NVDA

NVIDIA Stock (NASDAQ:NVDA), Trade Ideas

NVIDIA

Nvidia is a leading developer of graphics processing units. Traditionally, GPUs were used to enhance the experience on computing platforms, most notably in gaming applications on PCs. GPU use cases have since emerged as important semiconductors used in artificial intelligence. Nvidia not only offers AI GPUs, but also a software platform, Cuda, used for AI model development and training. Nvidia is also expanding its data center networking solutions, helping to tie GPUs together to handle complex workloads.

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AT&amp;T Inc. (NYSE: T) reported modest first-quarter 2024 results, as solid wireless traction and customer additions were partially offset by lower demand for legacy voice and data services.

AT&amp;T Q1 Earnings Beat Estimates, Revenues Remain Flat Y/Y

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KeyBanc analyst Thomas Blakey initiated coverage on Super Micro Computer Inc (NASDAQ:SMCI) with a Sector Weight rating.

AI Server Market Is Expanding Rapidly - Analysts Highlight Super Micro Computer&#39;s Importance In The Game

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SERV

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Serve Robotics announces an expanded agreement with Magna International to manufacture delivery robots. With Magna&#39;s support, Serve aims to deploy 2,000 robots on Uber Eats across various U.S. markets, enhancing logistics efficiency. 

Uber-Backed Serve Robotics Expands Production Partnership With Automotive Supplier Magna

NVIDIA Corp

AT&amp;T Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/t#NYSE">T</a>) reported modest first-quarter 2024 results, as solid wireless traction and customer additions were partially offset by lower demand for legacy voice and data services. The company recorded strong subscriber growth backed by a resilient business model and robust cash flow position, driven by a diligent execution of operational plans. AT&amp;T expects to continue investing in key areas of 5G and fiber and adjust its business according to the evolving market scenario to fuel long-term growth.
<h3>Net Income</h3>
On a GAAP basis, AT&amp;T reported net income of $3.4 billion or 47 cents per share compared to $4.2 billion or 57 cents per share in the year-ago quarter. The decline is primarily attributed to lower net sales and higher operating expenses year over year. 
Excluding non-recurring items, adjusted earnings from continuing operations were 55 cents per share compared with 60 cents in the year-ago quarter. Adjusted earnings for the first quarter beat the Zacks Consensus Estimate of 53 cents.
<div class="chart_embed">
<h3>AT&amp;T Inc. Price, Consensus and EPS Surprise <a href="https://www.zacks.com/stock/chart/T/price-consensus-eps-surprise-chart?icid=chart-T-price-consensus-eps-surprise-chart"> <img alt="AT&amp;T Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/63/1713966982.png" style="height:265px; width:577px" title="" /> </a></h3>
AT&amp;T Inc. price-consensus-eps-surprise-chart | AT&amp;T Inc. Quote
</div>
<h3>Quarter Details</h3>
Quarterly GAAP operating revenues decreased marginally by 0.4% year over year to $30 billion, largely due to declining Mobility equipment sales and lower Business Wireline Revenues, mostly offset by higher Mobility Service, Mexico and Consumer Wireline revenues. The top line fell short of the consensus mark of $30.66 billion. 
Adjusted operating income for the quarter was $6 billion compared with $5.97 billion in the prior-year quarter. This resulted in respective adjusted operating income margins of 20% and 19.8%. Adjusted EBITDA improved to $11 billion from $10.59 billion. 
AT&amp;T witnessed solid subscriber momentum with 389,000 post-paid net additions. This included 349,000 postpaid wireless phone additions. Postpaid churn was 0.89%, while postpaid phone-only average revenue per user (ARPU) increased 0.9% year over year to $55.57 due to improved international roaming, pricing actions and a transition to higher-priced unlimited plans.
<h3>Segmental Performance</h3>
Communications: Total segment operating revenues were $28.86 billion, down from $29.15 billion, as improvement in the Mobility business (marginally up 0.1% to $20.59 billion) and Consumer Wireline (up 3.4% to $3.35 billion) was offset by a decline in Business Wireline (down 7.8% to $4.91 billion). The segment revenues missed our estimates of $29.98 billion. 
Service revenues from the Mobility unit improved 3.3% to $15.99 billion, driven by solid subscriber and postpaid ARPU gains, while equipment revenues decreased 9.8% year over year to $4.6 billion due to lower sales volume. Revenues from the Consumer Wireline business were up due to a gain in fiber broadband. AT&amp;T recorded net fiber additions of 252,000 and has the ability to serve 27.1 million consumer and business customer locations in more than 100 U.S. metro areas with fiber.&nbsp; AT&amp;T Internet Air added 110,000 subscribers during the quarter. 
Revenues from Business Wireline were down due to lower demand for legacy voice and data services as customers shifted to more advanced IP-based offerings. Segment operating income was flat at $6.74 billion, matching the year-earlier quarter&#39;s tally, with operating margins of 23.4% and 23.1%, respectively. Adjusted EBITDA was $11.48 billion compared with $11.03 billion in the year-ago quarter. 
Latin America: Total operating revenues were $1.06 billion, up 20.4% year over year, due to growth in service and equipment revenues driven by favorable currency impact and higher sales. Adjusted EBITDA improved to $180 million from $145 million in the year-ago quarter for respective margins of 16.9% and 16.4%.
<h3>Cash Flow &amp; Liquidity</h3>
In the first quarter of 2024, AT&amp;T generated $7.55 billion of cash from operations compared with $6.68 billion in the prior-year period. Free cash flow at quarter end was $3.14 billion compared with $1 billion in the year-ago quarter. As of Mar 31, 2024, AT&amp;T had $3.52 billion of cash and cash equivalents with long-term debt of $125.70 billion. Net debt to adjusted EBITDA was about 2.94X.
<h3>Guidance</h3>
While optimizing operations, AT&amp;T is aiming to increase efficiencies to lower operating costs while focusing on 5G and fiber-based connectivity, along with an expanded reach of software-based entertainment platforms. For fiscal 2024, AT&amp;T has reiterated its previous guidance. Wireless service revenues are likely to improve in the vicinity of 3%, while broadband revenues are anticipated to be up in excess of 7%. 
Adjusted earnings are projected to be within $2.15 and $2.25 per share. Free cash flow in 2024 is expected to be within $17-$18 billion due to cost savings. The company is also aiming to reduce its debt burden by monetizing non-core assets. AT&amp;T firmly remains on track to pass more than 30 million fiber locations by the end of 2025.
<h3>Zacks Rank &amp; Stocks to Consider</h3>
AT&amp;T currently has a Zacks Rank #3 (Hold). 
Pinterest (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pins#NYSE">PINS</a>), sporting a Zacks Rank #1 (Strong Buy) at present, delivered a trailing four-quarter average earnings surprise of 37.42%. In the last reported quarter, it delivered an earnings surprise of 3.92%. 
Pinterest is increasingly establishing a unique value proposition to advertisers that could provide a competitive advantage in the long haul. Through various innovations, it continues to dramatically improve the advertising platform, which appears to be one of the best ad platforms for consumer discretionary brands looking for ways to reach customers and stretch smaller ad budgets. 
NVIDIA Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>), currently sporting a Zacks Rank #1, delivered a trailing four-quarter average earnings surprise of 20.18%. In the last reported quarter, it delivered an earnings surprise of 13.41%. 
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company&#39;s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms. 
Arista Networks, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/anet#NYSE">ANET</a>), sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 13.3%, on average, in the trailing four quarters. 
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
<a href="https://www.zacks.com/stock/news/2261409/at-t-t-q1-earnings-beat-estimates-revenues-remain-flat-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2261409">To read this article on Zacks.com click here.</a>

