Architects of Alpha’s Post

STRATEGIQ Capital | Weekly Review: Interest Rates Steady, While U.S. Growth Surprises Interesting chart of the week: The semiconductor sector, led by companies like Nvidia Corp., is currently in a favourable position, benefiting from a surprising geopolitical development. Despite initial concerns before Taiwan’s election, where the newly elected president favours independence from China, the outcome has brought calm and seemingly maintained the status quo. This stability is particularly impactful for share prices in the semiconductor industry, influencing indices such as the U.S. Philadelphia Stock Exchange Semiconductor Index (SOX), European company ASML Holding NV, and Taiwan Semiconductor Manufacturing Co. Source: Bloomberg Find out more: https://lnkd.in/d4ArmCwS To make sure you don't miss out on the latest updates, we invite you to subscribe to our FREE weekly newsletter! 📧 https://lnkd.in/dAvdv9UW #interestrates #growth #semiconductor

Lots of understandable interest in NVIDIA's loss of around $300bn in market cap in one day, as investors headed to the exits in a stampede following some poor economic data. If you've worked in corporate communications and investor relations for a long time, you've seen days like this before. Not with a $300bn loss, certainly. But certainly double digit drops in value - maybe prompted by poor earnings data, or something happening with one of your competitors. Usually these events are accompanied by a fair amount of shouting from the corner offices, and a desperation to understand how this could have been avoided. The reality is that it couldn't be avoided, and that more importantly, it isn't a reflection of the underlying value of your business. Corp comms and IR people - like those in the C-suite - have to have a long-term focus on overall shareholder value. We shouldn't be overreacting to short-term dips because they're usually not indicative of the fundamental worth of the enterprise. We shouldn't be overreacting to short-term bumps either, because in reality the business is no more successful than it was the day before, either. A number of times now, I've talked CEOs off the cliff who've wanted to reach out to all employees in the aftermath of a major stock price drop to somehow 'explain' it. We shouldn't be encouraging teams to look at the stock price every day, and if we talk about precipitous drops, we're doing exactly that. Now of course, if today marks the start of a long-term shift in the way semiconductor businesses are valued, then that's a different matter. But that's a concern for another time, not something that needs to be considered after a single bad day at the office. #investorrelations #corporatecommunications

Great writeup by Pat Gelsinger at Intel, explaining the moves the company announced today: https://lnkd.in/gGMPDhKW Intel is going through the most painful phase of its transformation now. Very happy they cut the dividend. For a company that has fallen as far behind as they have, the dividend is a waste of money. I might roll my options in the coming days to take advantage of the bloodbath in the stock. Again I'm holding options 1 or 2 years out, so this is a buying opportunity for me. As bad as today's bloodbath is, the situation can still get worse from here before it gets better. Much worse. But, regarding my thesis, there is no fundamental change. Intel is still the only advanced chip manufacturer not based in a geopolitically volatile region. Because of AI, chip manufacturing is arguably the most important industry in the world today, and the U.S. government knows it. The three semiconductor manufacturing leaders are: TSMC, Samsung, and Intel. (https://lnkd.in/gcs3Aibn) But, TSMC is threatened by Russia's ally China. And, to a lesser extent, Samsung is threatened by Russian ally North Korea. As you no doubt remember, the supply chain issues during the pandemic, resulting chip shortages, and invasion of Ukraine caused the Western world to wake up to their geographic and geopolitical vulnerability in chip manufacturing. Then AI exploded. In this climate, Intel's fortunes can change favorably in an instant. (But, to allow time to do it's work, my options positions go out years.) Disclaimer: This content is provided for informational purposes only and does not constitute investment advice. I do not warrant the accuracy, completeness, fitness, or timeliness of the information shared in this post. Under no circumstances should this post be treated as financial advice. I am not a registered financial adviser! Remember, you must do your own research before making any financial decisions. #aitrade #investing #trading #Nvidia #stockmarket #stocks

Procrastination is the art of keeping up with yesterday. Is ASML Set to Follow the Path of Nvidia and Broadcom? 🚀 🔍 #hsa #investing #healthcare #health #family #wellness ASML, a prominent semiconductor company, might be on the verge of announcing a stock split, thereby potentially democratizing access to its shares for retail investors, just like Nvidia and Broadcom. With its robust growth prospects and a relatively high share price, this move could position ASML as the next big player in the semiconductor industry to undergo a stock split. 📈 Don't Miss Out on an Exciting Investment Opportunity! Take Action Today! 📊 A stock split can be a game-changer for investors, especially those who have Health Savings Accounts (HSA) seeking to diversify their portfolios within the healthcare sector. ASML's potential stock split could make its shares more affordable, opening doors for more retail investors to participate in its success. Investing in companies like ASML not only aligns with our financial goals but also supports the vital healthcare industry. By investing in healthcare, we contribute to the well-being of ourselves, our families, and the broader community. 💪💰🏥 So, why wait? Act now to avoid the Fear of Missing Out (FOMO) and embrace the potential growth that ASML may offer through its stock split. Stay ahead of the curve and take advantage of this exciting investment opportunity to enhance your HSA portfolio. #TakeActionNow #DontMissOut #InvestInHealth #HSAInvesting #ASML #SemiconductorStocks

The Arrow Capital Global Quality strategy outperformed its benchmark, the MSCI World Index, by 0.48% this month. In the first two weeks of May, the strategy rose by +5.72%, and YTD performance is up by +9.88%. Performance was primarily driven by the IT companies held in the portfolio, followed by Communication services. AI was the driving force for the market this year with Nvidia’s stock rising 86.74% YTD. However, there are numerous ways to tap into the AI boom beyond Nvidia, including our portfolio holdings ASML, Taiwan Semiconductor (TSMC) and AMD, which are more attractively priced AI beneficiaries. The Strategy own top YTD performers such as TSMC +46%, Meta +33%, Tencent+36%, and Novo Nordisk +28%. Each could be categorized as winning for different reasons. Arrow Capital #qualityinvestment #Equities #HNI #stocks #UHNI #investments

