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🌎 Kind of SUSS
Plus, this stock is a key piece of the Nvidia supply chain...
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Happy Monday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
🟩 | US stocks rose, with the S&P 500 reaching a record closing high of 5,718.57, up 0.28%. The Dow and Nasdaq closed higher as well as Wall Street builds on recent momentum from the Federal Reserve's interest rate cuts.
📈 | One Notable Gainer: AeroVironment's stock surged over 12% after the U.S. Army lifted a stop work order on a $990 million contract, marking its largest gain since a 9% increase on August 28.
📉 | One Notable Decliner: General Motors shares fell 2% after Bernstein downgraded the stock from outperform to market perform, citing earnings risks and potential pricing challenges due to increased inventory.
GO DEEPER
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S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
INTC (+3%) Intel Gets Multibillion-Dollar Apollo Offer as Qualcomm Circles (Bloomberg)
TSLA (+5%) Tesla stock pops amid bullish sales forecast as robotaxi unveiling looms (Yahoo Finance)
ULTA (-2%) Ulta Beauty downgraded at TD Cowen on lack of upside to Street estimates (TipRanks)
BHVN (+14%) Biohaven shares rise on positive trial results, analyst maintains buy rating (Investing.com)
CIEN (+5%) Ciena Stock Goes to Buy From Sell at Citi. Here’s Why. (Barron’s)
OVERHEARD ON THE STREET
CNBC: Boeing boosts wages, bonuses, and 401(k) match in "best and final" offer to over 30,000 striking machinists, now in their second week of strike.
WSJ: Tempur Sealy to sell 73 Mattress Firm stores and 103 Sleep Outfitters locations amid regulatory hurdles in its $4B Mattress Firm acquisition.
Axios: FTC Chair Lina Khan warned that the Kroger-Albertsons merger could raise grocery costs, with a court ruling potentially blocking the deal.
CNBC: Southwest Airlines warns staff of “difficult decisions” ahead to boost profits as it faces pressure from Elliott Investment for leadership changes.
Axios: Johnson & Johnson's third attempt at bankruptcy aims to resolve longstanding talc liabilities, following two failed attempts due to court rulings.
TOMORROW’S TRADE IDEA, TODAY
AI Abroad
Played Out?
After roughly two years of hype, investors might feel like the “AI play” is played out. But for fresh ideas, they may simply need to look overseas.
Jefferies is bullish on German semiconductor company SUSS MicroTec (SESMF). SUSS is a key piece of the Nvidia (NVDA) supply chain — and the analysts believe it has around 28% upside.
According to the firm, SUSS has “multi-layered” exposure to advanced packaging technology that is used in the production of Nvidia’s AI graphics processing units.
Key Piece of the AI Puzzle
As global AI adoption ramps up, demand for its services has skyrocketed. On top of Nvidia, SUSS also sells its products to Taiwan Semiconductor Manufacturing Company (TSM) and two major high-bandwidth memory suppliers.
According to Jefferies, packaging technology represents SUSS’s strongest opportunity right now. Its products allow all layers of the high bandwidth memory technology to fit within its packaging.
Major Market Share
SUSS currently commands a 55% market share in the high bandwidth space.
On top of that, shipments at TSMC are increasing, as are the number of layers within high-bandwidth memory. According to Jefferies, SUSS is perfectly positioned to take advantage of both of these trends.
The firm is expecting FY 2025 sales to jump 16% to 471 million euros. As the world continues to adopt the new technology, this stock could be a solid global play to gain exposure to a different side of AI, on a different side of the planet.
Are you bullish or bearish on SUSS MicroTec (SESMF) over the next 12 months? |
TOGETHER WITH BULLSEYE TRADES
Trade Smarter with these Free, Daily Stock Alerts
It’s never too late to learn how to master the stock market.
You’ll receive daily trade alerts sent directly to your phone and email detailing the hottest stock picks.
The best part? There’s no cost to join!
Expert insights will be at your fingertips instantly.
ON OUR RADAR
CNN: The US Commerce Department plans to ban smart cars using Chinese or Russian tech due to national security risks, including hacking and data theft.
CNBC: India rejects joining the world's largest trade deal, citing concerns over China's opaque practices and negative impact on farmers and industries.
WSJ: Siemens plans to spin off its eMobility unit, which provides EV charging hardware, software, and infrastructure, to better compete in the growing market.
AP: A tugboat powered by ammonia sailed for the first time, marking a key step in reducing carbon emissions from the shipping industry.
QZ: OpenAI's Sam Altman and former Apple Execs Jony Ive and Laurene Powell Jobs are creating a new AI device company, building on over a year of collaboration.
FRIDAY’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 🐂 Bullish
🟨🟨🟨🟨⬜️⬜️ 🐻 Bearish
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