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Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google's subscription services (YouTube TV, YouTube Music among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google's cloud computing platform, or GCP, accounts for roughly 10% of Alphabet's revenue with the firm's investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) making up the rest.

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Elon Musk&#39;s xAI company is vital to Tesla and its growth, Morgan Stanley analyst Adam Jonas said in a note.

Tesla Bull Explains Why Elon Musk&#39;s xAI Is Critical To EV Maker&#39;s Autonomous Ambitions

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Taiwan Semiconductor has seen a 4% decline in stock in the last 30 days due to volatility after Nvidia&#39;s quarterly report. The semiconductor sector has also seen losses, but Taiwan Semiconductor remains focused on growth and solidifying its position in the industry.

What has Taiwan Semiconductor Stock Done Since Nvidia Earnings?

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Amazon raises hourly pay by $1.50 for front-line employees, bringing average total compensation to $29/hr. Total investment of $2.2B for 800K employees.

Amazon Joins UPS In Raising Hourly Pay As Worker Compensation Trends Upward

Alphabet Inc

A Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) bull on Wednesday weighed in on the relationship between the electric-vehicle company led by Elon Musk and the <a href="https://www.benzinga.com/news/24/09/40767621/elon-musk-refutes-reports-of-xai-negotiating-revenue-share-deal-with-tesla-there-is-no-need-to-licen">billionaire&#8217;s artificial intelligence company xAI. </a>
The Tesla Analyst: Morgan Stanley analyst Adam Jonas reiterated an Overweight rating and $310 price target for Tesla shares. 
The Tesla Thesis: Training and simulation are the common denominators between Tesla and xAI, and these two are &#8220;deterministic&#8221; to Tesla&#8217;s future in robotics, autonomy and manufacturing, said Jonas in a note. AI execution is vital to Tesla&#8217;s upside, the analyst said, adding that the Musk-led company&#8217;s future valuation is highly dependent on its ability to develop, manufacture and commercialize autonomous technologies, ranging from transportation to humanoids.
The analyst also noted that training and simulation have been revolutionizing robots as accessing supercomputing resources for training and simulation is critical to optimizing autonomous software/models and hardware.
He said that xAI was established to attract top-tier AI talent who might not otherwise be interested in working for Tesla, the electric vehicle company. The AI company is investing billions of dollars toward assembling advanced computing resources which is beneficial to Tesla, he added.
Jonas noted that xAI&#8217;s massive compute cluster named Colossus has recently been brought online in the Memphis area, and it consists of 100,000 Nvidia Corp.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) H100s. Musk plans to double it to 200,000 H100 equivalent, he said.
Tesla&#8217;s rival in robotaxi operations, Alphabet, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) Waymo, has been aggressively expanding its fleet size, city deployments and technological/ network partnerships of late, Jonas said. &#8220;Waymo's recent resurgence is a reminder to investors that the road to AV supremacy is a race for data, computing, capital and talent,&#8221; he said.
See Also: <a href="https://www.benzinga.com/money/how-to-buy-tesla-stock">How To Buy Tesla (TSLA) Stock</a>
Sneak-Peek Into Robotaxi Day: Jonas raised doubts about Tesla living up to investors&#8217; high expectations as he does not see anything beyond a demo of the FSD v12.5 software and a ride in a generation 1 Cybercab. The company could share a detailed analysis of the addressable market, showing &#8220;tens of trillions of passenger vehicle miles and tens of trillions of $ of potential recurrent revenue (by 2050),&#8221; the analyst said.
Looking ahead to the Oct. 10 event, the analyst said he would look out for reinforcement regarding safety, which can be through comparing the safety of Tesla&#8217;s autonomous vehicle technology with human driving. Tesla may also have to show the rate of change of performance across recent full self-driving iterations, he said.
Investors will also look forward to the methodology, i.e. how the critical enabling technologies will likely drive further improvement in FSD/Cybercab autonomy, Jonas said. The Morgan Stanley analyst, however, does not expect Tesla to announce updates regarding its<a href="https://www.benzinga.com/news/24/07/39880470/elon-musk-pushes-back-optimus-timeline-says-teslas-humanoid-robot-will-hopefully-be-available-for-ot"> Optimus humanoid robot</a> at the event.
Tesla ended Wednesday&#8217;s session down 0.29% to $227.20, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="http://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40750932/tesla-bull-asks-investors-to-temper-expectations-concerning-robotaxi-day-but-reiter">Tesla Bull Asks Investors To Temper Expectations Concerning Robotaxi Day, But Reiterate Stock As Top Auto Pick: &#8216;Continues To Take Steps To Mitigate Downside Risks&#8217;</a></li>
</ul>
Image via Shutterstock

Tesla Bull Explains Why Elon Musk's xAI Is Critical To EV Maker's Autonomous Ambitions