AT&T Q1 Earnings Beat Estimates, Revenues Remain Flat Y/Y

WIIM

NVIDIA shares are trading lower amid a broader market reversal .

KeyBanc&nbsp;analyst Thomas Blakey initiated coverage on&nbsp;Super Micro Computer Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) with a&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/SMCI/analyst-ratings" rel="noreferrer noopener">Sector Weight rating</a>.
SMCI shares are trading relatively in line with its infrastructure peer group at 27x calendar 2024 P/E vs. peers&#8217; 28x average. The 27x for SMCI compares to 17x for low gross margin peers, but he noted Super Micro&#8217;s faster growth warrants near-term premium.&nbsp;
Super Micro, a leading ODM/OEM of IT infrastructure (compute, storage, networking, liquid cooling), is well positioned to benefit from secular AI growth trends provided its ability to deliver highly customized complete IT solutions leveraging its in-house engineering design expertise based on the latest technology (i.e., GPUs) in the fastest, most efficient manner, Blakey noted.
The opportunity set may extend as AI becomes more pervasive over time, driving the theme of accelerated computing where relative bespoke GPU-based solutions and other and non-x86 (i.e.,&nbsp;Arm Holdings Plc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/arm#NASDAQ">ARM</a>)) solutions take share in what the CEO of&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) has recently described as a $1 trillion installed base opportunity currently based chiefly on x86 CPUs and ASICs.
Blakey estimates that Super Micro will reach an approximately 23% share of the AI server market in calendar 2024, with competitive moats that should sustain, if not expand, this share in coming years.
The analyst noted that checks indicate other OEMs are making inroads&nbsp;and again&nbsp;highlights&nbsp;this market could expand beyond current forecasts provided AI-driven demands lead to more GPU-based compute supplanting CPUs.
From a pricing perspective, Blakey&#8217;s checks indicate demand continues to outpace supply for core GPUs and power, which should keep component prices high for the foreseeable future and drive Super Micro&#8217;s model.&nbsp;
As power becomes more accessible, he noted rack-scale solution configurations could also move higher (i.e., more GPUs), leading to more upward pressure. He said liquid cooling would also add a pricing uplift to rack-scale solutions as Super Micro and others add this vital feature to reduce energy costs in data centers.
From a unit perspective, Super Micro currently can ship 5,000 rack-scale complete IT solutions today per month, and Blakey&nbsp;estimates the company is presently running at ~60% capacity utilization, which compares to 2,000 racks per month in calendar 2022 and the possibility of doubling capacity from current 5k per month by expanding to Malaysia, Mexico, and Texas.
Blakey noted Super Micro&#8217;s predominant North American-based manufacturing today&nbsp;is often viewed&nbsp;as a competitive advantage in addition to the company&#8217;s engineering and design expertise.
In the most recent quarter, Super Micro grew topline 103% vs. 54% a year ago and posted a gross margin of 15.5% vs. 18.8% and an operating margin of 11.3% vs. 12.8%, respectively.&nbsp;Blakey noted that Super Micro is competitively priced in the market; hence, expect gross margin to remain in the 15% range if not experience modest pressure with the company focusing more on&nbsp;EBIT leverage long-term.&nbsp;
In the most recent quarter, Super Micro had customer concentration with two customers amounting to 37% and four customers accounting for 67% of accounts receivable, Blakey said. Customers of Super Micro include AI-infrastructure leaders such as CoreWeave, Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), X, and Nutanix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTNX#NASDAQ">NTNX</a>), he added.
Blakey projected third-quarter revenue and EPS of $3.99 billion and $5.83.
Wedbush&nbsp;analyst Matt Bryson reiterated Super Micro Computer with a Neutral and a $530&nbsp;price target.
Super Micro reports after the close, April 30. Bryson noted the most likely outcome as a modest beat followed by a guide that is at least in line, if not better than prior expectations.
His conversations with the supply chain and other OEMs suggest strong demand for AI servers through the calendar first and second quarters, supported by lifting OEM/ODM component orders.
Bryson noted that GPU shortages&nbsp;appear to&nbsp;have dissipated significantly, limiting the likelihood of supply chain issues disrupting/limiting OEM server sales.
At the same time, his conversations with SMCI competitors throughout the calendar first quarter suggested that the backlog built in 2023 and early 2024 provided visibility to OEM server vendors, at least through the calendar second quarter.&nbsp;
Bryson projected third-quarter revenue and EPS of $3.90 billion and $5.63.
Price Action: SMCI shares traded lower by 0.84% at $756.00 at the last check Wednesday.
Photo via Midjourney

