Market Madness: Nvidia's Split, TSMC's AI Surge, and Pre-Market Movers Shaking Up the Market

Well that didn’t take long did it? As the market has clinched another All Time High level, we are now in uncharted territory and the likelihood of a correction anytime soon seems to be out of the question. With the help of Nvidia’s dominance in the AI space, Apples roaring exponential growth, and Fed data supporting lower rates in the near future, there’s plenty of gas in the tank for this rally. 

In today’s issue we uncover, Nvidia’s 10-for-1 shake up, The real reason behind TSMC’s AI-Fueled Surge, and the Top Pre-Market Gainers to keep an eye on throughout the day. 

Let’s get to it! 

How Nvidia’s 10-for-1 Split is Set to Shake Up the Market

In a stunning display of market dominance, Nvidia shares have rocketed to an all-time high of $1,199, cementing the company's position as a trailblazer in the world of artificial intelligence and semiconductor chip design. But brace yourselves, because a seismic shift is about to take place that will make Nvidia's shares more accessible than ever before.

Announced last month during the company's impressive quarterly earnings report, Nvidia is gearing up for a 10-for-1 stock split. This move will take effect after Friday's market close, and shareholders will find themselves with nine additional shares for every one they currently own. While the split won't affect Nvidia's overall market capitalization, it will significantly reduce the price of individual shares, making them more attractive to a wider range of investors.

Come Monday morning, Nvidia's stock will be trading at around $120 per share, a far cry from its current lofty heights. This split follows in the footsteps of other tech giants like Alphabet, Amazon, and Tesla, who have all executed similar moves in recent years. Historically, stocks tend to outperform the broader market following a split, which bodes well for Nvidia's future performance.

What's truly astonishing is that even after the split, Nvidia's stock will still be more expensive than it was just four years ago when it traded at a mere $88 per share. The company's market value has experienced a meteoric rise from $220 billion to an astounding $3 trillion over this period, trailing only Microsoft and Apple in the race for the title of the world's most valuable company.

As Nvidia's stock becomes more accessible, there's speculation about whether this move could lead to its inclusion in the prestigious Dow Jones Industrial Average. The Dow's weighting system favors lower-priced stocks, and Nvidia's current high price has been a barrier to its inclusion. With the split bringing the share price down, the company's chances of joining the Dow may increase, potentially bringing even more attention to this AI powerhouse.

It’s clear that Nvidia's remarkable growth and dominant position in the AI chip market have made it a force to be reckoned with but as the company continues to innovate and shape the future of technology, this upcoming stock split could be a massive opportunity for investors to analyze. Which is why one thing is certain: Nvidia's journey is far from over, and the world will be watching as this tech titan continues to reach new heights.

What’s Up With TSMC’s AI Fueled Stock Surge? 

Let’s add to the tech world buzz with all the excitement surrounding Taiwan Semiconductor Manufacturing Co (TSMC) as their shares skyrocketed to unprecedented heights this morning on the backs of the global AI frenzy. 

In a bold move that underscores TSMC's commitment to staying at the forefront of technological innovation, the company is currently engaged in discussions with ASML Holding NV to secure advanced lithography machines. These cutting-edge tools are expected to be in TSMC's hands by the end of the year, further solidifying the company's position as a leader in the chip manufacturing space.

Meanwhile, as Chinese AI chip firms grapple with U.S. sanctions, they are left with no choice but to design less powerful processors to remain compliant. This development highlights the indispensable role that TSMC plays in the global semiconductor supply chain, as it remains a critical supplier to companies worldwide.

TSMC's dominance in the market is further evidenced by recent reports indicating the company's intentions to increase the prices of its services. This move not only reflects the high demand for TSMC's expertise but also its confidence in its ability to deliver unparalleled value to its customers.

In a bid to expand its global footprint, TSMC has also announced plans for a $7.8 billion facility in Singapore, in collaboration with Vanguard International Semiconductor and NXP Semiconductors NV. This strategic investment showcases TSMC's commitment to meeting the growing demand for semiconductors across various industries.