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) stock lost 4% in the last 30 days. Last month saw volatility as Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) released its quarterly print and more.
The VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>), representing the semiconductor industry, have lost ~7% in the last 30 days. Now, let&#8217;s run down the events for Taiwan Semiconductor since Nvidia released its quarterly print.
On August 28, Nvidia reported <a target="_blank" href="https://www.benzinga.com/trading-ideas/24/08/40652614/nvidia-shatters-revenue-records-with-a-staggering-30-billion-quarter-yet-sees-stock-prices-slide-se" rel="noreferrer noopener">second-quarter topline</a> growth of 122% to $30.04 billion, quashing the&nbsp;analyst consensus of $28.68 billion.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18135430/newplot-14.png" alt="" class="wp-image-554700" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18135430/newplot-14.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18135430/newplot-14-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40897994/whats-going-on-with-intel-stock-on-tuesday" rel="noreferrer noopener">Intel Looks To Restructure Foundry Business, Bags Major US Deal and Government Grants</a>
The company projected third-quarter revenue of $31.85 billion—$33.15 billion, versus the consensus of $31.77 billion.
Still, the stock dropped by <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40614118/nvidia-leads-semiconductor-stocks-lower-following-q2-earnings-what-investors-need-to-know" rel="noreferrer noopener">6% in after-hours trading</a>, sending semiconductor stocks, including Taiwan Semiconductor, Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), and Super Micro Computer, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>), down as the print failed to impress the Street.
The semiconductor sector selloff <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40684198/nvidia-tsmc-lead-chip-stocks-lower-in-premarket-whats-going-on" rel="noreferrer noopener">continued in September</a>, with U.S.-China geopolitical tensions intensifying due to the Western counterpart&#8217;s artificial intelligence technology embargo on the Asian counterpart.
Meanwhile, Taiwan Semiconductor remained invested in solidifying its moat by <a target="_blank" href="https://www.benzinga.com/news/24/09/40686890/apple-nvidia-key-supplier-tsmc-leads-taiwanese-chip-giants-to-localize-neon-gas-production-by-2025" rel="noreferrer noopener">localizing neon gas production</a>, a key chipmaking material disrupted by the Ukraine war, and fast-tracking the development of silicon photonics to address the energy and data transmission speeds <a target="_blank" href="https://www.benzinga.com/news/24/09/40687807/whats-going-on-with-taiwan-semiconductor-stock-on-tuesday" rel="noreferrer noopener">needed by AI computing</a>.
Taiwan Semiconductor <a target="_blank" href="https://www.benzinga.com/news/24/09/40711613/taiwan-semiconductor-bets-on-ai-growth-surge-samsung-joins-ai-optimism-in-trade-show" rel="noreferrer noopener">projected a 50%</a> growth in AI accelerators at the Semicon Taiwan industry forum in Taipei despite concerns over the sustainability of the AI frenzy, which is sending jitters across the market. Broadcom Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) quarterly print and guidance did little to contain <a target="_blank" href="https://www.benzinga.com/news/24/09/40754938/semiconductor-etfs-take-a-beating-dragged-lower-by-nvidia-amd-and-broadcom-stocks" rel="noreferrer noopener">the semiconductor selloff</a>.
On the brighter side, reports indicated that the contract chipmaker&#8217;s production yield at the Arizona facility is at par with<a target="_blank" href="https://www.benzinga.com/government/24/09/40773084/taiwan-semiconductors-us-plant-matches-taiwan-production-yields-stock-gains" rel="noreferrer noopener"> its Taiwan facilities</a>.
Taiwan Semiconductor reported <a target="_blank" href="https://www.benzinga.com/news/24/09/40790997/taiwan-semiconductors-strong-august-sales-hint-at-big-gains-ahead-ai-and-iphone-demand-fuel-optimism" rel="noreferrer noopener">33% topline growth</a> in&nbsp;August 2024, testimony to the smartphone market recovery and continued demand for&nbsp;Nvidia AI chips. Analysts expect third-quarter revenue growth of 37%.
Some of Taiwan Semiconductors key September wins included a Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google smartphone deal&nbsp;involving <a target="_blank" href="https://www.benzinga.com/news/24/09/40833611/google-picks-taiwan-semiconductor-for-pixel-chips-samsung-loses-key-deal-report" rel="noreferrer noopener">Pixel 10 and Pixel 11 chips</a> and Apple Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) A16 chip at <a target="_blank" href="https://www.benzinga.com/news/24/09/40920976/taiwan-semiconductor-begins-production-of-apple-a16-smartphone-chips-at-arizona-facility-report" rel="noreferrer noopener">its Arizona Fab</a>.
Taiwan Semiconductor is up over 90% in the last 12 months as it led the&nbsp;global foundry market, commanding a 62% share in the <a target="_blank" href="https://www.benzinga.com/news/24/09/40711613/taiwan-semiconductor-bets-on-ai-growth-surge-samsung-joins-ai-optimism-in-trade-show" rel="noreferrer noopener">second quarter of 2024</a>.
Price Action: TSM stock closed at $167.28 on Wednesday.
Image via Shutterstock

Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) has raised the <a href="https://www.benzinga.com/markets/equities/24/09/40912814/amazon-told-its-staff-they-must-come-to-office-five-days-a-week-but-its-primary-healthcare-subsi">pay for hourly workers</a> at its U.S. fulfillment centers and transportation operations, the retail giant announced on Wednesday.
&#8220;Earlier today,&nbsp;I visited one of our sites near Salt Lake City to share some news with our teammates there—that we're making a significant new investment in pay and benefits for the hourly front-line employees across our fulfillment and transportation network,&#8221; Udit Madan, vice president of Amazon Worldwide Operations, wrote in the company&#8217;s newsletter.
He said Amazon&#8217;s front-line team will receive an hourly pay raise of $1.50 starting this month to bring the average base wage to $22 per hour. This will bring average total compensation, which includes benefits, to $29 per hour, he said.
&#8220;This is an increase of $3,000 a year on average for full-time employees who work a 40-hour week,&#8221; he wrote.
Read Also: <a href="https://www.benzinga.com/news/large-cap/24/09/40904271/whats-going-on-with-amazon-stock">What&#8217;s Going On With Amazon Stock?</a>
&#8220;And as one of the largest private employers in the country (we now have more than 800,000 people in these roles across the U.S.), this pay increase equals a total investment of more than $2.2 billion in our team.&#8221;
Amazon&#8217;s benefits include pre-paid college tuition, flexible working hours, a Prime membership, health insurance from the first day on the job and dental coverage.
&#8220;As I told the team this morning, this is just one way to say thank you for all they do,&#8221; Madan wrote.
Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) and Google, which is owned by Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) offer <a href="https://www.benzinga.com/news/23/06/32679188/silicon-valleys-salary-showdown-unveiling-how-much-top-talent-at-apple-microsoft-and-google-get-paid-1">six-figure salaries</a> for managers and engineers.
Just over a year ago, the United Parcel Service, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>) and the Teamsters Union ratified a <a href="https://www.benzinga.com/news/large-cap/23/08/33995076/ups-and-teamsters-seal-the-deal-ensures-170-000-per-year-for-drivers-the-next-5-years">five-year contract</a> that ensures $170,000 per year for drivers over the next five years.
Price Action: Amazon gained 0.1% to $187.11 at the time of publication Wednesday.
Exchange-traded funds that hold the stock also trended upward.
<ul>
<li>ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>) gained 1.32%.</li>
<li>Fidelity MSCI Consumer Discretionary Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDIS#NYSE">FDIS</a>) rose 0.72%.</li>
<li>Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>) went up 0.81%.</li>
<li>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) gained 0.67%.</li>
<li>ProShares Long Online/Short Stores ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLIX#NYSE">CLIX</a>) ticked up 0.68%.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/top-stories/24/09/40887347/amazon-to-cut-management-layers-end-work-from-home">Amazon To Cut Management Layers, End Work From Home</a></li>
</ul>
Photo: Shutterstock

