SMCI I mentioned yesterday that we would have another buying opportunity. This is definitely one of them...
- There's still a risk for price to dip inside that TP, below 44.23 and maybe going a little lower
- The daily 200EMA is a stupid strong support. Yesterday we had a rejection, today we could dip under, but i wouldn't be surprised if it turns out to be a bear flag.
- Nov 4th is the next earnings report, and although the last reports were all negative we still moved the way we did. The fact is that there's a huge demand for this product and the demand will increase exponentially once all the bureaucracy gets figured out.
As always, trust the Fib and manage your risks - next week will be an insane one, for better or worse.
SMCI Trump admin targets 1:1 ratio of domestic to imported chips - report
The Trump administration is planning a new policy that would require semiconductor companies to manufacture the same number of chips in the U.S. as their customers import from overseas producers, aiming for a 1:1 domestic-to-imported chips ratio, the Wall Street Journal reported.
The companies that do not maintain this 1:1 production ratio over time would face tariffs on the shortfall, the report added, citing sources familiar with the matter.
Aligning domestic capacity with import levels presents severe challenges, including supply networks that are difficult to modify and increasing U.S. production, which is expected to take a while.
Under the proposed system, if a company commits to producing one million chips in the U.S., its customers can continue importing that quantity without tariffs until the factory is operational.
Major players such as Taiwan Semiconductor Manufacturing (NYSE:TSM), Micron Technologies (MU), GlobalFoundries (GFS), and Samsung Electronics (OTCPK:SSNLF) are already building multibillion-dollar U.S. facilities. However, such regulation will pose a challenge to companies like Apple (AAPL) and Dell Technologies (DELL) that import products containing chips sourced from around the world.
There may be a grace period to allow companies to adjust and ramp up U.S. manufacturing capacity, though policy specifics and enforcement mechanisms remain under discussion.
Currently, the government is undertaking a trade inquiry into how chip imports damage national security, with new tariffs set to be announced after the probe is completed.
“The United States cannot depend on foreign imports to meet our semiconductor needs, which are critical to national and economic security. However, until the administration makes an official announcement, any reports regarding our policy development should be considered speculative.” said White House spokesperson Kush Desai.
SMCI Stocks Extend Drop, Trump Tariffs Spook Pharma: BLOOMBERG Global stocks extended their slide into a fourth day as concerns over lofty valuations and mixed signals from Federal Reserve officials on interest rates sapped investor sentiment. Asian shares fell 0.8%, the most in September, with drug companies slumping after President Donald Trump announced a 100% levy on branded or patented pharmaceutical products. S&P 500 futures were little changed while Nasdaq 100 futures dropped 0.1%. Contracts for Europe rose 0.4%. The Trump administration is also weighing a plan to slash the US’s reliance on semiconductors made overseas, the Wall Street Journal reported. A Bloomberg gauge of the dollar held near the three-week high and Treasuries traded in a narrow range, heightening focus on the Fed’s preferred inflation gauge which is due for release Friday. Attention now turns to Friday’s inflation report after strong US GDP data complicated the outlook for further rate cuts
SMCI I mentioned yesterday that we would have another buying opportunity. This is definitely one of them...
