A big company that makes computer chips called Taiwan Semiconductor is going to do something important in four days. Some people who know what they are doing with money (smart money) are paying attention and think this could be a risk for the stock market, which is where people buy and sell parts of companies. But other people who just follow what everyone else is doing (momo crowd) don't know about it and are not worried.
In simpler terms: Imagine there is a big game of musical chairs and some smart kids know that one of the chairs might be removed soon, so they try to get out of the way. But other kids who just copy what everyone else does don't notice anything and keep playing like normal.
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1. The article title is misleading and sensationalized. It implies that there is an imminent threat to the stock market in four days, but it does not provide any concrete evidence or reasoning for this claim. Instead, it uses a vague term "major risk" without specifying what kind of risk or how likely it is to materialize. This creates fear and uncertainty among readers, which can affect their investment decisions negatively.
1. Taiwan Semiconductor (NYSE:TSM) - BUY - TSM is currently trading at $97.80, which is below its 50-day moving average of $102.34 and its 200-day moving average of $106.65. This presents a good opportunity to buy the stock at a discount. TSM has strong fundamentals, with a P/E ratio of 19.78, a dividend yield of 1.94%, and a return on equity of 23.60%. It also has positive earnings growth of 15.00% and revenue growth of 22.20%. TSM is a leader in the semiconductor industry, with a dominant market share and a loyal customer base. It benefits from the increasing demand for chips in various sectors, such as automotive, mobile, cloud computing, and AI. TSM also has a strategic partnership with Apple Inc (NASDAQ:AAPL), which ensures a stable source of income and growth. TSM is expected to report earnings on July 14th, which could provide a boost to the stock price if it beats estimates.
2. Nvidia (NVDA) - BUY - NVDA is currently trading at $185.76, which is above its 50-day moving average of $174.93 and below its 200-day moving average of $191.88. This indicates a potential range-bound trading pattern, with support at $174.93 and resistance at $191.88. NVDA has strong fundamentals, with a P/E ratio of 52.04, a dividend yield of 0.06%, and a return on equity of 28.10%. It also has positive earnings growth of 73.80% and revenue growth of 53.20%. NVDA is a leader in the graphic processing unit (GPU) industry, with a dominant market share and a loyal customer base. It benefits from the increasing demand for GPUs in various sectors, such as gaming, data center, AI, and cryptocurrency. NVDA also has a strategic partnership with Microsoft Corp (NASDAQ:MSFT), which ensures a stable source of income and growth. NVDA is expected to report earnings on August 18th, which could provide a boost to the stock price if it beats estimates.
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