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While concerns about a potential US recession persist, growth stocks have continued to outperform value stocks in 2024.

Investors remain optimistic that the Federal Reserve’s expected interest rate cuts will further support high-growth companies.

CFRA analysts have identified several top-performing stocks that have consistently reported strong revenue growth, making them attractive options in the current market environment.

Here are 5 of CFRA analysts’ top growth stocks that have reported at least 15% annual revenue growth in the past three years:

Nvidia (NVDA) leads AI-driven growth boom

Semiconductor giant Nvidia has been a standout performer in the stock market over the past 15 years, and its growth trajectory shows no signs of slowing.

The company reported an impressive 94% year-over-year revenue increase in the fiscal third quarter, with net income soaring by 109%.

Analyst Angelo Zino remains bullish on Nvidia, citing its expanding market reach into edge devices and software-driven revenue streams.

He projects 43% revenue growth in fiscal 2026. CFRA maintains a “buy” rating for Nvidia, with a price target of $165 which closed at $135.29 on February 13.

Tesla (TSLA) eyes regulatory boost for autonomous driving

Tesla, the leading US electric vehicle manufacturer, has faced slowing revenue growth, with just a 2% increase year over year in the fourth quarter.

Its core automotive segment even reported an 8% decline.

However, analyst Garrett Nelson believes Tesla’s fortunes could improve under a potential Trump administration, which may accelerate regulatory approvals for autonomous driving technology.

Additionally, Tesla is expected to launch its Cybercab project by 2027.

CFRA projects a revenue rebound to 16% growth in 2025 and has a “buy” rating for Tesla, with a $540 price target. Tesla closed at $355.94 on February 13.

Broadcom (AVG0) benefits from AI infrastructure demand

Broadcom, a major player in the semiconductor industry, has posted strong growth figures, with 44% revenue growth in fiscal 2024 and 51% growth in its latest quarter.

Analyst Angelo Zino sees Broadcom’s application-specific integrated circuit and switching businesses benefiting from the ongoing artificial intelligence infrastructure boom.

Additionally, the company’s integration of VMware has been smooth, with room for margin expansion in its software segment.

CFRA projects Broadcom’s revenue to grow by 19% in 2025 and 15% in 2026, maintaining a “buy” rating and a price target of $265.

Broadcom closed at $235.80 on February 13.

Eli Lilly (LLY) rides the weight loss drug boom

Pharmaceutical giant Eli Lilly continues to benefit from the surging demand for GLP-1 weight loss drugs.

The company’s diabetes and weight loss drug Mounjaro saw 60% revenue growth in the fourth quarter, while revenue from Zepbound jumped from $175.8 million to $1.9 billion year over year.

Analyst Sel Hardy believes Eli Lilly will remain a key player in the booming weight loss drug market in 2025.

CFRA has a “buy” rating and a $970 price target for the stock. The stock closed at $870.36 on February 13.

JPMorgan (JPM) gains strength from banking sector rebound

JPMorgan Chase, one of the world’s largest banks, reported a strong fourth-quarter performance, with revenue rising 10% and net income surging 50%.

Following its acquisition of First Republic Bank during the regional banking crisis, JPMorgan has reinforced its leadership position in the financial sector.

Analyst Kenneth Leon expects a strong US economy, a recovering investment banking business, and potential policy shifts under a Trump administration to further benefit the bank.

CFRA maintains a “buy” rating for JPMorgan with a price target of $275. The stock already surpassed the target and closed at $276.32 on February 13.

The post Top 5 growth stocks to watch in 2025 as market momentum builds appeared first on Invezz

The NZD/USD exchange rate jumped to its highest level since December 18 as the US dollar index retreated. It jumped to a high of 0.5730, up by almost 4% from its lowest point in February this year. So, what next for the NZD to USD exchange rate ahead of the RBNZ interest rate decision and Federal Reserve minutes?

US dollar index crashes

The NZD/USD exchange rate rose as the US dollar index slipped. Data shows that the DXY index has dropped from the YTD high of over $110 to $107. This decline happened even as the US published strong consumer inflation data and geopolitical risks escalated.

