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Nvidia announced acquisition of Israeli startup Run:ai for $600-700 million, expanding its AI workload management platform and R&amp;D operations.

Nvidia Bolsters AI Unit With $700M Deal For Israeli Firm Run:ai

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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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AMD and Nvidia stocks surge amid Fed rate cuts, China&#39;s success in acquiring Nvidia chips, and strong growth prospects for AMD in the AI and accelerator markets.

What&#39;s Going On With Nvidia and AMD Stocks On Tuesday?

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On Wednesday,&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) announced its acquisition of Run:ai, an Israeli startup specializing in software that simplifies the management of complex AI workloads and computing resources on a single&nbsp;<a target="_blank" href="https://blogs.nvidia.com/blog/runai/" rel="noreferrer noopener">platform</a>.
Reports indicate a valuation between $600 million &#8211; $700 million. The acquisition marks Nvidia&#8217;s most significant in Israel since its $6.9 billion purchase of Mellanox Technologies Ltd. in 2020, the Times of Israel&nbsp;<a target="_blank" href="https://www.timesofisrael.com/us-chip-giant-nvidia-snaps-up-israeli-ai-workload-management-startup/" rel="noreferrer noopener">reports</a>.
Also Read:&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">AMD and Nvidia Recover Losses as AI Market Expansion and New Products Drive Growth</a>
Run: ai&#8217;s team will integrate into Nvidia&#8217;s expansive operations in Israel, which currently employs around 4,000 people across seven R&amp;D centers, including Mellanox&#8217;s headquarters in Yokne&#8217;am, and locations in Tel Aviv, Jerusalem, Ra&#8217;anana, and Beersheba.
Founded in 2018 in Tel Aviv by CEO Omri Geller and CTO Ronen Dar, both postgraduate students under Professor Meir Feder at Tel Aviv University, Run:ai aimed to create a foundational layer for managing any AI workload.&nbsp;
To date, Run:ai&nbsp;has secured $118 million in funding from several investors. Geller noted that Run:ai&nbsp;had already collaborated with Nvidia since 2020.
In a blog post, Alexis Bjorlin, Nvidia&#8217;s VP of DGX Cloud, stated that the acquisition aims to help customers better utilize their AI computing resources.&nbsp;
Bjorlin also mentioned that Nvidia plans to continue selling Run: ai&#8217;s products under the existing business model and invest in the startup&#8217;s product roadmap.
Since establishing its first operations in Israel in 2016 and opening an AI research center in 2018, Nvidia has expanded significantly. The company&#8217;s R&amp;D operations in Israel are now its most significant outside of the U.S.&nbsp;
In March 2022, Nvidia acquired another Israeli company, Excelero, which specializes in enterprise data storage and block storage solutions, for an undisclosed amount.
In May of the previous year, Nvidia revealed that it is developing and building Israel-1, the nation&#8217;s most potent generative AI cloud supercomputer.
Nvidia held $25.98 billion in cash and equivalents as of&nbsp;<a target="_blank" href="https://investor.nvidia.com/news/press-release-details/2024/NVIDIA-Announces-Financial-Results-for-Fourth-Quarter-and-Fiscal-2024/" rel="noreferrer noopener">January 28, 2024</a>.
Thanks to the AI frenzy, Nvidia stock&nbsp;gained 204% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;VanEck Semiconductor&nbsp;ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and&nbsp;Global X&nbsp;Robotics &amp; Artificial Intelligence ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BOTZ#NASDAQ">BOTZ</a>).
Price Actions:&nbsp;NVDA shares traded lower by 1.84% at $781.59 premarket at&nbsp;the last check on Thursday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38429949/taiwan-semi-sets-2026-launch-for-a16-chip-technology-aiming-to-outpace-intel-in-speed" rel="noreferrer noopener">Taiwan Semi Sets 2026 Launch for A16 Chip Technology, Aiming to Outpace Intel in Speed</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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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.
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Benzinga Morning Update: Tesla Surges On Earnings, Texas Instruments Lifts Chip Stocks Higher

