Curve DAO Token (CRV) on the Rise: Harmonic Pattern Suggests Potential Upside Move

Curve DAO Token (CRV) may bounce back as its chart forms a harmonic pattern setup. A breakout above the 50-day moving average ($0.9062) could strengthen the bullish outlook, signaling a potential upside move to the 1.62 Fibonacci Potential Reversal Zone near $1.411. However, a breakdown below the 100-day MA support at $0.7578 would invalidate the pattern and expose CRV to renewed bearish pressure.

Artificial Intelligence (AI) is driving significant growth in the semiconductor industry, with key players like Nvidia and Broadcom experiencing substantial sales increases. Broadcom, in particular, has seen its AI revenue surge, but another semiconductor giant, Taiwan Semiconductor Manufacturing (TSMC), is poised to join the $2 trillion club by 2028.

Broadcom's AI chip sales have grown rapidly, with AI-related revenue accounting for roughly 30% of its sales. The company's acquisition of VMware has also contributed to its growth, with over 87% of its customers transitioning to the VMware Cloud Foundation. However, Broadcom's stock is priced at a high forward P/E ratio of 45, which may not fully justify its growth prospects.

In contrast, TSMC, which manufactures leading-edge chips for companies like Nvidia and Broadcom, benefits from a virtuous cycle. Its market share has climbed to more than two-thirds, and it expects AI-related revenue to grow at mid-40% per year from 2024 through 2029. TSMC's stock trades at a more reasonable earnings multiple of 24, offering strong potential for growth.

While Broadcom's AI chip business is growing quickly, its overall growth is incremental. TSMC's ability to maintain strong gross margins and generate earnings growth exceeding 20% per year positions it as a more attractive investment option.

References:
[1] https://finance.yahoo.com/news/prediction-artificial-intelligence-ai-semiconductor-160500517.html