Reported 2 months ago
Apple's recent shift towards training its AI models using Google's TPUs instead of Nvidia's GPUs raises concerns for Nvidia investors. This decision highlights the growing competition in the AI chip market, suggesting that companies may opt for more cost-effective and efficient alternatives. With major customers looking to reduce their reliance on Nvidia, the potential for slowed revenue growth poses a significant risk to Nvidia's stock value.
Source: YAHOO
Reported 2 months ago
In the current earnings season, major tech companies like Meta, Microsoft, Amazon, and Apple are ramping up their investments in AI, with spending projected to be in the tens of billions. This escalated spending is seen as part of a competitive race to dominate generative AI, which many believe could be the next transformative technology. However, concerns are raised about whether such high stakes may lead companies to push AI solutions even when they may not be necessary, as the industry has previously seen transformative technologies fail to deliver on their promises.
Source: YAHOO
Reported 2 months ago
The Federal Reserve is hinting at potential interest rate cuts in September, driven by easing inflation, yet high mortgage rates may remain a significant hurdle for homebuyers. Currently, the 30-year fixed mortgage rate is around 6.73%, significantly higher than the pandemic lows, and experts predict it will stay above 6% well into 2025. As a result, the anticipated rate cuts are unlikely to provide meaningful relief for those seeking to enter the housing market.
Source: YAHOO
Reported 2 months ago
Bank of America's Michael Hartnett warns that stocks are expected to decline following the Federal Reserve's first interest-rate cut, which he believes will indicate a hard landing for the US economy. Historical patterns since 1970 show that such rate cuts, especially amid economic downturns, often lead to negative outcomes for stocks. Hartnett notes that volatility is rising and the equity market is already weakening as investors prepare for potential rapid easing by the Fed later this year.
Source: YAHOO
Reported 2 months ago
The National Highway Traffic Safety Administration (NHTSA) has escalated its investigation into nearly 1 million Dodge SUVs, specifically targeting the Dodge Journey models produced between 2009 and 2020 due to issues with faulty door locks and windows.
Source: YAHOO
Reported 2 months ago
U.S. index futures dropped significantly following poor forecasts from Amazon and Intel, causing concern among investors who await a crucial jobs report. Amazon's shares fell 8% due to slowed online sales growth, while Intel's stock plummeted 21% after disappointing revenue projections and a dividend suspension. The broader market showed weakness, particularly in major tech stocks, as fears of an economic slowdown continue to mount, with all eyes on the upcoming nonfarm payrolls data for insights into the labor market.
Source: YAHOO
Reported 2 months ago
Walmart's commitment to low pricing will be challenged as it prepares to report its quarterly results after Amazon cautioned that consumers are increasingly searching for bargains, negatively impacting its revenue outlook. Major retailers like Walmart and Target are focusing on keeping prices low amidst inflation, with Walmart expected to see its slowest revenue growth in nearly two years. This trend reflects a shift in consumer behavior towards discount shopping, as highlighted by Amazon's forecast of subdued sales for the upcoming quarter.
Source: YAHOO
Reported 2 months ago
GDS Holdings Ltd. is seeking to raise up to $1 billion for its international data center operations outside China. Following a successful fundraising earlier this year, the company is in discussions with global investors to enhance its presence in Southeast Asia. If successful, GDS will retain a significant minority stake in the business. The company has already raised hundreds of millions for its non-China ventures and operates data centers in locations including Singapore and Malaysia, despite reporting a net loss in the first quarter of this year.
Source: YAHOO
Reported 2 months ago
Global markets are experiencing significant turmoil following the Federal Reserve's decision to maintain interest rates, leading to a sharp drop in stock prices worldwide. Investors' faith in Jerome Powell's ability to achieve a soft landing for the economy is waning amidst rising unemployment claims and disappointing manufacturing data. The Fed's inaction has prompted concerns that it may have missed its opportunity to prevent a deeper economic slowdown, resulting in a sell-off, particularly in tech stocks.
Source: YAHOO
Reported 2 months ago
Source: BARRONS
Reported 2 months ago
Warren Buffett's investment strategy has consistently outperformed the market over the decades, and three of his stocks are highlighted as excellent buys for August. Visa, despite a recent stock dip, remains a robust financial leader with significant growth potential and is relatively inexpensive. Amazon, a powerhouse in e-commerce and cloud services, also presents a valuable investment opportunity due to its innovative approach and strong cash flow. Lastly, Sirius XM, though struggling with market performance, possesses unique advantages in the radio industry, with a strong subscription model and pricing power, making it an attractive buy as well.
Source: YAHOO
Reported 2 months ago
SoftBank Group Corp.'s stock decline has resulted in a $2.6 billion reduction in founder Masayoshi Son's fortune,as the company grapples with an early interest rate hike from the Bank of Japan. In just two days, SoftBank shares plummeted about 14%, impacting both Son's wealth and the broader market sentiment, despite his wealth still being higher than at the start of the year.
Source: YAHOO
Reported 2 months ago
Investors seeking reliable income through dividends should consider three stocks: NextEra Energy, with its stable growth driven by its position in renewable energy; Parker-Hannifin, a Dividend King with a strong history of annual increases; and Brookfield Renewable, poised for growth with significant investments planned. Each company demonstrates robust dividend stability and potential for future increases, making them compelling options for dividend-focused investors.
