Hottest Stocks in CW 26/24

Tesla founder Elon Musk is undoubtedly a driven entrepreneur. It therefore comes as no surprise that he wants to get involved in the field of artificial intelligence. Last year, he founded his own company called xAI specifically for this purpose. Last week, Musk announced that Dell Technologies and Super Micro Computer will supply the servers required to support xAI in the development of a supercomputer. Super Micro Computer's stock initially rose significantly as a result. However, the news was not enough to break out of the lateral trend that had developed over the past two months. After initial increases its share price subsequently dropped slightly. However, over the course of the week, the stock still managed a considerable rise of over 7 %.

Analysts continue to see scope for growth in Super Micro Computer. The average price target of $ 1,059 implies a potential increase of 17 %. The most optimistic analysts even see the stock's true value at $1,500. Almost three quarters of all banks recommend buying the stock.

In the wikifolio MullhollandDrive, which Katja Großjohann (Katja1) has managed very successfully since the beginning of 2021, Super Micro Computer stock holds the largest position. The stock accounts for almost a fifth of the portfolio. According to the trader, the latest developments reflect how much money is being invested in order to be at the forefront of artificial intelligence (AI). "Whether xAI or OpenAI or someone else ultimately wins the race is ultimately of secondary importance for the leading hardware producers," says Großjohann, who is very confident about the centrepiece of her portfolio in the long term.

Those who fail to deliver are punished. The medical technology company Carl Zeiss Meditec has now felt the pain of this phenomenon, which can be observed time and again on the stock market and has been particularly evident in recent weeks. Almost a quarter of its stock market value was wiped out after the MDAX-listed company had to revise its annual forecast last Monday. After CEO Markus Weber described the profit targets for the 2023/24 financial year ending in September as "ambitious" at the beginning of May, but nevertheless confirmed them, the new target figures are now far below this. Instead of an operating profit at around the previous year's level of € 348 million, EBIT is only expected to be between € 215 million and € 265 million. In the worst-case scenario, this would mean a drop in profits of almost 40 %. The Executive Board justifies this by highlighting the weak demand for appliances and consumables.

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As a result, the price of the stock plummeted to its lowest level since the end of 2018, falling below even the all-time low recorded during the coronavirus crash. However, the majority of wikifolio traders used this price slump to invest in the stock. A look at the trading sentiment shows the clear overhang of buyers in Carl Zeiss Meditec.

Bekim Bajrami (Argonaut) has built up a small position in his wikifolio Kontinuität Nachhaltigkeit & Dividende, which has been extremely successful thanks primarily to Nvidia, Microsoft and Alphabet. In this virtual portfolio, the trader focuses on undervalued stocks with comprehensible business models. The current valuation is of secondary importance to him. "The primary concern is where the value of the company will be in 5-, 10- or 15-years’ time," the trader writes in his trading idea.

Analysts can sometimes be a bit troublesome. They are often criticised for merely reacting to the figures and forecasts issued by the companies themselves and adjusting their targets to the respective share price performance. And yet their opinion often has a major influence on the stock markets. In the case of financial services provider Hypoport, this has once again been clearly evident in recent days. Its stock became the biggest climber in the SDAX midweek with significant gains after analysts at private bank Berenberg described the company's targets as "conservative" and raised the price target from € 215 to € 300. A week earlier, our colleagues at Warburg Research had reaffirmed their price target of € 335 in view of signs of recovery on the German mortgage market. Here, too, an increase in the company's targets later in the year is described as "conceivable". Over the course of the week, the stock went up by over 16 %. It was also supported by speculation about an imminent promotion to the MDAX.

Overall, however, the analysts are not as optimistic as the two previously mentioned banks following the significant rise in the share price in recent months. The average target price of just € 274 is a good 8 % below the current level. There is therefore likely to be an adjustment here soon, either to the price target or the valuation. In any case, some wikifolio traders have taken advantage of the rise in the share price and taken profits on Hypoport in the meantime.

The demand for renewable energies is set to increase massively in the coming years. Despite all the criticism, there is widespread agreement on this. After all, it was only last year that the world's most significant countries committed to tripling expansion in this segment. This should mean a noticeable increase in demand for the relevant sectors. However, Europe seems to be missing out once again. While investment in green technologies is booming in China and the USA thanks to massive government support, many European manufacturers of photovoltaic systems are worried. In particular, the price pressure being exerted by China is weighing on companies' profit margins. On top of this, the warehouses of many customers here are still full, which is why hardly any new orders are being placed. It is precisely for this reason that the German inverter manufacturer SMA Solar had to issue a profit warning last week that was not anticipated to this extent.

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US competitor Enphase Energy, which also generates a large part of its turnover with microinverters, which are crucial for optimising the electricity production of individual solar modules, has also been affected. The Americans are also suffering from a recently filed class action lawsuit in which the Group is accused of having misled investors with confusing and inconsistent information in the run-up to the announcement of bad news. The stock came under pressure in this anything but positive environment and lost 14 % of its value last week. Many wikifolio traders preferred to play it safe and sold the stock. The current trading sentiment for Enphase Energy shows the significant overhang of selling in the past seven trading days.

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