, that doesn&rsquo;t make them any less actionable.&nbsp;



Taiwan Semiconductor Manufacturing (NYSE:<a href="https://investorplace.com/stock-quotes/tsm-stock-quote/">TSM</a>) makes the cut because of its commitment to American manufacturing. TSM is building an Arizona plant that will go live in 2025. The company also plans to start making its most advanced chips beginning in <a href="https://www.ft.com/content/4798ab77-e063-4784-bdf3-19852b41fd1f">2028</a>. By 2030, it plans to open three fabrication plants in the U.S., which would cost the company $65 billion to get them up and running.&nbsp;



Now, big business gets done with some help from the federal government, which is chipping in $11.6 billion in grants and loans. That pales compared to the nearly $20 billion being thrown Intel&rsquo;s (NASDAQ:<a href="https://investorplace.com/stock-quotes/intc-stock-quote/">INTC</a>) way under the CHIPS Act, intended to bring 20% of the world&rsquo;s advanced semiconductor manufacturing back to the U.S.



I&rsquo;ve always thought globalization worked best when companies manufactured products in the country where the products are intended to be sold. Good for TSM.



<h2>ASML Holding (ASML)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/asml-1600-300x169.png" alt="Closeup of mobile phone screen with ASML logo on computer keyboard"><div>Source: Ralf Liebhold / Shutterstock</div></div>As I write this, ASML Holding (NASDAQ:<a href="https://investorplace.com/stock-quotes/asml-stock-quote/">ASML</a>) stock is falling. The Dutch chip maker reported weaker-than-expected sales in Q1 2024.&nbsp;



Analysts expected revenue of <a href="https://www.cnbc.com/2024/04/17/asml-earnings-report-q1-2024.html">5.39 billion euros</a> ($5.73 billion), but ASML delivered 5.29 billion euros ($5.63 billion), 2% shy of the mark. However, its net income was 1.22 billion euros ($1.30 billion), 14% higher than <a href="https://www.cnbc.com/2024/04/17/asml-earnings-report-q1-2024.html">Wall Street&rsquo;s predictions</a>.&nbsp;



ASML produces extreme ultraviolet lithography machines, which are used to make technologically advanced chips. Lower consumer demand for smartphones and laptops has had a knock-on effect on the company&rsquo;s revenues.&nbsp;Sales and profits were down 21.6% and 37.4% in Q1 2024, respectively. Bookings were also down 4% year over year.&nbsp;



Despite the miss, ASML reiterated its 2024 guidance for revenue. Similar to 2023, it suggests that 2025 will be its breakout year as both TSM and Intel increase their U.S. production.




&ldquo;I think by 2025 you will see all three of those coming together. New fab openings, strong secular trends and the industry in the midst of its upturn,&rdquo; said CFO Roger Dassen in an interview for CNBC.&nbsp;




ASML is a buy below $900.



<h2>Qualcomm (QCOM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/09/qcom-stock-7-300x169.jpg" alt="Qualcomm (QCOM) logo on a large sign with another sign that says 5G"><div>Source: Xixi Fu / Shutterstock.com</div></div>Qualcomm (NASDAQ:<a href="https://investorplace.com/stock-quotes/qcom-stock-quote/">QCOM</a>) stock is up more than 19% year to date and more than 49% since November lows.



Qualcomm <a href="https://www.techradar.com/pro/did-qualcomm-just-launch-the-first-true-app-store-for-ai-ai-hub-comes-with-75-models-for-free-but-you-will-have-to-be-a-developer-to-take-full-advantage-of-it">launched</a> AI Hub in early March. It includes over 75 popular AI and generative AI language learning models such as Whisper, ControlNet, Stable Diffusion and Baichuan 7B, which will provide developers with high performance and low power consumption when creating applications.



In a February interview from the 2024 Mobile World Congress in Barcelona, Qualcomm Chief Financial Officer and Chief Operating Officer Akash Palkhiwala <a href="https://finance.yahoo.com/video/qualcomm-forefront-ai-device-deployment-162911645.html">spoke with Yahoo Finance</a> host Brad Smith about Qualcomm&rsquo;s AI Hub&rsquo;s role in generative AI.&nbsp;




&ldquo;And you could take those models, build it into an application, test it on a device, and deploy it into an application store, all in one go right at the website. So it just makes it very easy for the developers to take advantage of the hardware that we&rsquo;ve put forward. And we&rsquo;re excited that this broadens the reach of our products. And it makes it very easy for developers to access them.&rdquo;




Smartphone makers will launch devices with full AI capabilities integrated into them in 2024 and 2025. Qualcomm&rsquo;s Snapdragon 8 Gen 3 chip will help manufacturers deliver these capabilities.&nbsp;



This is a big positive for the company and its stock.



On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<div>Will Ashworth has written about investments full-time since 2008. Publications where he&rsquo;s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.</div><h3>More From InvestorPlace</h3>
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						<a href="https://investorplace.com/2023/07/elon-musks-project-omega-stuns-silicon-valley-insiders/?cid=MKT738510&amp;eid=MKT771236">Musk&rsquo;s &ldquo;Project Omega&rdquo; May Be Set to Mint New Millionaires. Here&rsquo;s How to Get In.</a>
					</li>
																<li>
						<a href="https://investorplace.com/2021/01/one-percenter-issues-urgent-warning/?cid=MKT499868&amp;eid=MKT793997">It doesn&rsquo;t matter if you have $500 or $5 million. Do this now.</a>
					</li>
									</ul><div>
			<div></div>
						<div></div>
					</div>
	
The post <a href="https://investorplace.com/2024/04/3-stocks-to-grab-now-to-ride-the-artificial-intelligence-chip-boom-to-riches/">3 Stocks to Grab Now to Ride the Artificial Intelligence Chip Boom to Riches</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Stocks to Grab Now to Ride the Artificial Intelligence Chip Boom to Riches

AAGIY

AAIGF

ARGNF

ARGX

ASMLF

BABA

BAESF

BAESY

CABGY

CABJF

CMPO

DGEAF

DSKYF

DSNKY

EADSF

EADSY

HEINY

HINKF

KIGRY

KNNGF

LZAGF

LZAGY

MITEF

MITEY

MLSPF

MRAAF

MRAAY

MSCI

MTSFF

MTSFY

NONOF

NSRGF

NSRGY

PDRDF

PRNDY

QCOM

RHHBF

RHHBY

RHHVF

RSNHF

SAFRF

SAFRY

SONY

SVNDF

SVNDY

TMNSF

TMSNY

TOYOF

TSMWF

UCBJF

UCBJY

WZZAF

WZZZY

Press Releases

ASML reports transactions under its current share buyback program

ASML cautions investors regarding Tutanota LLC's "mini-tender" offer

ASML reports €5.3 billion total net sales and €1.2 billion net income in Q1 2024

ASML discloses 2024 AGM results

Legal

SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims on Behalf of Investors of ASML Holding N.V. - ASML