- Summary:
- Amid renewed focus on Fed interest rates and rising geopolitical risks, Tesla, AMD and Alibaba share prices could have their best run in 2024.
Stock markets have to contend with the contagion effect brought by escalated geopolitical tensions in the Middle East and the rising prospects that the Fed will take its time before announcing another interest rate cut. However, amidst this scenario, there are stocks that are worth giving a shot. Below, we look at Tesla, AMD and Alibaba share prices.
Tesla
The EV pioneer dropped significantly on Monday, with its share price declining by 3.6 percent at the time of writing to erase most of the gains made on Friday. Tesla share price is still in loss this year, with its YTD returns at -3.7 percent as of this writing.
However, that also means that we are entering a period when this could be near the cheapest you will buy Tesla stock in a while. On the chart below, Tesla hovers near the lower Bollinger Band on the daily chart, signaling a good entry point.
Tesla share price crossing below the lower Bollinger Band at $242.73 on the daily chart
With the robotaxi unveiling event just three days away, Tesla (NASDAQ: TSLA) is about to become attract substantial global attention. The choice of the unveiling venue-Warner Brothers Studio-is telling. It has put Tesla stock price on a pedestal where it could either skyrocket or fail spectacularly. Many are expecting a breathtaking product befitting of a sci-fi movie imagination.
Regardless of the recent sales numbers announced last week, the robotaxi unveiling overshadows all that. Many analysts opine that the robotaxi unveiling is what has kept Tesla share price afloat amid fallen sales in China and tightening competition in the EV industry. The focus will be on features, but the downside to the unveiling could also come in the form of regulatory headwinds or unfavourable delivery timelines.
Advanced Micro Devices (AMD)
AMD stock price has risen by 18 percent year-to-date, which is dwarfed by peer Nvidia’s 152 percent gain. However, as strong show in the last month , which has seen the microchip manufacturer gain 23 percent, beating Nvidia’s 18 percent, signals a bullish undercurrent.
AMD (NASDAQ: AMD) reported strong sales, with 3.5 percent month-on-month increase and 20.6 percent year-on-year increase in August to bring its revenues to $56 billion, the highest on record. The company reported strong demand for its AI data centres and also completed acquisitions of Silo AI and ZT systems for about $4.5 billion. These have enabled it to strengthen its muscle and it could eat up a significant portion of the enterprise and cloud AI segments.
The company expects to report a 16 percent year-over-year revenue growth to $6.7 billion in third quarter earnings to be released in late October. With Nvidia having experienced triple-digit growth this year, its stock price is quite pricey. Therefore, it offers a better entry point with potentially higher headroom for those keen on a good alternative to Nvidia.
2 hour chart showing AMD stock price performance since September
Alibaba
Alibaba share price was in a lull in the first half of the year, and spent most of its time trading downward and sideways. However,it started building upside momentum in July and rose further in August, before exploding byu 27 percent in September.
As seen on the chart below, the price has stayed above the Volume Weighted Moving Average (VWMA) for the most part part since early September. Looking ahead, its performance is likely to stay on a steady upside as its largest market, China, gets revamped by a recently-announced economic stimulus program.
Despite showing strength in the cloud computing front, Alibaba (NYSE: BABA) faced headwinds in its core e-commerce market as China’s economy grew slower-than-expected. However, the stimulus announcement is expected to spur faster growth, which could have a ripple effect on e-commerce.
Also, the company just came out of a three-year regulatory rectification period that had created a bearishness around its stock price. Alibaba had been on a collision course with the Chinese government and was fined $2.6 billion for monopolistic practices. At some point its founder Jack Ma went off the grid and out of China as pressure mounted on him and his company. However, the hurdle overcome clears the way for Alibaba to strengthen its muscles and grow steadily.
Alibaba stock price on a 2-hour chart