🤖📈 Top Trade Ideas for July 3

The author discusses their investment in NVIDIA and the potential value of AI in the company. They highlight the growth and profitability of the semiconductor business, with revenue growth picking up in recent years. The author acknowledges the risks and volatility associated with investing in revolutionary changes and the difficulty of separating hype from reality in the AI market. They believe that hardware and infrastructure companies, as well as those involved in data collection and processing, will benefit from AI. However, they caution that AI may not necessarily lead to higher profits for companies and could disrupt existing businesses. The author is skeptical about the ability of regulators and legislators to effectively regulate AI and believes that consumers need to take responsibility for drawing lines and separating good from bad. They predict that NVIDIA will remain a high-growth company due to its position in the AI and automobiles markets. The author provides a valuation for NVIDIA and suggests that the current stock price may be pushing towards the upper end of its value distribution. They decide to sell half of their NVIDIA holdings and hold onto the other half for potential future market opportunities. The author also discusses the macro story of AI and its potential impact on society, raising questions about whether it will make us better or worse off.

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JinkoSolar Holding (JKS) reported impressive growth in EPS in Q1 2023, surpassing expectations and achieving its highest global module market share. The market is undervaluing JKS's profitability and overall worth. JKS's EPS is expected to continue surpassing expectations, leading to a positive shift in its valuation. The target price for JKS is $83.8 within 9-12 months. The drop in polysilicon prices will enhance JKS's unit profits, and lower module prices will increase demand for JKS's products. JKS is expected to remain the leader in TOPCon technology and has improved its vertical integration, positioning it for significant growth. Warehouse costs in the US will decrease, leading to an expected gross margin improvement. While there are concerns about oversupply in the solar supply chain, JKS and other top players can mitigate risks through their established overseas shipment capabilities. JKS is well-positioned to benefit from the growing popularity of TOPCon technology and solid global solar demand. However, JKS faces challenges from global trade tensions and restrictive policies. The decline in polysilicon prices is a positive factor for JKS, and the author anticipates margin expansion for JKS in the coming quarters. JKS has a high capacity in wafer/cell/module production and the highest overseas capacity among its peers. JKS is expected to experience significant growth potential in the next 3-6 quarters. JKS has TOPCon leadership, best-in-class integrated module capability, and the highest export mix. The author predicts that the margin expansion for JKS will become more apparent in the second and third quarters. JKS is trading at a lower forward P/E compared to other top global module makers, presenting an attractive entry opportunity. The market is bearish on module makers, making JKS the most underappreciated and overlooked player in the industry.

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Pfizer Inc. is expected to have a positive financial position in the second quarter of 2023 due to multiple drug and vaccine approvals. The company's share price has fallen due to the suspension of clinical development for lotiglipron, but the promotion of danuglipron as a potential treatment will continue. Pfizer's experimental drug for diabetes is expected to compete with market leaders, and FDA approvals for Abrysvo, Litfulo, and Ngenla will minimize the impact of declining sales. The high dividend yields and potential acquisition of Seagen by the Federal Trade Commission will support Pfizer's share price. Ngenla, a long-acting medicine for growth hormone deficiency, is expected to generate strong sales growth and profit starting in 2024. Pfizer's extensive research program on Ngenla gives it an advantage over competitors. The company has had several significant events in the second quarter that will positively impact its financial position. Pfizer's drug and vaccine approvals are ahead of competitors in terms of efficacy and safety, positioning the company to increase its share in the pharmaceutical industry. The approval of Abrysvo opens up a multi-billion dollar market. Technical analysis suggests a potential upward reversal in Pfizer's share price. Despite the negative market reaction to the end of clinical development for lotiglipron, the article maintains an "outperform" rating for Pfizer for the next 12 months.

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