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2023-09-27
[Miser]
Got $2,000? Here Are 2 Beaten-Down Growth Stocks to Buy Right Now
Arjunndruru
2023-09-27
Waowđ„°
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Here Are 2 Beaten-Down Growth Stocks to Buy Right Now","url":"https://stock-news.laohu8.com/highlight/detail?id=2370220409","media":"Motley Fool","summary":"Both high-quality companies have sold off on China-related fears. But that opens up a long-term opportunity.","content":"<html><head></head><body><p>The past two months have not been kind to the stock market, especially technology stocks.</p><p>Still, that may have opened up opportunities in otherwise high-quality companies with both promising competitive positions and growth runways. That's why the following two beaten-down growth stocks look like juicy opportunities after the market's summer pullback.</p><h2 id=\"id_2974146235\"><a href=\"https://laohu8.com/S/ASML\">ASML Holdings</a></h2><p>ASML Holdings (ASML) has had a rough couple of months. Since reaching its mid-July pre-earnings high of almost $772 per share, shares have now retreated nearly 25% to $587 as of this writing. After booming on AI-related enthusiasm, the world's dominant lithography provider is now barely positive on the year.</p><p>ASML's pullback has been due to a combination of factors. First, long-term interest rates have gone up, which tends to decrease the net present value of far-off future earnings, thus affecting growths tocks. While ASML has a monopoly on crucial extreme ultraviolet (EUV) technology, it did trade at somewhat of a high multiple earlier this year.</p><p>However, ASML's P/E ratio is now under 30, at the lower end of its range since it first began selling EUV machines back in 2016.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8addebdd640c3aa44b7b1ccfe1bad239\" alt=\"ASML PE Ratio data by YCharts\" title=\"ASML PE Ratio data by YCharts\" tg-width=\"720\" tg-height=\"433\"/><span>ASML PE Ratio data by YCharts</span></p><p>Besides the rise in rates, most semiconductor manufacturing equipment stocks sold off hard after China's Huawei released its Mate 60 phone this month. That phone was shown to have a 7nm processor -- the kind that China was <em>not</em> supposed to be able to make.</p><p>ASML was already prohibited from selling EUV machines to China, so it's likely that China chipmakers were able to make a 7nm chip with less efficient double patterning using higher-end deep ultraviolet (DUV) machines. So there may be fears that ASML will be further prohibited from selling even more machines to China, which accounted for 20% of its backlog last quarter.</p><p>However, further restrictions on high-end DUV machines were already known to investors. On the Q2 conference call with analysts, management noted that in light of new Dutch export rules that came out Sept. 1 but were already known to the company, ASML would have to apply for export licenses for its most advanced DUV machines. Still, management didn't expect the restriction to have a material impact on 2023 or the company's longer-term financial outlook it disclosed last November. Management also noted that a lot of China sales come from midrange to mature nodes that shouldn't be affected by the latest restrictions.</p><p>If ASML's long-term targets remain unchanged, this looks like a good entry point for the stock. ASML has no competition for EUV, which will be necessary to produce leading-edge logic and DRAM memory chips, both of which will be necessary to build artificial intelligence systems.</p><h2 id=\"id_4033462856\"><a href=\"https://laohu8.com/S/SE\">Sea Limited</a></h2><p>Southeast Asian superapp Sea Limited has seen a much worse year, down 24% for 2023 thus far.</p><p>The company sold off hard after reporting earnings, in which profits beat expectations but revenue fell a little short. Of note, Sea Limited has impressively pivoted over the past 18 months to a profit-making company, rather than its prior loss-making growth-at-all-costs strategy.</p><p>Investors didn't like the fact that management said it would be repivoting back to growth mode, albeit in a "sustainable" way that will no longer burn lots of cash.</p><p>But last quarter's revenue "miss" was a bit misleading, as Sea Limited began to offer shipping subsidies again with an aim to reignite growth in its Shopee e-commerce division. Given that Sea's logistics arm earns low-margin revenue, the discounts offered to customers amounted to a reduction in shipping revenue, not an increase in costs.</p><p>So that made it seem as if demand was falling short of expectations, but it was really a shipping subsidy. Shipping revenue increased only 11% last quarter. But the core marketplace, which includes more profitable take rate and advertising revenue, grew a much healthier 38%.