Chen Weitai
[Graphics card price cuts to clear inventory]
There is too much inventory, and there is another news that manufacturers have cut prices to sell inventory. This morning, following the news of excessive inventory from NB, there are also reports of excessive inventory of graphics cards. Upstream manufacturers plan to cooperate with downstream distributors to adjust channel prices and reduce inventory pressure.
Friends who don’t play games or are unfamiliar with computers may not know much about “graphics cards”. The so-called graphics card is the display card. Its purpose is to convert the display information required by the computer system to drive the computer, and to provide progressive or interlaced scanning signals to control the correct display of the computer. It is connected to the monitor and the motherboard of the personal computer. important element.
Due to the more and faster actions of the game, in order to make the picture smoother, there will be higher requirements on the performance of the graphics card. In addition, virtual currency mining machines also use a large number of graphics cards, so in May 2021, there was an abnormal situation in which the market price was 200% higher than the official price.
[The graphics card factory is bad but not falling]
However, the good times did not last long. The global economy was under the pressure of inflation. The GDP of the United States in the second quarter showed a negative growth of -0.9%, which caused people’s consumption to drop sharply, and also caused the demand for mining machines to decline. Therefore, there is an oversupply of graphics cards. In addition, when the market conditions were good the previous year, graphics cards had double bookings (double bookings) and even triple bookings (tripling bookings), so the current inventory The situation is more serious than originally thought.
Where can it be seen? We can know a thing or two from the financial reports of the chip manufacturers of graphics cards: Nvidia and AMD. Nvidia’s revenue in the second quarter of the year ended July 31 was just $6.7 billion, down 17 percent from the $8.1 billion forecast in May. If even the most upstream chip factories are seriously injured, isn’t it even worse for Taiwan’s graphics card manufacturers? That’s right. Huanxun (6150), Leadtek (2465) and Biostar (2399) all turned from profit to loss in the second quarter. Leadtek’s Q2 net loss per share was RMB 1.25, and the first quarter’s profit was wiped out, resulting in EPS -0.78 in the first half of the year. Yuan. The EPS in the second quarter of Shaoxun was -1.08 yuan, and the EPS in the first half of the year converged to 2.29 yuan; the second quarter EPS of Biostar was -0.07 yuan. In addition, ASUS (2357), Gigabyte (2376) and MSI (2377) may be impacted.
However, the negative inventory of graphics cards did not seem to have caused the stock price to fall. On the contrary, there were legal persons who took the opportunity to pick up bargains. Is this another stock that has been exhausted? Please refer to Appendix 1.
Table 1. The investment and trading of 6 graphics card stocks is super (8/23)
[Investment locks 3 graphics card stocks to undertake]
In Schedule 1, there are 6 display card stocks. On the day when the bad news of the price cut to eliminate the inventory was published in the newspaper, the investment letter was over-trading. Among the 6 stocks,The investment letter has exceeded 3 grades, namely: MSI (2377), Gigabyte (2376), ASUS (2357), As for the other 3 tranches, they are individual stocks that would not have been bought by investors. Therefore, it seems that the investment letter is really taking advantage of the bad news to enter the market to pick up a bargain.
Why did the letter come in at this time? In fact, it can be found from the attached table 1 that the current price-earnings ratios of these three stocks are quite low.The price-earnings ratio of the 3 stocks is only 7 timesindicating that even if there is bad news that the inventory is high, the stock price has already reacted in advance, and now it is only time to wait for the bottom time of the inventory correction.
So among these 3 stocks, who do you like the most in Investment Trust? Judging from the number of consecutive days of over-buying in the recent investment letter, MSI (2377) seems to be the favorite of the investment letter, with a continuous purchase of over 37 days, followed by Gigabyte (2376), which has been over-purchased for 6 consecutive days. , but there is an interruption in the process of buying super, so the number of consecutive super days is the least.However, if we look at the inventory of the investment trust, MSI’s investment trust holds 6%, Huatou’s investment holds 4.3%, and Gigabyte’s investment holds only 3%, soWhether it is short-term continuous buying or long-term holdings, MSI seems to be the favorite of investment trust.! Statistics from the past 3 months show that the shareholding cost of Investment Trust is between 118 and 120 yuan. Therefore, when the stock price breaks through the investment cost area, it is likely to be a signal of the investment of trust to launch an attack! Finally, I wish you all the best in your investment!
Figure, MSI (2377) voted to buy super
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About the Author:
Engaged in the financial and securities industry for nearly 20 years, qualified securities analyst, currently the chief investment officer of Zhongying Wealth, CMoney Quanyao Financial Consultant, financial editor, and lecturer of the Securities Foundation, Zhongzheng Community University and Star Cloud Academy, Yahoo wealth management column, business Zhou Fortune Network special author.
The investment mentality first focuses on the long-short cycle of the overall economy, and combines fundamental stock selection with technical operations; it is believed that “selecting the opportunity to enter the market” is the profit method of stock market investment. At present, there are 2 books: “Trust me, you can’t make enough money”, “Taiwan stock shareholders calendar”.