Source: YAHOO
Reported 2 months ago
Apple Inc. is optimistic that new AI features will drive iPhone upgrades, offsetting a sales slowdown, particularly in China, amid a competitive market. CEO Tim Cook noted the AI tools should provide a compelling reason for customers to buy new devices, contributing to an expected revenue growth of around 5% in the upcoming September quarter, despite a recent 6.5% decline in Chinese sales.
Source: YAHOO
Reported 2 months ago
Tesla reported a 15.3% increase in sales of China-made electric vehicles in July, totaling 74,117 units, according to the China Passenger Car Association. Deliveries of the Model 3 and Model Y rose 4.4% compared to June. In comparison, Chinese competitor BYD achieved a remarkable 30.5% increase, reaching a record monthly sales of 340,799 units.
Source: YAHOO
Reported 2 months ago
Nvidia's stock has witnessed a sharp decline of 26% over six weeks, raising concerns that a further drop of up to 80% could follow, based on historical trends with past technology market leaders. The company's dominance in the AI sector, driven by its GPUs, is challenged by increasing competition from rival companies and internal developments among its largest clients. As the AI bubble potentially starts to burst, investors are advised to reconsider their positions in Nvidia.
Source: YAHOO
Reported 2 months ago
US Treasury bonds have rallied for seven consecutive days as traders anticipate aggressive interest rate cuts by the Federal Reserve, ahead of key employment data. Currently, markets predict three consecutive quarter-point cuts by the Fed in the coming months, with some speculating about the possibility of a larger cut. This shift comes after signals from the Fed Chair regarding potential rate reductions and concerns about the labor market's performance.
Source: YAHOO
Reported 2 months ago
Arm Holdings, viewed by some investors as the 'next Nvidia', has seen its stock price double since its public debut in September 2023. Morgan Stanley's analyst, Lee Simpson, forecasts a 130% rise in its shares, targeting $300, citing Arm's effective business model and growing market share in CPUs for mobile devices and cloud computing. However, concerns about its high valuation and slower-than-expected earnings growth suggest potential investors should proceed cautiously.
Source: YAHOO
Reported 2 months ago
As major tech companies like Amazon, Microsoft, and Alphabet report earnings, they face skepticism from Wall Street about the profitability of their significant investments in AI infrastructure. Despite some positive growth in their cloud computing divisions, the expected returns from AI initiatives remain elusive, leaving investors questioning the value of these expenditures in light of recent declines in share prices.
Source: YAHOO
Reported 2 months ago
Intel plans to lay off over 15% of its workforce, approximately 17,500 employees, and suspend dividend payments to refocus on its manufacturing operations. The company forecasts third-quarter revenues below market expectations, prompting a significant drop in its stock price. CEO Pat Gelsinger indicates a shift in strategy towards enhancing AI chip production and cutting costs, while competitors like Nvidia continue to thrive in the AI market.
Source: YAHOO
Reported 2 months ago
Nintendo reported a significant 55% decrease in profit for the April-June quarter due to declining sales of both its Switch game console and software. The company, which has sold over 140 million Switch units since its launch, saw a drop in console sales from 3.9 million to 2.1 million year-on-year. Despite the downturn, Nintendo emphasized that its recent performance aligned with analysts' expectations, and it plans to release new titles and maintain its revenue through popular franchises like Mario and Zelda.
Source: YAHOO
Reported 2 months ago
Nigerians protesting against soaring living costs faced a violent crackdown from security forces, leading to at least 13 fatalities. Demonstrators, chanting that they are hungry, filled the streets in various cities, prompting three northern states to impose a curfew. Amnesty International condemned the government's actions and called for an investigation into the incidents. The unrest follows a series of protests organized on social media aimed at highlighting the inflation crisis in the country.
Source: YAHOO
Reported 2 months ago
European technology stocks fell to their lowest point in over six months, declining 3.6% as the market responded to a global sell-off and disappointing earnings from Intel, which saw its shares plunge 20% after suspending its dividend and announcing significant job cuts. The downturn affected other semiconductor companies in Europe while broader indices also dipped, highlighting a widespread retreat in equity markets.
Source: YAHOO
Reported 2 months ago
Intel is poised to experience its most significant drop in market value in 24 years, with shares projected to plummet 20% after the company announced a dividend suspension and a 15% workforce reduction to fund a costly restructuring of its chip-making operations. This follows disappointing forecasts of quarterly revenue, reflecting its struggles to catch up with competitors like TSMC, significantly diminishing its market capitalization.
Source: YAHOO
Reported 2 months ago
Nintendo's operating profit plummeted 71% due to a slowdown in consumer demand for its aging Switch console as they await the launch of a new model. The company reported a substantial decline to ¥54.51 billion ($365.1 million) for the quarter ending June, significantly less than analysts' expectations. With competition from Sony's PlayStation 5 and no major software releases lined up, Nintendo faces challenges in maintaining sales of its seven-year-old hardware while planning to unveil a new console by March.
Source: YAHOO