Latest news with #JoshSchafer
Yahoo
a day ago
- Business
- Yahoo
College grads hit a wall: Tech jobs dry up amid AI boom
Recent graduates are having a harder time landing jobs, with their unemployment rate now above the national average. Yahoo Finance Markets Reporter Josh Schafer joins Market Domination Overtime to explain how a slowdown in tech hiring and rising use of artificial intelligence (AI) are reshaping the entry-level job market. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Recent college grads are finding it increasingly difficult to find jobs, and the gap between them and the national average is growing. Joining us now for more is Yahoo Finance market reporter, Josh Schafer. Hey Josh, yes, so we talk a lot about the unemployment rate in America being relatively low. So the unemployment rate that we're looking at on our screen here is in green. It is 4.2%. If you look over time, that is a historically low unemployment rate. But when we zoom into this chart that we're looking at here, we're seeing an interesting trend on who is having a hard time finding a job. So in our white line, we have recent college graduates. Recent college graduates constitute, uh, individuals that are 22 to 27 that just got a degree. Notice the white line typically goes underneath that green line on your screen. So typically it's moving lower. Normally those folks are having an easier time finding a job. But when you zoom in to what's happening right now, you'll see that college graduates are actually having a harder time finding a job than the national average. Two key things to point out with this data. So the folks over at Oxford Economics told me one of the big things we're seeing is AI is definitely playing a little bit of a role here. So AI could be taking in entry-level analyst jobs, entry-level jobs in tech. There's less jobs for these newcomers coming into the job market. Another key piece of this chart in 2022 is when we saw this shift. A lot of college graduates have been going to get a science degrees over the last couple years, right? They've been going into tech. Well, now what's happened since 2022, we've had that year of efficiency from meta and really across tech. There's less jobs in tech now than there used to be. The folks over at indeed told me they've seen a 40% drop in job postings for computer software jobs compared to 2020. So again, there's simply less jobs for people coming into tech right now. So graduates are graduating, they're looking for jobs, they're looking for jobs and they're continuing to not find them as quickly as they used to. So Josh, part of this, it sounds like is, is the jobs that they're targeting, you're saying? Yes, definitely. It's definitely something that we're seeing specifically in tech, and then when you look at how many college graduates are getting a degree in something like information technology, something like computer science. We had sort of skewed because of this big tech boom over the last 20 years, everyone wants to go get into tech, right? Go learn to code now. Well, that's been a shift because some of those jobs are simply being taken, like I said, by AI, or are now being not offered anymore because these companies are trying to slim down. So it's specifically right now seems to be perhaps a tech sector focus. But economists did tell me that this is one reason that the overall unemployment rate is not expected to be falling anytime soon. All right, thank you, Josh. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
College grads hit a wall: Tech jobs dry up amid AI boom
Recent graduates are having a harder time landing jobs, with their unemployment rate now above the national average. Yahoo Finance Markets Reporter Josh Schafer joins Market Domination Overtime to explain how a slowdown in tech hiring and rising use of artificial intelligence (AI) are reshaping the entry-level job market. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Fed's preferred inflation gauge shows price increases cooled in April
The latest reading of the Federal Reserve's preferred inflation gauge showed price increases slowed in April as inflation remained above the Fed's 2% target. The release comes as investors have been closely watching data releases for signs of how President Trump's tariff policy is impacting the economy. The "core" Personal Consumption Expenditures (PCE) index, which strips out food and energy costs and is closely watched by the central bank, rose 2.5% on an annual basis, in line with expectations and lower than the 2.7% seen in March. Core prices rose 0.1% in April from the prior month, in line with expectations and the monthly increase seen in March. On a yearly basis, PCE increased by 2.1%, below the 2.2% economists had expected. The release is yet another sign that while economists and consumers alike expect Trump's tariffs to push prices higher, inflationary impact from policy largely isn't showing up in hard economic data. Friday morning's release reflects the month of April, the first month the large portion of Trump's tariffs were in effect. It does not include any impacts from the 90-day tariff pause between the US and China. On Wednesday, minutes from the Federal Reserve's May meeting revealed officials are growing increasingly concerned about how Trump's policies could impact its fight against inflation. "Almost all participants commented on the risk that inflation could prove to be more persistent than expected," the minutes read. Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Nvidia earnings: What's driven the chip stock in the AI era
AI chip giant Nvidia (NVDA) is due to release its latest earnings report after Wednesday's market close, rounding out the last of the Magnificent Seven this earnings season. Yahoo Finance senior markets reporter Josh Schafer comes on Catalysts to outline several charts tracking Nvidia's stock performance around certain events, including the launch of OpenAI's ChatGPT and how the company outperforms its chip competitors. Catch Yahoo Finance's coverage of how the chip stock historically reacts to earnings and the areas that matter the most for the semiconductor titan. Tune in to Yahoo Finance's special live coverage of Nvidia's first quarter earnings here, beginning at 4:15 p.m. on Wednesday, May 28. