The COE is insane but demand for a car will continue to drive this up. Personally, I don’t have a real need for a car and cannot justify spending so much money to buy an asset that depreciates immediately upon purchase. I will stick to my MRT. If necessary, the ride hailing services in Singapore is also convenient and competitive and all in, is still cheaper than getting a car. Also, it is better to be driven around than to drive my own car. I think byd has pretty much saturated its market share in China and has to look at Southeast Asia market to increase its market share. Indonesia looks like a promising market and is big enough. Also, EVs is a mature market in China unlike many of the Southeast Asia markets where there is still untapped market. For a premium market of $300k, I think
I think both will go up with more AI capex. The technology and use cases advance rapidly and all industries are FOMO and fear of being the laggard. AI promises productivity which means more output with less manpower. With agentic AI, more are looking to learning costly manpower or in industries where manpower is always a limit. In the short term, however, I think memory has a bigger upside. For years, many recognise CPU as being crucial but only recently that memory became talk of town and this creates awareness of demand being far greater than supply. This along with many rushing to buy the stocks create upward pressure. So I believe memory stocks will see the gains that CPU has 2-3 years ago. I think AMD’s fair value is probably another year 10-20% more as it is hard to have data centres
There must be something that the smart money knows. Not sure why Goldman is going against the general flow. As usual, the smart money manipulates the market and we never know if goldman is trying to trick retail investors to pour money into the stock market. I don’t dare to chase the highs at this current level. It looks over extended though valuation is near the past 5 years. Technology and AI has driven the gains. Considering that it is driven by specific sectors rather than market as a whole is concerning even with strong labour reports. AI and technology could go higher but I prefer to wait for pullbacks to give me bigger bang for my buck. There is no hurry to jump in with my investment horizon of at least 10 years. Rate cuts will likely fuel technology and AI stocks to rise but there
Nvidia may be the cheapest now but that is a reflection of market’s confidence in it remaining as the leader being shaken. Its main advantage is being challenged with AMD’s chips being not too inferior yet coming at a fraction of nvidia’s cost which challenged Nvidia’s ability to continuing charging at a premium. Given how fast the market’s demand continue for chips is rising and nvidia’s inability to meet all the demand, this is the time for AMD to shine and I think in about 1 year, Nvidia’s share will drop to 60% and even less as more players rise to the scene. Alphabet looks set to be the next to break $5T with its cloud and Gemini. It is well positioned to be a relevant AI player on many levels. I have never held Nvidia as a lone stock as I believe this is a scene where no company
Definitely team alphabet and Amazon. The main driver for alphabet has always been its cloud. Add to that its successful AI venture with Gemini, it’s like having twin engines for growth. Microsoft is like its competitor on the same twin engines but yet to deliver its full potential. Amazon has ride well on its e-commerce and this is also expected to have increased demand. Compare this to meta which despite its heavy investment in AI, it has yet to yield the economic results that the market is looking for. I would wait for more clarity on the economic returns from all these AI investments before I would consider buying meta. There is no rush into buying the dip when there are many other better companies around that has more promising returns. However I won’t exit it as not all is lost yet. A
I see this as temporary only. Many individuals and companies are starting to see the potential of AI and many are jumping onto the bandwagon. While AI is promising, none has set done to carefully calculate the cost of it. AI is not free and could be more expensive than the exact manpower savings that it boost of. Who is studying the balance sheets? This supply constraint is driven in part by hype and fomo-mindset. When the dust settles, capex has to come down. Also, even with more use cases, there will also be more competition and this will further drive prices and capex down. We are seeing this with Nvidia already. It is impossible for any of these AI companies to charge at a premium forever. I do see the capex coming down within 2 to 3 years. All is good while the music lasts. These comp
I am definitely more worried about FOMC. The next fed chair can lift the entire stock market or cause it to crash depending on how dovish or hawkish he is. This is independent of the performance of big tech. Of course, big tech has risen quite a fair bit and some corrections might happen. If warsh doesn’t cut rates as the market expects, equities will definitely come under pressure. Afterall, the market has already priced in rate cuts as trump would like to see. The market has been trained to fed manipulating the performance of equities since Covid. 5 years is more than enough for conditioned behavior. I think whatever pullback in the AI narrative will only be temporary. AI is for the future and use cases will expand exponentially which would create further pressure on demand.