</p><p>Investors appear to be extrapolating a much tougher competitive environment in light of TikTok Shop's recent entrance into the market, which has been taking market share recently. However, TikTok has been aggressively subsidizing sales to gain market share. And despite TikTok's inroads, Shopee still dominates Southeast Asian e-commerce with roughly 48% market share in 2022, according to Momentum Works. That's far ahead of second-place Lazada, backed by Alibaba at 20% and TikTok Shop at 4.4% at the end of last year.</p><p>Moreover, Sea has been in profit-harvesting mode. But given that Sea started as a mobile-first and social-first e-commerce site with its own video game wing, it should be able to fight back effectively in live-streaming video e-commerce. That's especially true as it's currently the only e-commerce platform in the region to have become profitable at scale. On the August earnings call, Sea's management already noted that its recent live streaming events for the 7.7 and 8.8 campaigns this quarter received a huge amount of traffic compared with a normal day.</p><p>In addition, just yesterday, the Indonesian government announced it may release regulations to more clearly separate e-commerce and social media, citing predatory pricing by new social media commerce sites. That probably means TikTok, given its recent increase in market share. Given that Indonesia has the largest Southeast Asian economy, that could put a stop to the TikTok threat. As a result, Sea surged yesterday, but shares are still well below their prior levels.  </p><p>With proven profitability across all three of its e-commerce, fintech, and gaming businesses giving it resources to compete, along with a strong outlook for Southeast Asian economies, Sea should be able to see profitable growth over the long-term. That's why long-term investors should take advantage of the recent panic and scoop up shares at their current discount.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Got $2,000? Here Are 2 Beaten-Down Growth Stocks to Buy Right Now</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGot $2,000? Here Are 2 Beaten-Down Growth Stocks to Buy Right Now\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-09-27 11:41 GMT+8 <a href=https://www.fool.com/investing/2023/09/26/got-2000-here-are-2-beaten-down-growth-stocks-to-b/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The past two months have not been kind to the stock market, especially technology stocks.Still, that may have opened up opportunities in otherwise high-quality companies with both promising ...</p>\n\n<a href=\"https://www.fool.com/investing/2023/09/26/got-2000-here-are-2-beaten-down-growth-stocks-to-b/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.fool.com/investing/2023/09/26/got-2000-here-are-2-beaten-down-growth-stocks-to-b/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2370220409","content_text":"The past two months have not been kind to the stock market, especially technology stocks.Still, that may have opened up opportunities in otherwise high-quality companies with both promising competitive positions and growth runways. That's why the following two beaten-down growth stocks look like juicy opportunities after the market's summer pullback.ASML HoldingsASML Holdings (ASML) has had a rough couple of months. Since reaching its mid-July pre-earnings high of almost $772 per share, shares have now retreated nearly 25% to $587 as of this writing. After booming on AI-related enthusiasm, the world's dominant lithography provider is now barely positive on the year.ASML's pullback has been due to a combination of factors. First, long-term interest rates have gone up, which tends to decrease the net present value of far-off future earnings, thus affecting growths tocks. While ASML has a monopoly on crucial extreme ultraviolet (EUV) technology, it did trade at somewhat of a high multiple earlier this year.However, ASML's P/E ratio is now under 30, at the lower end of its range since it first began selling EUV machines back in 2016.ASML PE Ratio data by YChartsBesides the rise in rates, most semiconductor manufacturing equipment stocks sold off hard after China's Huawei released its Mate 60 phone this month. That phone was shown to have a 7nm processor -- the kind that China was not supposed to be able to make.ASML was already prohibited from selling EUV machines to China, so it's likely that China chipmakers were able to make a 7nm chip with less efficient double patterning using higher-end deep ultraviolet (DUV) machines. So there may be fears that ASML will be further prohibited from selling even more machines to China, which accounted for 20% of its backlog last quarter.However, further restrictions on high-end DUV machines were already known to investors. On