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) is considering acquiring the OctoAI startup for $165 million to boost its software and cloud computing services.
According to the Information, which <a target="_blank" href="https://www.theinformation.com/articles/nvidia-recently-discussed-acquiring-software-startup-octoai-for-165-million" rel="noreferrer noopener">cites</a> shareholders&#8217; messages, the startup sells software designed to enhance the efficiency of artificial intelligence models.
OctoAI raised $132 million from investors, including Tiger Global, which was valued at $900 million in 2021.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40909973/blackrock-microsoft-others-team-up-for-30b-artificial-intelligence-fund-help-us-fuel-ai-innovation-a" rel="noreferrer noopener">BlackRock, Microsoft, Others Team Up For $30B Artificial Intelligence Fund: Help US Fuel &#8216;AI Innovation And Economic Growth&#8217;</a>
In March, OctoAI tapped Nvidia to usher in optimized generative AI <a target="_blank" href="https://octo.ai/blog/octoai-collaborates-with-nvidia-nim-to-bring-optimized-generative-ai-to-enterprises/" rel="noreferrer noopener">models for enterprises</a>.
OctoAI integrated NVIDIA NIM (which refers to inference microservices for accelerating the deployment of foundation models on any cloud or data center) into its generative AI platform to serve customer use cases, including language and image generation. Additionally, developers could experiment with inference-optimized models.
Nvidia is up 163% in the last 12 months, as its Graphics Processing Units (GPUs) remain indispensable to Big Techs like Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Google parent Alphabet Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) dream of accomplishing its AI ambitions.
Nvidia chief Jensen Huang voiced his conviction <a target="_blank" href="https://www.benzinga.com/news/24/09/40888647/nvidias-ai-surge-powers-25-of-s-p-500-gains-in-2024-makes-co-founder-huang-among-fastest-growing-rep" rel="noreferrer noopener">in the AI frenzy</a>, expecting hyper-scale customers to produce&nbsp;$5 in rental revenue&nbsp;for every $1 spent on Nvidia&#8217;s infrastructure.
Some significant hyper-scaler collaborations by Nvidia include Amazon and Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), which BofA Securities analyst Justin Post expects will unlock <a target="_blank" href="https://www.benzinga.com/news/24/09/40800539/amazon-and-oracle-partnership-unlocks-major-cloud-growth-opportunity-analyst-suggests" rel="noreferrer noopener">significant cloud opportunities</a>.
Price Action: NVDA stock is up 1.02% to $116.77 at the last check on Wednesday.
Image via Shutterstock

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Nvidia Considers $165M OctoAI Acquisition, Aims to Strengthen AI and Cloud Dominance