AI Server Market Is Expanding Rapidly - Analysts Highlight Super Micro Computer's Importance In The Game

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders will search for circumstances when the market estimation of an option diverges heavily from its normal worth. High amounts of trading activity could push option prices to exaggerated or underestimated levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>TSM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>06/21/24</td>
<td>$140.00</td>
<td>$84.1K</td>
<td>48.1K</td>
<td>35.9K</td>
</tr>
<tr>
<td>NVDA</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>04/26/24</td>
<td>$830.00</td>
<td>$178.7K</td>
<td>7.1K</td>
<td>32.5K</td>
</tr>
<tr>
<td>AAPL</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>05/03/24</td>
<td>$167.50</td>
<td>$44.4K</td>
<td>3.7K</td>
<td>3.9K</td>
</tr>
<tr>
<td>INTC</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$30.00</td>
<td>$29.2K</td>
<td>34.3K</td>
<td>3.1K</td>
</tr>
<tr>
<td>MSFT</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>04/26/24</td>
<td>$410.00</td>
<td>$40.9K</td>
<td>4.1K</td>
<td>2.8K</td>
</tr>
<tr>
<td>SMCI</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>04/26/24</td>
<td>$750.00</td>
<td>$60.0K</td>
<td>744</td>
<td>1.8K</td>
</tr>
<tr>
<td>TXN</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>06/21/24</td>
<td>$175.00</td>
<td>$39.4K</td>
<td>2.6K</td>
<td>1.4K</td>
</tr>
<tr>
<td>RIOT</td>
<td>CALL</td>
<td>SWEEP</td>
<td>NEUTRAL</td>
<td>05/03/24</td>
<td>$9.50</td>
<td>$84.7K</td>
<td>894</td>
<td>1.1K</td>
</tr>
<tr>
<td>PLTR</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>06/21/24</td>
<td>$17.00</td>
<td>$29.5K</td>
<td>9.3K</td>
<td>712</td>
</tr>
<tr>
<td>AMD</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>05/17/24</td>
<td>$157.50</td>
<td>$44.2K</td>
<td>205</td>
<td>395</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These itemized elaborations have been created using the accompanying table. 
• For TSM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), we notice a call option sweep that happens to be bullish, expiring in 58 day(s) on June 21, 2024. This event was a transfer of 198 contract(s) at a $140.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $84.1K, with a price of $425.0 per contract. There were 48116 open contracts at this strike prior to today, and today 35969 contract(s) were bought and sold. 
• For NVDA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), we notice a call option sweep that happens to be bullish, expiring in 2 day(s) on April 26, 2024. This event was a transfer of 222 contract(s) at a $830.00 strike. This particular call needed to be split into 12 different trades to become filled. The total cost received by the writing party (or parties) was $178.7K, with a price of $805.0 per contract. There were 7103 open contracts at this strike prior to today, and today 32593 contract(s) were bought and sold. 
• For AAPL (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), we notice a call option trade that happens to be bullish, expiring in 9 day(s) on May 3, 2024. This event was a transfer of 100 contract(s) at a $167.50 strike. The total cost received by the writing party (or parties) was $44.4K, with a price of $444.0 per contract. There were 3751 open contracts at this strike prior to today, and today 3976 contract(s) were bought and sold. 
• Regarding INTC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), we observe a put option sweep with bullish sentiment. It expires in 268 day(s) on January 17, 2025. Parties traded 150 contract(s) at a $30.00 strike. This particular put needed to be split into 28 different trades to become filled. The total cost received by the writing party (or parties) was $29.2K, with a price of $195.0 per contract. There were 34393 open contracts at this strike prior to today, and today 3198 contract(s) were bought and sold. 
• For MSFT (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), we notice a call option trade that happens to be bullish, expiring in 2 day(s) on April 26, 2024. This event was a transfer of 50 contract(s) at a $410.00 strike. The total cost received by the writing party (or parties) was $40.9K, with a price of $820.0 per contract. There were 4175 open contracts at this strike prior to today, and today 2893 contract(s) were bought and sold. 
• For SMCI (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>), we notice a call option trade that happens to be bullish, expiring in 2 day(s) on April 26, 2024. This event was a transfer of 20 contract(s) at a $750.00 strike. The total cost received by the writing party (or parties) was $60.0K, with a price of $3000.0 per contract. There were 744 open contracts at this strike prior to today, and today 1816 contract(s) were bought and sold. 
• For TXN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>), we notice a put option sweep that happens to be bullish, expiring in 58 day(s) on June 21, 2024. This event was a transfer of 58 contract(s) at a $175.00 strike. This particular put needed to be split into 4 different trades to become filled. The total cost received by the writing party (or parties) was $39.4K, with a price of $680.0 per contract. There were 2676 open contracts at this strike prior to today, and today 1438 contract(s) were bought and sold. 
• For RIOT (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIOT#NASDAQ">RIOT</a>), we notice a call option sweep that happens to be neutral, expiring in 9 day(s) on May 3, 2024. This event was a transfer of 294 contract(s) at a $9.50 strike. This particular call needed to be split into 9 different trades to become filled. The total cost received by the writing party (or parties) was $84.7K, with a price of $288.0 per contract. There were 894 open contracts at this strike prior to today, and today 1163 contract(s) were bought and sold. 
• For PLTR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>), we notice a put option sweep that happens to be bullish, expiring in 58 day(s) on June 21, 2024. This event was a transfer of 701 contract(s) at a $17.00 strike. This particular put needed to be split into 24 different trades to become filled. The total cost received by the writing party (or parties) was $29.5K, with a price of $42.0 per contract. There were 9339 open contracts at this strike prior to today, and today 712 contract(s) were bought and sold. 
• Regarding AMD (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), we observe a call option sweep with bullish sentiment. It expires in 23 day(s) on May 17, 2024. Parties traded 68 contract(s) at a $157.50 strike. This particular call needed to be split into 7 different trades to become filled. The total cost received by the writing party (or parties) was $44.2K, with a price of $650.0 per contract. There were 205 open contracts at this strike prior to today, and today 395 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more about unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Options