the Q2 conference call with analysts, management noted that in light of new Dutch export rules that came out Sept. 1 but were already known to the company, ASML would have to apply for export licenses for its most advanced DUV machines. Still, management didn't expect the restriction to have a material impact on 2023 or the company's longer-term financial outlook it disclosed last November. Management also noted that a lot of China sales come from midrange to mature nodes that shouldn't be affected by the latest restrictions.If ASML's long-term targets remain unchanged, this looks like a good entry point for the stock. ASML has no competition for EUV, which will be necessary to produce leading-edge logic and DRAM memory chips, both of which will be necessary to build artificial intelligence systems.Sea LimitedSoutheast Asian superapp Sea Limited has seen a much worse year, down 24% for 2023 thus far.The company sold off hard after reporting earnings, in which profits beat expectations but revenue fell a little short. Of note, Sea Limited has impressively pivoted over the past 18 months to a profit-making company, rather than its prior loss-making growth-at-all-costs strategy.Investors didn't like the fact that management said it would be repivoting back to growth mode, albeit in a \"sustainable\" way that will no longer burn lots of cash.But last quarter's revenue \"miss\" was a bit misleading, as Sea Limited began to offer shipping subsidies again with an aim to reignite growth in its Shopee e-commerce division. Given that Sea's logistics arm earns low-margin revenue, the discounts offered to customers amounted to a reduction in shipping revenue, not an increase in costs.So that made it seem as if demand was falling short of expectations, but it was really a shipping subsidy. Shipping revenue increased only 11% last quarter. But the core marketplace, which includes more profitable take rate and advertising revenue, grew a much healthier 38%.Investors appear to be extrapolating a much tougher competitive environment in light of TikTok Shop's recent entrance into the market, which has been taking market share recently. However, TikTok has been aggressively subsidizing sales to gain market share. And despite TikTok's inroads, Shopee still dominates Southeast Asian e-commerce with roughly 48% market share in 2022, according to Momentum Works. That's far ahead of second-place Lazada, backed by Alibaba at 20% and TikTok Shop at 4.4% at the end of last year.Moreover, Sea has been in profit-harvesting mode. But given that Sea started as a mobile-first and social-first e-commerce site with its own video game wing, it should be able to fight back effectively in live-streaming video e-commerce. That's especially true as it's currently the only e-commerce platform in the region to have become profitable at scale. On the August earnings call, Sea's management already noted that its recent live streaming events for the 7.7 and 8.8 campaigns this quarter received a huge amount of traffic compared with a normal day.In addition, just yesterday, the Indonesian government announced it may release regulations to more clearly separate e-commerce and social media, citing predatory pricing by new social media commerce sites. That probably means TikTok, given its recent increase in market share. Given that Indonesia has the largest Southeast Asian economy, that could put a stop to the TikTok threat. As a result, Sea surged yesterday, but shares are still well below their prior levels.  With proven profitability across all three of its e-commerce, fintech, and gaming businesses giving it resources to compete, along with a strong outlook for Southeast Asian economies, Sea should be able to see profitable growth over the long-term. That's why long-term investors should take advantage of the recent panic and scoop up shares at their current discount.","news_type":1},"isVote":1,"tweetType":1,"viewCount":120,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":224411099955240,"gmtCreate":1695796782305,"gmtModify":1695797375979,"author":{"id":"4158877540444842","authorId":"4158877540444842","name":"Arjunndruru","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4158877540444842","authorIdStr":"4158877540444842"},"themes":[],"htmlText":"Waowđ„°","listText":"Waowđ„°","text":"Waowđ„°","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/224411099955240","repostId":"2370717208","repostType":4,"isVote":1,"tweetType":1,"viewCount":243,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":224410609963072,"gmtCreate":1695796825089,"gmtModify":1695797378592,"author":{"id":"4158877540444842","authorId":"4158877540444842","name":"Arjunndruru","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4158877540444842","authorIdStr":"4158877540444842"},"themes":[],"htmlText":"[Miser] ","listText":"[Miser] ","text":"[Miser]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/224410609963072","repostId":"2370220409","repostType":4,"isVote":1,"tweetType":1,"viewCount":120,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":224411099955240,"gmtCreate":1695796782305,"gmtModify":1695797375979,"author":{"id":"4158877540444842","authorId":"4158877540444842","name":"Arjunndruru","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4158877540444842","authorIdStr":"4158877540444842"},"themes":[],"htmlText":"Waowđ„°","listText":"Waowđ„°","text":"Waowđ„°","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/224411099955240","repostId":"2370717208","repostType":4,"repost":{"id":"2370717208","kind":"highlight","pubTimestamp":1695793528,"share":"https://ttm.financial/m/news/2370717208?lang=&edition=fundamental","pubTime":"2023-09-27 13:45","market":"us","language":"en","title":"2 Top AI Stocks Ready for a Bull Run","url":"https://stock-news.laohu8.com/highlight/detail?id=2370717208","media":"Motley Fool","summary":"The share prices of these companies could get a big boost thanks to the booming demand for AI chips.","content":"<html><head></head><body><p>Semiconductor stocks have mostly been on fire on the market in 2023, which is evident from the impressive 33% surge in the <strong>PHLX Semiconductor Sector</strong> index so far this year. A key reason why the market is upbeat about this sector is enthusiasm over the potential of artificial intelligence (AI) to boost chip sales.</p><p>AI turned out to be an important growth driver for semiconductor companies as this technology requires powerful processors, more storage, and faster memory, among other things. <strong>Nvidia</strong>, for instance, is a big beneficiary of the booming AI-driven chip demand as the tech giant's recent results tell us. However, Nvidia isn't the only company that stands to gain from AI.</p><p>The likes of <a href=\"https://laohu8.com/S/MU\">Micron Technology</a> and <a href=\"https://laohu8.com/S/MRVL\">Marvell Technology</a> also provide critical building blocks for AI infrastructure, and the good part is that they can be bought at attractive valuations right now. Let's look at the reasons why AI could turn out to be a catalyst for these two chip stocks.</p><h2 id=\"id_3772423682\">1. <a href=\"https://laohu8.com/S/MU\">Micron Technology</a></h2><p>Micron Technology stock is up 37% so far in 2023, driven mainly by the belief that AI could give the weak memory market a shot in the arm. It is worth noting that Micron's revenue and earnings have declined steeply in recent quarters as memory demand has dried up on account of weak demand from computers and smartphones. The lack of demand has caused an oversupply and led to a sharp fall in the prices of memory chips.</p><p>All this explains why Micron's revenue in the recently concluded fiscal year 2023 is expected to drop in half from the prior-year period to $15.4 billion. The chipmaker is expected to report a loss of $4.55 per share as compared to a profit of $8.35 per share in the previous fiscal year. However, <strong>Deutsche Bank</strong> analyst Sidney Ho forecasts that the worst could be over for Micron.</p><p>Ho says that the inventory correction in the memory market is nearly over thanks to the production cuts instituted by the likes of Micron and other players in the industry. The analyst adds that AI servers are driving stronger memory demand.</p><p>Ho believes that the recent uptick in the prices of dynamic random access memory (DRAM) could gain further momentum over the next couple of quarters, allowing Micron to deliver stronger-than-expected revenue and earnings estimates for the first quarter of fiscal 2024. The analyst increased the price target for Micron to $85 from $65, which points toward a 23% jump from current levels.</p><p>Market research firm <strong>Gartner</strong> forecasts that the memory industry could rebound big time in 2024 with an estimated revenue jump of 70%. That would be a big turnaround as compared to this year's estimated decline of 35%. AI is likely to play a central role in this turnaround. According to Micron, "AI servers have six to eight times the DRAM content of a regular server and three times the NAND content."</p><p>With the AI server market's revenue expected to jump a whopping fivefold in the next four years -- increasing from $30 billion in 2023 to $150 billion in 2027 -- as per Foxconn, Micron is sitting on a secular-growth opportunity thanks to AI. So, it is not surprising to see analysts forecasting a significant jump in Micron's revenue from fiscal 2024.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5d5f1f8b02e5be6d0e49b0d9252e6618\" tg-width=\"720\" tg-height=\"387\"/></p><p>MU Revenue Estimates for Current Fiscal Year data by YCharts.