Latest news with #SteveSosnick
Yahoo
4 days ago
- Business
- Yahoo
How bitcoin miners are powering the AI boom
Some bitcoin (BTC-USD) miners are pivoting to artificial intelligence (AI) as the rapidly evolving tech's data center and power demands expand. BitFarms (BITF) CEO Ben Gagnon joins Catalysts with Madison Mills and Interactive Brokers chief strategist Steve Sosnick to dive into the phenomenon. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. Well, high performance computing plays a critical role in the world of artificial intelligence, providing the computational power needed to train, deploy, and scale intelligence systems quick and efficiently. The video's results bring into focus the power demands needed to support AI. Joining us to discuss about Ben Gannon. He's Bitfarm's CEO. Bitfarms is a Bitcoin mining company that is expanding existing data centre infrastructure to support HPC and AI. Workloads to meet the growing energy demands of the industry. Ben, it's always great to speak with you. We were just talking on set about how we kind of need to see the proof in the pudding when it comes to AIROI, and you are a great person to talk to about this. How and where are you seeing the investment in AI playing out in terms of high performance computing and infrastructure going forward? It's a great question. You know, for a company like us who've really been focused on building data centres for the last few years that were powering Bitcoin, uh, I think the important thing to focus on is what does these uh new business fras mean for your multiple and your evaluation? And as a Bitcoin miner, most companies in our space usually trade around a 3 to 5 times multiple, but data centre companies trade around a 20 to a 30 times multiple. So because of those contracted revenues, because of that certainty over the long period of time, you're able to unlock a lot of value for shareholders and so on, I think for the investors who are looking around at HBC and AI and trying to figure out where are the opportunities after Nvidia has had such a huge run up over the last 10 plus years. You know, where else are you going to get those those opportunities, and the reality is that as Navidia continues to sell more GPUs and as these GPUs consume more and more power, it's really the infrastructure which is going to be the bottleneck and the really key element here that's going to enable all these companies to benefit from AI. And to the question of which companies benefit from AI one thing we've been circling this morning is the idea of digital assets benefiting and cryptocurrency players benefiting as well. How are you seeing that relationship developing going forward? Oh, it's completely changed the industry almost overnight, you know, 12 months ago there were very few companies that were looking away from pivoting from Bitcoin mining and crypto into HBC and AI, but the math is really, really compelling. And when you look around at the data centre companies that exist today, there's kind of two buckets. You have the traditional data centre companies who have really been focused on building large portfolios of small sites, and then you've got the Bitcoin miners who were focused on building small portfolios of large sites. And when you look at what the data centre needs are for not only for today but for the future, you know, the reality is there's no data centre that's built today that's going to power the GPUs of tomorrow. And so the scale that Bitcoin miners have gives a very, very fast pathway and a very more cost effective approach towards building that new infrastructure a lot faster. And Ben, my co-host for the hour, Steve Salznick has a question for you as well. Hi Ben. The, the, you know, the thing that strikes me here is Nvidia, call it 34 years ago, was really the all-in company during the first sort of, I'm sorry, Bitcoin run in the first crypto run. It's almost like the, the industry's following Nvidia just a little bit late. Am I wrong in thinking that's, you know, that that that analogy is, is, is correct or incorrect, that it's sort of, you know, Nvidia, Nvidia sets the path and, and, and the, and the people who use their chips, uh, into extensively follow along. Well, Nvidia is, is really setting the pace here in terms of the technological development of these chips, um, but you know, computing is something that's growing at an exponential rate for the last 80 years since it was invented, you know, with Alan Turing and the Enigma machine in World War II. Um, you know, with Bitcoin mining, you know, we've had the very, very fast growth rate over the last 16 years and so there's a lot of things that are taking place right now where, um, the math is just really, really changing at such a point. Such a fast pace that you need to be agile, you need to be able to adapt. You need to be able to change your approach to the changing market demands because, you know, HPC and AI before Chat GPT was really for most people, a theoretical thing, um, but when Chat GPT came out and you had a consumer facing application, it became very real and very tangible for people, and that seemed to spark a gold rush, but, uh, I think from where I'm standing and from the customers' conversations that we're having. You know, the demand is is just infinite, and we really have barely even begun to scratch the surface of what's possible here with these new chips and this new kind of computing. And I hear you that you're seeing that demand be infinite, but one of the key questions for investors is whether that demand is going to be infinite for Nvidia. If we do see soft earnings results from Nvidia this evening, how does that impact your business and your confidence in that demand picture for AI? Well, the bottleneck on growth for Compute has always been power outside of the silicone shortage of 2021. So chips are available, they're always going to be available, and Nvidia develops at such a fast pace that you know there's a new generation of chips roughly every 12 months. But at the back end you always need to have the power to plug in those chips and operate them so that you can actually. value out of them and you can generate that return on your investment in the GPUs. So from our side, we haven't seen any reduction in demand even when the Deepse news came out a couple of months ago, there was no reduction in demand. There was no slowing down of these infrastructure buildouts because they're something that may be taking 2 to 5 years to build out one of these large data centre campuses, and you really can't get distracted by a headline that's going to put you back. Ben, really appreciate you joining us and giving us that context. Thank you so much. Thanks for having me.
