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Top 3 Tech And Telecom Stocks Which Could Rescue Your Portfolio For October – GDEV (NASDAQ:GDEV)

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By Ronald Tech

The most oversold stocks in the communication services sector presents an opportunity to buy into undervalued companies.

The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.

Here’s the latest list of major oversold players in this sector, having an RSI near or below 30.

GD Culture Group Ltd GDC

  • On Oct. 1, GDC announced a strategic partnership with Tuolan Network Technology Co. to expand AI creator community. “Our AI Creator Community is dedicated to engage and support creators worldwide.” said Mr. Xiaojian Wang, Chairman and Chief Executive Officer of the Company. “This partnership represents a significant opportunity to enhance the capabilities of creators. By combining our resources, we aim to provide creators with valuable opportunities to showcase their talents and expand their knowledge through targeted educational programs.” The company’s stock fell around 54% over the past month and has a 52-week low of $0.59.
  • RSI Value: 25.40                        
  • GDC Price Action: Shares of GD Culture fell 1.7% to close at $1.70 on Monday.
  • Benzinga Pro’s real-time newsfeed alerted to latest GDC news.

Paltalk Inc PALT       

  • Paltalk said on Oct. 8, an order granting motion for final judgement was entered into District Court for the Western District of Texas in connection with the company’s patent infringement lawsuit against Cisco. The company’s stock fell around 37% over the past month and has a 52-week low of $1.54.
  • RSI Value: 29.47
  • PALT Price Action: Shares of Paltalk gained 6.2% to close at $2.05 on Monday.
  • Benzinga Pro’s charting tool helped identify the trend in PALT stock.
See also  The Rise of Taiwan Semiconductor Manufacturing Company in the AI Chipmaker World Seizing the Chipmaker Crown

As Nvidia dances on the ceiling of the trillion-dollar club, another contender emerges in the AI chipmaking realm. While Broadcom has made strides in networking and AI accelerator chips, it's not the dark horse for the trillion-dollar congregation. Eyes turn to Taiwan Semiconductor Manufacturing Company (TSMC), waiting in the wings to ascend the throne.

Image source: Getty Images.

A Mighty Player in the Shadows

TSMC reigns supreme as the largest chip fabricator globally, commanding a lion's share of foundry spending. Armed with cutting-edge chip manufacturing prowess, boasting unmatched power efficiency and computational might, TSMC etches its mark in the AI landscape and beyond.

The company's colossal scale fosters a formidable advantage over competitors. Its robust revenue streams fuel relentless investments in research and development, ensuring TSMC stands at the vanguard of chip manufacturing innovation.

Driving Growth on the Semiconductor Highway

Painting a rosy future, TSMC anticipates a fruitful trajectory in the upcoming years. With third-quarter revenue forecasts standing tall at $22.4 billion to $23.2 billion, the company flaunts remarkable year-on-year growth figures. Additionally, a projected increase in gross margin signals pricing resilience amid escalating customer demands.

Amidst the backdrop of tech giants doubling down on AI infrastructure, such as Meta Platforms and Alphabet, TSMC stands poised to ride the crest of this technological wave. With an eye on pronounced capex expansions by industry behemoths, TSMC anticipates a windfall of demand for its chipsets.

Image source: Getty Images.

An air of anticipation looms over the tech sphere as the impending Apple iPhone release promises a host of new AI features. The allure of cutting-edge technology is expected to drive a surge in iPhone upgrades, propelling a ripple effect of chip demand, with TSMC positioned at the helm of this impending surge.

The Valuation Conundrum

Despite TSMC's colossal $875 billion market capitalization, its shares appear undervalued at current prices. Trading at a modest forward price-to-earnings ratio of 26.5, coupled with robust revenue growth and margin expansion, the company is forecasted to sustain earnings growth exceeding 20% annually. Analysts project a steady trajectory of 21.5% earnings growth per annum over the ensuing five years, painting a promising picture for investors.

Avoiding the Bandwagon: An Analysis of Taiwan Semiconductor Manufacturing

GDEV Inc GDEV

  • On Sept. 17, Noble Capital Markets analyst Michael Kupinski maintained GDEV with an Outperform and raised the price target from $60 to $70. The company has a 52-week low of $19.00.
  • RSI Value: 24.00
  • GDEV Price Action: Shares of GDEV rose 1.1% to close at $37.55 on Monday.
  • Benzinga Pro’s signals feature notified of a potential breakout in GDEV shares.

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