The Nasdaq (QQQ) posted a nearly flat return of 0.62% in the last week. It highlights several technology stocks that dropped sharply. Readers have four stocks on sale to consider.
1/ Intel (INTC)
This chip giant reminded markets that the artificial intelligence boom, PC market, and server market have headwinds. Intel expects Q1 revenue for 2024 of $12.2 billion to $13.2 billion will fall below the $14.25 billion that analysts expected. Intel did well with its 12th-generation CPU refresh. Its 13th generation improved but the most recent 14th generation of excess heat and power draw hurt sales. This let AMD’s Zen 4 7xxx series succeed in the last quarter.
2/ KLAC
KLAC lost 6.6% last Friday. It issued a weak Q3 revenue forecast of $2.175B to $2.425B.
3/ Baidu (BIDU)
Speculation that China’s government overstated GDP figures sent Baidu lower. Despite bringing its Ernie AI to Samsung’s latest Galaxy S24 phones, the stock lost ~ 10% YTD.
4/ Tesla (TSLA)
Tesla posted weak revenue growth in its report last week. On Jan. 25, trading volume indicated panic selling at around 200 million shares. TSLA stock lost one-eighth of its market share that day.
The firm needs to pivot away from its core EV market to accelerate growth. This includes AI server development, a mainstream Honda (HMC) Civic-like model, and Cyber truck production. The firm may need an aggressive $5 to $10 billion buyback to keep short sellers, who have a 2.91% short interest, away.
