The energy industry has undergone several major changes in the XXI that are becoming increasingly apparent…
Will the stocks of semiconductor producers rebound soon?
2021-06-17 • Updated
The amount of problems caused by the coronavirus pandemic is huge. One of them is the global shortage of computer chips that started a year ago. At first, it looked like a temporary delay in supplies after factories faced first lockdowns. As the economies reopened, a boom in demand for new electronic devices, games consoles, and TVs was growing so fast it could not meet the supply. As a result, such big names as Apple, Sony, and Samsung had to raise prices for their products. Samsung even delayed the launch of its new Galaxy Note smartphone because of disruption in supplies.
The global chip shortage added pressure to the stocks of the semiconductor producers. However, after the storm comes sunny weather, according to the CFRA Research. The company sees this delay as a temporary one and expects good results from several companies operating in this sector. The main reason behind this possible stabilization lies in the development of artificial intelligence (AI).
The AI development and integration will create the strongest trend that ever existed in the semiconductor industry. CFRA Research forecasts the number of semiconductors per unit to show a 13% yearly increase in the next five years. Given these facts, which companies should you start to track before it’s too late?
Trade stocks of AMD and NVIDIA in FBS Trader!
AMD
Potential growth – 23%
Price target: $100
The company wants to increase its share in the semiconductor sector. It looks like a reasonable investment due to an increased demand for graphic processors in the gaming and AI industries. Another bullish factor for this stock is the recent buying of Xilinx that gives access to FPGA (field-programmable gate array).
Short-term technical picture
On the daily chart, the stock surged to $83.3 (200-day MA) on Thursday. The breakout of this level will increase possibility of reaching $86 and $87.80. If bears pull this stock below the $79.70 level, the slide towards $78 will be expected.
NVIDIA
Potential growth – 8%
Price target: $768
There are several reasons for the NVIDIA stock to go higher. First of all, this is the best investment idea, according to the Bank of America. Secondly, the company expanded its chain of data centers amid AI systems’ development and increased data volumes.
Short-term technical picture
NVIDIA was enjoying fresh highs on Thursday. The stock has almost reached $750. The next potential resistance is located at $760. If the stock goes down, it will face the support of $690.
Don't know how to trade stocks? Here are some simple steps.
- First of all, be sure you’ve downloaded FBS Trader app or Metatrader 5. FBS allows you to trade stocks only through this software.
- Open an account in FBS Trader or the MT5 account in your personal area.
- Start trading!
Similar
More and more analysts are sure Brent oil will surpass $100 a barrel. So how heavily will oil move the markets, and what will the direction of the movement be? Let's find out!
Why? Despite the fact that analysts and experts have been predicting the US stock market crash during pash year S&P500 doubled since March 2020 crush and NASDAQ is also gaining permanently…
Latest news
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...