TSMC's surge in stock price closely followed the impressive gains made by Nvidia Corp, a key beneficiary and competitor within the AI boom. As mentioned above, Nvidia's stock reached a record high, surpassing Apple Inc's market cap, thanks in part to TSMC's role as a crucial technology supplier for Nvidia's AI chips.

Recognizing the importance of its partnership with TSMC, Nvidia is looking to deepen its investments in Taiwan. The company plans to construct another supercomputer in Taiwan, following the successful launch of Taipei-1 in 2023. This move not only strengthens the bond between the two tech giants but also positions Taiwan as a hub for AI innovation.

Interestingly, Nvidia has also diversified its supplier base, tapping Samsung Electronics Co for high-bandwidth memory (HBM) chips and exploring Intel Corp as a potential supplier. This strategic decision comes as TSMC grapples with supply chain constraints, highlighting the need for resilience and adaptability in the fast-paced world of semiconductors. 

With a commanding 62% market share, TSMC has firmly established itself as the world's leading foundry. The company's projections indicate a robust 10% annual growth in the semiconductor industry, excluding memory chips, showcasing the enduring demand for its services.

As analysts predict that the AI demand is here to stay, Nvidia emerges as a key ally, with its moat extending beyond gaming to encompass artificial intelligence, cloud computing, and data centers. This diversification positions Nvidia for sustained growth and success in the years to come.

TSMC's stock has been on a tear, gaining over 63% in the last 12 months. For investors seeking exposure to the thriving semiconductor sector, options like the First Trust Nasdaq Semiconductor ETF and ProShares UltraShort Semiconductors provide attractive avenues to capitalize on this growth story.

As the premarket trading session kicked off on Thursday, TSMC shares were up 1.94%, trading at $166.07. This upward trajectory is a clear indication of the market's confidence in TSMC's ability to navigate the challenges and opportunities presented by the AI revolution, cementing its position as a true powerhouse in the semiconductor industry.

Pre-Market Movers: Thursday's Stock Market Surprise Party

Pre-market stock movers are attracting significant attention on Thursday morning as investors digest the latest news affecting shares. A mix of heavy trading, earnings reports, and a stock offering are among the key factors driving the movements.

Let's take a closer look at the top gainers making headlines this morning.

Virax Biolabs (NASDAQ: VRAX) is leading the pack, with its stock skyrocketing nearly 158% amid heavy pre-market trading. The company's shares are experiencing significant investor interest, although the specific catalyst remains unclear.

Aethlon Medical (NASDAQ: AEMD) is also making impressive gains, soaring more than 94% with strong early morning trading. This surge suggests that investors are bullish on the company's prospects, despite the absence of any major announcements.

Nauticus Robotics shares are gaining more than 27% with heavy trading this morning. The company's innovative robotics solutions appear to be capturing the attention of investors, fueling the stock's upward movement.

iSpecimen (NASDAQ: ISPC) is another notable gainer, with its stock increasing over 25% amid strong trading on Thursday morning. The company's unique offerings in the biospecimen market may be driving investor interest.

60 Degrees (NASDAQ: SXTP) is heading 18% higher, despite a lack of news this morning. This movement could be attributed to overall market trends or sector-specific factors.

Vanda Pharmaceuticals (NASDAQ: VNDA) shares are climbing more than 16% as the company participates in a global healthcare conference starting today. Investors may be anticipating positive developments or partnerships to emerge from the event.

Motorsport Games (NASDAQ: MSGM) stock is jumping over 15% after the company regained listing compliance. This milestone achievement is likely boosting investor confidence in the company's future prospects.

Finally, 8x8 shares (NYSE: EGHT) are up more than 14% today, rounding out the list of top pre-market gainers. The company's strong performance suggests that investors are optimistic about its growth strategies and market position.

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