Public trading strategy
AI chip demand isn't slowing — accumulate TSM and Nvidia on strong sales and ana
Thesis
TSMC's better-than-expected sales prove that the AI hardware boom is still accelerating. As the primary manufacturer for Nvidia, TSMC's success is a direct positive signal for the entire AI supply chain. With major banks backing these stocks as top picks, any short-term dips present a buying opportunity for a sector that continues to outperform the broader market.
Strategy approach
Build a mean-reversion long strategy on TSM and NVDA on the daily timeframe. Entry: when the stock's price touches or dips below the lower Bollinger Band (20, 2) AND the 14-day RSI is between 40 and 50. Exit: when price touches the 20-day SMA or upper Bollinger Band. Max hold: 10 days. Stop loss: 5%.