ASML Stock Forecast: A Monopoly with Higher Upside

September 7, 2023
Meiru ZhongThis ASML Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.

Summary

  • The increased sales of EUV and DUV were mainly driven by the strong demand of chipmakers due to digital transformation and chip shortage.
  • ASML is a monopoly on the manufacturing of EUV lithography machines and it has a strong pricing power that the price per EUV had increased by 22% to €176.1 million from 2020 to 2022.
  • ASML has a strong competitive position in the semiconductor industry, with low threats of rivals, new entrants, and substitutes, and low bargaining power of customers and suppliers. It has over 90% market share of the lithography market and 100% share of the EUV market.
  • EUV 0.55 NA, the next generation of the EUV system and promising engine of revenue growth, is expected to ship to customers for R&D purposes at the end of 2023 and support high-volume manufacturing by 2025. 
  • DCF Values ASML at $696, an upside potential of 4% compared with the stock price of $666.04 on September 6, 2023

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META Stock Forecast: Pioneer to New Heights

August 14, 2023
Meiru ZhongThis META Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.

Summary

  • The underperformance in 2022 was attributed to significant currency risks, reduced advertising demand, and strict regulation on target advertising.
  • The advertising revenue is resilient and a good sign shows that advertisers have a strong demand as the economy recovers from COVID and the recession.
  • Restructuring, by implementing a series of cost management practices, reflects META's determination to align business and strategic priorities for operating efficiency.
  • Although it’s difficult to depict how the metaverse will develop and the operating losses kept increasing for Reality Labs, META expects this will be the next chapter of the Internet and will unlock monetization chances.  
  • DCF estimates META stock will grow to $313, an 4% upside potential for the year 2023.

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What Happened in the Banking Sector Since COVID-19?

May 29, 2023
Meiru ZhongThis banking article was written by Meiru Zhong – Financial Analyst at I Know First.

Summary

  • Interest rates have had a roller-coaster ride during the pandemic, dropping to around 0% and then surging to 5%. Severe market volatility and soaring interest rates have negatively impacted banks' operations.
  • The collapse of Silicon Valley Bank (SVB) was mainly attributed to two reasons: interest rate risk and liquidity risk.
  • To restore public confidence in banks, the Fed reimbursed deposits of over $250,000 in each account for the two banks, created the Bank Term Funding Program (BTFP), and reviewed the 2018 law for stricter banking rules.

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HOV Stock Forecast: How Much More can Hovnanian Climb?

March 29, 2023
Meiru ZhongThis HOV Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.

Summary

  • There is a marked improvement in Hovnanian’s home sales as its ROE has rebounded from the trough, increasing by 15.2% in Q1 2023.
  • Although the housing demand is decelerated due to the uncertain economic outlook, the supply-demand mismatch is expected to drive HOV stock price to appreciate.
  • HOV attempts to reduce unnecessary costs, increase advertising expenses, offer favorable mortgage rates, and raise community counts to improve performance in 2023.
  • DCF values HOV stock price at $97, with 49% upside potential and technical analysis also supports this bullish forecast.

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Crypto Forecast: How Crypto Develops after the Crackdown?

March 7, 2023
Meiru ZhongThis article was written by Meiru Zhong – Financial Analyst at I Know First.

Summary

  • The cracks within crypto were exacerbated by the meltdown of the stablecoin ecosystem Terra and the bankruptcy of exchange FTX.
  • The role of Bitcoin is still dubious but the blockchain technology behind it is durable.
  • There is no guarantee for profitability even if big money flooded in this digit assets investment.
  • Regulation is a double sword, which hindered most of the crypto-related firms from direct investments. But Fidelity has still embraced the stakes proactively.
  • It is realistic to believe that Bitcoin will return in 2023 as the bubble has disappeared, investors have obtained lower-risk opportunities, and new technologies continue to advance.

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NVDA Stock Forecast: Where is NVIDIA Stock Price headed?

February 20, 2023
Meiru ZhongThis NVDA Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.

Summary

  • NVIDIA achieved 58% gross margin and 21% net margin in the first 9 months of FY2023, its profitability positioning at the Top 20 Percent in the semiconductor industry.
  • NVIDIA EPS will grow from $2.97 in the first 9-month level to $3.27 in the next period.
  • Specialized segment Data Center and Automotive had positive growth in the first nine-month of 2022 while Gaming, Professional Visualization, and OEM and Other markets experienced downward due to an oversupply of products and lower demand expectations.
  • DCF estimates NVDA stock will grow to $291, a 37% upside potential for the year 2023.

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Healthcare Stock Forecast: How to Invest in Healthcare after the Pandemic?

February 6, 2023
Meiru ZhongThis Healthcare Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.

Summary

  • US healthcare spending is expected to reach $6.2 trillion, accounting for 20% of GDP by 2028.
  • The most important trends and themes include the transition to value-based care, digital healthcare, pattern cycle dilemma, and focus on companies with pricing power.
  • Investment in subsectors, like managed care, medical devices, life-sciences tools, pharma, and biotech, should be prioritized in portfolios.
  • Investors should pick out companies that have sustainable innovation and pricing power.

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