Arm stock and with Nvidia chipmaker Taiwan Semiconductor Manufacturing headline Wednesday's IBD Screen Of The Day, a column that focuses on top ideas in the IBD Stock Screener.
Wednesday's stock picks come from the Global Leaders screen. This screen identifies top-growth stocks around the world that trade in the U.S. Other notable stocks on the screen include MakeMyTrip and Novo Nordisk.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Arm Stock Hits New High
U.K.-based Arm uses artificial intelligence technology to develop advanced chip designs and software tools used in smartphones, autos and data centers.
Its chip designs are used by every major semiconductor maker, including Apple, Qualcomm Nvidia and many more. Arm also provides basic designs for the semiconductors produced by its clients. Chipmakers customize and build on those blueprints.
Arm is focused on four business segments: client, automotive, data center and Internet of Things. Currently, its biggest end markets are mobile devices and consumer electronics.
After flirting with the buy point since June 14, Arm stock moved back above the 164 entry and into new highs last week, per IBD MarketSurge pattern recognition.
Shares notched all-time highs Tuesday before they reversed slightly lower. Arm stock moved up 2.6% Wednesday midday.
Nvidia Chipmaker Reports Strong Monthly Sales
Taiwan Semiconductor, better known as TSMC, is the world's largest chip foundry. Its vast array of customers includes Apple, Nvidia, Advanced Micro Devices, Qualcomm and Broadcom.
On Monday, shares rallied to new highs after Morgan Stanley raised its price target by about 9%. The broker said the company is likely to raise its full-year sales outlook in its upcoming earnings announcement. TSMC stock is more than 25% above a 148.43 double-bottom entry. Investors can take some gains off the table at the 20%-25% profit level.
Early Wednesday, Taiwan Semiconductor reported strong sales for the month of June, sparking a 2.9% rally in midday trading.
Outside Arm Stock: MakeMyTrip, Novo Nordisk
MakeMyTrip has helped pioneer online travel bookings in India. MakeMyTrip's services cover everything from flights, hotels, homestays and holiday packages to cabs, buses and trains.
It has also launched new business segments that provide travel solutions to companies and employees, as well as a comprehensive travel suite for travel agents.
MakeMyTrip is breaking out past an 89.83 buy point in a cup base, after a 4.7% rally Tuesday. Shares reversed down 0.6% Wednesday midday.
Denmark-based Novo Nordisk dropped nearly 2% Tuesday following the release of a new study that said patients lost significantly more weight on Eli Lilly's drug Mounjaro than Novo Nordisk's Ozempic.
Analyzing 18,386 selected obese or overweight patients who took the drugs showed that Mounjaro users lost 5.9% of their body weight after three months vs. 3.6% for Ozempic. After six months, Mounjaro users lost 10.1% of their weight vs. 5.8% for Ozempic users. At 12 months, Mounjaro users reduced their weight by 15.3% vs. 8.3% for those taking Ozempic.
Novo stock is in the 5% buy area above a 137.22 cup-with-handle entry and is on IBD Leaderboard. The stock moved up 1.2% Wednesday midday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on Arm stock, other best stocks to buy and watch and the Dow Jones Industrial Average.
