Morning News Wrap-Up: Wednesday's Biggest Stock Market Stories
Wednesday is chock-full of stock market news that traders will want to know about. Fortunately, TipRanks has a quick list of the biggest stories worth reading about today.
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PTL Limited (PTLE) stock rocketed on results from a shareholder meeting.
Houston American Energy (HUSA) stock plummeted on an agreement with an institutional investor.
Leishen Energy (LSE) stock surged as some shares were released from a lock-up.
Tesla (TSLA) stock rallied as its Chinese business rebounded.
Meta Platforms (META) stock got a new price target from Deepak Mathivanan of Cantor Fitzgerald.
Nvidia (NVDA) -backed SandboxAQ announced new medical data for AI training.
Alphabet's (GOOGL) Waymo got support from Wells Fargo.
Rising homebuilding costs have lowered construction to pandemic-era lows.
D-Wave Quantum (QBTS) stock underwent a massive rally over the past year.
Sarepta Therapeutics (SRPT) stock dove alongside dwindling analyst support.
Meta Platforms is reportedly attempting to poach AI talent from OpenAI.
D-Wave Quantum secured new government support.
Goldman Sachs analysts don't expect an interest rate cut until December.
SoundHound (SOUN) stock has suffered a nearly 50% drop year-to-date.
President Trump has pressured the Federal Reserve to cut interest rates.
Amazon (AMZN) has revealed plans to use AI to cut jobs.
Nintendo (NTDOF) stock reached a new all-time high following its Donkey Kong Bananza Direct.
OpenAI is offering cheaper prices for its enterprise version of ChatGPT.
First Solar (FSLR) stock got a seal of approval from J.P. Morgan despite a government setback.
Accenture (ACN) stock could rise 10% as it prepares to release its Q3 earnings.
Nio (NIO) stock received an upgrade and new price target from Goldman Sachs analyst Tina Hou.
The S&P 500 (SPX) was up today ahead of the Federal Reserve's interest rate decision.
Wix.com (WIX) has reached an agreement to acquire Base44.
President Trump plans to offer another extension to TikTok to prevent a ban.
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Globe and Mail
33 minutes ago
- Globe and Mail
Artificial Intelligence (AI) Titan Nvidia Has Scored a $4 Billion "Profit" in an Unexpected Way
For more than two years, no trend has been held in higher regard on Wall Street than the evolution of artificial intelligence (AI). With AI, software and systems are capable of making split-second decisions, overseeing generative AI solutions, and training large language models (LLMs), all without the need for human oversight. The long-term potential for this game-changing technology is truly jaw-dropping. If the analysts at PwC are correct, a combination of consumption-side effects and productivity improvements from AI will add $15.7 trillion to the global economy by the turn of the decade. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Although a long list of hardware and software/system application companies have benefited immensely from the AI revolution, none stands out more than tech titan Nvidia (NASDAQ: NVDA). But what you might be surprised to learn is that this highly influential AI company has scored a $4 billion "profit" in an uncharacteristic manner. Nvidia's hardware keeps AI data centers ticking It took less than two years for Nvidia to catapult from a $360 billion market cap to (briefly) the world's largest public company, with a valuation that handily surpassed $3.5 trillion. A $3 trillion-plus increase in valuation in such a short time frame had never been witnessed before. Nvidia's claim to fame is its Hopper (H100) and next-generation Blackwell graphics processing units (GPUs), which are the undisputed top options deployed in AI-accelerated data centers. Orders for both chips have been extensively backlogged, despite the efforts of world-leading chip fabrication company Taiwan Semiconductor Manufacturing to boost its chip-on-wafer-on-substrate monthly wafer capacity. When demand for a good or service outstrips its supply, the law of supply and-demand states that prices will climb until demand tapers. Whereas direct rival Advanced Micro Devices was netting anywhere from $10,000 to $15,000 for its Instinct MI300X AI-accelerating chip early last year, Nvidia's Hopper chips were commanding a price point that topped $40,000. The ability to charge a premium for its AI hardware, due to a combination of strong demand and persistent AI-GPU scarcity, helped push Nvidia's gross margin into the 70% range. Nvidia CEO Jensen Huang is also intent on keeping his company at the forefront of the innovative curve. He's aiming to bring a new advanced chip to market each year, with Blackwell Ultra (2025), Vera Rubin (2026), and Vera Rubin Ultra (2027) set to follow in the path of Hopper and Blackwell. In other words, it doesn't appear as if Nvidia will cede its