Data released last week showed that the headline consumer inflation rose from 2.9% to 3.0% in January. It was the fourth consecutive month that inflation has moved further away from the 2.0% target of the Fed. Core inflation moved to 3.3%, where it has remained for months.

US inflation will continue rising as companies boost prices because of tariffs applied by Donald Trump. For example, vehicle prices will jump by double digits now that steel and aluminum tariffs have soared by 25%. Prices will also rise because of the recent fires in Los Angeles. 

The NZD/USD pair will react to the upcoming Federal Reserve minutes that will provide more information about the last meeting. In that meeting, the bank decided to leave interest rates unchanged and officials pointed to just two cuts this year. 

Therefore, the US dollar index has likely crashed as investors embrace the new normal on tariffs and interest rates.

RBNZ interest rate decision

The NZD/USD pair will next react to the upcoming Reserve Bank of New Zealand (RBNZ) interest rate decision on Wednesday.

Economists expect the bank will continue cutting interest rates as the economic slowdown accelerates. Recent data showed that the headline consumer price index (CPI) remained unchanged at 2.2% in the fourth quarter, down from a high of 7.3% in 2022. 

New Zealand’s economy has sunk into a recession, contracting for two straight quarters. Analysts expect that lower interest rates and some of the RBNZ policies will help stabilize the economy this year. For example, the government has changed policies on home ownership for foreigners in a bid to boost the economy. 

NZD/USD technical analysis

NZDUSD chart by TradingView

The daily chart shows that the NZD/USD pair has been under pressure in the past few months. It tumbled from a high of 0.6377 in September last year to 0.5515 in February. It has now stabilized a bit, helped by the weaker US dollar. 

The pair remains below the 100-day Exponential Moving Average (EMA), a sign that bears are still in control. It has also formed a bearish flag chart pattern, a popular bearish reversal sign.

Therefore, the pair will likely resume the downtrend as sellers target the lower side of the bearish flag pattern at around 0.5600. 

The post NZD/USD forecast ahead of RBNZ decision, FOMC minutes appeared first on Invezz

While concerns about a potential US recession persist, growth stocks have continued to outperform value stocks in 2024.

Investors remain optimistic that the Federal Reserve’s expected interest rate cuts will further support high-growth companies.

CFRA analysts have identified several top-performing stocks that have consistently reported strong revenue growth, making them attractive options in the current market environment.

Here are 5 of CFRA analysts’ top growth stocks that have reported at least 15% annual revenue growth in the past three years:

Nvidia (NVDA) leads AI-driven growth boom

Semiconductor giant Nvidia has been a standout performer in the stock market over the past 15 years, and its growth trajectory shows no signs of slowing.

The company reported an impressive 94% year-over-year revenue increase in the fiscal third quarter, with net income soaring by 109%.

Analyst Angelo Zino remains bullish on Nvidia, citing its expanding market reach into edge devices and software-driven revenue streams.

He projects 43% revenue growth in fiscal 2026. CFRA maintains a “buy” rating for Nvidia, with a price target of $165 which closed at $135.29 on February 13.

Tesla (TSLA) eyes regulatory boost for autonomous driving

Tesla, the leading US electric vehicle manufacturer, has faced slowing revenue growth, with just a 2% increase year over year in the fourth quarter.

Its core automotive segment even reported an 8% decline.

However, analyst Garrett Nelson believes Tesla’s fortunes could improve under a potential Trump administration, which may accelerate regulatory approvals for autonomous driving technology.

Additionally, Tesla is expected to launch its Cybercab project by 2027.

CFRA projects a revenue rebound to 16% growth in 2025 and has a “buy” rating for Tesla, with a $540 price target. Tesla closed at $355.94 on February 13.

Broadcom (AVG0) benefits from AI infrastructure demand

Broadcom, a major player in the semiconductor industry, has posted strong growth figures, with 44% revenue growth in fiscal 2024 and 51% growth in its latest quarter.

