Latest news with #Reitzes
Mint
22-07-2025
- Business
- Mint
Apple needs to leave its ‘comfort zone' on AI. Elon Musk could help.
Apple's struggles with artificial intelligence are becoming critical. It needs to do something big to be a real player in that area, and a partnership with Elon Musk's xAI could be the ticket required, according to Melius Research. Apple has repeatedly delayed promised AI updates to Siri, its digital assistant. That has undercut hopes that such an upgrade could revive growth in iPhone revenue, which has stagnated since hitting $205 billion in Apple's fiscal 2022. Apple shares were down 16% this year as of Friday's close. The prospect that Apple will be able to deliver an impressive AI-enabled iPhone on its own is becoming more remote. The company recently lost one of its top AI researchers—Ruoming Pang, who led its machine-learning foundation model team—to Meta Platforms, according to The Wall Street Journal. That means the focus is on Apple's potential to strike a deal with an external AI partner. Melius's Ben Reitzes says Elon Musk's xAI could be the ally it needs. 'Apple could provide xAI with the users it needs to top [ChatGPT developer] OpenAI in return for giving Apple all the benefits of owning an LLM [large language model] without the capex," wrote Reitzes in a research note on Monday. Apple didn't immediately respond to a request for comment from Barron's on its AI plans. Any AI deal that Apple strikes with a third party risks its lucrative relationship with Alphabet's Google, in which the iPhone marker receives a percentage of the ad revenue from searches on its devices. The arrangement, which makes Google the default search engine on Apple devices, led to a $20 billion payment from Google to Apple in 2022, according to court filings. However, the Google-Apple deal is already at risk, with a judge currently considering potential curbs on the search-engine company after ruling last year in an antitrust lawsuit brought by the Justice Department that it had acted as a monopolist. That could make the time ripe to look elsewhere. A deal offering Apple a cut of subscriptions to xAI's products could offset a loss of revenue from the Google deal. One drawback of a partnership with xAI would be to leave Apple dependent on an external partner and a controversial one at that, with xAI's Grok chatbot having recently published a number of antisemitic posts. The company subsequently removed the posts and said they were the result of unauthorized changes made to the chatbot. Apple's preference for tight control over its platforms could mean it prefers to buy an AI provider. The search specialist Perplexity is a potential target frequently mentioned by analysts. Acquiring Perplexity could cost Apple more than $20 billion, considering its latest valuation of around $18 billion, but would likely still boost its shares, according to Reitzes. The Melius analyst calculates that if 100 million Apple users bought Perplexity's Pro Tier subscription at $200 a year, that would completely cancel out the potential loss of Google payments. 'Tim Cook and his team are likely to be rewarded for thinking bolder to accelerate Apple's AI push, even if they have to step out of their comfort zone," Reitzes wrote. News Corp, the owner of Barron's publisher Dow Jones, has sued Perplexity, alleging copyright infringement. News Corp also signed a multiyear partnership with OpenAI in March 2024. The stock was up 1.3% at $213.97 in early trading. Reitzes has a Buy rating and $240 target price on the stock. Write to Adam Clark at
Axios
14-07-2025
- Entertainment
- Axios
How Lois Reitzes would spend the perfect day in Atlanta
Lois Reitzes is well known around Atlanta for her decadeslong presence on WABE, the local NPR affiliate station. Driving the news: Even though she retired last month after 45 years on air, Reitzes' signature soothing voice will still make the occasional guest appearance on WABE. The Atlanta resident told Axios she has some author interviews she'd like to pursue in the next several months, but wants to give The City Lights Collective, the show that replaced hers, an opportunity to settle in before she pitches her ideas. "I've been listening since Monday," said Reitzes, who now holds the title of director emeritus of Arts & Cultural Programming at WABE. "It's superb." Zoom in: In the meantime, Reitzes will have plenty of chances to live out her perfect day in Atlanta. Here's what her ideal schedule would look like: Wake up: First on the list is grabbing a pastry from Alon's Bakery in Morningside and taking it back to her Virginia Highland home to savor with coffee. Reitzes and her husband Don like to read physical copies of the Atlanta Journal-Constitution, New York Times and The New Yorker. After breakfast: Reitzes would enjoy the latter half of her morning with a visit to the High Museum of Art or the Museum of Design Atlanta. Since it's close enough, she would also check out the Center for Puppetry Arts, which she calls "one of my happy places." Lunch: Before retiring, Reitzes said she'd normally eat at her desk. Since work is no longer a barrier, Murphy's or Shake Shack would be on the list. "If poetry were a chocolate milkshake, it would be from Shake Shack," Reitzes told Axios. "It's not worth the splurge if it isn't really deep with chocolate and thick and great." When she's not craving a milkshake, Reitzes and her husband also like Anis Café & Bistro, a French restaurant in Buckhead, and Sotto Sotto in Inman Park. Dinner: Reitzes and her husband host cocktail hour at home (or enjoy the drinks at Highland Tap, one of her husband's favorite places) and then walk to nearby restaurants. If she is with her grandchildren, the family grabs dinner (or lunch) at Casi Cielo in Sandy Springs or Storico Fresco Ristorante in Buckhead. The bottom line: The voice that graced our public radio airwaves for four decades told Axios she hopes people, particularly Atlanta transplants, will appreciate the variety of museums, art galleries, theaters and music venues that call the city home.