AAPL

INTC

MSFT

PLTR

RIOT

10 Information Technology Stocks Whale Activity In Today's Session

Serve Robotics Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SERV#NASDAQ">SERV</a>) said it is expanding its existing agreement with&nbsp;Magna International Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>)<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38401431/serve-robotics-enters-production-agreement-with-magna-to-scale-robot-manufacturing" rel="noreferrer noopener">&nbsp;to boost the adoption of robotics in logistics</a>.
Under the new agreement, Magna will become the exclusive contract manufacturer of Serve&#8217;s delivery robots, effective April 24, aiding Serve&#8217;s aim to deploy up to 2,000 robots on the Uber Eats platform across multiple U.S. markets.
The previous partnership entailed Serve granting Magna a non-exclusive license to its technologies to develop new products in the robotics and logistics space. The financial terms&nbsp;were not disclosed.
&#8220;Following our successful public offering, we are excited to start working to scale our robotic fleet with Magna&#8217;s world-class manufacturing capabilities,&#8221; said CEO Ali Kashani.
&#8220;This collaboration supports the natural progression of our business beyond food delivery and positions our proprietary robotics technology as a platform upon which new robots can be built.&#8221;
Serve Robotics develops advanced, AI-powered, low-emissions sidewalk delivery robots to make delivery sustainable and economical.
Backed by&nbsp;Uber Technologies Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) and&nbsp;NVIDIA Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Serve became an independent company in 2021.
Serve has scalable multi-year contracts, including a signed agreement to deploy delivery robots on the Uber Eats platform.
Price Action: SERV shares are trading lower by 3.47% at $3.06 at the last check Wednesday.
Photo via Wikimedia Commons

UBS Global Research has revised its outlook for the &quot;Big Six&quot; tech companies &mdash; Apple, Amazon, Google-parent Alphabet, Meta, Microsoft, and Nvidia &mdash; from &quot;Overweight&quot; to &quot;Neutral&quot; according to a recent statement by Jonathan Golub, the chief U.S. equity strategist at UBS Investment Bank, according to a source.
In his explanation, Golub said that the downgrade is not based on rich valuations or concerns about the sustainability and momentum of the AI technology. Instead, he pointed out tough comps compared to the pandemic period and cyclical pressures as the headwinds. Golub highlighted that the rapid earnings growth recorded by these tech giants over the past year is now ebbing.
<h3>Will Easy Comps Faced by Big Tech Go Away in 2025?</h3>
UBS indicated that the pandemic initially triggered increased demand for PCs, online shopping and gaming, thus helping those tech stocks&#39; earnings. A reduction in costs and easy comparisons boosted these companies&#39; profits, which peaked in the fourth quarter of 2023. But this jump will be followed by a decline in earnings as the economy gradually gains momentum.
Golub also mentioned that the current analysis does not overlook the influence of AI, cloud computing, or bitcoin mining on tech earnings. The research division of UBS predicts a decline in these companies&#39; EPS growth to 16% in the first quarter of 2025, down from 42% in the corresponding period of this year. UBS expects earnings to normalize going forward.
Let&#39;s discuss some examples:
Nvidia&#39;s&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) expected sales growth is 17.94% for 2025 versus 74.07% for 2024. Its 2025 expected earnings growth is 13.88% versus 2024&#39;s expectation of 84.72%.
Meta&#39;s&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>) expected sales growth is 12.79% for 2025 versus 18.19% for 2024. Its 2025 expected earnings growth is 15.18% versus 2024&#39;s expectation of 35.71%.
Alphabet&#39;s&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>) expected sales growth is 11.07% for 2025 versus 13.18% for 2024. Its 2025 expected earnings growth is 14.58% versus 2024&#39;s expectation of 16.90%.
Amazon&#39;s&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) expected sales growth is 11.59% for 2025 versus 11.61% for 2024. Its 2025 expected earnings growth is 30.36% versus 2024&#39;s expectation of 41.38%.
<h3>Time for Non-Cyclical ETFs?</h3>
According to UBS, EPS growth for non-tech companies is expected to surpass that of the Big Six over the next year, as these firms were less affected by the pandemic-induced boom.
The Federal Reserve is also likely to start cutting rates in late 2024 due to the likelihood of cooling inflation. The U.S. economy is showing signs of resilience.
This perspective has bolstered investor confidence, leading to increased investments in sectors like financials and industrials. These areas are deemed safe havens amid the likely Fed rate cuts. Other sectors like consumer staples, utilities and healthcare also appear to be safe bets.
<h3>ETFs in Focus</h3>
Against this backdrop, below we highlight a few safe sector ETFs like Health Care Select Sector SPDR ETF (ARCA:XLV), Industrial Select Sector SPDR ETF (ARCA:XLI), Financial Select Sector SPDR ETF (ARCA:XLF), Consumer Staples Select Sector SPDR ETF (ARCA:XLP) and iShares U.S. Utilities ETF (ARCA:IDU).
<a href="https://www.zacks.com/stock/news/2260842/beyond-big-six-why-choose-non-cyclical-sector-etfs?cid=CS-BENZ-FT-etf_news_and_commentary-2260842">To read this article on Zacks.com click here.</a>

