Enovix sinks, but the news is not so dire
The Street hates surprises, which is why shares of Enovix, which is working on a revolutionary silicon-based lithium-ion battery, saw its stock drop over twelve percent Tuesday after it announced it would shift some its manufacturing focus from its factory in Fremont, California, to one in Malaysia.
I think the change may not be as dire a situation as people are taking it as. But Enovix is basically a startup company, facing plenty of challenges, and any perceived shift in its strategy can make the Street nervous.
For ASML, AI increases everything
An interesting couple of notes appeared over the transom this week regarding Netherlands chip equipment titan ASML Holding, one of the TL20 stocks worth considering.
There was no immediate news event for these notes, just what appeared to be a spontaneous rush to endorse a good company’s stock.
The theme of the notes, you could say, was, Chip making is only getting harder, and that’s always good news for ASML.
In case you’re unfamiliar, ASML makes laser light sources for what’s known as photolithography, where a light is shown through a mask or screen, imprinting a pattern of circuits on the photosensitive layers of a semiconductor wafer such as silicon. That’s how circuits are carved into the wafer to become chips.