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. NVIDIA earnings do out after the closing bell today. I want to bring in our very own Josh Shafer. Steve Sosnik's still here with us, but Josh, I know that you're looking at a few charts that investors should keep top of mind heading into the print today. Yeah, Maddie, so we took a look at a list of charts since the launch of ChatGPT, which would have been November of 2022, and just tried to explain NVIDIA's performance. How do we get here two years later after really what was that big earnings report two years ago that sent the stock soaring, right, in May of 2023? First chart is pretty simple. It's just the top five performers in the S&P 500 since ChatGPT was launched. You can see NVIDIA far outperforming the others there. Interesting point on this chart as well, when you take a closer look at it, several of the stocks that are included in the best performers in the S&P 500 actually weren't even in the index when ChatGPT was launched. I'm looking at Super Microcomputers, Coinbase to name two of those. And then I think other interesting here is just how NVIDIA has sort of surpassed its competitors, right? So we took a look at simply market cap growth among three companies that really should sort of be in this AI race. You have, of course, have NVIDIA, you have AMD, and you have Intel, which its market cap has actually fallen over the last two and a half years. But I think the core question here, of course, is why, right? And you hear a lot about sort of the hype story with NVIDIA. You can go to a bar in Manhattan now and someone might talk to you about this stock and they don't really know exactly what it does, right? But when you look at the fundamentals and you look at simply the revenue growth that this company has seen since November 2022, it's absolutely skyrocketed, right? You were in revenue less than 10 billion. We're zooming in on that chart right now. Revenue closer to almost 40 billion from a total. That purple section there is data center revenue. Of course, that's the key metric. Steve, I look at a chart like this and it makes a lot of sense to me why a stock would rally as much as it has, right? You're looking at a massive rate of change in the fundamentals of the company. But I also look at that chart and I see it not growing as much every single quarter, right? And it makes me sort of wonder if I'm an investor, what happens next after this sort of rally and how do we think about the fundamental story of NVIDIA? The law of large numbers catches up to you sometimes. I mean, when you, when you think about it, you know, I, I before you came on, Maddie, and I, it's in the, in a prior segment that, you know, I, I contrasted the current AI gold rush with, let's say, with the, with the internet era, which, you know, and I said these companies make money. I mean, NVIDIA, NVIDIA's trading at about a 31 estimated PE, but it's PEG ratio, meaning the, the price earnings, the forward price earnings over its growth is about one. That's typically not a wor, you know, you, you start to worry when you see two, three, four, five, or infinite, but in this case, the earnings, you're, you're getting delivered earnings. You're getting delivered top line and bottom line. So of ultimately, yes, it's, it's hard to imagine that this, that this growth rate can continue just as the company gets so big. It's now the second largest component of the S&P 500. But, um, to your point, it's, it's there. Top and bottom line is there. Yeah, does make some sense. Well, another question I have to if we can pull up the second chart here that shows NVIDIA outperforming some potential competitors, the likes of Arm and Intel. Steve, is that bullish or bearish? Like, is that outperformance going to be justified going forward, or is that a valuation fear chart to you? The question is, can the other ones, is their lead insurmountable? Um, and, you know, tech is littered with companies who had insurmountable leads that, that got caught upon. I mean, you mentioned Intel among others. So, is it going to happen next week, next month? Probably not. Will some of these other competitors catch up? You know, or the flip side is, you know, does the deep seek, um, situation mean that people can get away with There's deep seek. Like, we're not talking about deep seek enough, I think, and you correct me. Exactly. No, it's the first time I've used the term in, in, in weeks, but you know, that was that a flash in the pan, or was that real? If it, you know, and I think we'll probably hear something from Jensen Huang, you know, tonight about that. But, um, you know, if, if there are alternatives to some of the more expensive, you know, NVIDIA chips, which to be fair, again, using my limited knowledge of, of chip set design, Blackwell seems to be the real thing in terms of the amount of calculations it could do, price performance ratio. But in term, you know, can do you need that sort of, do you need that to get to where you need to be in AI? That's a huge question as well. Well, and to the deep seek point too, I think the other question here is, so if I'm an investor and I just want to invest in the broad AI theme, do I then move from maybe semiconductors into something else, right? I was just at an outlook earlier this morning with the team over at Bernstein Private Wealth, and one of their strategists was saying, what we're telling investors, if they come to us and just say we're interested in AI as the theme, maybe look at a big box retailer that could benefit from AI, right? If we're thinking deep seek could disrupt the chip organization, and deep seek makes everything cheaper, well, where does that sort of fall, and who does that benefit? It would benefit the end user, right? And so where are the opportunities sort of outside this space? Steve's smiling like he probably already made this point earlier, right? But I think that's definitely one of the growing conversations that we've continued to talk about more and more, it seems like. Maddie elicited that comment from me earlier. So, yeah, this is exact, this is exactly what it is. Ultimately, a, for the same reason the internet worked and became a transformative technology, it was because companies could do stuff with it that, that really helped their bottom line. I work the company I work for, interactive brokers, we, we, we had this tiny little web brokerage division. And now as a result, you know, now we've completely, the business model of our company is completely different than where we were when I joined it in a good way, right? But, but so this is the, you know, there, there are going to be uses for AI. There's, you know, if, if this, if the promises is real, it's going to affect all kinds of companies, but it's not going to happen overnight, and we have to see that at some point because you can't just keep spending money, billions of dollars on stuff without it actually yielding some result. Well said, Steve. Thank you so much. And thank you, Josh, for bringing us those fantastic charts here. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Nvidia earnings: What's driven the chip stock in the AI era
AI chip giant Nvidia (NVDA) is due to release its latest earnings report after Wednesday's market close, rounding out the last of the Magnificent Seven this earnings season. Yahoo Finance senior markets reporter Josh Schafer comes on Catalysts to outline several charts tracking Nvidia's stock performance around certain events, including the launch of OpenAI's ChatGPT and how the company outperforms its chip competitors. Catch Yahoo Finance's coverage of how the chip stock historically reacts to earnings and the areas that matter the most for the semiconductor titan. Tune in to Yahoo Finance's special live coverage of Nvidia's first quarter earnings here, beginning at 4:15 p.m. on Wednesday, May 28. To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