Advanced Micro Devices,&nbsp;Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) stock continued its upward trajectory Tuesday after&nbsp;the&nbsp;Friday&#8217;s selloff, along with&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) stock.
The key artificial intelligence beneficiaries lost close to 6% &#8211; 10% in stock value last Friday as the Street grew wary of the U.S. Federal Reserve&#8217;s rate cuts and Iran and Israel strike.
Meanwhile, reports indicated that Chinese companies are succeeding in procuring advanced Nvidia chips from&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/asia/24/04/38369354/nvidias-high-end-chips-ended-up-in-chinese-hands-despite-us-ban-heres-how-beijing-scored-them" rel="noreferrer noopener">third-party vendors</a>.&nbsp;
Previously, Chinese tech juggernaut&nbsp;Alibaba Group Holding Limited&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) voiced how the U.S. embargo harmed&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38140039/us-embargo-on-nvidia-stings-hard-chinas-ai-development-lags-peers-alibabas-joe-tsai-reveals" rel="noreferrer noopener">China&#8217;s AI ambitions</a>.
Prior reports had also indicated how the U.S. embargo led to a captive underground market for&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/02/36910198/whats-going-on-with-nvidia-stock-friday" rel="noreferrer noopener">AI chips in China</a>.
Analysts expect Nvidia to dominate the ~$90 billion calendar year 2024 accelerator market (rising to $200 billion by calendar year 2027), primarily backed by&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38188367/nvidia-eyes-continued-leadership-in-90b-accelerator-market-despite-recent-dip-bofa-analyst" rel="noreferrer noopener">its Blackwell product</a>.
Analysts have identified&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38278064/whats-going-on-with-amd-stock-tuesday" rel="noreferrer noopener">several growth catalysts</a>&nbsp;for AMD&#8217;s recent surge, beginning with&nbsp;the introduction of&nbsp;new products. AMD unveiled the Ryzen PRO 8040 and 8000 Series processors, AI-enabled and built using advanced 4-nanometer technology, targeting business laptops, mobile workstations, and desktops.&nbsp;
The anticipated expansion of the AI PC market will likely benefit AMD significantly. Analysts have also highlighted AMD&#8217;s competitive positioning against Nvidia in the merchant accelerators market, bolstered by its Mi300 series products and an evolving chip, hardware, and software ecosystem.
Further financial upside is likely from the acquisition of Xilinx, which will likely offer substantial revenue synergies exceeding $10 billion.
Nvidia stock gained over 203% in the last 12 months&nbsp;, and&nbsp;AMD gained 74%. Investors can gain exposure to Nvidia via&nbsp;VanEck Semiconductor&nbsp;ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and&nbsp;Global X&nbsp;Robotics &amp; Artificial Intelligence ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BOTZ#NASDAQ">BOTZ</a>).
Price Actions: NVDA shares traded higher by 3.68% at $824.48 at the last check Tuesday. AMD shares traded higher by 3.01% at $153.10.
Photo via Shutterstock

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

To gain an edge, this is what you need to know today.
<img alt="" src="https://thearorareport.com/wp-content/uploads/2024/04/2024-04-23_08h41_13.png" style="height:362px; width:624px" />
<h3>Hedges Are Profitable</h3>
The Arora Report gave several signals to put&nbsp;hedges on to protect large profits on long-term positions. Hedges are now profitable.&nbsp;It is time to book partial profits on some hedges.&nbsp;&nbsp;
<h3>Semiconductors Stabilizing After 17% Drop&nbsp;</h3>
Please <a href="https://thearorareport.com/stock-market-chart-analysis-semiconductors-leading-sector-smh-mc-04232024">click here</a> for an enlarged chart of semiconductor ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smh#NASDAQ">SMH</a>).
Note the following:
<ul>
<li>Historically, semiconductors are the leading sector.&nbsp;Often semiconductors move first and then the rest of the market follows.</li>
<li>This time, there has been an additional factor &ndash; semiconductors have been at the center of the AI revolution.</li>
<li>The chart shows semiconductors have had a massive run.&nbsp;As full disclosure, The Arora Report&#39;s ZYX Allocation Core Model Portfolio has a large allocation to semiconductors, up to 16% of the portfolio.</li>
<li>The chart shows when the Arora signal was given to take partial profits close to the top.</li>
<li>The chart shows semiconductors dropped 17% from the top.</li>
<li>The chart shows semiconductors are attempting to stabilize at the microsupport zone.</li>
<li>The chart shows RSI is oversold.&nbsp;Oversold RSI often, but not always, leads to a bounce.</li>
<li>Among the earnings, there are two notable earnings.
<ul>
<li>General Motors Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gm#NYSE">GM</a>) reported earnings significantly better than the whisper numbers.&nbsp;This indicates that in spite of high interest rates, consumers feel secure enough to buy new cars.</li>
<li>Cadence Design Systems Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cdns#NASDAQ">CDNS</a>) is a leading provider of semiconductor design software.&nbsp;CDNS stock has run up due to the AI frenzy.&nbsp;The presumption has been that as chips become more complex, CDNS will benefit.&nbsp; CDNS guidance is below expectations.&nbsp;This indicates that the momo crowd euphoria about AI is overdone.&nbsp; As full disclosure, CDNS is one of 18 stocks on the Arora Artificial Intelligence List.&nbsp;&nbsp;</li>
</ul>
</li>
<li>In the short term, the course of the stock market will depend on earnings from Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>), Meta Platforms Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>), Microsoft Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>),&nbsp;Alphabet Inc Class C (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>), and Alphabet Inc Class A (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>).</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>), Alphabet (GOOG), Meta (META), NVIDIA Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>), Microsoft (MSFT), and Tesla (TSLA).
In the early trade, money flows are neutral in Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</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 buying stocks in the early trade.&nbsp;Smart money is inactive in the early trade.
<h3>Gold</h3>
The momo crowd is selling gold in the early trade.&nbsp;Smart money is inactive in the early trade.
For longer-term, please see gold and silver ratings.
The most popular ETF for gold is SPDR Gold Trust (ARCA:GLD). The most popular ETF for silver is iShares Silver Trust (ARCA:SLV).&nbsp;
<h3>Oil</h3>
The momo crowd is selling oil in the early trade.&nbsp; Smart money is inactive in the early trade.
For longer-term, please see oil ratings.
The most popular ETF for oil is United States Oil ETF (ARCA:USO).
<h3>Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is range bound.&nbsp;Bitcoin bulls are disappointed that bitcoin is not running up immediately after the halving.&nbsp;
<h3>Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold good, very long term, existing positions. 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.