Analyst Angelo Zino sees Broadcom’s application-specific integrated circuit and switching businesses benefiting from the ongoing artificial intelligence infrastructure boom.

Additionally, the company’s integration of VMware has been smooth, with room for margin expansion in its software segment.

CFRA projects Broadcom’s revenue to grow by 19% in 2025 and 15% in 2026, maintaining a “buy” rating and a price target of $265.

Broadcom closed at $235.80 on February 13.

Eli Lilly (LLY) rides the weight loss drug boom

Pharmaceutical giant Eli Lilly continues to benefit from the surging demand for GLP-1 weight loss drugs.

The company’s diabetes and weight loss drug Mounjaro saw 60% revenue growth in the fourth quarter, while revenue from Zepbound jumped from $175.8 million to $1.9 billion year over year.

Analyst Sel Hardy believes Eli Lilly will remain a key player in the booming weight loss drug market in 2025.

CFRA has a “buy” rating and a $970 price target for the stock. The stock closed at $870.36 on February 13.

JPMorgan (JPM) gains strength from banking sector rebound

JPMorgan Chase, one of the world’s largest banks, reported a strong fourth-quarter performance, with revenue rising 10% and net income surging 50%.

Following its acquisition of First Republic Bank during the regional banking crisis, JPMorgan has reinforced its leadership position in the financial sector.

Analyst Kenneth Leon expects a strong US economy, a recovering investment banking business, and potential policy shifts under a Trump administration to further benefit the bank.

CFRA maintains a “buy” rating for JPMorgan with a price target of $275. The stock already surpassed the target and closed at $276.32 on February 13.

The post Top 5 growth stocks to watch in 2025 as market momentum builds appeared first on Invezz

The Australian dollar will be in the spotlight this week as the Reserve Bank of Australia (RBA) delivers its interest rate decision and as the country releases the January jobs report. The AUD/USD exchange rate soared to 0.6350 on Friday, much higher than this month’s low of 0.6080.

RBA interest rate decision

The AUD/USD pair rose ahead of Tuesday’s RBA interest rate decision. Economists polled by Reuters believe that the bank will opt to slash rates by 0.25% as it seeks to boost the struggling economy.

The RBA has been one of the most hawkish central banks in this cycle as it has resisted cutting interest rates. For example, the Bank of England has now slashed rates three times, while the European Central Bank has cut five times. 

The case for a rate cut rate cut rose after the Australian Bureau of Statistics (ABS) published its fourth-quarter inflation data. The headline consumer price index (CPI) fell from 2.8% in Q3 to 2.4% in Q4. Further, the closely watched weighted and trimmed mean inflation numbers slipped.

These numbers signaled that the country’s inflation was moving in the right direction, making it easy for the bank to cut interest rates. 

Australia will also publish the latest jobs numbers on Thursday. Economists expect the report to show that the jobless rate rose from 4.0% in December to 4.1% in January, while the participation rate remained intact at 67.1%. They expect the data to show that the employment change rose by 19.7k

While these jobs numbers are important, their impact on the AUD/USD pair will be limited since they will come two days after the RBA delivered its interest rate decision. 

FOMC minutes

The other crucial catalyst for the AUD/USD exchange rate will be the upcoming FOMC minutes scheduled on Wednesday.

These minutes will provide more information on what happened during the last meeting. In it, officials decided to leave rates unchanged at 4.50% and hint that they will deliver just two cuts this year. 

It is unlikely that the minutes will have a major impact on the US dollar since they will come a week after the US published the January inflation report and after Jerome Powell testified before the House and the Senate. 

The inflation report showed that prices continued rising in January, with the headline consumer price index (CPI) rising from 2.8% in December to 3.0% in January and the core inflation moving from 3.2% to 3.3%.

Jerome Powell and Beth Hammack, another Fed official, confirmed that the bank was not in a hurry to cut interest rates. As such, analysts now expect the bank to either hold rates steady this year or deliver just one cut. Besides, Trump’s tariffs will worsen the inflation sitiuation in the country.