Yahoo
4 days ago
- Business
- Yahoo
3 Factors That Could Boost Wall Street ETFs Despite Tariff Uncertainty
U.S. stocks remained volatile as investors processed a renewed wave of tariff uncertainty. The turbulence followed a decision by a federal appeals court on May 29 to temporarily reinstate former President Trump's global tariffs. This move came just a day after a trade court had deemed many of the tariffs illegal. The temporary pause allows the appeals court time to fully review the case. The Trump administration is required to submit its legal briefings by June 9. In response to the appeals court's decision, the White House indicated it is ready to take the matter to the Supreme Court if necessary. Despite the tariff-related uncertainty, below we highlight a few factors that could boost Wall Street ETFs ahead. NVIDIA's recent market-pleasing earnings performance gave Wall Street renewed hope that major tech companies can weather the uncertainties surrounding Trump's trade measures, even as export restrictions create new challenges. While the tech sector is still recovering from a pullback in February—triggered in part by market reactions to low-cost AI DeepSeek—this hasn't derailed investor optimism. Instead, the pullback caused some valuation corrections and set the stage for renewed focus on U.S. tech leadership and AI investment. According to Bank of America, the current earnings cycle confirms that hyperscalers are continuing with their AI investment strategies, even if capex growth is moderating slightly (read: Why Big Tech ETFs Still Remain Great Bets). Retail participation has been a major force behind the renewed strength in Wall Street. Steve Sosnick, chief strategist at Interactive Brokers, told Yahoo Finance that their customers bought heavily during April. 'Buy the dip' has been working for them for the past few years. Since the market's most recent bottom on April 8, the S&P 500 has climbed nearly 19%. JPMorgan quantitative strategist Emma Wu reported that retail investors poured over $50 billion into U.S. equities from April 8 onward—surpassing the $46 billion seen between March and June 2020, as quoted on Yahoo Finance. The week following Trump's April 2 'Liberation Day' tariff announcement saw record dip-buying flows, including $3 billion in net purchases on April 3—the largest single-day retail buying total since VandaTrack began tracking such data in 2014. Total Q1 earnings for the 477 S&P 500 members that have reported results are up +11.4% from the same period last year on +4.4% higher revenues, with 74.2% beating EPS estimates and 62.9% beating revenue estimates, per Earnings Trend. However, trade tensions have weighed on estimates so far. Note that total S&P 500 earnings for the June quarter are expected to be up only +5.5% year over year on +3.8% higher revenues, with a broader and greater pressure on estimates relative to other recent periods. Q2 earnings estimates for 15 of the 16 Zacks sectors are down since the quarter got underway, with Aerospace being the only exception. The Tech sector's estimates are down since the start of the period, but they have notably stabilized in recent weeks. Given this backdrop, if the court ruling helps ease tariff tensions to some extent, the earnings outlook could improve considerably. Below we highlight a few exchange-traded fund (ETF) options that could be played currently. iShares U.S. Aerospace & Defense ETF ITA – Zacks Rank #1 (Strong Buy) The underlying Dow Jones U.S. Select Aerospace & Defense Index measures the performance of the aerospace and defense sector of the U.S. equity market. The fund charges 40 bps in fees (read: Boeing Soaring on Trump Bump: Time to Tap the ETFs?). SPDR NYSE Technology ETF XNTK – Zacks Rank #1 The underlying NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies. The fund charges 35 bps in fees. Vanguard High Dividend Yield ETFVYM – Zacks Rank #2 (Buy) The underlying FTSE High Dividend Yield Index which is consists of common stocks of companies that pay dividends that generally are higher than average. The fund charges 6 bps in fees and yields 2.88% annually. iShares Core S&P Total U.S. Stock Market ETF ITOT – Zacks Rank #2 The underlying S&P Total Market Index tracks the broad equity market, including large, mid, small, and micro-cap stocks. The fund charges 3 bps in fees and yields 1.27% annually. Roundhill TSLA WeeklyPay ETF TSW The Roundhill TSLA WeeklyPay ETF seeks to pay weekly distributions to shareholders while targeting enhanced returns corresponding to 120% of weekly performance of TSLAbase. The fund charges 99 bps in fees and yields 12.53% annually. Note that Elon Musk has recently stepped down from his role as a special government adviser. This move could help improve the public image of the struggling Tesla. Notably, Musk's political involvement has recently impacted Tesla's brand perception in key markets. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