</p><p>In all, Micron stock can step on the gas in the final quarter of the year and go on a sustainable bull run thanks to the long-term opportunity created by AI servers. That's why investors should consider buying this AI stock while it trades at 4 times sales, which makes it way cheaper than the likes of Nvidia, which sports a price-to-sales ratio of 32.</p><h2 id=\"id_1623020022\">2. <a href=\"https://laohu8.com/S/MRVL\">Marvell Technology</a></h2><p>Just like Micron, tepid memory demand has been weighing on Marvell Technology's results of late. The company's fiscal 2024 second-quarter revenue (for the three months ended July 29, 2023) was down 12% year over year to $1.34 billion. Its non-GAAP earnings fell at an alarming rate of 42% over the year-ago period to $0.33 per share last quarter.</p><p>Marvell management attributed its poor showing to weak storage demand from the data-center segment, which produced 34% of its total revenue and saw a year-over-year decline of 29%. But at the same time, Marvell pointed out that its AI-related revenue is now growing at a faster-than-expected pace.</p><p>CEO Matt Murphy said on the company's August earnings-conference call that "we now expect revenue from AI to exit this year at over a $200 million quarterly revenue run rate or $800 million annualized." For comparison, Marvell landed $200 million in AI-related revenue in the previous fiscal year, and management was anticipating the same to double in fiscal 2024 and fiscal 2025. However, management's comments on the earnings call indicate that it is on track to quadruple its AI revenue this year.</p><p>What's more, Marvell may reportedly land a big AI customer in the form of <strong>Alphabet</strong> for powering Google's AI servers. This, however, could be just the beginning of Marvell's AI-driven growth as its data-center interconnect chips, which will play an important role in connecting multiple servers in a data center, could witness healthy demand in the long run. According to a third-party estimate, the data-center interconnect market could generate $17.4 billion in annual revenue in 2028 as compared to $5 billion last year.</p><p>All this explains why Marvell's fortunes are expected to turn around in the next fiscal year.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a79eec1743b7abb1a5d0a8d0455839f8\" tg-width=\"720\" tg-height=\"387\"/></p><p>MRVL Revenue Estimates for Current Fiscal Year data by YCharts.</p><p>But don't be surprised to see the company clock a faster pace of growth given the growing influence of AI on its business. That could turn out to be a key growth driver for Marvell, which is why investors should consider taking advantage of the 20% decline in the company's stock price since the beginning of August as it could soon regain its mojo and start soaring.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>2 Top AI Stocks Ready for a Bull Run</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n2 Top AI Stocks Ready for a Bull Run\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-09-27 13:45 GMT+8 <a href=https://www.fool.com/investing/2023/09/26/2-top-ai-stocks-ready-for-a-bull-run/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Semiconductor stocks have mostly been on fire on the market in 2023, which is evident from the impressive 33% surge in the PHLX Semiconductor Sector index so far this year. A key reason why the market...</p>\n\n<a href=\"https://www.fool.com/investing/2023/09/26/2-top-ai-stocks-ready-for-a-bull-run/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"MU":"çŸć ç§æ","MRVL":"èżćšć°ç§æ"},"source_url":"https://www.fool.com/investing/2023/09/26/2-top-ai-stocks-ready-for-a-bull-run/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2370717208","content_text":"Semiconductor stocks have mostly been on fire on the market in 2023, which is evident from the impressive 33% surge in the PHLX Semiconductor Sector index so far this year. A key reason why the market is upbeat about this sector is enthusiasm over the potential of artificial intelligence (AI) to boost chip sales.AI turned out to be an important growth driver for semiconductor companies as this technology requires powerful processors, more storage, and faster memory, among other things. Nvidia, for instance, is a big beneficiary of the booming AI-driven chip demand as the tech giant's recent results tell us. However, Nvidia isn't the only company that stands to gain from AI.The likes of Micron Technology and Marvell Technology also provide critical building blocks for AI infrastructure, and the good part is that they can be bought at attractive valuations right now. Let's look at the reasons why AI could turn out to be a catalyst for these two chip stocks.1. Micron TechnologyMicron Technology stock is up 37% so far in 2023, driven mainly by the belief that