To gain an edge, this is what you need to know today.
<figure class="wp-block-image size-large"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2024/09/2024-09-18_08h25_17.png" alt="" /></figure>
<h3 class="wp-block-heading">Fed Credibility At Stake</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-fed-day-rate-cut-wall-street-positioning-spy-mc-09182024">click here</a> for an enlarged chart of  SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) which represents the benchmark stock market index S&amp;P 500 (SPX).
Note the following:
<ul>
<li>The chart shows that the stock market is near the resistance zone.</li>
<li>The chart shows that the rally has been on low volume.&nbsp; This indicates a lack of conviction.</li>
<li>The chart shows that RSI has just entered the overbought zone.&nbsp; This indicates that the stock market can go either way.</li>
<li>The chart shows that if the stock market does not break out and turns down from here, it will be tracing a triple top.&nbsp; A triple top is a negative pattern.</li>
<li>FOMC will announce its rate decision at 2pm ET today and will be followed by Powell's press conference at 2:30pm ET.</li>
<li>Understanding Wall Street positioning can give investors a big edge.&nbsp; Wall Street is positioned for a 50 bps cut and highly dovish comments.</li>
<li>In The Arora Report analysis, the totality of data does not justify a 50 bps cut.&nbsp; Further in The Arora Report analysis, the totality of data does not justify very dovish commentary.&nbsp;</li>
<li>In The Arora Report analysis, if the Fed complies with the momo crowd's demands, the Fed's credibility will be hurt in the long run.&nbsp; There may be unintended consequences.&nbsp; One unintended consequence may be a rise in long term yields in due course.&nbsp; The other potential unintended consequence may be an unhealthy drop in the dollar.&nbsp;&nbsp;&nbsp;&nbsp;</li>
<li>If the momo crowd gets what they want, S&amp;P 500 at 6000 is a magnet for traders.</li>
<li>If the momo crowd gets what they want, the momo crowd will aggressively buy.&nbsp; However, it is not clear how smart money will react.&nbsp; There is a fair probability of smart money taking advantage of the strength to sell.</li>
<li>If the Fed cuts by 25 basis points, then the market reaction will depend on commentary and the dot plot.</li>
<li>In The Arora Report analysis, if the Fed cuts by 25 bps and the commentary is not dovish, there is a downside risk to the stock market.&nbsp;</li>
<li>Prudent investors need to be very mindful that the Fed is about to cut interest rates at a time when the stock market is near its all time high, house prices are near all time highs, and the economy is strong.&nbsp; Historically, the Fed cuts interest rates when the economy is weak or in recession, house prices are falling, and the stock market is weak.&nbsp; By aggressively cutting interest rates now accompanied by highly dovish commentary, the Fed risks its long term credibility.&nbsp; &nbsp; Highly dovish action now also has the potential to start rampant speculation in stocks, housing, and cryptos.</li>
<li>A 50 bps cut and highly dovish commentary will be helpful for a Harris election.&nbsp; The Fed will never admit it, but there is a school of thought that the Fed wants to help Harris win the election.&nbsp; The reason is that Trump has already said he will not reappoint Powell.&nbsp; Further, Trump has said that he will interfere with the Fed.</li>
</ul>
<h3 class="wp-block-heading">Housing Starts</h3>
Housing starts came at 1356K vs. 1320K consensus.
Building permits came at 1475K vs. 1415K consensus.
In The Arora Report analysis, activity among builders is increasing as they anticipate falling interest rates will let loose pent up demand.&nbsp; This will increase economic activity, which in turn is good for the stock market.&nbsp;
<h3 class="wp-block-heading">Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>).
In the early trade, money flows are neutral in Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).
In the early trade, money flows are positive in SPY and Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).
<h3 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h3>
Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).  The most popular ETF for silver is iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>).  The most popular ETF for oil is United States Oil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>).
<h3 class="wp-block-heading">Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is seeing buying in anticipation of a 50 bps rate cut.&nbsp; Bullish crypto gurus are hopeful that a 50 bps cut will take bitcoin to a new high.
<h3 class="wp-block-heading">Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3 class="wp-block-heading">Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

Economics

Federal Reserve

Markets

General

$BTC

Fed Credibility At Stake - Wall Street Positioned For 50 BPS Cut And Highly Dovish Comments

Trading Ideas

CNBC Final Trades: Trade Desk, Energy Transfer, Alphabet Class C, General Motors

Alphabet's Google Offered To Sell Ad Marketplace AdX To Address Competition Concerns Over Adtech Practices; European Publishers Rejected Offer As Insufficient

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) is manufacturing Apple Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) A16 SoC at Phase 1 of the Taiwanese contract chipmaker&#8217;s Fab 21 in Arizona.
The chip made with Taiwan Semiconductor&#8217;s 5nm family,&nbsp;N4, debuted in 2022 with the&nbsp;iPhone 14 Pro. In 2024, Taiwan Semiconductor&#8217;s board approved a <a target="_blank" href="https://www.benzinga.com/news/24/08/40367565/whats-going-on-with-taiwan-semiconductor-stock-on-wednesday" rel="noreferrer noopener">fresh capital infusion</a> of up to $7.5 billion into Taiwan Semiconductor Arizona.
Per a Tim Culpan <a href="https://timculpan.substack.com/p/apple-mobile-processors-are-now-made" target="_blank" rel="noreferrer noopener">report</a>, Taiwan Semiconductor proposes ramping up volume production upon completing the second stage of the Phase 1 fab.
Recent reports indicate that the Arizona facility&#8217;s production yield is&nbsp;at par&nbsp;with <a target="_blank" href="https://www.benzinga.com/news/24/09/40790997/taiwan-semiconductors-strong-august-sales-hint-at-big-gains-ahead-ai-and-iphone-demand-fuel-optimism" rel="noreferrer noopener">its Taiwan facilities</a>.
The Apple chipmaking update coincides with Apple&#8217;s market share loss in its crucial market, China. The iPhonemaker&#8217;s market share in China dropped to <a href="https://www.benzinga.com/news/24/09/40845772/huaweis-2-800-tri-fold-phone-has-the-potential-to-eat-apples-lunch-in-china-here-is-how-it-compares" target="_blank" rel="noreferrer noopener">14% in the second quarter</a> of 2024, down by two percentage points year-on-year. Additionally, Huawei Technologies Co targeted Apple&#8217;s premium smartphone market share by announcing the launch of the tri-fold smartphone&nbsp;Mate X shortly after the launch of the iPhone 16&nbsp;series. Apple stock gained 22% in the last 12 months.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18082721/newplot-13.png" alt="" class="wp-image-553863" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18082721/newplot-13.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18082721/newplot-13-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Meanwhile, things are relatively hunky-dory for Taiwan Semiconductor as the smartphone market recovery and continued demand for Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) AI chips play out as growth catalysts. 
Recent reports indicated that Taiwan Semiconductor might bag Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google&#8217;s smartphone chip deal involving <a href="https://www.benzinga.com/news/24/09/40833611/google-picks-taiwan-semiconductor-for-pixel-chips-samsung-loses-key-deal-report" target="_blank" rel="noreferrer noopener">Pixel 10 and Pixel 11 chips</a> as Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) owned Samsung Foundry failed to deliver. 
Price Actions: Apple stock is up 1.4% at $219.88 at last check Wednesday. Taiwan Semiconductor is up 0.23% at $167.74; It&#8217;s up 89% in the last 12 months.
Now Read: 
<ul>
<li><a href="https://www.benzinga.com/news/24/09/40919822/small-cap-sectors-brace-for-fed-rate-cut-financials-real-estate-etfs-offer-compelling-plays-for-inve">Small-Cap Sectors Brace For Fed Rate Cut: Financials, Real Estate ETFs Offer Compelling Plays For Investors</a></li>
</ul>
Image: Shutterstock