11-07-2025
- Business
Canada added 83,000 jobs in June, sending unemployment down slightly
The vast majority of those jobs were part time, the agency said Friday, with 47,000 positions added in the private sector. Employment has either remained relatively flat or dropped since January of this year, when the economy added 76,000 new jobs. June also marked the first decrease in unemployment since January. The employment rate had previously declined by 0.3 percentage points between March and April, and held steady in May, according to Statistics Canada. Enlarge image (new window) Source: Statistics Canada Photo: CBC / Graeme Bruce The wholesale and retail trade industry, as well as health care and social assistance, saw the biggest influx of jobs. Most other industries held steady in the number of people they employed — though the agriculture sector dropped a few thousand jobs. The numbers came as a positive surprise; a poll by Reuters of economists heading into Friday's release predicted that unemployment would rise to 7.1 per cent, and employment would remain flat. Nathan Janzen, an economist at RBC, said the growth in jobs points to a bounce-back in attitude among businesses, after tariff-related fears chilled hiring earlier in the spring. Though, he adds, Trump's most recent threat to tariff all Canadian goods at 35 per cent means that trade risks remain. Over the long term, however, the unemployment data still paints a negative picture. Some 1.6 million people were still unemployed last month, and more than one in five people without jobs have been searching for work for 27 weeks or more — up 4.1 percentage points from last year. For students looking for work over the summer, the unemployment rate is still elevated: 17.4 per cent — up from 15.8 per cent compared to June 2024. Statistics Canada says that's the highest unemployment rate for the month of June since 2009, excluding pandemic years, when unemployment was particularly high. WATCH | Students face tough job market this summer: Début du widget Widget. Passer le widget ? Fin du widget Widget. Retourner au début du widget ? Despite some blemishes, like the fact that most of the jobs added were part-time ones, there were positive signals overall, said Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO — especially given the declines economists were expecting. No matter how you slice things, this report is materially better than expected, Reitzes said in a note. And while the numbers showed an image of an economy that was hanging in there for now, Reitzes said ongoing tariff turbulence could change things quickly going forward. With files from The Canadian Press
Business Insider
10-07-2025
- Business
- Business Insider
AMD vs. MRVL vs. INTC: Which Chip Stock Is Wall Street's Best Pick?