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Hedges Are Profitable, Semiconductors Stabilizing After 17% Drop

The Nasdaq 100 index, as tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), ended Monday 1% higher, breaking a three-day losing streak as traders prepare for a crucial week of earnings reports from some of the tech <a href="https://www.benzinga.com/markets/cryptocurrency/24/04/38363493/stocks-set-to-snap-worst-losing-streak-in-nearly-2-years-gold-sinks-bitcoin-reclaims-66-00">sector&#8217;s most influential names.</a>
This week&#8217;s earnings lineup features four Magnificent Seven giants like Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), which will report on Tuesday, followed by Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) on Wednesday, and both Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) and Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) slated for Thursday.
PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) led Monday&#8217;s rally among the Nasdaq 100 stocks by rallying over 9%, followed by Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), which climbed 4.4% after experiencing a sharp 10% drop on Friday. The chip sector, represented by the VanEck Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>) showed strength, advancing 1.9% for the day.
Last week marked the Nasdaq 100 Index&#8217;s largest weekly drop in over 17 months, dragging the index to its longest losing streak since December 2022.
Also read: <a href="https://www.benzinga.com/news/24/04/38354891/apple-shot-itself-in-the-foot-telegram-founder-says-cupertino-iphone-market-share-in-china-will-keep">&#8216;Apple Shot Itself In The Foot:&#8217; Telegram Founder Says Cupertino iPhone Market Share In China Will &#8216;Keep Shrinking&#8217;</a>
<h3 class="wp-block-heading">UBS Cautions In Tech Sector</h3>
UBS Group AG's chief U.S. equity strategist Jonathan Golub has advised caution on tech stocks. 
As reported by Bloomberg, UBS downgraded its stance on the &#8216;Big 6&#8217; technology giants—Alphabet Inc., Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc., Microsoft Corp., and Nvidia Corp.— from Overweight to Neutral amid slowing earnings momentum. 
Golub suggests that the downturn in tech earnings momentum will be driven by wider cyclical challenges, not by worries about valuations or the industry's prospects in artificial intelligence.
Read also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38362859/microsoft-in-unique-position-to-scale-gen-ai-revenue-goldman-sachs-says-ahead-of-q3">Microsoft &#8216;In Unique Position To Scale Gen-AI Revenue,&#8217; Goldman Sachs Says Ahead Of Q3 Earnings</a>
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Nasdaq 100 Breaks 3-Day Losing Streak As Tech Stocks Rebound Ahead Of Earnings Week

