Institutional buying in tech stocks like Apple NASDAQ: AAPL, Crowdstrike NASDAQ: CRWD, and Advanced Micro Devices NASDAQ: AMD took a turn for the better in Q3 2024 and ramped to a multiyear high in Q1 2025. Although activity is mixed in Q1, with selling also ramping to multiquarter highs, the balance activity for each is solidly bullish. It suggests any market weakness in Q2 will be taken advantage of. Noteworthy details include the broad base of buyers, including fund managers, public and state retirement ...

Core Viewpoint - Taiwan Semiconductor Manufacturing (TSM) is positioned as a critical player in the semiconductor industry, potentially undervalued despite its significant market share and revenue growth [1][3]. Market Position and Financials - TSM is projected to capture 66% of the pure-play foundry market by 2025, serving major tech companies like Apple, Nvidia, and AMD [1]. - TSM's revenue for 2024 is estimated at nearly $90 billion, with a current market capitalization of $741.12 billion, contrasting sharply with Nvidia's $60.9 billion revenue and $2.66 trillion market cap [3]. Stock Performance - TSM stock is trading at $172.17, reflecting a 12.82% decline year-to-date [4]. - Analysts are increasingly optimistic about TSM shares, with several Wall Street firms revisiting their outlooks [4]. Analyst Ratings and Price Targets - Bernstein analyst Mark Li maintains an 'Overweight' rating with a price target of $251, indicating a potential 45.78% upside [5]. - Bank of America analyst Brad Lin reiterates a 'Buy' rating with a price target of $265, suggesting a 53.91% upside from current prices [6]. Revenue Growth and Investment - TSM's revenue in February 2025 showed a year-over-year growth of 43.1%, despite an 11.3% sequential decline [6]. - The company announced a $100 billion investment in the United States, which has raised some concerns about IP leakage and profit margins, yet the overall outlook remains bullish [7]. Valuation Metrics - TSM stock is currently trading at 21.3 times forward earnings, which is considered an attractive ratio for a leading semiconductor producer [8].

Core Viewpoint - The Nasdaq has entered correction territory, but spending on AI infrastructure continues to rise, benefiting AI semiconductor companies [1][2]. Group 1: AI Infrastructure Spending - The three major cloud computing companies have budgeted a combined $250 billion in capital expenditures for AI infrastructure this year [2]. - OpenAI and Softbank, along with other companies, have pledged $500 billion over the next few years for building AI data centers through Project Stargate [2]. - Meta Platforms plans to spend up to $65 billion on AI infrastructure this year, indicating significant ongoing investment in AI [2]. Group 2: Nvidia - Nvidia holds approximately 90% market share in GPUs, largely due to its CUDA software platform, which enhances the functionality of its chips [4]. - The company's revenue growth surged as AI became mainstream, with its GPUs being essential for training AI models and running inference [5]. - Nvidia's stock is currently trading at a forward P/E ratio of under 24 times 2025 estimates and a PEG below 0.5, suggesting it is undervalued [6]. Group 3: Broadcom - Broadcom specializes in custom AI chips, designing application-specific integrated circuits (ASICs) that offer better performance for specific tasks [8]. - The company has established a $60 billion to $90 billion serviceable addressable market for its custom chips by fiscal 2026, with increasing interest from new customers [9]. - Broadcom's stock is trading around 28.5 times fiscal 2025 analyst estimates, reflecting an attractive valuation given its growth potential [11]. Group 4: Advanced Micro Devices (AMD) - AMD holds about 10% market share in the GPU market and has gained significant share in the CPU market within data centers, with over 50% market share among hyperscalers [12][13]. - The company is experiencing growth in the GPU market, with its MI300X GPUs being utilized by Microsoft and Meta Platforms, and plans to launch the MI400 GPUs in 2026 [14]. - AMD's stock has a forward P/E of only 15, making it an inexpensive option, while its CPU growth and overall AI spending trends should positively impact its GPU revenue [15].