In reporting today's steep decline of tech shares, the WSJ states that these "moves show the big stock-market rotation that has gripped investors for much of the past week is still cresting through markets." While this is correct, I believe geopolitical risk also plays a key role in this market reaction. Bloomberg has reported that the Biden Administration is considering newer, more severe trade restrictions regarding semiconductors, including on Dutch lithography equipment manufacturer ASML, which sent its shares down 6%, dragging along other semiconductor stocks on the news. This is another example of a central topic I discuss in my private and public seminars on "Thinking strategically about geopolitics": business executives and boards need to think differently about geopolitical risk in today's world. Why? Because the key source of geopolitical risk has shifted from the effects of military conflicts to the financial spillovers from governments' interventions to mitigate the national security risks resulting from the interdependence, fragmentation, and weaponization of global economic and technological networks.

IS NVIDIA REALLY WORTH MORE THAN THE COMBINED VALUE OF THE 40 LARGEST LISTED COMPANIES IN GERMANY? As we’ve commented in numerous previous posts, we’ve learned through our career in money management to pay attention to extremes of market behaviour, both bearish and bullish, for they often precede important trend changes. I have found this axiom applies to all markets in all asset classes. We have not been short of extreme market behaviours in recent years. The accompanying chart illustrates one example worth noting. US chip maker Nvidia currently has a greater market cap than the combined values of the top 40 companies in Germany! Nvidia is a wonderful business, but is it possessing a greater value than the 40 largest listed companies in Germany sustainable? We think not. The price of Nvidia is currently being driven by investor enthusiasm for its association with artificial intelligence. Though the Dax Index has been rallying of late, its P/E multiple is well below that of the S&P 500. This market extreme can resolve itself in several ways. Investor enthusiasm cools, Nvidia becomes more conservatively priced, and the price falls. Or German equities get repriced upward. Finally, we could see a combination of a declining Nvidia share price and rising German equities. As someone who managed money through the Internet Bubble at the turn of the century, the current rise of Nvidia is reminiscent of the leading stocks of that era. Like the Internet Bubble, the current enthusiasm for AI could persist for longer than most expect. Good profits can be made by owning these shares. However, investors should be conscious of the type of market environment they are operating in and be watchful for signs of a change in trend. I discuss the process that the market must undertake to determine when the current bull move has run its course in the recently published March issue of the Global Investment Letter. Each month in our paid service, the Global Investment Letter, I update my investing activities, as well as comment on major global equity, fixed income, currency, and commodity markets. If you found this post of interest, you’ll find the Global Investment Letter of value. To view free sample issues of our paid service and to receive our free (exclusive to those that sign-up) weekly investment comment please visit: https://lnkd.in/e3BaS3P #investing #markets #economy #nvidia #tech

How to make Money from Instagram with ONE simple template https://lnkd.in/g-4MHrsr

IS NVIDIA REALLY WORTH MORE THAN THE COMBINED VALUE OF THE 40 LARGEST LISTED COMPANIES IN GERMANY? As we’ve commented in numerous previous posts, we’ve learned through our career in money management to pay attention to extremes of market behaviour, both bearish and bullish, for they often precede important trend changes. I have found this axiom applies to all markets in all asset classes. We have not been short of extreme market behaviours in recent years. The accompanying chart illustrates one example worth noting. US chip maker Nvidia currently has a greater market cap than the combined values of the top 40 companies in Germany! Nvidia is a wonderful business, but is it possessing a greater value than the 40 largest listed companies in Germany sustainable? We think not. The price of Nvidia is currently being driven by investor enthusiasm for its association with artificial intelligence. Though the Dax Index has been rallying of late, its P/E multiple is well below that of the S&P 500. This market extreme can resolve itself in several ways. Investor enthusiasm cools, Nvidia becomes more conservatively priced, and the price falls. Or German equities get repriced upward. Finally, we could see a combination of a declining Nvidia share price and rising German equities. As someone who managed money through the Internet Bubble at the turn of the century, the current rise of Nvidia is reminiscent of the leading stocks of that era. Like the Internet Bubble, the current enthusiasm for AI could persist for longer than most expect. Good profits can be made by owning these shares. However, investors should be conscious of the type of market environment they are operating in and be watchful for signs of a change in trend. I discuss the process that the market must undertake to determine when the current bull move has run its course in the recently published March issue of the Global Investment Letter. Each month in our paid service, the Global Investment Letter, I update my investing activities, as well as comment on major global equity, fixed income, currency, and commodity markets. If you found this post of interest, you’ll find the Global Investment Letter of value. To view free sample issues of our paid service and to receive our free (exclusive to those that sign-up) weekly investment comment please visit: https://lnkd.in/e3BaS3P #investing #markets #money #tech #technology #economy

Apollo Global Management has offered to make a multibillion-dollar investment in Intel, in a move that would be a vote of confidence in the chipmaker’s turnaround strategy. bit.ly/3Bgf1ct The alternative asset manager has indicated in recent days it would be willing to make an equity-like investment of as much as $5 billion in Intel. Intel executives have been weighing Apollo’s proposal. Nothing has been finalized, the size of the potential investment could change and discussions could fall through, resulting in no deal. The development comes as California-based Qualcomm floats a friendly takeover of Intel, raising the prospect of one of the biggest-ever M&A deals. Read more: bit.ly/3Bgf1ct