Taiwan Semiconductor Manufacturing Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) stock is trading higher Monday amid reports of a 5.5-magnitude earthquake hitting Taiwan&#8217;s capital, Taipei. It comes just weeks after the city experienced a severe 7.4-magnitude quake on April 3.
The earthquake occurred at around 5:08 pm local time, the First Post&nbsp;<a target="_blank" href="https://www.firstpost.com/world/taiwan-earthquake-5-point-5-magnitude-taipei-13762418.html" rel="noreferrer noopener">cites</a>&nbsp;the Central Weather Administration.&nbsp;
Also Read:&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">Pay More for Chips Made Outside Taiwan as AI Demand Soars and Global Expansion Continues: Taiwan Semiconductor</a>
Eastern Hualien was the source of Monday&#8217;s quake, which also served as the epicenter for the April 3 earthquake.
Reports described the quake as feeling &#8220;like one of the strongest quakes or aftershocks since the big one earlier this month.&#8221;
This month&#8217;s initial quake triggered landslides in the mountainous area, blocking roads and significantly damaging buildings in Hualien&#8217;s central city. The earthquake claimed 17 lives, with the most recent victim found on April 13 in a quarry.
Following the April 3 earthquake, the region experienced hundreds of aftershocks, leading to rockfalls in Hualien.&nbsp;
This was Taiwan&#8217;s most severe earthquake since a magnitude 7.6 quake hit the island in 1999.&nbsp;
As per&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38108147/taiwan-semi-a-key-supplier-to-nvidia-and-apple-springs-back-to-action-after-taiwan-earthquake" rel="noreferrer noopener">April 5 reports</a>, TSMC swiftly resumed construction activities after conducting inspections. Despite concerns about supply interruptions, TSMC ensured the functionality of its safety systems and reported minimal impact on its operations.&nbsp;
While some facilities were affected, TSMC confirmed the safety of its staff and expected full operational recovery by the end of the day, with essential chip-making equipment remaining undamaged.
<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">Amid escalating tensions</a>&nbsp;with China and increasing production costs, TSMC is incorporating a premium for chips manufactured outside of Taiwan into its pricing model.&nbsp;
This adjustment aims to expand its global production capabilities. The leading supplier for&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) reported a strong first-quarter net profit and expects revenue growth fueled by the demand for AI chips.
<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/2024/04/22103317/newplot-24.png" alt="" class="wp-image-302469" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/22103317/newplot-24.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/22103317/newplot-24-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
TSMC stock has gained 50% in the last 12 months. Investors can gain exposure to the stock via&nbsp;the VanEck Semiconductor ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and&nbsp;the IShares Semiconductor ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action:&nbsp;TSM shares traded higher by 0.54% at $128.41 on the last check Monday.
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

What's Going On With Taiwan Semi Stock On Monday?

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.

Macro Notification

Market Summary

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'

U.S. stocks are experiencing declines this Friday, on track of ending another week of negative performance. 
The Nasdaq 100 has dropped over 5% this week, potentially marking its most significant decline since late October 2022, while the S&amp;P 500 faces its sixth consecutive day of losses, the longest such streak since September 2022, with concerns over interest rates, corporate earnings, and geopolitical tensions <a href="https://www.benzinga.com/markets/cryptocurrency/24/04/38334504/israel-strikes-iranian-air-base-tehran-downplays-attack-as-blinken-calls-for-calm-oil-pric">weighing on investor sentiment.</a>
Industry-wise, semiconductor stocks, tracked by the VanEck Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>) are down 2.7%, eyeing weekly declines of about 8%, marking the most significant drop since June 2022.
Israel carried out limited retaliation against Iran overnight, targeting a location near an air base facility without causing significant damage.
Yields on shorter-dated U.S. Treasury bonds remain stable at around 5%, maintaining levels seen since mid-November 2023, amid Federal Reserve Chair Jerome Powell&#8216;s staunch opposition to rate cuts.
Gold prices surged to $2,400 per ounce amid escalating tensions in the Middle East, while oil prices stabilized after an initial rise following the Israeli strike.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) saw a modest increase of over 1%, with the crypto community anticipating the upcoming halving event.
<h3 class="wp-block-heading" id="h-friday-s-performance-in-major-us-indices-etfs">Friday&#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>38,001.61</td>
<td>0.6%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>1,947.93</td>
<td>0.0%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>4,984.63</td>
<td>-0.5%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>17,127.17</td>
<td>-1.5%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1.30 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 0.4% to $496.85, the&nbsp;SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 0.5%% to $379.83 and the tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) tumbled 1.5% to $417.03 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 1.6%, followed by the Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), up 1.3%. 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 1.5%. 
<h3 class="wp-block-heading" id="h-friday-s-stock-movers">Friday&#8217;s Stock Movers</h3>
<ul>
<li>Paramount Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>) rocketed 13% on rumors that Apollo Global Management (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APO#NYSE">APO</a>)&nbsp;and Sony Group Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>)&nbsp;are mulling a joint bid for the company.</li>
<li>Super Micro Computer Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) dropped 18% as the company announced its third-quarter earnings date, but it did not provide preliminary estimates.</li>
<li>Netflix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) saw a fall of nearly 9% despite beating Street estimates last quarter. Investors negatively reacted to the company&#8217;s plans to cease providing quarterly disclosures on subscriber growth or average revenue per member starting next year.</li>
<li>Other companies reacting to earnings were American Express Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXP#NYSE">AXP</a>) up 5.5%, Fifth Third Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FITB#NASDAQ">FITB</a>) up 5.6%, Huntington Bancshares Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HBAN#NASDAQ">HBAN</a>) up 1.5% Regions Financial Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RF#NYSE">RF</a>) down 0.7%, Procter &amp; Gamble Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) flat, and Schlumberger Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>), down 1.5%. </li>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) was 0.5% lower after the EV-maker recalled thousands of Cybertrucks due to an accelerator pedal problem. </li>
</ul>
Read now: <a href="https://www.benzinga.com/general/macro-notification/24/04/38337484/is-the-us-national-debt-unsustainable-we-cant-have-a-deficit-of-7-of-the-gdp">Is The US National Debt Unsustainable? &#8216;We Can&#8217;t Have A Deficit Of 7% Of The GDP&#8217;</a>
Photo: Shutterstock