How bitcoin miners are powering the AI boom
Some bitcoin (BTC-USD) miners are pivoting to artificial intelligence (AI) as the rapidly evolving tech's data center and power demands expand. BitFarms (BITF) CEO Ben Gagnon joins Catalysts with Madison Mills and Interactive Brokers chief strategist Steve Sosnick to dive into the phenomenon. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Buying the stock market dip hasn't paid off this much in 30 years
Investors have been instantly rewarded for buying the dip in 2025 with the highest return in more than 30 years. Research from Bespoke Investment Group shows that so far this year, the S&P 500 (^GSPC) has risen an average of 0.36% in the next trading session following a down day for the index. According to Bespoke's data, which dates back to 1993, the only other time stocks rebounded even close to this aggressively was the 0.32% average rise seen after down days during 2020. As Bespoke wrote on X, the data is proof that the "buy the dip" mentality has been at the forefront of the market narrative in 2025. This played out as recently as Tuesday when the S&P 500 rose more than 2% after falling 0.7% to end last week's trading before the holiday weekend. The catalyst for Tuesday's rally was President Trump dialing back tariffs he had previously threatened, a key driver of many rebound days this year. "We saw our customers buying heavily during April," Interactive Brokers chief strategist Steve Sosnick told Yahoo Finance. "They were astute. They didn't give up faith. Buy the dip has worked for them very well for the past few years, and it did work really well for them again." Read more: The latest news and updates on Trump's tariffs Since the market's most recent bottom on April 8, the S&P 500 has risen nearly 19%. Largely, retail investors have been leading the charge. Data from JPMorgan quantitative strategist Emma Wu showed retail investors have poured more than $50 billion into US equities since the April 8 low. This surpassed the $46 billion retail investors put into the market between March and June 2020. "The buy-the-dip strategy in early April has clearly paid off," Wu wrote. Similar data from VandaTrack showed the week following Trump's April 2 "Liberation Day" tariff announcement saw "record dip-buying flows from retail investors," including $3 billion in net purchases on April 3, the largest daily total since VandaTrack began collecting this data in 2014. Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer. 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
6 days ago
- Business
- Yahoo
Buying the stock market dip hasn't paid off this much in 30 years
Investors have been instantly rewarded for buying the dip in 2025 with the highest return in more than 30 years. Research from Bespoke Investment Group shows that so far this year, the S&P 500 (^GSPC) has risen an average of 0.36% in the next trading session following a down day for the index. According to Bespoke's data, which dates back to 1993, the only other time stocks rebounded even close to this aggressively was the 0.32% average rise seen after down days during 2020. As Bespoke wrote on X, the data is proof that the "buy the dip" mentality has been at the forefront of the market narrative in 2025. This played out as recently as Tuesday when the S&P 500 rose more than 2% after falling 0.7% to end last week's trading before the holiday weekend. The catalyst for Tuesday's rally was President Trump dialing back tariffs he had previously threatened, a key driver of many rebound days this year. "We saw our customers buying heavily during April," Interactive Brokers chief strategist Steve Sosnick told Yahoo Finance. "They were astute. They didn't give up faith. Buy the dip has worked for them very well for the past few years, and it did work really well for them again." Read more: The latest news and updates on Trump's tariffs Since the market's most recent bottom on April 8, the S&P 500 has risen nearly 19%. Largely, retail investors have been leading the charge. Data from JPMorgan quantitative strategist Emma Wu showed retail investors have poured more than $50 billion into US equities since the April 8 low. This surpassed the $46 billion retail investors put into the market between March and June 2020. "The buy-the-dip strategy in early April has clearly paid off," Wu wrote. Similar data from VandaTrack showed the week following Trump's April 2 "Liberation Day" tariff announcement saw "record dip-buying flows from retail investors," including $3 billion in net purchases on April 3, the largest daily total since VandaTrack began collecting this data in 2014. Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
