Dell Demand Surges; Darktrace Upgrades; TSMC Overbought

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TSMC At Highest Overbought Level in Three Years

Shares in TSMC [TSM] are up 36.1% year-to-date through 7 March and the stock is at its highest overbought level in three years. However, according to Bloomberg Intelligence analyst Charles Shun, “consumers and business communities’ confidence in generative AI’s added value justifies any potential price increase”. Taiwan’s chipmakers are likely to be impacted by a potential jump in power tariffs. Electricity prices for high voltage users could rise by at least 10% from April, according to Bloomberg.

Cathie Wood Snaps Up Tesla Shares

Tesla [TSLA] fell for a third day in a row on Wednesday as Morgan Stanley analyst Adam Jonas lowered his price target from $345 to $320 on slowing electric vehicle (EV) demand. Nevertheless, ARK Invest CEO Cathie Wood remains bullish on the stock. ARK added 63,355 shares of Tesla to its flagship Innovation ETF [ARKK], Autonomous Technology & Robotics ETF [ARKQ] and Next Generation Internet ETF [ARKW], according to TradingView. The Tesla share price closed at $176.54 on 6 March, down 29% year-to-date. 

Is China Eating into the US EV Market?

Chinese regulators have given a proposed joint venture between Stellantis [STLA] and Leapmotor [9863:HK] the green light, according to sources who spoke to Reuters. Stellantis is to build Leapmotor EVs outside of China Speaking at an Axios event in Washington on Wednesday, Energy Secretary Jennifer Granholm expressed concern about China flooding the EV market as the US tries to boost domestic production with incentives through the Inflation Reduction Act.

Dell Surges in AI-Optimised Server Demand

According to Bloomberg, two Nvidia [NVDA] directors have been cashing in on the chipmaker’s AI rally — shares are up 79.1% year-to-date through 7 March — by selling approximately $180m of stock in recent days. Dell [DELL], which sells servers made with Nvidia processors, offered an upbeat forecast for fiscal 2025 last Thursday on surging demand for AI-optimised servers. In South Korea, Nvidia supplier SK Hynix [000660:KS] is planning to invest more than $1bn this year in its key AI memory chip technology.

Darktrace Upgrades Revenue Forecast as AI Threats Rise

Shares in Darktrace [DARK:L] surged as much as 18.5% midday Thursday after it raised its full-year forecast on strong demand for its services amid growing threats from generative AI. The cybersecurity firm is expecting revenue for the 12 months to the end of June to increase by 23.5–25%, up from a previously guided range of 23–24.5%. In other cybersecurity news, Nikkei reported that Google [GOOGL] is setting up a cybersecurity research centre in Tokyo, its first in the Asia-Pacific region.