US stocks to buy for short term: From Nvidia to Netflix- Appreciate CEO suggests picking these 5 shares
AI Summary
US stocks have shown solid gains this year, with the S&P 500 up nearly 9% and the Nasdaq Composite up about 10%. Key earnings reports from companies like Taiwan Semiconductor and JPMorgan indicate strong demand and robust financial performance, suggesting a favorable environment for investors looking to capitalize on AI infrastructure and resilient economic growth. Investors may consider buying stocks from companies that are effectively monetizing their AI investments in the short term.
US stocks to buy for the short term: The US stock market has seen healthy gains this year so far; the S&P 500 is up nearly 9%, while the tech-heavy Nasdaq Composite has gained about 10% year-to-date.
The S&P 500 closed last week at 7,457.69, while the Nasdaq Composite finished at 25,520.24.
The US stock market is at a crucial juncture of moderating inflation, resilient economic growth and healthy corporate earnings.
Subho Moulik, Founder and CEO, Appreciate, highlighted that while June inflation came in below expectations for a second consecutive month, and JPMorgan, Citigroup and Wells Fargo all opened earnings season ahead of expectations, the bigger takeaway came from earnings rather than macro data.
"Taiwan Semiconductor reported another record quarter, BlackRock crossed $15 trillion in assets under management, and Netflix delivered its highest quarterly revenue ever while continuing to build a meaningful advertising business. These companies operate in entirely different industries, yet together they illustrate how the AI investment cycle is evolving," Moulik highlighted.
"The first phase rewarded companies building computing infrastructure. The next phase is rewarding businesses that can monetise that infrastructure through software, financial products and consumer platforms. Investors are no longer paying for AI potential alone—they are increasingly rewarding companies that are already converting AI investment into durable cash flows," Moulik added.
As per Subho Moulik, this week's five companies sit at different points along that value chain. He said investors may consider buying these five stocks for the next 1-2 weeks:
Moulik pointed out that Taiwan Semiconductor reported Q2 revenue of NT$1.27 trillion ($40.2 billion), up 33.7% year-on-year, while net profit climbed to approximately NT$706.6 billion, another company record.
Demand for 3nm chips and CoWoS advanced packaging continues to exceed supply as Nvidia, AMD and the world's largest cloud providers race to expand AI computing capacity.
Semiconductor manufacturing has become one of the most critical bottlenecks in the global AI economy.
"While software companies may ultimately capture customer attention, every meaningful AI application still depends on advanced chips, and virtually every advanced chip depends on TSMC. As long as AI infrastructure spending continues accelerating, TSMC remains one of the clearest beneficiaries of that global capital investment cycle," said Moulik.
Moulik highlighted that JPMorgan reported approximately $21.2 billion in second-quarter net income on roughly $57.3 billion of revenue, comfortably exceeding analyst expectations.
Investment banking activity strengthened, trading revenue remained robust, and consumer credit quality stayed stable despite elevated interest rates.
More importantly, JPMorgan provides one of the most comprehensive real-time snapshots of the U.S. economy.
"Its results suggest that households continue spending, businesses continue investing, and financial markets remain active. That combination matters because banking earnings often provide one of the earliest signals of whether economic momentum is strengthening or deteriorating. This quarter's results point firmly toward resilience rather than weakness," said Moulik.
Original Article
Published on Livemint