AI could give the weak memory market a shot in the arm. It is worth noting that Micron's revenue and earnings have declined steeply in recent quarters as memory demand has dried up on account of weak demand from computers and smartphones. The lack of demand has caused an oversupply and led to a sharp fall in the prices of memory chips.All this explains why Micron's revenue in the recently concluded fiscal year 2023 is expected to drop in half from the prior-year period to $15.4 billion. The chipmaker is expected to report a loss of $4.55 per share as compared to a profit of $8.35 per share in the previous fiscal year. However, Deutsche Bank analyst Sidney Ho forecasts that the worst could be over for Micron.Ho says that the inventory correction in the memory market is nearly over thanks to the production cuts instituted by the likes of Micron and other players in the industry. The analyst adds that AI servers are driving stronger memory demand.Ho believes that the recent uptick in the prices of dynamic random access memory (DRAM) could gain further momentum over the next couple of quarters, allowing Micron to deliver stronger-than-expected revenue and earnings estimates for the first quarter of fiscal 2024. The analyst increased the price target for Micron to $85 from $65, which points toward a 23% jump from current levels.Market research firm Gartner forecasts that the memory industry could rebound big time in 2024 with an estimated revenue jump of 70%. That would be a big turnaround as compared to this year's estimated decline of 35%. AI is likely to play a central role in this turnaround. According to Micron, \"AI servers have six to eight times the DRAM content of a regular server and three times the NAND content.\"With the AI server market's revenue expected to jump a whopping fivefold in the next four years -- increasing from $30 billion in 2023 to $150 billion in 2027 -- as per Foxconn, Micron is sitting on a secular-growth opportunity thanks to AI. So, it is not surprising to see analysts forecasting a significant jump in Micron's revenue from fiscal 2024.MU Revenue Estimates for Current Fiscal Year data by YCharts.In all, Micron stock can step on the gas in the final quarter of the year and go on a sustainable bull run thanks to the long-term opportunity created by AI servers. That's why investors should consider buying this AI stock while it trades at 4 times sales, which makes it way cheaper than the likes of Nvidia, which sports a price-to-sales ratio of 32.2. Marvell TechnologyJust like Micron, tepid memory demand has been weighing on Marvell Technology's results of late. The company's fiscal 2024 second-quarter revenue (for the three months ended July 29, 2023) was down 12% year over year to $1.34 billion. Its non-GAAP earnings fell at an alarming rate of 42% over the year-ago period to $0.33 per share last quarter.Marvell management attributed its poor showing to weak storage demand from the data-center segment, which produced 34% of its total revenue and saw a year-over-year decline of 29%. But at the same time, Marvell pointed out that its AI-related revenue is now growing at a faster-than-expected pace.CEO Matt Murphy said on the company's August earnings-conference call that \"we now expect revenue from AI to exit this year at over a $200 million quarterly revenue run rate or $800 million annualized.\" For comparison, Marvell landed $200 million in AI-related revenue in the previous fiscal year, and management was anticipating the same to double in fiscal 2024 and fiscal 2025. However, management's comments on the earnings call indicate that it is on track to quadruple its AI revenue this year.What's more, Marvell may reportedly land a big AI customer in the form of Alphabet for powering Google's AI servers. This, however, could be just the beginning of Marvell's AI-driven growth as its data-center interconnect chips, which will play an important role in connecting multiple servers in a data center, could witness healthy demand in the long run. According to a third-party estimate, the data-center interconnect market could generate $17.4 billion in annual revenue in 2028 as compared to $5 billion last year.All this explains why Marvell's fortunes are expected to turn around in the next fiscal year.MRVL Revenue Estimates for Current Fiscal Year data by YCharts.But don't be surprised to see the company clock a faster pace of growth given the growing influence of AI on its business. That could turn out to be a key growth driver for Marvell, which is why investors should consider taking advantage of the 20% decline in the company's stock price since the beginning of August as it could soon regain its mojo and start soaring.","news_type":1},"isVote":1,"tweetType":1,"viewCount":243,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}
