Listen to the audio version of this article (generated by artificial intelligence).
It’s my favorite time of the year.
Earnings season is underway, but something unusual is happening this time.
Good profits are no longer enough to send some of the biggest companies on the market AI shares higher.
Two of those stocks ASML Holdings NV (ASML) and Taiwan Semiconductor Manufacturing Co., Ltd (TSM), both beat earnings expectations and raised their forecasts. But both stocks fell, with ASML down nearly 8% and Taiwan Semiconductor down nearly 4% at the end of last week.
At first glance, it makes no sense. They should have stepped up. So, what happened?
The answer could tell us a lot about what’s driving the AI market right now, and what’s coming next.
On this week’s Navellier Market Buzz, technology analyst Tiernan Ray joins me to explain why Wall Street reacted the way it did, what it says about building AI and where investors should focus next.
Click the image below to watch the latest episode of Navellier Market Buzz.
To watch more of my videos, Click here To subscribe to my YouTube channel. To learn more about Tiernan, check out his newsletter, The Technology Letter, here.
In addition to grades in Stock grader (Subscription required) Updated this week! Click here to connect your stock And see how they were rated.
Don’t fall into the trap of artificial intelligence
One point Tiernan made in our discussion really caught my attention. The information that investors once relied on is changing.
As he explained, companies like ASML and Taiwan Semiconductor give investors a different outlook than in the past.
Instead of focusing solely on current demand, they spend more time discussing where AI could go years from now. This makes it more difficult to separate real opportunities from market noise.
I think this is one of the reasons why a lot of investors fall into what I call 50 million AI trap.
See, AI can analyze thousands of stocks in seconds. But when millions of investors rely on the same AI tools, they often end up chasing the same ideas. By then, the bigger opportunities may already be behind them.
That’s exactly why I developed my property Precursor Intelligence (PI) system.
It’s designed to help me spot signs that institutional investors are starting to buy a stock – before it comes to the public’s attention.
In my final presentation, I’ll explain how AI Trap works and how a PI can help you stay one step ahead.
sincerely,
Louis Navellier
editor, Market 360
The Editor hereby discloses that as of the date of this email, the Editor owns, directly or indirectly, the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations contained in the article described below, or otherwise mentioned:
Taiwan Semiconductor Manufacturing Co., Ltd. (TSM)