Core Viewpoint - The Nasdaq Composite index, heavily influenced by technology companies, has seen significant volatility, presenting potential investment opportunities in AI-focused ETFs as individual stock picking may be riskier [1][2]. Group 1: Market Performance - The Nasdaq Composite index gained 28.6% last year but has recently fallen 13.4% from its record high, entering correction territory [2]. - The iShares Future AI and Tech ETF is down 20.6% from its recent high, with shares available for under $40 [3]. Group 2: ETF Overview - The iShares Future AI and Tech ETF, reconstructed in August 2022, focuses exclusively on AI companies, holding only 50 stocks, which leads to potential volatility [4]. - The ETF's top 10 holdings include major AI players such as Broadcom, Nvidia, and Palantir Technologies, with Broadcom's AI revenue increasing 77% year over year to $4.1 billion [5][6][8]. Group 3: Industry Insights - The AI industry is still developing, with Nvidia's CEO predicting next-generation AI models will require 100 times more computing power, indicating a long-term growth trajectory for AI infrastructure [11]. - Major tech companies like Meta Platforms, Alphabet, Microsoft, and Amazon are projected to spend over $300 billion on hardware in 2025, benefiting companies within the iShares ETF [12][13]. Group 4: Investment Strategy - The iShares ETF has delivered a return of 6.1% since its reconstruction, outperforming the S&P 500's 5.1% gain over the same period, suggesting it could be a valuable addition to a diversified portfolio [10]. - Investing in the iShares ETF allows exposure to a range of high-quality AI stocks, potentially leading to significant long-term returns while mitigating risks associated with individual stock performance [14].

Core Viewpoint - The Nasdaq Composite index is currently in correction territory, down 13% from its recent high, creating potential buying opportunities for long-term investors in quality companies [1]. Group 1: Advanced Micro Devices (AMD) - AMD operates in the data center GPU space, competing primarily with Nvidia, but also has significant business in desktop and laptop processors, gaming chips, and embedded applications [3][4]. - AMD's data center revenue nearly doubled year-over-year in 2024, with adjusted EPS growth of 25% and an expected 30% revenue growth in Q1 2025 [5]. - The data center industry is projected to grow by 140% by 2030, and AMD's stock is trading at about 21 times forward earnings, indicating a potential investment opportunity [6]. Group 2: PayPal - PayPal's stock has dropped significantly following a disappointing earnings report, now trading at less than 14 times expected 2025 EPS, presenting a long-term investment opportunity [7]. - The company has undergone leadership changes focused on efficiency, with recent EPS growth reflecting these improvements, and new initiatives like an advertising platform launched in mid-October [8][9]. - PayPal generates approximately $6 billion in annual free cash flow, primarily used for share buybacks, indicating strong cash generation capabilities [10].

Core Viewpoint - Advanced Micro Devices (AMD) stock has been on a downward trend for the past year, with a year-to-date loss of 17.80% as of March 10, trading at $99.29 [1][3]. Financial Performance - AMD's latest product line performed well against Nvidia's, with earnings per share (EPS) and revenues exceeding consensus estimates during the earnings call on February 4 [3]. - However, data center revenue did not meet Wall Street expectations, leading analysts to lower their price targets for AMD shares [3]. Technical Analysis - The stock is currently viewed as a value play, with indications of being oversold, suggesting a potential correction to the upside [4]. - AMD stock has been in a channel up pattern for the last five years, with an all-time high of $202 reached on March 1, 2024 [5]. - Currently, the stock is in a bearish leg of this channel, close to the 0.618 Fibonacci extension level, with the relative strength index (RSI) at 32.25, indicating oversold conditions [6]. Price Projections - If AMD stock mirrors previous performance, it could reach a low near $78 at the 0.786 Fibonacci level before entering a bullish leg, potentially resulting in a price surge to $320 over the next year and a half [7][8]. - An earlier analysis suggested a near-term surge to $148, but the validity of that pattern is now questionable due to the breach of the lower trendline [10].

