In a world where Wall Street’s focus shifts from inflation data to Q1 earnings, some tech giants have captured the spotlight. While names like Apple, Microsoft, and Nvidia are already known superstars, other players like Netflix (NFLX), Taiwan Semiconductor (TSM), and Cadence Design Systems (CDNS) are vying for attention as they prepare to unveil their earnings reports.
The Dance of Bulls and Bears
After a ‘hot’ March inflation report, the S&P 500 and the Nasdaq showed signs of weakness, dipping below their 21-day moving averages. Pessimism loomed large, hinting at a larger market correction. However, the bulls came charging back, as tech giants like Apple and Nvidia saw their stocks surge, with Amazon and Alphabet touching new all-time highs. This bullish stance defies the bearish narrative, suggesting the bulls still have firm control.
Unraveling Taiwan Semiconductor’s Power
Taiwan Semiconductor has etched its place as a crucial player in the tech realm by specializing in chip manufacturing. Positioned at the forefront of technology, TSMC is poised for enduring growth, laying the foundation for various tech advancements, from AI to data centers. With clients like Apple and Nvidia, Taiwan Semi stands strong as a leader in advanced global chip manufacturing.
Reveling in an 18% revenue growth between FY18 and FY22, Taiwan Semiconductor exceeded Q4 FY23 EPS expectations and delivered optimistic guidance. The company is projected to witness a 23% sales increase in FY24, followed by a 20% growth in FY25. This solid growth trajectory is complemented by a sturdy balance sheet and a dividend payout.
Netflix’s Resurgence in the Streaming Realm
Netflix has rekindled investor interest by addressing key concerns, offering lower-price ad-supported plans and cracking down on account sharing abuses. The company, a transformative force in the entertainment industry, continues to lead amidst fierce competition from Disney, Apple, and Amazon in the streaming arena. With a robust Q4 performance and impressive subscriber gains, Netflix is poised for solid sales growth in the upcoming years.
Having surged over 1,200% in the past decade, Netflix remains a standout performer. Although the stock is trading below its peak, it presents an attractive valuation compared to its historical highs, with a significant upside potential.
Cadence Design Systems: Pioneering Chip Design
Cadence Design Systems plays a critical role in chip design with its modeling and computational software. Enabling companies like Nvidia to simulate semiconductors before production, Cadence’s solutions cater to the increasing complexity of chips required for AI and hyperscale computing.