Mid Cap

Bonds

Small Cap

Treasuries

Global

Federal Reserve

Intraday Update

SPDR Dow Jones Industrial Average ETF Trust

FITB

HBAN

NFLX

PARA

SMCI

Sony Group Corporation American Depositary Shares

SONY

S&P 500 Nears 6-Day Slide, Nasdaq 100 Faces Worst Week Since Late 2022: What's Driving Markets Friday?

Thanks to robust demand from artificial intelligence firms,&nbsp;Taiwan Semiconductor Manufacturing Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) exceeded first-quarter financial expectations.
The company&#8217;s revenue surged 16.5% to $18.87 billion, surpassing the Street consensus estimate of $18.40 billion, while net income increased by 8.9%&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38307408/strong-ai-chip-demand-propels-key-apple-nvidia-supplier-past-q1-expectations" rel="noreferrer noopener">to $6.97 billion</a>. The stock price declined after the Q1 print.
Advanced technologies, particularly those beyond the 7-nanometer process, contributed 65% of TSMC&#8217;s total revenue.&nbsp;
Notably,&nbsp;Apple Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), TSMC&#8217;s largest client, has reportedly reserved the majority of TSMC&#8217;s initial 2-nanometer production capacity for developing advanced processors, which made up 25% of TSMC&#8217;s annual revenue in 2023.&nbsp;
Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) also stands out as a critical customer, accounting for approximately 11% of TSMC&#8217;s revenue.
CFO Wendell Huang forecasted a robust second quarter for 2024, highlighting the anticipated support from solid demand for their cutting-edge 3-nanometer and 5-nanometer technologies despite the seasonal fluctuations in smartphone demand.
<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/2024/04/18092234/newplot-1-4.png" alt="" class="wp-image-297953" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/18092234/newplot-1-4.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/18092234/newplot-1-4-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
CEO C.C. Wei projected a &#8220;healthy&#8221; growth year for 2024, driven by TSMC&#8217;s technological leadership and expanded customer base. He emphasized the overwhelming demand for energy-efficient computing power from AI innovators collaborating with TSMC, expecting server AI processors&#8217; revenue contribution to more than double within the year, CNBC&nbsp;<a target="_blank" href="https://www.cnbc.com/2024/04/18/tsmc-q1-2024-earnings-on-strong-ai-chip-demand.html" rel="noreferrer noopener">cites</a>&nbsp;from TSMC&#8217;s earnings call.
TSMC&#8217;s second-quarter revenue will likely range between $19.6 billion and $20.4 billion, versus the analyst consensus of $19.3 billion. Due to the AI frenzy, the company expects sales growth of up to 30%.&nbsp;
For the second quarter, TSMC foresees robust demand for its cutting-edge 3 nanometer (nm) and 5nm technologies bolstering its business. However, a slowdown in smartphone demand will counter this, Reuters cites from the earnings call.
TSMC anticipates that AI servers will represent a low-teens percentage of its 2024 revenue, doubling from the previous year, and projects this contribution to exceed 20% by 2028. The company has revised its outlook for auto chip demand, forecasting a decline this year instead of the previously expected growth.
TSMC has reaffirmed its capital expenditure forecast for this year at $28 billion—$32 billion, allocating 70%- 80% of this investment to advanced technologies. The company predicts a revenue increase in the low—to mid-20% range in U.S. dollar terms for 2024.&nbsp;
Analysts view TSMC&#8217;s position favorably, with Brady Wang from Counterpoint Research citing the sustained demand for advanced AI chips as a positive indicator for both immediate and long-term growth.&nbsp;
TSMC stock gained 58% 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;Vanguard FTSE Emerging Markets ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VWO#NYSE">VWO</a>).
Price Action:&nbsp;TSM shares closed lower by 4.07% at $133.47 on the last check Thursday.
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

Earnings

Guidance

What's Going On With Apple Supplier Taiwan Semi Stock On Thursday?