Taiwan Semiconductor Begins Production Of Apple A16 Smartphone Chips At Arizona Facility: Report

Alphabet Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google won its appeal against the European Commission's €1.49 billion ($1.66 billion) antitrust fine for anticompetitive practices involving its online search advertising business.
What Happened: Luxembourg-based General Court delivered a reprieve to Google, nullifying the line about the $1.66 billion penalty in the European Commission's five-year-old order against the search giant, reported Reuters.
In its verdict delivered in 2019, the European Commission found Google abusing its dominant position to prevent advertisers from using brokers competing against AdSense.
While the European Commission's verdict noted that the abuse took place between 2006 and 2016, the General Court observed that the judgment did not take into account "all the relevant circumstances."
Subscribe to the&nbsp;<a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">Benzinga Tech Trends newsletter</a>&nbsp;to get all the latest tech developments delivered to your inbox.
&#8220;The court (&#8230;) upheld most of the commission&#8217;s assessments, but annulled the decision imposing a fine of almost 1.5 billion euros on Google, on the grounds in particular that it had failed to take into account all the relevant circumstances in its assessment of the duration of the contractual clauses that it had found to be unfair,&#8221; the judges said, according to the report.
It is worth noting that despite overturning the $1.66 billion fine, the court has not nullified the European Commission's observations regarding Google's antitrust practices.
See Also:&nbsp;<a href="https://www.benzinga.com/24/09/40864550/brazils-supreme-court-lifts-freeze-on-starlink-and-xs-finances-after-elon-musks-companies-cough-up-3" target="_blank" rel="noreferrer noopener">Brazil's Supreme Court Lifts Freeze On Starlink And X's Finances After Elon Musk's Companies Cough Up $3.3 Million In Fines</a>
Why It Matters: This fine was a part of the European Union's crackdown on Google's anticompetitive business practices, <a href="https://www.benzinga.com/news/23/06/32984884/coughing-up-billions-the-pricey-ride-of-googles-fine-spree-since-2017">totaling over $10.6 billion</a>.
Earlier in January, Google was <a href="https://www.benzinga.com/news/24/01/36590820/google-dealt-a-blow-in-2-6b-eu-antitrust-fine-as-court-advisor-suggests-dismissing-appeal">fined $2.6 billion</a> for unjustly favoring its own shopping services over those of its rivals.
Among the biggest fines, though, was for Google forcing Android device manufacturers to pre-install its apps – at $5.1 billion, it is nearly half of the EU's antitrust fines against the search giant.
Price Action: Google's Class A shares were up 0.6% in premarket trading on Wednesday, after closing at $159.32 on Tuesday, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.
Check out more of Benzinga's Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40872864/apple-staring-at-lower-than-expected-demand-for-iphone-16-pro-and-pro-max-in-the-fi">Apple Staring At &#8216;Lower Than Expected&#8217; Demand For iPhone 16 Pro And Pro Max In The First Weekend, Says Top Analyst</a></li>
</ul>
Photo courtesy: Unsplash

Google Wins $1.7B EU Antitrust Fine Appeal Over 5-Year-Old Online Search Advertising Case

<a href="https://www.cnbc.com/2024/09/18/court-backs-googles-challenge-to-the-eus-1point7-billion-antitrust-fine.html" title="https://www.cnbc.com/2024/09/18/court-backs-googles-challenge-to-the-eus-1point7-billion-antitrust-fine.html">https://www.cnbc.com/2024/09/18/court-backs-googles-challenge-to-the-eus-1point7-billion-antitrust-fine.html</a>

Legal

CNBC Reported Earlier, European Union's General Court On Wednesday Said $1.67B Antitrust Fine Imposed On Google By Regulators Should Be Annulled

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) has successfully fueled Japan&#8217;s record land price appreciation for the second year, reflecting the importance of the projects on the economy.
The contract chipmaker&#8217;s new chip plants on the southern island of Kyushu have been instrumental in driving up land prices by 33.3%, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-09-17/tsmc-plants-fuel-japan-s-biggest-land-price-rises-for-2nd-year?srnd=phx-technology&amp;sref=TBDibEcD" rel="noreferrer noopener">cites</a> Ministry of Land, Infrastructure, Transport and Tourism data.
<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36821337/tsmc-reportedly-expands-in-japan-with-a-second-plant-investing-billions-and-shaping-the-future-o" rel="noreferrer noopener">Prior reports indicated</a> Taiwan Semiconductor was eying a second Japanese plant in Kumamoto, potentially investing $13.5 billion after making its debut in the country with a wafer factory worth $8.6 billion.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40790997/taiwan-semiconductors-strong-august-sales-hint-at-big-gains-ahead-ai-and-iphone-demand-fuel-optimism" rel="noreferrer noopener">Taiwan Semiconductor&#8217;s Strong August Sales Hint at Big Gains Ahead, AI and iPhone Demand Fuel Optimism</a>
It also plans a third advanced chipmaking plant in Japan, worth $20 billion, in Kumamoto prefecture, to produce 3-nanometer chips as Japan overhauls its chip strategy.
Taiwan Semiconductor stock has risen over 88% in the last 12 months as the Big Techs, including Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), and Google parent Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), remain invested in their artificial intelligence technology ambitions.
Recently Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>)-owned Samsung Foundry lost a Google smartphone deal to Taiwan Semiconductor due to <a target="_blank" href="https://www.benzinga.com/news/24/09/40833611/google-picks-taiwan-semiconductor-for-pixel-chips-samsung-loses-key-deal-report" rel="noreferrer noopener">Samsung&#8217;s outdated technology</a>.
Investors can gain exposure to Taiwan Semiconductor through SPDR S&amp;P Emerging Asia Pacific ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GMF#NYSE">GMF</a>) and ProShares Nanotechnology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TINY#NYSE">TINY</a>).
Price Action: TSM stock is down 1.14% at $167.16 at the last check on Tuesday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/news/24/09/40897994/whats-going-on-with-intel-stock-on-tuesday" target="_blank" rel="noreferrer noopener">What&#8217;s Going On With Intel Stock On Tuesday?</a></li>
</ul>
Photo by Jack Hong via Shutterstock

