Microvast (MVST)
Entry: Unlock
Stop loss: Unlock
Price target: 2.30-2.50
Second PT: 2.90-3.10
Microvast is up more than 600% since we placed it on our premium watchlist in September 2024. Since then, the company reported two quarterly earnings, both of them reflecting revenue growth and reinforcing a positive outlook for the company’s future.
If you weren’t a member at the time, let’s recap on what the company does. Microvast is an advanced battery technology company that engages in the business of designing, developing, and manufacturing battery components and systems primarily for electric commercial vehicles and utility-scale energy storage systems. The company is special because they’re one of the few that is fully in-house from the ground up (with the exception of raw materials), which gives them control over the full development and manufacturing process. Their CEO is committed to innovation, so he took this approach to be able to manipulate the process accordingly to each end product, which also allows them to move closer to a solid state battery, a technology that many companies, including Tesla, VW, KULR, and QuantumScape are racing to master.
While competition is fierce, Microvast stands out from the smaller names like KULR and QS because of its financials and already existing customer base across the globe, which cover 34+ countries. Their global presence also shields them from a severe impact from tariffs, especially with on 5% of their total revenue coming from the United States. Manufacturing is based out of China and Germany right now, and the company is building a U.S. factory in Tennessee, which is in-line with the current administration’s push for U.S. based manufacturing.
Despite the company’s promising outlook, investors must note that inherent risk that comes with investing in small-cap stocks, especially ones that are in a field where competition is brutal. Like any other investment, MVST’s earnings and innovation must be watched closely for any developments that may risk the company’s position.
VanEck Semiconductor ETF (SMH)
Entry: Unlock
Price target: 212.00-215.00
Second PT: 233.00-235 .00
In a market where most semiconductor stocks have dropped by double digits from their all-time highs, investors may be wondering which names are worth buying during this correction. With major players like Nvidia, AMD, and Broadcom on the table, choosing just one can be a challenge.
Instead of picking individual stocks, investors can consider SMH, the largest semiconductor ETF on the market. It offers broad exposure to the sector and includes many of the industry's top names.
Here’s a breakdown of SMH’s top ten holdings:
- NVIDIA Corporation (NVDA) – 19.71%
- Taiwan Semiconductor Manufacturing Co. (TSM) – 11.02%
- Broadcom Inc. (AVGO) – 7.83%
- QUALCOMM Incorporated (QCOM) – 5.20%
- ASML Holding N.V. (ASML) – 4.99%
- Advanced Micro Devices, Inc. (AMD) – 4.79%
- Texas Instruments Incorporated (TXN) – 4.70%
- Analog Devices, Inc. (ADI) – 4.57%
- Applied Materials, Inc. (AMAT) – 4.55%
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Micron Technology, Inc. (MU) – 4.33%
With diversified exposure to some of the biggest names in the industry, SMH could be a smart way to gain access to the semiconductor sector while reducing the risks of betting on a single stock.
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
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The stocks posted above are the preliminary stocks and set ups we’ll be watching this week. All price points are subject to change based on market performance and sector health. Please do your own research and analysis on these companies/charts before taking on any set ups. Trade at your own risk and as always, good luck!