AUD/USD technical analysis

AUDUSD chart by TradingView

The AUD/USD exchange rate has rebounded in the past few weeks, moving from a low of 0.6080 to 0.6350, its highest level since December last year. 

It has jumped above the 23.6% Fibonacci Retracement level and the 50-day moving average. The Relative Strength Index (RSI) and the MACD indicators have all pointed upwards.

Therefore, the pair will likely keep soaring as bulls target the 50% Fibonacci Retracement point at 0.6515, up by about 2% from the current level. 

The post AUD/USD forecast ahead of RBA decision, FOMC minutes appeared first on Invezz

The Hang Seng index has surged lately, making it one of the top-performing global index so far. It jumped to a high of H$22,620, its highest level since October 7, and up by over 50% from its lowest point in 2024. So, why is the HSI index surging, and what will happen next?

Why the Hang Seng index is soaring

The Hang Seng index has jumped mostly for three main reasons. First, the surge has coincided with the ongoing rebound of global equities. Most of the biggest indices like the S&P 500, Nasdaq 100, DAX, and CAC 40 have all jumped in the past few months. In some instances, global indices are highly correlated.

Second, the Hang Seng index has jumped because of the recent economic data that showed that the Chinese economy was doing fairly well. These numbers revealed that the economy expanded by 5.4% in the fourth quarter, bringing the 2024 growth rate to 5.0%. 

Most of the Q4’s growth came from the recent investments by the Chinese government, which unveiled a $1.4 trillion stimulus package. The package is meant to boost local governments that have struggled following the real estate industry collapse. 

Third, the Hang Seng index has jumped as global investors buy the dip since it was one of the worst-performing indices in the past few years. As such, there is a general view that the index is highly undervalued. 

Top HSI index constituents in 2025

Alibaba stock price has surged this year as it jumped by over 50%. The stock has jumped because of its strong technicals. As we wrote here, the stock formed an ascending triangle pattern, pointing to a strong surge over time. 

Alibaba has also thrived after the company made progress in the artificial intelligence industry. Just recently. Apple said that it will use its AI models in China, a stamp of authority from the biggest company in the world. 

Alibaba Health Information is the best-performing Hang Seng index constituent this year as it jumped by over 77%. This rebound is mostly because Beijing completed its review of the group last year and its strong performance. 

Other technology companies in the Hang Seng index like Meituan, Xiaomi, JD Health, Kuaishou Technology, BYD and Tencent have done well this year.

On the other hand, the worst-performing companies in the index are Sands China, Henderson Land, and New Oriental. 

Hang Seng index analysis

HSI index by TradingView

The weekly chart shows that the Hang Seng index has done well in the past few months as it jumped from H$14,845 in 2023 to $23,000. It has now formed a mini golden cross as the 100-day and 50-day moving averages crossed each other. 

The index is nearing the 50% Fibonacci Retracement level at H$22,910. It is also approaching the key resistance level at $23,230, its highest point in 2024. 

Therefore, the index will likely continue rising as bulls target the next key psychological point at H$23,000. A break above that level will see it rising to the 61.5% retracement level at H$24,878.

The post Hang Seng index outlook: Here’s why Hong Kong stocks surged appeared first on Invezz

The Binance Coin price has done well in the past few days as investors cheered its ecosystem growth. The BNB coin price jumped to a high of $657 on Sunday, and is a few points below its all-time high of $800. So, what next for the BNB price after it flipped Ethereum and Solana on a key metric?

BSC Chain flips Solana and Ethereum

The BNB price has surged, helped by the growing ecosystem. Recent data shows that the BSC network is beating top blockchains like Solana and Ethereum in terms of volume in the decentralized exchange (DEX) industry.

Data compiled by DeFi Llama shows that the BSC network’s DEX volume jumped by over 66% in the last seven days to $32 billion. This growth brought its total monthly volume to over $113 billion. 

BSC has flipped Solana in terms of weekly volume since the latter handled over $28 billion in volume. Ethereum handled $15 billion, making it much smaller than the two networks, a big thing since it has always been the most dominant player.