Government

Regulations

TINY

Taiwan Semiconductor Fuels Japan's Land Boom With New Chip Plants: Report

Tuesday, Ginkgo Bioworks Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DNA#NYSE">DNA</a>) announced two tools to streamline the drug development process for pharmaceutical <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/n40896611/ginkgo-bioworks-launches-new-protein-llm-and-model-api-built-on-google-cloud-technology" rel="noreferrer noopener">and biotech companies</a>.
Building on its partnership with Alphabet Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google Cloud, Ginkgo introduced a protein large language model (LLM) and a model API, both designed to accelerate medicine development by leveraging AI and proprietary biological data.
These offerings aim to simplify and enhance how researchers and companies discover new therapeutics.
Researchers at&nbsp;Google DeepMind have&nbsp;developed AlphaFold 3, an new&nbsp;artificial intelligence (AI) model.
AlphaFold 3 can predict the structure and interactions of biological molecules. This includes proteins, DNA RNA, and small molecules that <a target="_blank" href="https://www.benzinga.com/general/biotech/24/05/38711266/google-deepmind-develops-latest-ai-model-to-aid-scientists-in-fighting-disease" rel="noreferrer noopener">could function as drugs</a>.&nbsp;
The new protein LLM, developed in collaboration with Google Cloud Consulting and built on Vertex AI, offers powerful insights derived from Ginkgo&#8217;s private data to individual researchers and enterprise companies.
The model can help identify new therapeutic targets by analyzing protein structures and interactions, speeding up the discovery and development of life-saving medicines.
This tool is expected to revolutionize drug development pipelines, optimizing the process from lead identification to final approval.
In addition to the LLM, Ginkgo has launched its model API, an accessible and affordable tool aimed at providing machine learning scientists with AI models trained on Ginkgo&#8217;s proprietary protein and DNA datasets.
This API is available on Ginkgo&#8217;s website, with plans for enterprise access through Google Cloud&#8217;s Vertex AI Model Garden.
The API enables users to generate insights through advanced methods like masked language modeling and embedding calculations.
Ankit Gupta highlighted that predictions on protein sequences could be obtained for as little as $0.18 per million tokens, allowing researchers to scale their experiments without incurring high costs.
Ginkgo plans to release more models over the next year, broadening the API&#8217;s capabilities and expanding its suite of tools to tackle complex drug discovery, synthetic biology, and genomics challenges.
Price Action: DNA stock is up 11.60% at $6.95 at the last check on Tuesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40904754/amazons-leaner-structure-and-ai-chip-partnership-with-intel-could-boost-growth-bofa" target="_blank" rel="noreferrer noopener">Amazon&#8217;s Leaner Structure and AI Chip Partnership with Intel Could Boost Growth: BofA Analyst</a>.</li>
</ul>
Photo via Shutterstock

Large Cap

Health Care

Google Cloud Expands Its Partnership With Ginkgo Bioworks For Two New AI-Tools Faster Drug Development

Ginkgo Bioworks Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DNA#NYSE">DNA</a>) shares are surging Tuesday after the company announced the launch of its new protein large language model (LLM) <a href="https://www.benzinga.com/pressreleases/24/09/n40896611/ginkgo-bioworks-launches-new-protein-llm-and-model-api-built-on-google-cloud-technology">built on Google Cloud</a>.
What Happened: Ginkgo Bioworks has introduced a pair of new offerings aimed at making it easier for pharmaceutical and biotech companies to develop new medicines. 
The company&#8217;s protein large language model, built in collaboration with Alphabet Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) Google Cloud Consulting, will give individual researchers and enterprise companies the ability to develop medicines with insights from Ginkgo&#8217;s private data. 
&#8220;Ginkgo&#8217;s new protein LLM and open API mark a major step forward in making advanced AI tools accessible for drug discovery and biological research,&#8221; said Chris Sakalosky, vice president of strategic industries at Google Cloud.
Ginkgo Bioworks also announced the launch of its model API, designed to deliver biological AI models directly to machine learning scientists. The company noted that the new API is publicly available on&nbsp;its website as of Tuesday.
Check This Out: <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40897882/retail-sales-rise-0-1-in-august-more-than-expected-boosting-odds-of-larger-fed-ra">Retail Sales Rise 0.1% In August, More Than Expected, Boosting Odds Of Larger Fed Rate Cut</a>
&#8220;I&#8217;m excited to see how the community builds on top of these models and our API. AA-0 is the first model we have released trained on Ginkgo&#8217;s proprietary data – we&#8217;re opening it to data scientists and bioinformaticians so they can build new models and applications on top,&#8221; said Jason Kelly, CEO of Ginkgo Bioworks.
&#8220;We believe that the low cost for tokens and our other customer-friendly terms, like the lack of royalties, and our commitment to not re-use customer data, will allow users to build tools like iterative protein design programs that call our protein generation API or to use our embedding API to compute features for a clustering algorithm.&#8221;
Ginkgo said it plans to roll out more models and expand API capabilities over the next year as it works towards building a robust suite of tools to help biotech and pharmaceutical companies solve complex problems.
DNA Price Action: <a href="http://benzinga.com/quote/DNA">Ginkgo Bioworks shares</a> were up 16.7% at $7.26 at the time of publication, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.
Photo: Shutterstock.