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.

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

streetTRACKS Dow Jones U.S. Large Cap Value Index Fund

Benzinga Opening Bell Update: TSM Falls After Earnings, Semis Drop, Elevance Lifts Healthcare Stocks

JBHT

Benzinga Closing Bell Update: Semis And Freight Stocks Fall, Oil Drops On Inventory Build, Airlines Gain Following Strong Earnings From United

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>
Image generated using artificial intelligence via Midjourney.

iShares Trust Barclays 20+ Year Treasury Bond Fund

Stocks Fall As Geopolitics, Economic Worries Spook Investors, Chipmakers Sell Off, Bitcoin Tumbles To $60,000: What's Driving Markets Wednesday?

STLD

Benzinga Morning Update: Oil Continues Lower, Semis Drop After ASML Earnings, Steel And Aluminum Rise On Reports Biden Wants To Triple China Tariffs

Key Taiwanese contract chipmaker&nbsp;Taiwan Semiconductor Manufacturing Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) expects to report a 5% rise in first-quarter profit on Thursday backed&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">by robust demand</a>.
The artificial intelligence boom helped the&nbsp;Apple Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) supplier to battle the correction of pandemic-induced electronics demand and reach a record high.
<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/2024/04/16033513/newplot-14.png" alt="" class="wp-image-293256" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/16033513/newplot-14.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/16033513/newplot-14-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
According to an LSEG SmartEstimate, TSMC will likely report a net profit of T$217.2 billion ($6.71 billion) for the quarter ended March 31, compared to T$206.9 billion last year, Reuters reports.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38209204/microns-dram-supply-temporarily-hit-by-taiwan-earthquake-but-long-term-outlook-remains-strong" rel="noreferrer noopener">Micron&#8217;s DRAM Supply Temporarily Hit by Taiwan Earthquake, But Long-Term Outlook Remains Strong</a>
TSMC recently reported 16.5% revenue growth, surpassing Wall Street estimates and at the high end of the company&#8217;s guidance. The company boosted its total investment in the U.S. to over 60% to $65 billion, backed by a $6.6 billion federal grant and $5 billion in loans to produce 2-nanometer chips.
Taiwan&#8217;s Eastspring Investments VP Eric Yao credited the $6.6 billion&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38249052/samsung-secures-6-4b-from-us-for-texas-chip-factory-after-nvidia-supplier-tsmcs-breakthrough" rel="noreferrer noopener">in U.S. subsidies</a>&nbsp;for TSMC&#8217;s new Arizona plants with helping it maintain its moat, dismissing the prospects of&nbsp;Intel Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) and Samsung catching up.
Recently, Intel disclosed aggravating operating losses for its foundry business. Meanwhile, TSMC shared its plans to build a third fab in Arizona.
Fubon Securities analysts expect TSMC to revise its outlook for AI demand in future years. They expect the chipmaker to account for the high teens of its revenue by 2025.
TSMC stock gained over 59% in the last 12 months. Investors can gain exposure to the stock via VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iIShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action: TSM shares closed lower by 1.67% at $140.14 on Monday.
Photo by Jack Hong via Shutterstock

Taiwan Semi's AI Boom and US Expansion Set to Drive Q1 Earnings Growth

U.S. Faces Pushback On More China Chip Curbs As Election Nears; People Familiar With Meetings Describe Pushback On Chips Curbs

