Sectors: Technology
ASML is a provider of advanced technology systems for the semiconductor industry, even after correcting 38% the stocks not cheap but into fresh 2022 lows around $US550 the risk / reward and valuation will look very attractive to MM. The company is the world’s largest manufacturer of lithography systems and has companies like Samsung and Taiwan Semiconductor Manufacturing depending on…
Technology and networking company CSCO has corrected pretty much in line with the NASDAQ and the company remains the dominant provider of the enterprise networking hardware that forms the backbone of the internet. Compared to its peers the stocks actually performed admirably over the last 12-months arguably making it a defensive tech play, a theme we like through 2022/23. Like all businesses…
ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).
Cisco Systems, Inc is engaged in designing and selling a range of technologies across networking, security, collaboration, applications and the cloud. It operates through three geographic segments: Americas; Europe, Middle East, and Africa; and Asia Pacific, Japan, and China. Its product and technologies include infrastructure platforms; applications; security and other products. Infrastructure Platforms consists of its core networking technologies of switching, routing, data center products and wireless that are designed to work together to deliver networking capabilities and transport and store data. Application product category consists primarily of software-related offerings that utilize the core networking and data center platforms to provide their functions. Security product category primarily includes unified threat management products, threat security products and Web security products. Its subsidiary, ThousandEyes, Inc., offers Internet and cloud intelligence platform.
HP Inc. is a global provider of personal computing and other digital access devices, imaging and printing products, and related technologies, solutions, and services. The Company delivers a range of devices, services and subscriptions for personal computing, printing, three-dimensional (3D) printing, hybrid work, gaming, and more. It operates through three segments: Personal Systems, Printing and Corporate Investments. The Personal Systems segment offers commercial and consumer desktops and notebooks, detachables and convertibles, workstations, thin clients, commercial mobility devices, retail point-of-sale (POS) systems, displays, hybrid systems, software, solutions, and services. Printing segment offers consumer and commercial printer hardware, supplies, services, and solutions. Printing segment is also focused on graphics and 3D printing and personalization in the commercial and industrial markets. Corporate Investments include certain business incubation and investment projects.
Elon Musk’s Tesla has experienced a volatile week after he announced taking a 9.2% stake in Twitter – the surprise investment has already gained him a seat on the board! The pullback after surging 50% from its March low is not major and understandable considering the combination of the Feds hawkish comments plus concerns as to where Musk’s energies will now be focused.
This week saw Macquarie Group (MQG) name Megaport (MP1) as their favourite Australian tech stock, a very contrarian call considering its more than 40% plunge since late 2021. They believe the cloud computing companies marketing strategy will be enough to overcome the downside risks from its pricing model, obviously time will tell but we like the risk / reward into new lows for the year which is definitely not out of the question considering the stocks recent decline.
We haven’t given up hope that Google as most of us refer to it can make fresh highs above $US3,000 but for now, we will adopt a more conservative approach targeting levels 3-5% higher to take profit.
We have highlighted ALU this morning more because we want to reduce our tech exposure into strength as opposed to it being a stock we specifically dislike plus technically it looks average having “popped” to a failed new high in early 2022.
Apple has continued to outperform most of its peers in 2022 and now sits within striking distance of Januarys all-time high, a test of $US200 wouldn’t surprise us if we see tech continue its recent bounce after being savaged by soaring bond yields over the last 6-months.