Chip companies are benefiting from artificial intelligence (AI)-led demand for their products. They are also expected to gain from larger tax credits under Trump's 'big, beautiful bill,' as an incentive to boost domestic production. However, macro challenges, tariff uncertainties, rising competition, and chip export transactions have been weighing on their performance. Despite ongoing headwinds, long-term demand trends appear favorable for chipmakers, driven by the continued shift to the cloud and AI boom. Using TipRanks' Stock Comparison Tool, we placed Advanced Micro Devices (AMD), Marvell Technology (MRVL), and Intel (INTC) against each other to find the best chip stock, according to Wall Street analysts. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Advanced Micro Devices (NASDAQ:AMD) Stock Advanced Micro Devices stock has risen about 19% over the past month, bringing the year-to-date rise to 14%. Upbeat first-quarter results, strategic acquisitions to support AMD's AI ambitions, and new graphics processing units (GPUs), mainly MI350 and MI400 series, unveiled at the Advancing AI event, have driven the stock higher and addressed concerns about the company lagging behind rival Nvidia (NVDA) in the AI race. Ahead of AMD's Q2 results scheduled on August 5, several analysts are confident about strong growth in the company's data center GPU (graphics processing unit) business. Currently, analysts expect AMD to report earnings per share (EPS) of $0.49, reflecting a 29% year-over-year decline. Revenue is estimated to grow by 27% to $7.41 billion. Is AMD Stock a Buy or Sell? Recently, Melius Research analyst Ben Reitzes upgraded AMD stock to Buy from Hold and raised the price target to $175 from $110. The 4-star analyst discussed several favorable aspects, including stronger-than-anticipated demand for AMD's MI300 and MI350 series GPUs as well as early traction for the upcoming MI400 platform. Reitzes also noted the demand for Advanced Micro Devices' products in AI inferencing and moderating risks in the PC segment. He also highlighted robust deal momentum, including those with Amazon (AMZN), ChatGPT-maker OpenAI, Meta Platforms (META), and Saudi Arabia's HUMAIN. Aside from AI GPUs, Reitzes expects continued share gains in high-margin server CPUs. With 24 Buys and 10 Holds, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock. The average AMD stock price target of $133.62 indicates 3% downside risk from current levels. Marvell Technology (NASDAQ:MRVL) Stock Marvell develops application-specific integrated circuits (ASICs) that are used as AI accelerators by customers in their data centers and cloud infrastructure. These AI accelerators (or XPUs) are preferred by some customers as they can be cost-effective alternatives to Nvidia's GPUs, which are designed for more generic workloads. Marvell stock has risen 5.3% over the past month but is still down about 35% year-to-date. A guidance miss earlier this year dragged down the stock along with macro woes and tariff pressures. However, the company's market-beating Q1 FY25 results and second-quarter guidance improved investor sentiment, reflecting strength in the demand for the company's custom chips amid the AI boom. The company is optimistic about the road ahead, bolstered by the demand for custom AI chips. Management expects to gain from robust spending by hyperscalers, sovereign data center projects, and opportunities in emerging markets. What Is the Forecast for MRVL Stock? Recently, Piper Sandler analyst Harsh Kumar reiterated a Buy rating on Marvell stock with a price target of $85, saying 'Growth to be Driven by XPU Proliferation.' Following meetings with management, the 5-star analyst noted that the company's growth strategy for its XPUs is on track and is set to ramp significantly in the near to mid-term timeframe. In Kumar's view, MRVL is one of only two companies that hold the necessary intellectual property to service the leading-edge XPU market for hyperscaler customers. He continues to believe that this market will remain resilient as hyperscaler spend remains strong. Turning to Wall Street, Marvell stock scores a Strong Buy consensus rating on TipRanks, based on 27 Buys and four Holds. The average of $91.39 indicates 27% upside potential from current levels. Intel Corporation (NASDAQ:INTC) Stock Intel stock has risen 18% so far this year, as investors are hopeful of a turnaround under the leadership of the company's new CEO Lip-Bu Tan. In fact, INTC stock surged 7.2% on July 8, as investors welcomed the news of new tax credits and additional layoffs aimed at streamlining operations. The chipmaker has been struggling in recent years, as a lack of innovation, strategic missteps, and delays in product launches have led to a continued loss of share in the CPU market to AMD. CEO Tan is attempting to revive the business by enhancing efficiency, reducing costs, divesting non-core assets, and introducing new products. While investor sentiment has improved, Wall Street remains cautious on INTC stock, as several analysts await further signs of improvement at the company. Moreover, analysts