BSC Chain has also flipped the Solana in terms of cumulative DEX volume. It has handled over $1.03 trillion in volume over time, while Solana handled $1.02 billion.

Most BSC protocols have seen a strong volume growth in the past few weeks. PancakeSwap handled over $3.43 billion in the last 24 hours and $28 billion in the last seven days. It has handled over $105 billion in the last 30 days. 

THENA network processed $148 million in the last 24 hours and $1.5 billion in the last 7 days. The other top-performing DEX protocols in the BSC network are Uniswap, Dodo, and Woofi.

Read more: BNB price prediction as CAKE, Thena, Venus, Dodo tokens surge

CZ Brocolli meme coin triggers gains

This growth happened after Changpeng Zhao, its founder, ventured into the meme coin industry, a move that was criticized by some. He then unveiled his dog, Brocolli, which triggered a huge volume spike.

Some BNB Chain fans criticized the move, noting that meme coins would destroy the BSC network by encouraging scams. That’s because many meme coins are scams that benefit a few insiders and hurt many others. 

A good example of this is the popular Solana meme coins that surged and then plunged as the hype died. The Official Trump meme coin has collapsed in the past few weeks, costing traders billions. 

Instead, proponents argued that Binance should focus on building a strong ecosystem that will grow its ecosystem in the long term. 

BNB price forecast

The weekly chart shows that the BNB coin price has one of the best technicals in the crypto industry. It has formed a cup and handle pattern, a popular continuation sign. The recent consolidation is part of the formation of the handle section of this pattern. 

The coin remains above the 50-week and 100-week Exponential Moving Averages (EMA), a bullish sign in the market.

Therefore, the BNB price will likely continue rising as bulls target the next key target at $800, its all-time high. A move above that resistance level will point to more gains, potentially to the psychological point at $1000.

The post BNB price prediction as BSC chain flips Solana and Ethereum appeared first on Invezz

While concerns about a potential US recession persist, growth stocks have continued to outperform value stocks in 2024.

Investors remain optimistic that the Federal Reserve’s expected interest rate cuts will further support high-growth companies.

CFRA analysts have identified several top-performing stocks that have consistently reported strong revenue growth, making them attractive options in the current market environment.

Here are 5 of CFRA analysts’ top growth stocks that have reported at least 15% annual revenue growth in the past three years:

Nvidia (NVDA) leads AI-driven growth boom

Semiconductor giant Nvidia has been a standout performer in the stock market over the past 15 years, and its growth trajectory shows no signs of slowing.

The company reported an impressive 94% year-over-year revenue increase in the fiscal third quarter, with net income soaring by 109%.

Analyst Angelo Zino remains bullish on Nvidia, citing its expanding market reach into edge devices and software-driven revenue streams.

He projects 43% revenue growth in fiscal 2026. CFRA maintains a “buy” rating for Nvidia, with a price target of $165 which closed at $135.29 on February 13.

Tesla (TSLA) eyes regulatory boost for autonomous driving

Tesla, the leading US electric vehicle manufacturer, has faced slowing revenue growth, with just a 2% increase year over year in the fourth quarter.

Its core automotive segment even reported an 8% decline.

However, analyst Garrett Nelson believes Tesla’s fortunes could improve under a potential Trump administration, which may accelerate regulatory approvals for autonomous driving technology.

Additionally, Tesla is expected to launch its Cybercab project by 2027.

CFRA projects a revenue rebound to 16% growth in 2025 and has a “buy” rating for Tesla, with a $540 price target. Tesla closed at $355.94 on February 13.

Broadcom (AVG0) benefits from AI infrastructure demand

Broadcom, a major player in the semiconductor industry, has posted strong growth figures, with 44% revenue growth in fiscal 2024 and 51% growth in its latest quarter.

Analyst Angelo Zino sees Broadcom’s application-specific integrated circuit and switching businesses benefiting from the ongoing artificial intelligence infrastructure boom.

Additionally, the company’s integration of VMware has been smooth, with room for margin expansion in its software segment.