Movers

Ginkgo Bioworks Stock Is Rallying Tuesday: Here's Why

<ul>
<li>Google Quantum AI and Keysight joined forces to enhance Quantum circuit simulations with frequency-domain flux quantization</li>
<li>Provides an extended library of quantum devices and a robust circuit design environment</li>
<li>Enables faster development of large, highly nonlinear parametric quantum circuits, enhancing qubit readout fidelity</li>
</ul>
<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.keysight.com&amp;esheet=54123147&amp;newsitemid=20240917288268&amp;lan=en-US&amp;anchor=Keysight+Technologies%2C+Inc.&amp;index=1&amp;md5=da16bea417cef9cbec1a59a14ab6f1ee">Keysight Technologies, Inc.</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEYS#NYSE">KEYS</a>) introduces <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.keysight.com%2Fat%2Fde%2Fproduct%2FW3703B%2Fquantum-ckt-sim.html&amp;esheet=54123147&amp;newsitemid=20240917288268&amp;lan=en-US&amp;anchor=Quantum+Circuit+Simulation&amp;index=2&amp;md5=c22300f761ad51cbdb8e357a257ddb36">Quantum Circuit Simulation</a> (Quantum Ckt Sim), an innovative circuit design environment that speeds up the development of intricate quantum circuits. In addition, by joining forces with Google Quantum AI, the solution incorporates advanced flux quantization which marks an industry-first achievement.

KEYS

Google Quantum AI And Keysight Joined Forces To Enhance Quantum Circuit Simulations With Frequency-Domain Flux Quantization

To gain an edge, this is what you need to know today.
<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2024/09/2024-09-17_08h24_10.png" alt="" style="width:624px" /></figure>
<h3 class="wp-block-heading">Against Prevailing Wisdom</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-microsoft-buyback-trump-crypto-plan-msft-mc-09172024">click here</a> for an enlarged chart of Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).
Note the following:
<ul>
<li>This article is about the big picture, not an individual stock. The chart of MSFT stock is being used to illustrate the point.</li>
<li>The chart shows that after touching the low band of the support zone, MSFT stock has moved up in a straight line.</li>
<li>The chart shows the move up in the early trade on three announcements:
<ul>
<li>Microsoft is announcing a new $60B stock buyback program.&nbsp; This matches the largest buyback program ever from Microsoft.</li>
<li>Microsoft is increasing the dividend by 10%.</li>
<li>Microsoft is introducing more AI features in Office 365 and a new collaborative tool named Copilot Pages.&nbsp; This new tool allows users to collaborate and edit data taken from Copilot on a single page. The company is also introducing a new agent builder allowing users to build AI powered agents.</li>
</ul>
</li>
<li>As full disclosure, Microsoft is in The Arora Report&#8217;s ZYX Buy Core Model Portfolio. The Arora Report has just issued a new buy zone.</li>
<li>Investors are seeing the news from Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) as return to normalcy after the pandemic – Amazon will require workers to be at the office five days a week.</li>
<li>The stock market is running as Wall Street positions for a 50 bps rate cut. 50 bps rate cut has now become the prevailing wisdom.</li>
<li>Prudent investors closely watch retail sales data as the U.S. economy is 70% consumer based.&nbsp; In The Arora Report analysis, the data just released is very important because it is the last piece of economic data that the FOMC is going to see before making its rate decision tomorrow.&nbsp; In The Arora Report analysis, the just released retail sales data does not support a 50 bps cut. &nbsp;Here is the latest retail sales data.
<ul>
<li>Headline retail sales came at 0.1% vs. -0.2% consensus.</li>
<li>Retail sales ex-auto came at 0.1% vs. 0.2% consensus.</li>
<li>Prior retail sales were revised to 1.1% from 1.0%.</li>
</ul>
</li>
</ul>
<h3 class="wp-block-heading">Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in AMZN, MSFT, Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>).
In the early trade, money flows are negative in Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>).
In the early trade, money flows are positive in SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).
<h3 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h3>
Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).  The most popular ETF for silver is iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>).  The most popular ETF for oil is United States Oil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>).
<h3 class="wp-block-heading">Bitcoin</h3>
Trump has released details of his crypto project. The project is called World Liberty Financial.  63% of the coins will be bought by the public, 20% will be owned by the founding team, and 17% will be for user rewards.
The release of Trump's crypto project details is bringing in buying in all cryptos, including Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>).
<h3 class="wp-block-heading">Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3 class="wp-block-heading">Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

