Increasing Exposure to This Chip Name as Shortage Endures
| Symbol | Transaction Type (Sell/Buy) | # Shares Traded |
|---|---|---|
| AMAT | BUY | 32 |
After you receive this alert and when the market opens, the Portfolio will buy 32 shares of Applied Materials ($AMAT) at or near $403. Following the trade, the Portfolio will own 545 AMAT shares, roughly 3.65% of its assets.
Following the comments about chip industry tightness, the increasing likelihood that continues as AI and data center capex climbs — as does capital spending plans to address the chip shortage we discussed in our opening alert — we are adding to the Portfolio’s position in AMAT. In addition to increasing our exposure, we are doing so at levels below our cost basis for the Portfolio’s position.
On the housekeeping front, we will reset our AMAT checkpoint to $360, and Wednesday’s move with the shares will increase the Portfolio’s AMAT share count by just over 6%.
While we have your attention, we’ll reiterate that we are keeping a close watch on the Portfolio’s position in the First Trust Nasdaq Cybersecurity ETF ($CIBR) and that some prudent Portfolio management could be called for.
We will also share that, following their more than 20% fall, one that has landed them in an oversold condition, we are also keeping a close watch on Bank of America ($BAC) shares. As we discussed when we picked up some additional Morgan Stanley ($MS) shares recently, it increasingly appears that the prospects for investment banking fees to tumble given the slowdown in IPO activity has been overstated. Other deal making activity has been helping pick up that expected slack, and it appears the appetite is a good size. Per reports, Meta’s ($META) upsized $25 billion share sale was five times oversubscribed.
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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)
Because we are using a pre-market price for the trade, we will share the executed trade price in the Comment section below.
At the time of publication, TheStreet Pro Portfolio was long AMAT, BAC, CIBR, META and MS.
| Symbol | Panic Price |
|---|---|
| AMAT | 360 |
