Tiger Brokers 31 March 2022. Picture:Getty
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Tiger Brokers is a global brokerage platform that gives Australian investors simple access to ASX and US stocks. Listed on the Nasdaq, the trading group’s Australian division is offering zero brokerage on both US stocks and ASX shares for the first 3 months.
Over the past week, the US market has rallied strongly due to valuation repair from easing stagflation fears, and a correction from overreaction to graphics card price pullbacks.
Nvidia Corp (NASDAQ:NVDA), one of the largest buyers of outsourced chip production, said it will explore using Intel Corp as a possible manufacturer of its products.
Nvidia currently uses Taiwan Semiconductor Manufacturing Co. and Samsung Electronics to build its products, but CEO Jensen Huang said he wants to diversify his company’s suppliers as much as possible.
“We’re very open-minded to considering Intel,” Huang said Wednesday in an online company event.
“Foundry discussions take a long time. It’s not just about desire, we’re not buying milk here,” he added.
Tiger Brokers’ Chief Strategy Officer, Michael McCarthy, noted that Nvidia will continue to benefit from its role as the computing king.
“From the moment Moore’s law broke, the company has enjoyed a long-term upward trend,” McCarthy told Stockhead.
Meanwhile, Tesla (NASDAQ:TSLA) continues to be the most highly traded stock on the Tiger Brokers’ platform.
What were the top 10 most traded US stocks on Tiger Brokers globally?
1. TSLA
2. SE
3. NIO
4. GRAB
5. BABA
6. AAPL
7. PLTR
8. TIGR
9. FB
10. BILI
Earlier this week, Tesla shares surged by 8% after it announced a 20-for-1 stock split. If approved by shareholders, Tesla’s latest stock split will follow a separate 5-for-1 split it announced in 2020.
The share price surge added more than US$100bn to Tesla’s valuation, further increasing the wealth of CEO Elon Musk (who flagged that he’s contracted COVID-19).
“Although the proposal is yet to receive final approval, a split could see the stock become even more popular, particularly among younger and more tech-oriented investors,” McCarthy told Stockhead.
The stock split announcement follows the opening of Tesla’s Gigafactory Berlin in Germany.
The high-profile event was attended by the German Chancellor Olaf Scholz, as well as Musk, who was there to hand over the first MIG Model Y cars to customers.
The $5.5 billion Gigafactory means the company can build its market share in Europe, while cutting costs for shipping and importing from China.
It’s a big milestone for Tesla which now has Gigafactories on three continents.
Meanwhile, despite various headwinds (Russia conflict, high inflation), equity markets have continued to climb a ‘wall of worry’ over the past week.
But energy markets slumped from peaks as traders worried about resurgent Covid infections. Bond yields also remained under pressure, and the US yield curve inverted in a recession signal.
“The bond market action is flashing a warning,” said McCarthy.
“One interpretation of this inversion of the yield curve is that bond traders fear near term inflation, and doubt the economic growth story over the longer term,” he added.
According to McCarhty, there are two main underlying themes for markets at the moment.
On the one hand, economic growth is accelerating as the world shucks off Covid restrictions.
On the other, the conflict in Ukraine has added an overlay of geo-political concern.
“The danger to markets is the big lift in inflation spurred by this growth, and the fact that central banks will withdraw stimulus funds and lift interest rates to rein in galloping prices,” he explained.
But in contrast to bond traders, McCarthy said that equity investors seem willing to focus on the positives of stronger economies and a potential lift to corporate profits.
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