compute advantages anytime soon. The final piece of the puzzle for Nvidia has been its CUDA software platform. This is what assists developers in maximizing the compute abilities of their Nvidia GPUs, as well as aids with building/training LLMs. CUDA has played a pivotal role in keeping clients loyal to Nvidia's ecosystem of products and services. Collectively, Nvidia's data center segment has helped catapult sales by 383% between fiscal 2023 (ended in late January 2023) and fiscal 2025, and sent adjusted net income skyrocketing from $8.4 billion to $74.3 billion over the same timeline. Wall Street's AI darling just scored a $4 billion "windfall" As you can imagine, most of Nvidia's more than $74 billion in adjusted net income last year was derived from its operating activities -- and this is how it should be for a market-leading growth stock. But it's not the only way Wall Street's AI darling can put dollars in the profit column. What's often overlooked about Nvidia is that it's also an investor. Just as institutional money managers with more than $100 million in assets under management (AUM) are required to file Form 13F no later than 45 days following the end to a quarter -- a 13F lays out which stocks, exchange-traded funds (ETFs), and select options were purchased and sold -- businesses with north of $100 million in AUM must do the same. This includes Nvidia. At the end of March, Nvidia had more than $1.1 billion invested across a half-dozen publicly traded companies. Accounting rules require Nvidia to recognize unrealized gains and losses each quarter, based on the change in value of the securities in its investment portfolio. Nvidia's largest investment holding is AI-data center infrastructure goliath CoreWeave (NASDAQ: CRWV), which went public in late March. Nvidia made an initial investment in CoreWeave of $100 million in April 2023, and upped its stake by another $250 million in March 2025, prior to its initial public offering (IPO). On a combined basis, Nvidia has put $350 million of its capital to work in Wall Street's hottest IPO. As of the closing bell on Friday, June 20, the 24,182,460 shares of CoreWeave that Nvidia held, as of March 31, were worth (drumroll) close to $4.44 billion. On an unrealized basis, Wall Street's AI titan is sitting on a $4 billion-plus "profit" from its investment. If you're wondering why "profit" is in quotations, it's because Nvidia may have reduced its stake in CoreWeave since the second quarter began. We won't know for sure until 13Fs detailing second-quarter trading activity are filed in mid-August. Further, this $4 billion unrealized gain can fluctuate, depending on where CoreWeave stock closes out the June quarter. Nevertheless, it's been one heck of a windfall for Nvidia. Is Nvidia playing with fire? While Nvidia has a solid track record of making smart investments in up-and-coming tech companies -- many of which it's partnered with -- there's also the real possibility it's playing with fire when it comes to CoreWeave. Don't get me wrong, CoreWeave has been a fantastic client for Nvidia. It purchased 250,000 Hopper GPUs for its AI-data centers, which it leases out to businesses looking for compute capacity. It's in Nvidia's best interest that CoreWeave succeed and upgrade its AI chips roughly twice per decade. But there are a number of red flags with CoreWeave that suggest its $88 billion valuation isn't sustainable. One of the biggest concerns with Wall Street's hottest IPO is that Nvidia's aggressive innovation cycles could hinder, not help, its business. Bringing an advanced AI chip to market annually has the potential to quickly depreciate CoreWeave's Hopper GPUs, and might send customers to rival data centers that have newer chips. When CoreWeave looks to upgrade its infrastructure in the coming years, there's a very good chance it'll recoup far less from its assets than it expects. CoreWeave has also leaned on leverage to build out its AI-data center. Relying on debt to acquire GPUs can lead to burdensome debt-servicing costs. For the moment, these servicing costs are adding to the company's steep operating losses. Valuation is another clear concern with CoreWeave. Investors are paying roughly 8 times forecast sales in 2026 for a company that's not time-tested and hasn't generated a profit. While Nvidia, undoubtedly, wants to see CoreWeave succeed, locking in its gains at these levels would make a lot of sense. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. 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Globe and Mail
an hour ago
- Globe and Mail
3 Stocks That Could Create Lasting Generational Wealth
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JPMorgan Chase is an advertising partner of Motley Fool Money. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Costco Wholesale, JPMorgan Chase, and Walmart. The Motley Fool has a disclosure policy.