Sector ETFs

ETFs

AMZN

GOOG

iShares Trust Dow Jones US Utilities Sector Index Fund

Beyond "Big Six:" Why Choose Non-Cyclical Sector ETFs?

To gain an edge, this is what you need to know today.
<img alt="" src="https://thearorareport.com/wp-content/uploads/2024/04/2024-04-24_08h09_52.png" style="height:340px; width:624px" />
<h3>Musk Lifts Stock Market Sentiment</h3>
Please <a href="https://thearorareport.com/stock-market-chart-analysis-musk-lifts-sentiment-tsla-mc-04242024">click here</a> for an enlarged chart of Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>).
Note the following:
<ul>
<li>This article is about the big picture, not an individual stock.&nbsp;The chart of TSLA stock is being used to illustrate the point.</li>
<li>The chart shows that TSLA stock fell to the upper band of the support zone prior to earnings.</li>
<li>The chart shows a big move up after TSLA earnings.</li>
<li>RSI on the chart shows that prior to earnings, TSLA stock was very oversold, and thus it was easy for it to bounce.</li>
<li>TSLA reported earnings significantly worse than both the consensus and whisper numbers.&nbsp;Here are the details:
<ul>
<li>Q1 earnings of $0.45 vs. $0.51 consensus</li>
<li>Q1 revenue of $21.3B vs. $22.15B consensus</li>
<li>GAAP gross margin of 17.4%, down 199 bps year-over-year</li>
<li>Operating expenses up 37% year-over-year</li>
<li>Deliveries declined 8.5% year-over-year.</li>
<li>Guided 2024 vehicle volume &ldquo;notably lower&rdquo; than 2023</li>
</ul>
</li>
<li>Despite the numbers from TSLA earnings, Elon Musk has lifted sentiment in the entire stock market by saying that buying a regular car is like &ldquo;riding a horse and using a flip phone.&rdquo;</li>
<li>Here are the other key points from Musk that are lifting the sentiment in the entire stock market:
<ul>
<li>Tesla is accelerating development of several low priced cars.</li>
<li>Tesla plans to own and deploy a fleet of 1M robotaxis.</li>
<li>Tesla has increased its AI training capacity from 15,000 Nvidia H100 GPU equivalents at the beginning of the year to 40,000 now.&nbsp;Musk is projecting a computing capacity of 85,000 H100 equivalents by the end of the year.</li>
<li>Musk made the most convincing case yet that Tesla is not a car company but an AI company.</li>
<li>Musk&rsquo;s statement is especially boosting AI stocks such as NVIDIA Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>), Advanced Micro Devices, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amd#NASDAQ">AMD</a>), Super Micro Computer Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smci#NASDAQ">SMCI</a>), Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tsm#NYSE">TSM</a>), Applied Materials, Inc. (NASDAQ:&nbsp; AMAT), and Arm Holdings PLC - ADR (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/arm#NASDAQ">ARM</a>).</li>
</ul>
</li>
<li>There are two earnings of note this morning.
<ul>
<li>Boeing Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) earnings are being well received by the stock market.&nbsp;BA stock is up.</li>
<li>Vertiv Holdings Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vrt#NYSE">VRT</a>), a maker of cooling equipment for AI servers, is rocketing after better than expected earnings.</li>
</ul>
</li>
<li>The new data on durable orders is strong.&nbsp; Here are the details:
<ul>
<li>Durable orders came at 2.6% vs. 1.8% consensus.</li>
<li>Durable goods ex-transport came at 0.2% vs. 0.3% consensus.</li>
</ul>
</li>
<li>The U.S. Treasury will conduct a record auction of $70B of five year Treasuries.&nbsp;We will be carefully watching the results and will let you know if a canary in the coal mine develops.&nbsp;&nbsp;&nbsp;&nbsp;
<ul>
<li>It is important for investors to carefully watch longer duration Treasury auctions due to the second blunder that the Fed has committed.&nbsp;The second blunder is Powell&rsquo;s press conference in December 2023. &nbsp;</li>
<li>Of note is that yesterday, the Treasury conducted a record auction of $69B of two year Treasuries.&nbsp;The auction was excellent with yield coming at 4.898%, lower than expected.&nbsp;The reason is that investors are shifting money from money market funds to two year Treasuries.&nbsp;&nbsp;</li>
</ul>
</li>
</ul>
<h3>Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Amazon.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Microsoft Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>), Meta Platforms Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>), NVDA, and TSLA.
In the early trade, money flows are neutral in Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>).
In the early trade, money flows are negative in Alphabet Inc Class C (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>).
In the early trade, money flows are positive in SPDR S&amp;P 500 ETF Trust (ARCA:SPY) and Invesco QQQ Trust Series 1 (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>).
<h3>Momo Crowd And Smart Money In Stocks</h3>
The momo crowd is buying stocks in the early trade.&nbsp;Smart money is inactive in the early trade.
<h3>Gold</h3>
The momo crowd is buying gold in the early trade.&nbsp;Smart money is inactive in the early trade.
For longer-term, please see gold and silver ratings.
The most popular ETF for gold is SPDR Gold Trust (ARCA:GLD).&nbsp;The most popular ETF for silver is iShares Silver Trust (ARCA:SLV).&nbsp;
<h3>Oil</h3>
API crude inventories came at a draw of 3.23M barrels vs. a consensus of a build of 1.8M barrels.
The momo crowd is buying oil in the early trade.&nbsp;Smart money is inactive in the early trade.
For longer-term, please see oil ratings.
The most popular ETF for oil is United States Oil ETF (ARCA:USO).
<h3>Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is range bound.
<h3>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.
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>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 seven 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">Generate Wealth Newsletter</a>.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