Advanced Micro Devices, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) and&nbsp;Intel Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/03/37485236/why-is-amd-stock-trading-lower-tuesday" rel="noreferrer noopener">face challenges in China</a>, where the East Asian country retaliated against the U.S. semiconductor sanctions by eliminating foreign technology from its telecom systems.&nbsp;
In 2024, Chinese officials directed major telecom carriers to phase out foreign processors, notably impacting American chip giants Intel and AMD. China set the deadline for 2027.&nbsp;
This Ministry of Industry and Information Technology directive accelerates Beijing&#8217;s ambitions to end the use of foreign core chips in its telecom infrastructure.&nbsp;
The Wall Street Journal&nbsp;<a target="_blank" href="https://www.wsj.com/tech/china-telecom-intel-amd-chips-99ae99a9?mod=tech_lead_story" rel="noreferrer noopener">reports</a>&nbsp;that China tasked its telecom operators with inspecting their networks for non-Chinese semiconductors and planning their replacement.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38140039/us-embargo-on-nvidia-stings-hard-chinas-ai-development-lags-peers-alibabas-joe-tsai-reveals" rel="noreferrer noopener">US Embargo On Nvidia Stings Hard, China&#8217;s AI Development Lags Peers: Alibaba&#8217;s Joe Tsai Reveals</a>
The key AI beneficiaries, including&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), AMD, and Intel stock, are trading lower Friday following the report. Previously, Nvidia claimed there was no material impact from&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37981249/nvidia-captures-92-of-data-center-gpu-market-underlining-us-leadership-in-generative-ai" rel="noreferrer noopener">U.S. sanctions on China</a>.
Historically, China&#8217;s dependency on foreign semiconductors persisted due to the inferior quality of domestic chips. However, the situation is changing as local chip quality and performance have improved, prompting a shift towards domestic alternatives.&nbsp;
This transition poses significant challenges to Intel and AMD, which have supplied many core processors in China&#8217;s networking equipment.
American restrictions on selling high-end AI chips to China and China&#8217;s localization policies threaten the market positions of Intel and AMD, which are substantial players in the global semiconductor industry.&nbsp;
Intel, with China as its largest market, and AMD saw a revenue reduction from China following U.S. restrictions.&nbsp;
This shift comes as China aims to enhance its telecom capabilities, moving towards faster network speeds and promoting local CPU alternatives, further challenging Intel and AMD&#8217;s dominance in one of their key markets.
Analysts&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/01/36596609/nvidia-leads-ai-chip-rivalry-with-new-gpus-while-amd-and-intel-bet-big-on-ai-pcs" rel="noreferrer noopener">had an exciting take</a>&nbsp;on Nvidia, AMD, and Intel in the current semiconductor landscape. Analysts flagged Nvidia&#8217;s competitive edge in the AI chip market, notably with its advanced AI chips like the A100 and H100, which are critical for server-based AI in data centers.&nbsp;
Despite facing U.S. export restrictions to China, Nvidia has adapted by introducing new GPUs exempt from these curbs and planning specific models for the Chinese market, underscoring its dominance and innovative response to regulatory challenges.&nbsp;
In contrast, AMD and Intel are pivoting towards AI personal computers by embedding AI chips for local model processing, aiming to enhance data privacy and battery life.&nbsp;
However, widespread consumer adoption may be gradual due to the lack of AI-native applications.
Nvidia stock surged over 242% in the last 12 months. AMD climbed 85% and Intel by 18%.
Investors can gain exposure to Nvidia via&nbsp;VanEck Semiconductor ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and&nbsp;Global X Robotics &amp; Artificial Intelligence ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BOTZ#NASDAQ">BOTZ</a>).
Price Actions:&nbsp;AMD shares traded lower by 3.41% at $164.69 on the last check Friday. INTC shares traded lower by 3.48% at $36.32. NVDA shares traded lower by 1.18% at $895.50.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Movers

What's Going On With Key AI Stocks AMD, Intel, Nvidia On Friday?

BofA&nbsp;analyst Vivek Arya maintained a Buy rating on&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) with a price target of 1,100.
Nvidia is down about -11%, underperforming the SOX and SPX since an all-time high of $950 on March 25 following its GTC tradeshow, Arya said. The current selloff marks the 9-time Nvidia stock has declined ~10% or more since ChatGPT&#8217;s launch in late 2022.
Also Read:&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">Taiwan Semi Clocks Double-Digit Q1 Revenue Growth, Eyes Robust 2024 Amid AI Boom</a>
On a fundamental basis, the analyst flagged investor concern around rising competition and reducing lead times for Nvidia GPU accelerators.&nbsp;
While there is always the potential for near-term summer consolidation in Nvidia stock, Arya noted that the fundamentals are solidly on track, and periods of consolidation tend to set the stock up for strong moves later.&nbsp;
Earlier today,&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;announced its&nbsp;Arm Holdings Plc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>)-based server CPU called Axion, which is an alternative to the x86-based CPU from&nbsp;Intel Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) and&nbsp;Advanced Micro Devices, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>).
Since Nvidia does not sell any CPU to Google, Arya noted no implication on Nvidia, though he flagged a more competitive environment for Intel and AMD.&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/2024/04/10111555/newplot-12.png" alt="" class="wp-image-286125" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/10111555/newplot-12.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/10111555/newplot-12-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Nvidia also has its ARM-based server CPU called Grace, but it&#8217;s bundled chiefly with its AI products and not typically sold stand-alone.&nbsp;
Per Mercury estimates, ARM-based servers had ~ a 7% unit share in server CPUs exiting calendar year 2023, up from 3% at the start of the year.
Arya maintained his core view that Nvidia will continue to dominate the ~$90 billion calendar year 2024 accelerator market (rising to $200 billion by calendar year 2027) with 75%+ share, followed by 10-15% of the market in custom chips and remaining 10-15% spread across other merchant.&nbsp;
Nvidia&#8217;s Blackwell product, with its leading training and inference performance and Nvidia&#8217;s strong enterprise presence, make Arya more confident in the company&#8217;s ability to maintain/gain share.&nbsp;
Nvidia stock gained 214% 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;Global X Robotics &amp; Artificial Intelligence ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BOTZ#NASDAQ">BOTZ</a>).
Price Action:&nbsp;NVDA shares traded higher by 1.36% at $865.30 on the last check Wednesday.
Also Read: <a href="https://www.benzinga.com/news/24/04/38171196/intel-reinvents-ai-landscape-with-gaudi-3-launch-and-strategic-financial-moves" target="_blank" rel="noreferrer noopener">Intel Reinvents AI Landscape with Gaudi 3 Launch and Strategic Financial Moves</a>
Photo via Shutterstock