Globe and Mail
2 hours ago
- Globe and Mail
The No. 1 Holding on Robinhood Is Expected to Soar by 646%, According to a Prominent Money Manager (and It's Not Nvidia or Apple!)
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This implies Nvidia won't have any trouble maintaining its compute advantages over direct rivals. But there are also clear reasons for Apple and Nvidia to fall to the respective No. 2 and No. 3 spots on Robinhood's "100 Most Popular" list, as of this writing on June 23. For Apple, it's the company's lack of growth. Between fiscal 2022 and fiscal 2024 (Apple's fiscal year ends in late September), Apple's net income fell from $99.8 billon to $93.7 billion, with net sales meandering lower from $394.3 billion to $391 billion. Even though the company is still a cash cow, its physical product sales have declined and there's not been much in the way of innovative momentum. Nvidia has potential red flags, too. Aside from increasing external and internal competition, as well as export restrictions to China, which is a key customer for Nvidia, the company is contending with historical precedent. Every next-big-thing technology for more than three decades (which includes the internet) has endured a bubble-bursting event. Nothing suggests AI will be an exception to this unwritten rule, which bodes poorly for Nvidia. Retail investors' favorite stock on Robinhood is an industry leader The brand-name artificial intelligence stock that's blown past Apple and Nvidia to become the most widely held of all securities on Robinhood is none other than electric-vehicle (EV) maker Tesla (NASDAQ: TSLA). This is a stock that Ark Invest's Cathie Wood believes will reach $2,600 per share by 2029, which would place its upside at a cool 646%, based on its closing price of $348.68 per share on June 23. Wood became a popular money manager to follow during the COVID-19 pandemic, with the Ark Innovation ETF more than quadrupling in value between the March 2020 lows and its peak during January 2021. Cathie Wood's upside thesis on Tesla revolves around big-time growth in the company's Ai-driven robotaxi operations. By 2029, Ark Invest believes 63% of the company's estimated $1.2 trillion in annual sales will come from robotaxis, with 86% of earnings before interest, taxes, depreciation, and amortization (EBITDA) attributable to robotaxis. Beyond Wood's lofty price target, retail investors also seem to appreciate Tesla's push to become more than just an EV company. Over the trailing four quarters (ended March 31, 2025), it's generated close to $11.2 billion in sales from energy generation and storage. This segment should help to minimize the cyclical ebbs and flows that come with being an auto stock. Furthermore, Tesla shareholders tend to believe in CEO Elon Musk's vision. Though Musk is anything but conventional, he's brought multiple EVs to market, pivoted Tesla toward energy products, helped deliver five years of recurring profits, and is overseeing the launch of his company's robotaxi service in Austin, Texas. However, the No. 1 holding of retail investors on Robinhood is anything but a slam-dunk investment. One of the primary issues with Tesla and its CEO is that there's a heavy emphasis on promises and innovation and very little in the way of actual execution. For example, Musk has been promising Level 5 autonomy "next year" for 11 straight years, yet his company hasn't moved past Level 2 autonomy. Additionally, Tesla's robotaxi service is limited to just 10 vehicles and is being geofenced to a small area in Austin since its technology remains unproven. Beyond promises not kept, Tesla's vehicle margin has plummeted as competition has picked up. Musk has previously noted that his EVs are priced according to consumer demand. With more than a half-dozen sweeping price cuts on Model's 3, S, X, and Y over the last two years, it's evident Tesla's first-mover advantages are waning. There's also a valuation argument that suggests Tesla stock can plunge. Whereas most auto stocks trade at high-single-digit forward-earnings multiples, Musk's company is valued at 121 times estimated EPS in 2026. Even though Tesla's EPS is on track to have declined by 39% (based on estimates) from 2022 through 2026, its shares are up 183% since the end of 2022. This makes no sense whatsoever and suggests Tesla stock has become widely detached from its underlying operating performance. Rarely do these detachments last for extended periods. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $383,569!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,025!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $689,813!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. *Stock Advisor returns as of June 23, 2025