$BTC

Musk Lifts Sentiment In Entire Stock Market By Saying A Regular Car Is Like "Riding A Horse"

Good Morning Traders! In today&#39;s Market Clubhouse Morning Memo, we will discuss SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA.
Our proprietary formula, exclusive to Market Clubhouse, dictates these price levels. This dynamic equation takes into account price, volume, and options flow. These levels are updated every day and shared with all Clubhouse Members, prior to the opening of the market.
We recommend closely monitoring these stocks, and be prepared to leverage potential breakouts or reversals. As always, stay alert and ready to adjust your tactics based on the market&#39;s pulse to optimize your trading gains. Now, let&#39;s dive into the stock analysis:
<h3>SPDR S&amp;P 500 ETF Trust</h3>
The SPY&nbsp;(ARCA: SPY) is currently trading around our specified level of 506.06. For the bullish scenario, a move above 506.06 towards 506.71 would be ideal. Should the market maintain strength above this level, we would look for a rise to 507.52. If 507.52 proves to be a reliable support during regular trading hours, the next target would be 508.34, with a final bullish objective for the day at 508.83.
On the downside, if SPY fails to sustain above 506.06, the focus shifts to bears aiming for a pullback to 505.32. A continuation of the downward trend could push the price to test 503.95. Breaking below this level could lead to a strong support test at 502.85, with the most significant bearish goal set at 501.74 for the day.
<h3>Invesco QQQ Trust Series 1 </h3>
The QQQ (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>) is currently fluctuating around the pivotal level of 427.32. Bulls would benefit from a push above this level to 428.50, with 429.40 as the subsequent target if the higher level holds firm. Continuous buying could escalate the price to 430.16, potentially testing a high point of 431.18 by day&#39;s end, with an ultimate bullish target of 431.82.
Should the price fail to remain above 427.32, the bears could drive the price lower towards 426.64. If signs of weakness continue, a further decline to 425.77 could occur, with the possibility of reaching 424.82. If this support cannot be maintained, the bearish trajectory could extend down to 424.04 as the day&#39;s lowest target.
<h3>Apple Inc. </h3>
Apple&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) is currently positioned around the 167.09 level. For bullish traders, maintaining support at 167.09 is crucial, aiming for an advance to 167.59. A sustained bullish momentum could push the stock to 168.00, with a stretch goal for the day at 168.41 if control remains with the bulls.
Conversely, if 167.09 fails as a support level, the price might retreat to 166.27. Continued selling pressure could lead to further declines towards 165.62, and if the downtrend persists, the next level to watch would be 164.71, with a bearish extreme target at 164.15 for the day.
<h3>Microsoft Corp.</h3>
Microsoft&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>) is trading around 409.69, with bullish sentiments aiming to keep the price above this level and target 410.64, which needs to be sustained as support. If successful, the next objectives would be 411.72, with an aggressive bull target for the day at 413.14.
If Microsoft cannot hold above 409.69, the downside scenario involves testing 408.46. A break below this could see a move towards 407.11, and if bearish momentum continues, the subsequent level to test would be 406.01, with the lowest bear target set at 404.92.
<h3>NVIDIA Corporation </h3>
NVIDIA&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) is now trading near 842.42. Bulls are looking to elevate the auction price to 846.80, establishing it as a clear support level. A successful claim could lead to 852.61, with the potential of reaching 858.43, and an optimistic daily high at 865.62.
If NVIDIA fails to uphold support at 842.42, bears might push the price down to 837.58. A breach of this level could prompt a decline to 833.50, with further weakening possibly testing 827.98, and the bearish extreme for the day targeted at 823.52.
<h3>Alphabet Inc Class A</h3>
Alphabet&#39;s&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>) current auction level is 157.41. Bulls aim to hold this as support and drive the price to 158.54. Continued bullish force could propel the price towards a high target of 160.36.
If support at 157.41 fails, a bearish downturn could see the price drop to 156.61, with a further decline potentially to 155.59. Intensified selling could depress the price to a low bear target of 154.95.
<h3>Meta Platforms Inc </h3>
Meta&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>) is currently positioned at 508.25. Bulls seek to sustain this level and push the price up to 512.85, with the potential of climbing further to 515.39. The highest bullish target for the day is set at 520.27.
Should 508.25 not maintain as support, the downside trajectory could see the price fall to 504.54. Further selling pressure could drive the price down to 500.83, with the day&#39;s lowest bear target at 498.03.
<h3>Tesla Inc.</h3>
Tesla&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) is presentlyauctioning around 162.32. Bulls are aiming for a rise to 164.87, with continued buying possibly leading to 166.89. A significant bullish rally could test further highs at 169.70, with a day&#39;s high target at 172.61.
If Tesla cannot sustain 162.32 as support, a decline to 160.32 could ensue. Persistent selling might lead to a test at 157.52, with the potential for a fall to the day&#39;s lowest bear target at 155.78.
Final Word: Today&rsquo;s market session is relatively light on economic data, with Preliminary Capital and Durable Goods Orders data scheduled for release at 8:30 AM ET. Additionally, the Treasury will hold an auction for 2 Year Floating Rate Notes (FRNs) at 11:30 AM ET. These FRNs offer a dynamic investment opportunity as their interest payouts adjust periodically, providing a hedge against rate fluctuations. Later in the day, at 1 PM ET, a 5 Year Note auction is also planned. The market will be particularly attentive to afterhours earnings reports from Meta, Ford, and IBM. Investors should keep an eye on large positions and potential hedging actions within the options market. Trade cautiously and good luck!
The Morning Memo is curated by RIPS, a pro trader with years of experience in equities, options, and futures trading. RIPS is at the heart of the exclusive Market Clubhouse community, offering his insights, expertise, and real-time mentorship.
Start your day with a live daily market analysis, a carefully selected watch list, early access to the Morning Memo, and exclusive Market Clubhouse price levels, providing precise support and resistance indicators. When you become a member of Market Clubhouse, you will gain early access to the Morning Memo, just like this one, every single day&mdash;hours before it&#39;s published. You will also have access to a live stream with zero latency and screen sharing, enabling you to witness Rips executing his trades in real-time and sharing his exclusive trading plans, strategies, and live decision-making.
For a limited time during our special promotion, you can join RIPS and get a full access pass to Market Clubhouse for 7 full days for just $7. Check it out at <a href="https://marketclubhouse.club/7Days/" title="https://marketclubhouse.club/7Days/">https://marketclubhouse.club/7Days/</a> where you can trade live with him and tap into his wealth of knowledge and experience. You can also catch Rips on his live day trading streams every Monday-Friday at 8 am EST on the Market Clubhouse YouTube channel: <a href="https://www.youtube.com/@MarketClubhouse" title="https://www.youtube.com/@MarketClubhouse">https://www.youtube.com/@MarketClubhouse</a>.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