Price Target

Reiteration

Nvidia Eyes Continued Leadership in $90B Accelerator Market, Despite Recent Dip: BofA Analyst

Taiwan Semiconductor Manufacturing Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) reported a 16% growth in first-quarter revenue to NT$592.6 billion ($18.5 billion) versus the $18.4 billion analyst consensus estimate.&nbsp;&nbsp;
The figure was closer to the higher end of TSMC&#8217;s previous expectation of $18 billion—$18.8&nbsp;<a target="_blank" href="https://pr.tsmc.com/english/news/3125" rel="noreferrer noopener">billion</a>.
The key&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>) suppliers&#8217; quarterly revenue grew faster over a year due to big tech companies&#8217; surging demand for artificial intelligence applications.
<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/2024/04/10035341/newplot-10.png" alt="" class="wp-image-285151" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/10035341/newplot-10.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/10035341/newplot-10-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
The outperformance fueled expectations that the key contract chipmaker will return to solid growth in 2024, battling the pandemic-induced smartphone and computer sales slump, Bloomberg&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-04-10/tsmc-s-sales-surge-most-since-2022-after-riding-ai-chip-boom?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
The first half of the year is usually slower for Taiwanese tech firms due to corrections following the end-of-year holiday rush in major Western markets. Still, according to Reuters report, the AI trend served as a significant demand tailwind even during the lull season.
TSMC expects capital expenditures of $28 billion—$32 billion and revenue growth of at least 20% in 2024, compared to 2023&#8217;s slight decline.
TSMC said in January that its AI revenue is growing at 50% annually. The company remained engaged in expanding its geographical footprint in the US, Japan, and Germany to tap&nbsp;Amazon.com Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and&nbsp;Microsoft Corp&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) growing investment in data centers.
Asian rival&nbsp;Samsung Electronics Co&#8217;s&nbsp;profit rebounded sharply in the first quarter.
Earlier this week, TSMC raised&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38140390/whats-going-on-with-taiwan-semi-stock-on-monday" rel="noreferrer noopener">its total investment</a>&nbsp;in the US to over 60% to $65 billion, backed by a $6.6 billion federal grant and $5 billion in loans to enable the production of the most advanced 2-nanometer chips. It also set Japan&#8217;s 60% local procurement goal, implying significant global expansion efforts.
TSMC stock has gained over 63% in value in the last 12 months. Investors can gain exposure to the stock via&nbsp;the VanEck Semiconductor ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and&nbsp;the iShares Semiconductor ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action:&nbsp;TSM shares traded higher by 1.02% at $146.89 premarket on the last check Wednesday.
Also Read: <a href="https://www.benzinga.com/government/24/04/38169797/microsoft-announces-major-ai-expansion-and-cybersecurity-boost-in-japan" target="_blank" rel="noreferrer noopener">Microsoft Announces Major AI Expansion and Cybersecurity Boost In Japan</a>
Photo by Jack Hong via Shutterstock

Taiwan Semi Clocks Double-Digit Q1 Revenue Growth, Eyes Robust 2024 Amid AI Boom

U.S. equities see the largest net buying since late February - GS

Sell-Off In Chip Stocks: A Big Buying Opportunity With Intel And TSMC

While I am extremely focused on commodities as outlined in Monday's Daily, my viewpoint for most equities remains cautious to neutral. What might turn us to be more bullish? Let's analyze.

Quick Look At The Economic Modern Family

The Outlook For The U.S. Economy Is Bullish

Equities Play A Waiting Game

Animal spirits have come off the boil lately, but these are still early days for deciding if risk-on sentiment for equities has hit a wall or is in a holding pattern that allows markets to consolidate the gains of late.