Latest news with #AI-linked
Yahoo
17-05-2025
- Business
- Yahoo
Crypto Miners Soar on OpenAI-CoreWeave Deal; Galaxy Jumps in Nasdaq Debut
While cryptocurrencies put in a flattish performance on Friday with bitcoin BTC churning around $104,000, crypto-related stocks were having a moment to shine. Crypto mining and data center firms such as Cipher Mining (CIFR), Hive Digital (HIVE), Hut 8 (HUT) and TeraWulf (WULF) booked 10%-20% gains on optimism about artificial intelligence (AI) computing demand, jolted by CoreWeave (CRWV) signing a $4 billion deal with ChatGPT-developer OpenAI. These firms are often seen as proxies for AI-linked infrastructure bets due to their data center assets. For its part, CoreWeave soared more than 26%. The rally extended to Galaxy Digital (GLXY), which rose 8% on its first day of trading on the Nasdaq, marking the firm's long-awaited U.S. market debut. The company, previously only listed in Toronto, manages crypto investments and trades digital assets and also has a data center business. Crypto exchange Coinbase (COIN) rebounded 9% after a sharp drop Thursday triggered by customer data breach and ongoing regulatory scrutiny by the U.S. Securities and Exchange Commission (SEC).DeFi Development (DFDV), the real estate tech firm with a Solana SOL treasury strategy, surged 45% to fresh record highs on news of striking a validator operation deal with memecoin BONK BONK and adding more SOL tokens to its balance sheet. Meanwhile, BTC held just above $104,000, up 1.3% over the 24 hours, while ether ETH gained 2.3% to $2,580. The broad-market CoinDesk 20 Index was flat, with XRP XRP underperforming as a U.S. judge rejected the settlement proposal between Ripple and the SEC. On the macro front, the University of Michigan's latest inflation survey showed consumers expect 1-year inflation to rise to 7.3%, up from 6.5%, the highest since the 1980s, while expectations for 5-10 years ticked up to 4.6%, a multi-decade high. "It's so high it doesn't make sense," Louis Navellier, chief investment officer of money management firm Navellier said in a market note. Responses showed staggering divergence in outlooks by political affiliations, with the Republican outlook for far tamer inflation. Traditional markets, consequently, shrugged off the data, with major U.S. stock indices climbing higher towards the latter hours of the session. However, rising inflation expectations may have a second-order impact on markets by discouraging Fed policymakers from cutting rates in the next months. "The concern here is that the Fed has expressed interest in consumer expectations on inflation, and with their concern about the potential of tariff-fueled inflation, it may give them further reason to pause," Navellier said.
Yahoo
10-04-2025
- Business
- Yahoo
Microsoft stock slips. Wedbush says trade war uncertainty will hit AI plans and earnings
Microsoft (MSFT) stock fell more than 5% in afternoon trading certainty, with Amazon (AMZN) and the other Magnificent 7 shares also losing ground as investors continued to reassess the fallout from this week's abrupt tariff pause — and its likely ripple effects across corporate IT spending. Adding to the pressure, Wedbush Securities cut its 12-month price target for Microsoft stock by almost 14%, from $550 per share to $475. Wedbush warned that economic whiplash and tariff turmoil were putting enterprise tech budgets on ice, especially for big-ticket cloud and AI projects. The influential investment firm maintained its Outperform rating on Microsoft stock but said the 'tariff game of poker' unfolding in Washington has already 'created real damage to the corporate spending mentality.' Microsoft, with deep exposure to AI and cloud infrastructure, is likely to feel that demand-side chill first. Wedbush analysts described the past week as an 'economic Twilight Zone' after President Donald Trump announced sweeping tariffs — then abruptly paused them for 90 days. While the temporary truce offered short-term relief, Wedbush emphasized that 'thinking this tariff issue is now done is the wrong view,' arguing that the true impact on enterprise budgets and IT roadmaps will begin to emerge in second-quarter tech earnings. In one of its most pointed warnings, Wedbush called the tariffs 'a negotiation tactic for Trump,' but said the gamble could have real and lasting consequences: 'The impacts and gamble to the real economy are a snowball that once it starts rolling downhill it cannot be just investors will see that front and center during earnings season for tech kicking off in the next few weeks.' Wedbush estimates that 10% to 15% of cloud and AI initiatives across U.S. enterprises could be pushed out amid the current economic uncertainty — potentially dragging down growth in Microsoft's Azure and AI-linked revenue through the summer. Investors, Wedbush suggested, may need to write off the current quarter as a 'mulligan' for Microsoft and other major tech firms. While remaining bullish on Microsoft, Wedbush advised that, 'Investors will need to buckle the seat belt and look past the next few quarters of choppiness — and hold the tech winners through the storm.' For the latest news, Facebook, Twitter and Instagram. Sign in to access your portfolio
Reuters
21-03-2025
- Business
- Reuters
Chipmaker Micron's shares slump as tepid margin forecast eclipses AI prospects
March 21 (Reuters) - Micron's (MU.O), opens new tab shares fell 8% on Friday, as its dour margin forecast took the shine off a robust quarterly revenue outlook driven by demand for its semiconductors used in artificial intelligence tasks. Micron, one of only three providers of high-bandwidth memory (HBM) chips for data-intensive generative AI applications, forecast adjusted gross margin below estimates on Thursday, as lower pricing for consumer memory chips hits profitability. After a 1.4% drop in 2024, Micron's shares have gained more than 13% this year as investors bet on improving consumer memory chip pricing and expected the company to benefit from its essential position in AI supply chains. "NAND Flash oversupply remains a drag on margins," Rosenblatt analysts said in a note on Friday, referring to a type of memory chip used in consumer electronics like smartphones and personal computers. Soft end-market demand and aggressive buying by electronics suppliers during the pandemic led to oversupply of the consumer memory chips, resulting in weaker pricing. Micron forecast third-quarter adjusted gross margin of about 36.5%, marginally below analysts' average estimate of 36.9%, according to data compiled by LSEG. The forecast represents a sequential drop of 3 percentage points. "There has been a challenging industry environment in NAND," Micron's chief business officer Sumit Sadana said on Thursday during a post-earnings call. Micron has been cutting back on NAND production, resulting in underutilization which spreads fixed costs over a smaller output, hurting margins. AI DEMAND PERSISTS The ramp-up of HBM production to meet strong demand for its AI memory chips from GPU market leaders like Nvidia (NVDA.O), opens new tab, has also pressured margins. Micron forecast third-quarter revenue above estimates, owing to AI-linked strength. "We see high-bandwidth memory as a key growth driver," Morningstar analysts said, adding that they expect "continued AI and data center demand."