CFRA projects Broadcom’s revenue to grow by 19% in 2025 and 15% in 2026, maintaining a “buy” rating and a price target of $265.

Broadcom closed at $235.80 on February 13.

Eli Lilly (LLY) rides the weight loss drug boom

Pharmaceutical giant Eli Lilly continues to benefit from the surging demand for GLP-1 weight loss drugs.

The company’s diabetes and weight loss drug Mounjaro saw 60% revenue growth in the fourth quarter, while revenue from Zepbound jumped from $175.8 million to $1.9 billion year over year.

Analyst Sel Hardy believes Eli Lilly will remain a key player in the booming weight loss drug market in 2025.

CFRA has a “buy” rating and a $970 price target for the stock. The stock closed at $870.36 on February 13.

JPMorgan (JPM) gains strength from banking sector rebound

JPMorgan Chase, one of the world’s largest banks, reported a strong fourth-quarter performance, with revenue rising 10% and net income surging 50%.

Following its acquisition of First Republic Bank during the regional banking crisis, JPMorgan has reinforced its leadership position in the financial sector.

Analyst Kenneth Leon expects a strong US economy, a recovering investment banking business, and potential policy shifts under a Trump administration to further benefit the bank.

CFRA maintains a “buy” rating for JPMorgan with a price target of $275. The stock already surpassed the target and closed at $276.32 on February 13.

The post Top 5 growth stocks to watch in 2025 as market momentum builds appeared first on Invezz

The Hang Seng index has surged lately, making it one of the top-performing global index so far. It jumped to a high of H$22,620, its highest level since October 7, and up by over 50% from its lowest point in 2024. So, why is the HSI index surging, and what will happen next?

Why the Hang Seng index is soaring

The Hang Seng index has jumped mostly for three main reasons. First, the surge has coincided with the ongoing rebound of global equities. Most of the biggest indices like the S&P 500, Nasdaq 100, DAX, and CAC 40 have all jumped in the past few months. In some instances, global indices are highly correlated.

Second, the Hang Seng index has jumped because of the recent economic data that showed that the Chinese economy was doing fairly well. These numbers revealed that the economy expanded by 5.4% in the fourth quarter, bringing the 2024 growth rate to 5.0%. 

Most of the Q4’s growth came from the recent investments by the Chinese government, which unveiled a $1.4 trillion stimulus package. The package is meant to boost local governments that have struggled following the real estate industry collapse. 

Third, the Hang Seng index has jumped as global investors buy the dip since it was one of the worst-performing indices in the past few years. As such, there is a general view that the index is highly undervalued. 

Top HSI index constituents in 2025

Alibaba stock price has surged this year as it jumped by over 50%. The stock has jumped because of its strong technicals. As we wrote here, the stock formed an ascending triangle pattern, pointing to a strong surge over time. 

Alibaba has also thrived after the company made progress in the artificial intelligence industry. Just recently. Apple said that it will use its AI models in China, a stamp of authority from the biggest company in the world. 

Alibaba Health Information is the best-performing Hang Seng index constituent this year as it jumped by over 77%. This rebound is mostly because Beijing completed its review of the group last year and its strong performance. 

Other technology companies in the Hang Seng index like Meituan, Xiaomi, JD Health, Kuaishou Technology, BYD and Tencent have done well this year.

On the other hand, the worst-performing companies in the index are Sands China, Henderson Land, and New Oriental. 

Hang Seng index analysis

HSI index by TradingView

The weekly chart shows that the Hang Seng index has done well in the past few months as it jumped from H$14,845 in 2023 to $23,000. It has now formed a mini golden cross as the 100-day and 50-day moving averages crossed each other. 

The index is nearing the 50% Fibonacci Retracement level at H$22,910. It is also approaching the key resistance level at $23,230, its highest point in 2024. 

Therefore, the index will likely continue rising as bulls target the next key psychological point at H$23,000. A break above that level will see it rising to the 61.5% retracement level at H$24,878.

