Is it time to sell your Nvidia's stock? The introduction of AI has resulted in huge rally in most semiconductor-related stocks. Notably, $NVIDIA Corp(NVDA)$   was one of the biggest winners gaining ~230+% in a year due to the significant improvement in its quarterly revenue. However, the AI competition is getting more intense and do they still deserve a premium to their current valuation?? For instance, OpenAI is exploring making its own AI chips and also considering options to diversify its suppliers beyond Nvidia. Furthermore, their close competitors such as $Advanced Micro Devices(AMD)$  and Intel are developing their

Will China stocks rebound?? China govt is implementing various strategies to stabilize markets and boost confidence. It called for better regulations, more transparency and an attempt to improve the quality of listed companies. Most people would argue that the China stocks are deeply undervalued and it presents a golden opportunity to accumulate more. However, the recent crackdown of the gaming sector resulted in heavy selling of Tencent's and Netease's shares and showed that China itself still poses a huge policy risk! Furthermore, the post-covid recovery of China's economy has so far fallen short of expectations, plagued by real estate crisis, debt risks and high youth unemployment. China's economic recovery has been uneven this year, with a brisk start in the first quarter fading q

Buying EV stocks is like having a roller-coaster ride! Most of the EV companies remain unprofitable and yet they are still burning more cash to build up on their infrastructure and expansion. A recent example is NIO trying yo raise US$3 billion from its investors. Furthermore, the ongoing price war is likely to hurt their profit margin even further and they are likely to remain unprofitable in the near future. Like most new industries, eventually only a few companies would emerge victorious! A few EV companies (Lordstown Motors, Proterra) have declared bankruptcy recently and I'm sure there's more to come. Unlike Tesla, most EV companies clearly have issues scaling up their production significantly. The competition in the EV market has intensified as numerous traditional car markers (Merc

Can you make your own AI chips?? Since the introduction of ChatGPT last November, the semiconductor industry has witnessed a huge rally due to AI hype! Notably, $NVIDIA Corp(NVDA)$ was the biggest winner gaining ~220% YTD due to the significant improvement in its quarterly revenue. However, most semiconductor companies are not reporting a significant increase in the revenue. There's reports citing that OpenAI, an AI leader backed by Microsoft (MSFT) whose launch of the ChatGPT chatbot kicked off an AI investing frenzy, is exploring making its own AI chips. Amid a shortage of chips to fuel AI growth, OpenAI is also considering options to diversify its suppliers beyond Nvidia.  While NVIDI

Could this be a multi-bagger stock in a few years?? Most of these EV companies are still unprofitable, it's likely to hurt their profit margin even further with the increasing price wars, and they are likely to remain unprofitable in the near future. Unlike $Tesla Motors(TSLA)$ and BYD, most EV companies clearly have issues scaling up their production significantly. The competition in the EV market has intensified as numerous traditional car markers (Mercedes-Benz, BMW etc) are also investing and building more EV units. The key question is what is a fair valuation for these EV companies? How fast can it grow over the next few years? Like any new industry, eventually there will only be few survivors. The EV industry is a cash-burning business,

Have we reached the bottom for AI-related semiconductor stocks? Using TSMC monthly revenue as a reference, we can see most of the monthly revenue are down yoy. Furthermore, the profit margin based on net income/gross income is also on a downtrend (from Q2 2022: 46.5%, Q1 2023: 40.0%, Q2 2023: 37.8%). Remember to look out for Q3 results on 19 Oct 2023!  The escalating tensions between US and China is likely to affect the semiconductor industries and export bans may lead to further downside for most semiconductor companies. When everyone seem to be in a strong buying mood! Remember to be fearful when others are greedy and be greedy when others are fearful!! The AI bubble is slowly forming and I believe most semiconductor stocks are not at a fair value.  No doubt the stock will con

Impending short squeeze?! First of all, what is a short squeeze?? It is a situation in which the price of a stock rises to such an extent that investors who have sold short purchase the stock in order to limit their losses, causing the price to rise further. The share price of $Faraday Future Intelligent Electric Inc.(FFIE)$   has dropped around 90+% YTD since the beginning of year 2024. Its market cap is currently at ~$4million and has a high short interest of ~86% (36.3 mil out of 42 mil shares,were shorted as of 15 Feb 2024). https://www.nasdaq.com/market-activity/stocks/ffie/short-interest Although it only sold 10 cars to date, the company is selling highly niche ultra-luxury cars. One FF 91 2.0 Futuris

$Blackstone Group LP(BX)$   Largest alternative asset management with more than 1 trillion AUM! I love businesses that can generate increasing revenues!! It focuses on alternative investment and currently had US$1.04 trillion AUM. Based on their last earning report, they have 4 core pillars; real estate (US$336.9 billion, up 3.3% yoy), private equity (US$304 billion, up 5.2% yoy), credit and insurance (US$318.9 billion, up 13.9% yoy), hedge fund solutions (US$80.3 billion, up 0.75% yoy). ▪Total AUM increased to $1,040 billion, up 7% year-over-year, with $52.7 billion of inflows in the quarter and $148.5 billion for the year ▪Fee-Earning AUM of $762.6 billion was up 6% year-over-year, with $44.6 billion of inflows in the quarter and $119.4 billi

Price wars among EV conpanies!! Like most new industries, eventually only a few companies would emerge victorious! A few EV companies (Lordstown Motors, Proterra) have declared bankruptcy recently and I'm sure there's more to come. Most of these EV companies are still unprofitable, it's likely to hurt their profit margin even further with the increasing price wars, and they are likely to remain unprofitable in the near future.  Unlike $Tesla Motors(TSLA)$ , most EV companies clearly have issues scaling up their production significantly. The competition in the EV market has intensified as numerous traditional car markers (Mercedes-Benz, BMW etc) are also investing and building more EV units.  Using

Jackson Hole 2023!!  All eyes will be on Powell's speech, US July CPI has only increased by 3.2% which is getting close to the 2% target set by the Fed. However, the Fed may not be pausing its interest rate hike soon and it's likely to cause the market to drop further. The market is always unpredictable; it may start to fall when everyone is optimistic. Just like what happened after Nvidia's Q2 earnings. It was a huge jump in revenue but the market is selling down now. It's market manipulation at its best!! On the other hand, it may start to rise when everyone is pessimistic! Hence, It's good to always invest regularly as no one can accurately predict the market. Even during a bull run, you should only invest in good stocks with fair valuation and don't have the "fear of missing out"