Three Stocks: Taiwan Semiconductor, Cameco, and Lucid Group

Taiwan Semiconductor

Taiwan Semiconductor (TSM) shares jumped more than 10% on Thursday following the company’s latest earnings results.

The results, released early Thursday morning, revealed stronger than expected sales on high demand for AI chips.

The company earned $1.94 per share which was $0.15 better than expected.  Revenue for the quarter grew by 36% and beat analysts’ expectations handily.

Taiwan Semi’s management issued forward looking guidance that impressed investors.  The company sees revenue for the next quarter that is roughly $26.1-26.9 billion compared to the Street’s consensus of $24.9 billion.

Shares of TSM shot through the $200 level on Thursday as the stock moved into fresh all-time high territory.  The move was on the stock’s heaviest trading volume since July 18, 2024.

Investors should expect to see some short-term selling or a consolidation in the stock’s price after today’s move.

That said, Taiwan Semiconductor stock should maintain its bullish momentum, despite short-term profit-taking measures.

Taiwan Semiconductor shares are in a long-term bull market with a target price of $230.

TSM Price Chart

Cameco Corp

Utility and Nuclear stocks have been in the news over the last two weeks as AI companies are partnering-up with energy providers, but there’s another level to this trade.

Cameco Corp. (CCJ) shares are up more than 10% over the last two days as investors realize that demand for uranium is set to move higher over the next few years.

Wednesday’s announcement that Amazon signed agreements for innovative nuclear energy projects to address growing energy demands sent companies like NuScale Power (SMR) and Nano Nuclear Energy (NNE) barreling higher.  But the success of nuclear-powered AI will also require raw materials, namely uranium.

Cameco is the largest publicly traded uranium producer in the United States by market capitalization.

The company provides roughly 8% of the world’s uranium supply, putting CCJ stock in a sweet spot for the Nuclear AI movement.

Shares of Cameco struck new all-time highs during Wednesday’s trading as the stock moved above $56.28 to close above $57.  That move puts an exclamation point o the stock’s 30-day 57% rally, the result of growing interest in the nuclear industry.

Cameco is set to announce its quarterly earnings next Thursday, October 24.

Shares of Cameco maintain a bullish outlook with a target price of $75.

CCJ Price Chart

Lucid Group, Inc.

Electric vehicle company Lucid Group (LCID) fell more than 15% on Wednesday as the company is making moves to raise capital.

The move comes two weeks before Lucid is set to announce their quarterly earnings results.

Since the company’s listing in 2022, Lucid has maintained a consistent level of losses with the company posting an average loss of -0.34$ per share.  Last quarter, the company lost $0.29 per share on one of its stronger quarters for revenue growth (+33%).

Wednesday morning, the company announced that it has priced the underwritten public offering of 262,446,931 shares of its common stock.

The offering, to be completed by Friday, October 18, will be placed through a number of methods at prices related to prevailing market prices or at negotiated prices.

Shares of Lucid fell dramatically near their all-time lows as investors reacted to the dissolution of common stock and awaited the pricing of the offering.

The news sets the tone for Lucid’s earnings call in a few weeks.

Last quarter, management raised their outlook for revenue above Wall Street analysts’ targets.  Investors will be looking for confirmation of that guidance in addition to an outlook that warrants continuing to hold the stock.

Our outlook on Lucid remains bearish with a price target of $2.00.

LCID Price Chart

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