Market Overview - The Nasdaq Composite has experienced a rough start to the year, dropping approximately 3.8% year-to-date and about 7.5% from its all-time high, nearing a technical correction of 10% [1] Advanced Micro Devices (AMD) - AMD's stock has seen a 55% decline over the past year due to struggles in its gaming and embedded segments, along with a forecasted sequential revenue decline [3][4] - Despite the downturn, AMD's data center segment is showing signs of recovery, with revenue growth in Q4 2024 increasing by 24% to $7.7 billion, up from just 9% growth in Q2 [5] - The decline in AMD's embedded segment has lessened, with a yearly revenue drop of 41% in Q2 reducing to 13% in Q4 [6] - AMD's valuation metrics are becoming attractive, with a forward P/E ratio of 22, suggesting that the current 55% discount in its stock may not last long [7] Broadcom - Broadcom's stock has recently fallen by 27%, presenting a buying opportunity for long-term investors [8][9] - The company is well-positioned to benefit from the growth of artificial intelligence, with an estimated AI-related revenue opportunity of $60 billion to $90 billion by 2027, up from $12.2 billion in 2024 [10] - Broadcom's diverse business model, with 42% of its 2024 revenue coming from software, helps mitigate the cyclical nature of the semiconductor industry [11] - The recent decline has lowered Broadcom's PEG ratio to 1.7, indicating it is reasonably priced for high-quality stocks [12] Amazon - Amazon's stock is viewed as appealing during market volatility, with a recent decline attributed to poor economic data and concerns over tariffs and AI stocks [14][15] - Historically, Amazon has recovered from significant pullbacks, with a $10,000 investment at the start of 2023 now worth over $24,000 despite recent sell-offs [17] - Amazon's fundamentals remain strong, with a well-managed and diversified business model across e-commerce, cloud services, and advertising [18]

Nvidia (NVDA 1.92%) has been one of the best long-term investments of all time. Since 1999, shares have increased in value by more than 285,000%, pushing the company's market capitalization into the trillions of dollars. The cause of Nvidia's soaring valuation has been the rise of artificial intelligence (AI).But Nvidia isn't the only company exposed to the massive tailwind that is AI spending. Long term, there's another chipmaker that could end up giving Nvidia a run for its money. And unlike Nvidia's stoc ...

Group 1: AI Chip Market Overview - Current market conditions present a potential opportunity for investment in AI chip stocks before they rebound to growth [1] - A recent sell-off in AI stocks was triggered by DeepSeek AI's advancements in efficient algorithms, suggesting that major tech companies may not need to invest heavily in advanced GPUs [1][2] - The sell-off was exacerbated by Nvidia's earnings report and new tariffs imposed by President Trump on China, Mexico, and Canada [2] Group 2: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the largest chip manufacturer globally, holding over 60% of semiconductor fabrication spending, which is increasing due to demand for high-end AI chips [4][8] - The company plans to significantly increase capital investments, forecasting $38 billion to $42 billion for 2025, a 34% increase from 2024 [5] - TSMC's investment strategy includes a $100 billion commitment to the U.S. and expansion of facilities in Arizona, which may help mitigate tariff impacts [7] Group 3: Advanced Micro Devices (AMD) - AMD is currently a distant second in the GPU market for AI training, with a potential loss of market share to Nvidia [9] - Despite a disappointing sales outlook with a projected 7% sequential drop, AMD's total addressable market for AI accelerator chips is expected to reach $500 billion by 2028 [10][11] - AMD's stock trades at 21 times earnings expectations, presenting a buying opportunity given the anticipated earnings growth of 38% over the next two years [13]

Core Viewpoint - The semiconductor industry, particularly graphics processing units (GPUs), is crucial for generative AI development, but chip stocks have faced challenges in 2025, presenting a potential buying opportunity for Taiwan Semiconductor Manufacturing Company (TSMC) [1][2][3]. Group 1: Market Performance - The VanEck Semiconductor ETF has declined by 4% in 2025, with Nvidia and Advanced Micro Devices (AMD) experiencing stock drops of 7% and 17%, respectively [2]. - TSMC's stock is currently viewed as undervalued despite its strong market position and financial outlook [9][10]. Group 2: TSMC's Role and Influence - TSMC specializes in foundry solutions, manufacturing chips for other semiconductor companies, which is essential for the success of firms like Nvidia and AMD [6][5]. - TSMC has captured nearly two-thirds of the foundry market and is expected to benefit from the increasing demand for custom silicon and new architectures from Nvidia and AMD [8]. Group 3: Financial Outlook - TSMC's forward price-to-earnings (P/E) ratio is approximately 19, compared to the S&P 500's average of about 21, indicating a potential undervaluation [10]. - The semiconductor market is projected to grow tenfold over the next decade, reaching nearly $1 trillion, suggesting sustained demand for TSMC's products [10]. Group 4: Expansion Plans - TSMC plans to invest an additional $100 billion to expand its manufacturing capabilities in the U.S., aligning with the anticipated $300 billion investment in AI infrastructure by big tech in 2025 [11].