Market Update
On Wednesday, Wall Street lifted the stock market after Federal Reserve Chair Jay Powell reaffirmed the possibility of two interest rate cuts in the latter half of 2025. However, on Thursday, investor enthusiasm diminished as concerns over tariff disputes and geopolitical uncertainties kept many on the sidelines.
Market Resistance Levels
For the bulls to regain traction, they must push past the 200-day and 50-week moving averages soon; failing to do so could jeopardize the current market momentum.
Positive Market Foundations
Fortunately, the key elements of the stock market—interest rates and expectations for earnings growth—remain positive. Notably, Nvidia’s recent conference underscored that the surge in artificial intelligence (AI) spending is on track.
Investment Strategies
Investors who can manage short-term fluctuations may find it worthwhile to consider purchasing undervalued stocks that could be viewed as bargains within the next few months or years.
Long-Term Investment Rewards
Identifying a market bottom in real time is challenging. However, the stock market tends to reward investors who are patient and buy during downturns. The S&P 500 has risen more than 75% since early 2020, while the Nasdaq has jumped 96%, despite experiencing the COVID bear market and the prolonged decline in 2022.
Featured Tech Investments
Today’s Full Court Finance at Zacks highlights two promising tech stocks—Celestica Inc. and Taiwan Semiconductor Manufacturing Co.—that offer strong value and potential for long-term growth in the AI sector.
Celestica Inc. Overview
Celestica Inc. (CLS) is a global leader in electronics manufacturing services, focusing on designing and producing products for crucial growth sectors like AI data centers and semiconductor equipment. Recently, Celestica achieved significant wins, including a substantial switching program with a hyperscaler client, enhancing its capability in AI-focused networking solutions.
Celestica’s long-term trajectory is supported by opportunities across various industries, including aerospace, telecom, and healthcare technology. The company has experienced a remarkable revenue growth rate averaging 20% from FY22 to FY24 and is expected to continue expanding with positive guidance for upcoming fiscal years.
Taiwan Semiconductor Manufacturing Co. Insights
Taiwan Semiconductor Manufacturing Co. (TSM) is at the forefront of producing cutting-edge chips that drive AI and other technological advancements. As companies like Nvidia and Apple depend on TSM for their advanced chips, the firm enjoys a dominant market position, holding approximately 60% of the global foundry market share.
TSMC is set to experience substantial revenue growth of 26% in FY25 and 19% in FY26, with a significant increase in EPS as well. Despite a remarkable appreciation of 620% over the past decade, the company’s stock currently trades at a discount, presenting a possible opportunity for investors.