The post Hang Seng index outlook: Here’s why Hong Kong stocks surged appeared first on Invezz

CrossFi, a prominent innovator in blockchain-based financial solutions, has announced the successful completion of a rigorous Anti-Money Laundering (AML) audit conducted by CityLinkers, a globally respected corporate advisory firm.

This achievement underscores CrossFi’s dedication to upholding the highest standards of regulatory compliance and fostering financial transparency within the decentralized finance (DeFi) space.

CityLinkers, renowned for its expertise in corporate governance, financial compliance, and risk management, conducted a comprehensive assessment of CrossFi’s policies, procedures, and operational framework.

The audit confirmed that CrossFi’s AML policies align with stringent international compliance requirements, ensuring a secure and trustworthy financial ecosystem for both users and partners.

CEO Mamasidikov: “reinforces credibility and strengthens trust”

Alexander Mamasidikov, CEO of CrossFi, emphasized the significance of this milestone.

“We are thrilled to receive a high rating from CityLinkers, validating our dedication to maintaining strong regulatory practices,” Mamasidikov stated.

This milestone not only reinforces our credibility as a legally compliant entity but also strengthens trust within our community, partners, and regulators.

A responsible player: CrossFi sets a new standard in DeFi

By passing this audit with distinction, CrossFi continues to solidify its position as a responsible and forward-thinking player within the rapidly evolving blockchain and DeFi landscape.

This achievement also aligns seamlessly with its broader mission to provide secure, transparent, and scalable financial solutions while consistently meeting global regulatory expectations.

The post CrossFi earns top marks in AML audit, bolstering credibility in DeFi space appeared first on Invezz

Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM) stands to lose rather significantly as the Trump administration makes good on its commitment to onshoring manufacturing of the world’s most advanced AI chips.

As a work around, the Taiwanese behemoth could opt for a joint venture with the US based Intel Corp (NASDAQ: INTC), says Patrick Moorhead – the chief executive of Moor Insights.

Moorhead agreed that an all-out acquisition of INTC is unlikely due to national security concerns. But a joint venture “as a form of financing and potentially an IP sharing of some sort” was on the table, he argued in a CNBC interview on Friday.

Why would TSMC consider a joint venture with Intel?

Intel stock has rallied more than 20% ever since JD Vance reiterated the new government’s commitment to making sure that the most sophisticated chips will be manufactured in the US.

Moorhead sees TSMC as the “biggest loser” in the aftermath of such a potential regime shift as it’s currently the leading provider of the advanced AI chips but it makes them primarily in Taiwan.

Additionally, Intel’s latest 18A process is immensely competitive and is capable of stealing share from Taiwan Semiconductor Mfg. Co. Ltd. as well, he added.

“You can imagine the pressure that Trump administration would be putting on right now on the Nvidias, the Broadcoms, the Marvells to motivate them to take a second look at this.”

Put together, these developments could make TSMC explore a joint venture with Intel – one that could materially benefit the latter in terms of capital, according to Moorhead.

What JD Vance’s remarks may mean for INTC

Patrick Moorhead expects Intel to benefit from “some tax breaks on manufacturing” as part of the government’s broader commitment to onshoring chip production as well.

All in all, he’s convinced that INTC shares have now bottomed.

“One of the reasons its designs didn’t go over as well as they could have, was because it was on a less than competitive manufacturing process. That’s changing with 18A,” he noted in the CNBC interview.

Note that Intel stock currently pays a dividend yield of 2.07% that makes it all the more attractive to own at writing.

Intel’s recent quarter financial highlights

Moorhead’s remarks arrive a couple weeks after Intel reported better-than-expected results for its fourth financial quarter.

The chip giant earned 13 cents a share on $14.26 billion in revenue – ahead of 12 cents per share and $13.81 billion that experts had forecast. In the earnings release, INTC confirmed that it was “taking actions to enhance our competitive position and create shareholder value.”

Intel is also looking for a potential suitor for a minority stake in Altera, the field-programmable gate array chips business it acquired for $14.5 billion in 2015.

The move will likely free up some capital that Intel could use to drive future growth.  

The post TSMC and Intel joint venture? Chip giants explore potential collaboration appeared first on Invezz