Taiwan Semi Revenue and Delta Earnings Are Positives for These Portfolio Holdings
Here's what these data points mean for seven of our positions — and the price we're watching on one to potentially buy more.
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We have some positive data points for the portfolio to share with the December Employment Report on tap for this morning. Consensus forecasts for that report — 160,000 jobs, a 4.2% Unemployment Rate, and average hourly wage gains of 4.0% year over year — have not budged in the last few days. As we read through it, we will keep in mind trailing three-month tallies and gauge the market reaction by watching not only stocks but also the 10-year Treasury yield and the dollar.
TSM’s Q4 Revenue Tops Expectations
December-quarter revenue from Taiwan Semiconductor TSM rose almost 58% year over year, leading the company’s Q4 2024 revenue to rise 39% year over year and easily clear market forecasts. This follows December-quarter revenue from Hon Hai that also showed record Q4 revenue and taken together they point to strong demand for data center, AI, and connected devices.
We see that as confirmation points for our positions in Nvidia NVDA, Marvell MRVL, Qualcomm QCOM, Apple AAPL, and Universal Display OLED. We will get more end-market details from TSM when it reports its full-quarter results on January 16, at which time it will also share its outlook for the current quarter and updated capital spending plans for the coming year. Given the string of consensus-topping revenue quarters and Big Tech capital spending plans, the growing thought is that TSM will need to need to add more capacity, which is a positive for our position in Applied Materials AMAT.
Delta’s Results Support Our Positions in 2 Holdings
Quarterly results from Delta Air Lines DAL reflected strong stronger-than-expected revenue due to a combination of higher fares and a healthy demand environment, especially for international and business travel. CEO Ed Bastian called out a 10% jump in corporate travel led by technology and financial services companies, and said international travel revenue climbed 6% year over year.
Those are positives for our shares of American Express AXP and Mastercard MA, and on Delta’s earnings call we’ll be listening for more color on its 2025 outlook. With AXP being a relatively new position, we are interested in adding to our holdings. Depending on the market reaction to today’s Employment Report and next week’s inflation data, such an opportunity could present itself, especially if AXP shares retreat closer to the 50-day moving average just below $294.
At the time of publication, TheStreet Pro Portfolio was long NVDA, MRVL, QCOM, AAPL, OLED, AXP and MA.