Yahoo
07-03-2025
- Business
- Yahoo
AI Stocks Are Crashing--But Wall Street's Top Picks Seem to Be a Once-in-a-Decade Buying Opportunity
Micron Technology (NASDAQ:MU) and Broadcom (NASDAQ:AVGO) are still Citi's top AI-linked semiconductor picks, even as chip sales stumbled in January. The sector pulled in $50.8 billion, down 14% month-over-monthworse than the typical 9.1% seasonal dip. The drag came from weaker memory and microcontroller sales, but Citi isn't backing down. AI now makes up around 20% of semiconductor demand, and Citi expects inventory replenishment in the analog space to fuel a 13% rebound in 2025. Texas Instruments, Microchip, Analog Devices, and NXP Semiconductors are also in the spotlight as potential winners. Warning! GuruFocus has detected 3 Warning Sign with MU. Broadcom, a quiet giant handling 99% of all internet traffic, is cashing in on AI's explosion. In its latest quarter, AI-driven revenue soared 77% to over $4 billion, while infrastructure software jumped 47%pushing total sales to a record $15 billion. Cloud providers are loading up on Broadcom's connectivity tech and XPUs to accelerate AI workloads, and the company is already shipping samples of its next-gen Tomahawk switch. Looking ahead, Broadcom's three largest cloud customers alone represent a $6090 billion opportunity by 2027. And that doesn't even count the four additional cloud players knocking on its door for custom AI accelerators. Despite a 26% dip since late January, Broadcom's stock trades at 28 times forward earningsfar below its 37-times multiple earlier this year. For investors, this setup is hard to ignore. AI demand isn't slowing down, and the semiconductor sector is primed for a major rebound next year. Micron, Broadcom, and leading analog chipmakers are sitting in the driver's seat as AI weaves deeper into cloud computing, enterprise applications, and next-gen data centers. The short-term volatility? Just noise. The real story is unfolding over the next decadeand these names are at the center of it. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
07-03-2025
- Business
- Yahoo
AI Stocks Are Crashing--But Wall Street's Top Picks Seem to Be a Once-in-a-Decade Buying Opportunity
Micron Technology (NASDAQ:MU) and Broadcom (NASDAQ:AVGO) are still Citi's top AI-linked semiconductor picks, even as chip sales stumbled in January. The sector pulled in $50.8 billion, down 14% month-over-monthworse than the typical 9.1% seasonal dip. The drag came from weaker memory and microcontroller sales, but Citi isn't backing down. AI now makes up around 20% of semiconductor demand, and Citi expects inventory replenishment in the analog space to fuel a 13% rebound in 2025. Texas Instruments, Microchip, Analog Devices, and NXP Semiconductors are also in the spotlight as potential winners. Warning! GuruFocus has detected 3 Warning Sign with MU. Broadcom, a quiet giant handling 99% of all internet traffic, is cashing in on AI's explosion. In its latest quarter, AI-driven revenue soared 77% to over $4 billion, while infrastructure software jumped 47%pushing total sales to a record $15 billion. Cloud providers are loading up on Broadcom's connectivity tech and XPUs to accelerate AI workloads, and the company is already shipping samples of its next-gen Tomahawk switch. Looking ahead, Broadcom's three largest cloud customers alone represent a $6090 billion opportunity by 2027. And that doesn't even count the four additional cloud players knocking on its door for custom AI accelerators. Despite a 26% dip since late January, Broadcom's stock trades at 28 times forward earningsfar below its 37-times multiple earlier this year. For investors, this setup is hard to ignore. AI demand isn't slowing down, and the semiconductor sector is primed for a major rebound next year. Micron, Broadcom, and leading analog chipmakers are sitting in the driver's seat as AI weaves deeper into cloud computing, enterprise applications, and next-gen data centers. The short-term volatility? Just noise. The real story is unfolding over the next decadeand these names are at the center of it. This article first appeared on GuruFocus.