GOOGL

Market Clubhouse Morning Memo - April 24th, 2024 (Trade Strategy For SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, And TSLA)

<a href="https://blogs.nvidia.com/blog/runai/#:~:text=To%20help%20customers%20make%20more,management%20and%20orchestration%20software%20provider.">https://blogs.nvidia.com/blog/runai/#:~:text=To%20help%20customers%20make%20more,management%20and%20orchestration%20software%20provider.</a>
Israeli startup promotes efficient cluster resource utilization for AI workloads across shared accelerated computing infrastructure.
To help customers make more efficient use of their AI computing resources, NVIDIA today announced it has entered into a definitive agreement to acquire Run:ai, a Kubernetes-based workload management and orchestration software provider.
Customer AI deployments are becoming increasingly complex, with workloads distributed across cloud, edge and on-premises data center infrastructure.
Managing and orchestrating generative AI, recommender systems, search engines and other workloads requires sophisticated scheduling to optimize performance at the system level and on the underlying infrastructure.
Run:ai enables enterprise customers to manage and optimize their compute infrastructure, whether on premises, in the cloud or in hybrid environments.
The company has built an open platform on <a href="https://www.nvidia.com/en-us/glossary/kubernetes/">Kubernetes</a>, the orchestration layer for modern AI and cloud infrastructure. It supports all popular Kubernetes variants and integrates with third-party AI tools and frameworks.
Run:ai customers include some of the world's largest enterprises across multiple industries, which use the Run:ai platform to manage data-center-scale GPU clusters.
"Run:ai has been a close collaborator with NVIDIA since 2020 and we share a passion for helping our customers make the most of their infrastructure," said Omri Geller, Run:ai cofounder and CEO. "We're thrilled to join NVIDIA and look forward to continuing our journey together."
The Run:ai platform provides AI developers and their teams:
<ul>
<li>A centralized interface to manage shared compute infrastructure, enabling easier and faster access for complex AI workloads.</li>
<li>Functionality to add users, curate them under teams, provide access to cluster resources, control over quotas, priorities and pools, and monitor and report on resource use.</li>
<li>The ability to pool GPUs and share computing power — from <a href="https://www.nvidia.com/en-us/technologies/multi-instance-gpu/#:~:text=Multi%2DInstance%20GPU%20(MIG)%20expands%20the%20performance%20and%20value,%2C%20cache%2C%20and%20compute%20cores.">fractions of GPUs</a> to multiple GPUs or multiple nodes of GPUs running on different clusters — for separate tasks.</li>
<li>Efficient GPU cluster resource utilization, enabling customers to gain more from their compute investments.</li>
</ul>
NVIDIA will continue to offer Run:ai's products under the same business model for the immediate future. And NVIDIA will continue to invest in the Run:ai product roadmap as part of <a href="http://www.nvidia.com/dgx-cloud">NVIDIA DGX Cloud</a>, an AI platform co-engineered with leading clouds for enterprise developers, offering an integrated, full-stack service optimized for generative AI.
NVIDIA DGX and DGX Cloud customers will gain access to Run:ai's capabilities for their AI workloads, particularly for large language model deployments. Run:ai's solutions are already integrated with <a href="https://www.nvidia.com/en-us/data-center/dgx-platform/">NVIDIA DGX</a>, <a href="https://www.nvidia.com/en-us/data-center/dgx-superpod/">NVIDIA DGX SuperPOD</a>, <a href="https://www.nvidia.com/en-us/data-center/base-command/">NVIDIA Base Command</a>, <a href="https://www.nvidia.com/en-us/gpu-cloud/">NGC</a> containers, and <a href="https://www.nvidia.com/en-us/data-center/products/ai-enterprise/">NVIDIA AI Enterprise</a> software, among other products.
NVIDIA's accelerated computing platform and Run:ai's platform will continue to support a broad ecosystem of third-party solutions, giving customers choice and flexibility.
Together with Run:ai, NVIDIA will enable customers to have a single fabric that accesses GPU solutions anywhere. Customers can expect to benefit from better GPU utilization, improved management of GPU infrastructure and greater flexibility from the open architecture.