are concerned that Intel may miss the opportunity to capitalize on AI-driven demand for advanced chips. Additionally, chip restrictions and tariff woes could hinder the company's ongoing restructuring efforts. Intel is scheduled to announce its second-quarter earnings on July 24. Wall Street expects Intel's Q2 revenue to decline by more than 7% to about $12 billion, while EPS is estimated to remain flat on a year-over-year basis at $0.02. Is Intel a Buy, Sell, or Hold? Recently, Truist Securities analyst William Stein reiterated a Hold rating on Intel stock with a price target of $21. The 5-star analyst stated that Intel's Foundry Direct Connect conference provided a glimpse of CEO Tan's strategy, which he believes is similar to that of his predecessor. He noted that building the company's manufacturing and foundry capabilities remains a major focus. Stein added that Tan's recent hires suggest that Intel's longer-term aspirations may resemble Broadcom's (AVGO) ASIC business. Stein is concerned that tariff-related pull-ins may impact near-term demand. Meanwhile, the analyst noted that INTC's restructuring and layoffs continue to get attention. He believes that Intel's aim is to reduce the number of management layers to simplify the company's organizational complexity. Stein expects Intel's Q2 earnings to be the next significant catalyst. He added that Q2 expectations are muted. The analyst sees earnings as more likely a positive than a negative catalyst, though his 'conviction on this matter is low.' Overall, Wall Street has a Hold consensus rating on Intel stock based on 26 Holds, four Sells, and one Buy recommendation. At $21.44, the average INTC stock price target implies a possible downside of 9.1% from current levels. See more INTC analyst ratings Conclusion Wall Street is sidelined on Intel stock and cautiously optimistic on AMD stock. Meanwhile, analysts are bullish on the growth prospects of Marvell stock, backed by AI tailwinds. They see higher upside potential in MRVL stock than in the other two chip stocks. Most analysts view the pullback in Marvell stock as an attractive buying opportunity to capitalize on the company's long-term growth story.
Business Insider
25-06-2025
- Business
- Business Insider
‘Time to Jump In,' Says Analyst as He Upgrades Rating and PT on AMD Stock
Semiconductor giant Advanced Micro Devices (AMD) is starting to gain traction in the AI race, after earlier concerns about lagging Nvidia (NVDA). The stock is down 19% over the past year but is up more than 7% year-to-date. In a new update, Melius Research analyst Ben Reitzes upgraded the stock to Buy from Hold and raised the 12-month price target to $175.00 from $110.00, suggesting an impressive 35% upside from current levels. He believes the company's position has improved meaningfully in the AI space since the start of the year. Confident Investing Starts Here: Analyst Sees AI Upside Still Not Priced In According to Reitzes, AMD has moved past the early rebound phase and is now 'in the middle' of a broader rally, with further upside expected. While shares have seen big swings—rising to $211 last year before falling below $80 in 2025—he believes that recent progress isn't yet fully reflected in the price. One key reason behind this view is the growing demand for AMD's AI chips. The analyst pointed to strong interest from cloud providers and government-backed firms in AMD's MI300 and MI350 chips—both built for AI tasks. The upcoming MI400 line is also drawing early attention. He believes AI inferencing is turning out to be 'much bigger' than expected. With stronger memory and better software, AMD's chips are becoming more attractive to high-end buyers. The analyst also pointed to AMD's partnerships with Amazon (AMZN), Meta (META), OpenAI, and Saudi-based AI group HUMAIN. It's important to highlight that AMD and HUMAIN are investing up to $10 billion in data center projects across the Middle East. Melius believes this could drive major gains in the region, where AMD's market share may surpass its global share. Other Segments Show Signs of Strength While AI remains the top driver, Reitzes also noted signs of strength in AMD's PC business, due to higher average selling prices and modest share gains from Intel (INTC). These gains could help buffer AMD if Nvidia eventually enters the PC CPU market. Looking ahead, he also expects continued growth in AMD's server chip business. New products like the 'Venice' CPU and the 'Helios' rack-scale platform could help boost its presence in large data centers. Given these tailwinds, the firm has raised its earnings estimates through 2027. It now expects EPS to reach $3.88 this year, rising to $5.77 in 2026 and $7.08 in 2027. The analyst adds that if AMD captures more than 5% of the global AI chip market, the upside could be even higher. Is AMD Stock a Buy or Sell Now? To summarize, Wall Street is cautiously optimistic on Advanced Micro Devices stock, with a Moderate Buy consensus rating based on 22 Buys and 10 Holds. The average AMD stock price target of $132.17 indicates a modest upside potential of 2% from current levels.
