The dollar gained, giving back earlier losses, as benchmark U.S. Treasury yields hit a four-week high following some weak auctions. The Treasury Department saw soft demand for sales of two-year and five-year notes.
Dollar rebounds as yields rise
Oil prices gained Ahead of OPEC+ meeting
Oil prices gained more than $1 a barrel on the expectation that OPEC+ will maintain crude supply curbs at its June 2 meeting, while the start of U.S. summer driving season and a weaker dollar also boosted the commodity.
The Oil-Dollar pair skyrocketed 2.1% in the last session. The Ultimate Oscillator is giving a positive signal.
Support: 77.651 | Resistance: 79.771
A Stock to Watch: Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (NYSE: TSM), a global leader in the semiconductor industry, saw its stock price rise by 1.9% last Friday to close at $160, driven by growing enthusiasm for artificial intelligence advancements.
Quarterly Earnings Report
On April 18th, TSMC announced an impressive performance for the first quarter of 2024, with a significant 8.9% year-on-year increase in net profit. The company reported a net profit of NT$225.49 billion (US$6.96 billion) for Q1, bolstered by its highest-ever first-quarter sales of NT$592.64 billion, a 16.5% increase from the previous year.
TSMC’s robust results are attributed to strong demand for its advanced semiconductor processes, essential for emerging technologies such as artificial intelligence and high-performance computing (HPC). This demand has effectively mitigated the downturn in the global smartphone market.
Advanced Process Technology
TSMC’s cutting-edge technology continues to lead the market, with its 3nm process accounting for 9% of Q1 sales, the 5nm process making up 37%, and the 7nm process representing 19%. These advanced processes contributed to 65% of TSMC’s total sales in the first quarter.
Looking Ahead
As TSMC continues to innovate, it is also preparing to launch its 2nm process in 2025, further cementing its position at the forefront of semiconductor manufacturing.
In summary, TSMC’s strong financial performance and ongoing advancements in semiconductor technology position the company well for future growth, despite facing some sector-specific challenges.
AUD/USD rose 0.4%
The last session saw the Aussie gain 0.4% against the Dollar. The Stochastic indicator’s is giving a negative signal.
AUD/USD rose 0.4% in the last session.
The Stochastic indicator is currently in the negative zone.
Support: 0.6614 | Resistance: 0.664
Gold gain 0.5%
The last session saw the Gold gain 0.5% against the Dollar. The Stochastic-RSI is giving a negative signal.
XAU/USD rose 0.5% in the last session.
The Stochastic-RSI is currently in negative territory.
Support: 2328.4867 | Resistance: 2345.0867
Tesla’s AI Hiring Spree Amid Stock Volatility
Tesla’s AI Hiring Spree Amid Stock Volatility
Despite a challenging year with Tesla’s stock down over 27% in 2024, there are signs of recovery. By the close of the market on May 24, TSLA had gained over 3% within 24 hours, trading at $178.95.
New AI Opportunities
In the wake of recent mass layoffs, Tesla is aggressively hiring for numerous AI-related positions with salaries up to $360,000 plus benefits. The company has listed around 20 new engineering roles, all based in Palo Alto, California, focusing on self-driving technology and AI infrastructure. These roles are crucial as Tesla pushes forward with its Autopilot technology and other advanced AI projects.
Beyond AI: Vehicle Technicians
Tesla is also recruiting vehicle technicians for a manufacturing development program. The AI job descriptions emphasize building robust AI infrastructure, training networks on large GPU clusters, and implementing large-scale data processing pipelines. To boost its Autopilot subscription service, Tesla offers a 30-day free trial and requires demos for new owners.
Future Innovations and Regulatory Hurdles
Tesla is gearing up to reveal its Cybercab robotaxi, though regulatory challenges persist due to investigations into Autopilot’s involvement in fatal crashes. Additionally, Tesla is collaborating with China’s Baidu to offer Autopilot’s Full Self-Driving (FSD) in China, with plans to gather self-driving data from Chinese drivers and potentially establish a data center in the country.
Stock Market Outlook
The stock price of Tesla (NASDAQ: TSLA) shows bullish signs in the short term. According to 53 Wall Street analysts compiled by TradingView, the outlook for Tesla’s stock varies widely.
- Bullish Scenario: Some analysts forecast a high of $310, representing a 72% increase from the current price.
- Moderate Scenario: The consensus average price target is $183, indicating modest growth of about 2%.
- Bearish Scenario: On the low end, forecasts go as low as $85, implying a potential decline of 57%.
Achieving significant production milestones, delivering strong financial results, and making technological advancements could lead to a stock rebound in a bullish scenario. Conversely, facing production issues, increased competition, or broader economic challenges could result in a bearish outcome. A moderate case might see Tesla making steady progress with some headwinds, stabilizing the stock around the current level.
Tesla’s strategic shift towards AI and advanced technology positions, along with its ongoing product innovations, shows the company’s commitment to maintaining its leadership in the electric vehicle and autonomous driving sectors. However, the stock’s future performance will depend on how well Tesla navigates the challenges and opportunities ahead.