Semiconductor companies have been on a tear. Part of their rally is driven by anything related to AI. But another part is the announcement of new chips that can truly expand on the breakthroughs occurring in AI today. Part of that could mean that some lagging companies may end up grabbing more market share. And that slower-growing companies out of the market’s favor may become the new market leaders in the quarters ahead. For instance,Intel (INTC) has struggled in recent years. It’s long underperformed in the industry. But the company’s push for personal computer (PC) chips that can ...

“It’s only when the tide goes out that you learn who has been swimming naked.” That Warren Buffett quite is about the danger of investing in companies during bull markets. Some companies that are flying high today may have some problems that are being overlooked. That trend could easily reverse. So with markets still near all-time highs, investors may want to look for companies that have clean financial books and are in good shape. One such company isAutodesk (ADSK). Shares have rallied following an investigation into the company’s accounting. Autodesk reports there will be no need t...

Most market sectors move in and out of favor with investors over time. One simple strategy for investors is to buy out-of-favor sectors, and then look to take profits when that sector turns around. Doing so can create market-beating returns consistently, and keep out of sectors that are overly loved and may be poised to see a massive drop. Today, a few sectors remain out of the market’s favor, including one in the tech space. That niche part of the tech market is cybersecurity. Despite increased budgets to deal with digital threats, cybersecurity stocks remain unloved by the market. ...

For all the clamor in the AI space, most investors have largely focused on large companies. On the surface level, that makes sense. Big-name tech firms have billions of dollars that they can easily throw into AI projects. If there’s even a small boost to the company’s bottom line, it can mean big bucks for shareholders. But smaller AI plays look attractive now too. That’s because these companies have a smaller market cap. As smaller companies grow, they can see a massive percentage return. And that move likely isn’t priced in yet. For instance, pure-play AI application firmC3.ai (...

Different companies have different ways of offering products and services to their consumers. Wall Street prefers to see companies that have as much consistency to their revenues as possible. That’s why cyclical companies tend to vastly underperform the markets at some times, and outperform at others. Today, Wall Street loves seeing companies that can generate recurring revenues. It’s better to have monthly billing rather than make one-time sales, even if the overall revenue is the same. While this has been seen as the preferred model for streaming services, other companies are posti...

Traders looking to profit over a multi-month period can often get a good return following activist shareholders. Typically, activists build a position then disclose it. Once they do, they also make note of changes they’d like to see at the targeted company. Some companies will work to make those changes, and get the activist shareholder to move on. Others may resist, and then have to deal with a boardroom battle. How this plays out can lead to wide returns in how the stock performs. Recently, Elliott Investment Management has targeted semiconductor chip manufacturerTexas Instruments ...

The Wall Street saying “Sell in May and go away,” isn’t about getting out of the market. Rather, it’s a warning that the market’s returns in the middle few months of the year tend to slow. But even through the summer, it makes sense to stay invested. It’s only September and October that are historically challenging for investors. With a summer slowdown the seasonal norm, investors can find opportunities, particularly with dividend-paying stocks. While dividends haven’t gotten as much attention in the age of AI, the total payouts by corporations to their shareholders have hit a record...

In any industry, there’s one leader. Even if there are two big players that seemingly duke it out, one of them is still king of the hill. In the tech space, today’s leaders can become tomorrow’s laggards. That also means that when a leading stock is soaring, smaller players may be more attractive. Those smaller players could win from a “catch-up” trade when the leader’s momentum slows down. Right now,Advanced Micro Devices (AMD) could be the catch-up trade against industry giantNvidia (NVDA). Shares have pulled back after earnings, as investors have noted that AMD isn’t making as ...

Defensive stocks tend to hold up well in just about any market. This recent market rally has been an exception. Tech stocks have handily beaten other sectors. And high interest rates have made dividend-paying defensive stocks look less attractive. But the businesses behind those stocks aren’t playing defense. By creating new products and expanding operations, they can continue to grow, and provide investors with great long-term returns. Buying these companies today could fare well when the tech trade slows down. One such company isKeurig Dr Pepper (KDP). The company is largely consid...

Consumer spending has been declining. That bodes poorly for most retail stocks from here. However, not all retail stocks are created equal. Some retailers can thrive in a challenging environment. Specifically, companies that cater to cost-conscious consumers. Even with tight budgets, those looking for a deal and seeing price tags with steep discounts on them will likely continue to flock to companies that continue to have massive deals. One company that could hold up well amid slowing consumer spending isTJX (TJX). The discount retailer does a fantastic job of keeping shoppers coming...