TSEMFUNDEMENTAL ANALYSIS
TSEM, a foundry business based in Israel. A potential small cap gem which may experience exponential growth over the next few years, largely due to the demand in semiconductor solutions as part of the AI super-cycle. All eyes have been on Nvidia, which continues to receive strong demand for their GPUS, with Blackwell release on the horizon. If Nvidia isn’t done with its run, which I don’t think it is, we could see other semiconductors names continuing their run. I don’t think Nvidia will give you a multi-bagger but a name like TSEM may well do that. Not because of any underlying technology but merely because it is an undervalued company according to financial metrics. Also, TSEM supplies services to the autonomous vehicle, smart device, industry automation sectors. With a focus on manufacturing analog, mixed-signal and RF technologies – this aligns with the requirements of AI-driven innovations (autonomous vehicles in particular).
TECHNICAL ANALYSIS:
-ABC correction from Dotcom Crash over a 14 year period.
-All time low put in during 2009
-Start of an uptrend, 12345 waves pattern
A crash ensued where we saw a Fibonacci retracement to the Golden Pocket (0.618). This coincided with the Weekly RSI being taken out and thus a complete reset.
-Possible start of wave 2, as part of a larger 5 wave move back to the upside. Bullish confirmation will be a break out above $50 with high volume.
CONCLUSION
The ideal entry was missed but there may be some room to go to the upside. If we do indeed see a continued AI driven super cycle over the coming year or two, especially with Blackwell on the horizon, we may see other semiconductor names like TSEM benefiting. Given it’s small cap status, I deem this a worthy company to keep on my radar.