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Nvidia Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&nbsp;rally disproportionately influences the S&amp;P 500 index, reflecting concerns over the domino effect due to the integrated semiconductor ecosystem.
Nvidia accounted for 25% of the S&amp;P 500&#8217;s 17% gain in 2024, Reuters reports.
The chip designer has risen by 166% in the last 12 months as Big Techs, including Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), and Google parent Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), splurge on their artificial intelligence ambitions.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/16120007/newplot-12.png" alt="" class="wp-image-550044" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/16120007/newplot-12.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/16120007/newplot-12-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40820316/amd-gains-ground-in-ai-chip-market-oracle-exec-confirms-growing-demand-report" rel="noreferrer noopener">AMD Gains Ground in AI Chip Market, Oracle Exec Confirms Growing Demand: Report</a>
The rising valuation of NvidiaNVIDIA in 2024 has helped boost the wealth of Jensen Huang, the co-founder and CEO of the company that was once created inside <a target="_blank" href="https://www.benzinga.com/general/social-media/24/03/37879478/humble-beginnings-like-nvidia-reddit-was-founded-inside-a-restaurant" rel="noreferrer noopener">a Denny&#8217;s restaurant.</a>
Huang has a wealth of $90.5 billion, ranking 18th according to <a target="_blank" href="https://www.bloomberg.com/billionaires/" rel="noreferrer noopener">Bloomberg</a>. While Huang hasn&#8217;t cracked the top 10 list yet and would currently need to hit a wealth of $130 billion, the Nvidia co-founder is one of the fastest risers among the world&#8217;s richest people. Huang&#8217;s wealth is up $46.4 billion year-to-date in 2024.
That figure is more than the combined $41.83 billion gained by Elon Musk, Jeff Bezos and Bill Gates. Musk, Bezos and Gates currently rank first, second and fifth, respectively, with their current wealth and year-to-date gains.
<ul>
<li>Elon Musk: $237 billion, +$7.73 billion year-to-date</li>
<li>Jeff Bezos: $195 billion, +$17.9 billion year-to-date</li>
<li>Bill Gates: $157 billion, +$16.2 billion year-to-date</li>
</ul>
The gain by Huang is one of the largest year-to-date gains, trailing only Meta Platforms CEO Mark Zuckerberg, who is up $49.9 billion and listed fourth at $178 billion.
It&#8217;s not just personal wealth &#8211; due to the AI frenzy, Huang expects hyper-scale customers to produce <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40837620/nvidia-ceo-jensen-huang-eases-investor-concerns-on-ai-demand-blackwell-timeline-and" rel="noreferrer noopener">$5 in rental revenue</a> for every $1 spent on Nvidia&#8217;s infrastructure. He also reiterated that Blackwell-based products will ship in the fourth fiscal quarter.
This indicates that Nvidia stock losing value would impact the S&amp;P500 and Huang&#8217;s wealth. However, Huang had snubbed <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/40820349/nvidia-ceo-jensen-huang-admits-its-tense-as-surging-demand-for-blackwell-chips-sparks-customer-fru" rel="noreferrer noopener">geopolitical tensions surrounding</a> supplier&nbsp;Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), voicing the possibility of switching suppliers.&nbsp;
Microsoft, Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), and Nvidia have a combined weighting of 20% in the S&amp;P 500. Microsoft gained 31%, and Apple has risen 22% in the last 12 months as they remain invested in their AI goals.
Investors can gain exposure to Nvidia and the S&amp;P 500 through SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>).
Price Action: NVDA stock closed lower by 1.95% to $116.78 on Monday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/news/24/09/40790997/taiwan-semiconductors-strong-august-sales-hint-at-big-gains-ahead-ai-and-iphone-demand-fuel-optimism" target="_blank" rel="noreferrer noopener">Taiwan Semiconductor&#8217;s Strong August Sales Hint at Big Gains Ahead, AI and iPhone Demand Fuel Optimism</a></li>
</ul>
Image via Shutterstock

Nvidia's AI Surge Powers 25% of S&P 500 Gains in 2024, Makes Co-founder Huang Among Fastest Growing: Report

<a href="https://asia.nikkei.com/Politics/International-relations/US-China-tensions/TikTok-fights-sell-or-ban-law-in-first-U.S.-court-hearing">https://asia.nikkei.com/Politics/International-relations/US-China-tensions/TikTok-fights-sell-or-ban-law-in-first-U.S.-court-hearing</a>
PALO ALTO, California --&nbsp;U.S. judges weighed the question of whether constitutional rights should be extended to TikTok despite its Chinese ownership on Monday, as the popular short-video app argued a sell-or-ban bill infringes on free speech in a high-stakes hearing that could decide its fate.
In a lawsuit brought by TikTok and other entities, the company is arguing that forced divestiture by the U.S. government -- under the Protecting Americans from Foreign Adversary Controlled Applications Act -- is unconstitutional. It alleges that the law violates American users' rights under the First Amendment of the constitution and the company's right to the guarantee of equal protection under the law.
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Global

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'TikTok Fights Sell-Or-Ban Law In First U.S. Court Hearing; Judges Question Whether App's Chinese Ownership Exclude' - Nikkei Asia

Yelp Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YELP#NYSE">YELP</a>) filed an <a href="https://www.benzinga.com/markets/equities/24/08/40618625/yelp-launches-antitrust-battle-against-google-after-federal-ruling-declares-search-giant-a-monop">antitrust lawsuit against</a> Alphabet Inc's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) subsidiary Google in August. According to BofA Securities, growing competition from online food delivery platforms is expected to keep putting pressure on Yelp&#8217;s growth.
Analyst Nitin Bansal initiated coverage of Yelp with an Underperform rating and a price target of $30.
The Yelp Thesis: Yelp&#8217;s usage is declining, as is evident from the platform&#8217;s shrinking user base, Bansal said in the initiation note.
Check out <a href="https://www.benzinga.com/analyst-stock-ratings">other analyst stock ratings</a>.
According to Sensor Tower, Yelp mobile MAUs (monthly active users) have contracted by 70% since 2018 and are down 5% year to date, with the BrightLocal survey suggesting that alternate review platforms like Instagram and TikTok are becoming more popular, he added.
"The company also faces strong competition from Google that creates challenges in growing review share," the analyst wrote. He further stated that increasing competition in the Restaurant, Retail &amp; Other segment, which accounts for roughly a third of the company's total revenues, will continue to impact the platform&#8217;s growth outlook.
"We see downside risk to Street&#8217;s 2025/26 estimates and expect downward revisions to pressure multiple," Bansal said.
YELP Price Action: Shares of Yelp were down 3.1% to $33.35 at the time of publication on Monday.
Read More:<a href="https://www.benzinga.com/government/24/08/40169996/alphabet-loses-antitrust-suit-over-google-search-dominance-report"></a> <a href="https://www.benzinga.com/government/24/08/40169996/alphabet-loses-antitrust-suit-over-google-search-dominance-report">Alphabet Loses Antitrust Suit Over Google Search Dominance: Report</a>
Photo: Shutterstock

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