From Nasdaq: 2025-02-24 07:58:00

Investors can follow the “Smart money” into the technology sector, especially in artificial intelligence stocks, as hedge funds show the fastest pace of buying since 2021. Stocks like NVIDIA, AMD, and TSM could benefit from this trend by supplying the needed components for AI development.

NVIDIA’s upcoming earnings report on February 26, 2025, is generating high expectations, with a forecast of up to $3.28 in EPS for the second quarter, a significant increase from the previous quarter. UBS Asset Management’s increased holdings in NVIDIA by 11.4% add to the bullish sentiment surrounding the stock.

For investors looking for a discounted option, Advanced Micro Devices presents a compelling opportunity. Trading at 50% of its 52-week high, AMD is well-positioned to catch up, especially in the AI chip race. Analysts forecast a double-digit upside potential, with Benchmark maintaining a buy rating and a $170 per share valuation.

Taiwan Semiconductor plays a crucial role in supplying components to NVIDIA and other tech companies, ensuring their manufacturing needs are met. With monthly revenue growth of 5.4% in January and 35.9% over the past 12 months, analysts also predict up to 18% EPS growth ahead. Keeping an eye on TSM could offer investors insight into the company’s stability and potential upside. 1. The stock market experienced a sharp decline today, with the S&P 500 dropping by 2.6% and the Dow Jones Industrial Average falling by 700 points. Investors are concerned about rising inflation and the potential for the Federal Reserve to raise interest rates sooner than expected.

2. In international news, tensions are escalating in the Middle East as Israel launches airstrikes on Gaza in response to incendiary balloons being launched from the Palestinian territory. The violence comes amidst ongoing clashes between Israeli police and Palestinian protesters in Jerusalem.

3. The CDC has updated its guidelines for mask-wearing, stating that fully vaccinated individuals no longer need to wear masks in most indoor and outdoor settings. This comes as a relief to many Americans who have been eagerly awaiting a return to normalcy after more than a year of pandemic restrictions.



Read more at Nasdaq:: Hedge Funds Loaded Up AI Stocks at the Fastest Pace Since 2021