NVIDIA To Acquire GPU Orchestration Software Provider Run:ai; No Financial Terms Disclosed

<ul>
<li>TSLA</li>
<li>META</li>
<li>NVDA</li>
<li>BA</li>
<li>AAPL</li>
<li>AI</li>
<li>MSFT</li>
<li>DJT</li>
<li>INTC</li>
<li>NFLX</li>
</ul>
Data from <a href="https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment">https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment</a>
&nbsp;

NFLX

Top 10 Trending Stocks On WallStreetBets As Of April 24, 2024 (Via Swaggy Stocks)

Tesla Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) may install 85,000&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) H100 chips by year-end to train its artificial intelligence (AI) models.&nbsp;
If CEO Elon Musk proceeds with this plan, Tesla will surpass tech giants like&nbsp;Amazon.Com Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and&nbsp;Alphabet Inc&nbsp;(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>)&nbsp;Google&nbsp;as a significant Nvidia customer.&nbsp;
During Tesla&#8217;s first quarterly earnings report for 2024, Musk disclosed that the company currently possesses 35,000 H100 chips, the most advanced and expensive graphics processing units designed for AI applications, CNBC&nbsp;<a target="_blank" href="https://www.cnbctv18.com/technology/tesla-nvidia-h100-biggest-buyer-google-amazon-microsoft-meta-19401278.htm" rel="noreferrer noopener">reports</a>.
These chips are vital for Musk&#8217;s AI initiatives, which include the development of advanced robots like Optimus Bot and Robotaxi and a supercomputer named Dojo.
Reports indicate that&nbsp;Meta Platforms Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) is Nvidia&#8217;s largest customer.&nbsp;
According to the World Economic Forum, Nvidia produced 550,000 chips last year, and companies must wait until 2024 to secure additional supplies.&nbsp;
Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) is the second-largest buyer, as stated by Omdia, with an order of 150,000 GPUs in 2023. Other significant purchasers include Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), Tencent Holding Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), Google, and Amazon, each reportedly acquiring 50,000 chips. Meta, Microsoft, Google, and Amazon nearly account for 40% of Nvidia&#8217;s revenue. CNBC writes.&nbsp;
Musk&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38345502/elon-musk-reacts-after-nvidia-stock-plunges-10-and-erases-212b-market-cap-rookie-numbers" rel="noreferrer noopener">had mocked Nvidia&#8217;s</a>&nbsp;substantial market capitalization loss on April 19, calling the 10% stock decline &#8220;rookie numbers&#8221; on X, formerly Twitter.&nbsp;
Nvidia experienced a&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38358181/whats-going-on-with-nvidia-and-amd-stocks-on-monday" rel="noreferrer noopener">significant drop in</a>&nbsp;stock value, shedding $211 billion in market capitalization, marking the second-largest single-day loss in U.S. stock market history.&nbsp;
This steep decline&nbsp;was triggered&nbsp;by disappointing earnings from&nbsp;ASML Holdings NV&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) and a pessimistic market outlook from&nbsp;Taiwan Semiconductor Manufacturing Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).&nbsp;
Meanwhile, analysts maintained their bullish stance on Nvidia, expecting it to rule the accelerator market primarily backed by&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38388117/whats-going-on-with-nvidia-and-amd-stocks-on-tuesday" rel="noreferrer noopener">its Blackwell product</a>.
<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/2024/04/24044332/newplot-27.png" alt="" class="wp-image-305990" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/24044332/newplot-27.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/24044332/newplot-27-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Nvidia stock gained 205% in the last 12 months. Tesla stock lost 11%.
Price Actions: TSLA shares traded higher by 11.40% at $161.21 premarket at the last check Wednesday.
Photo courtesy: Shutterstock

Movers

Media

ASML

ORCL

TCEHY

Elon Musk's Big Bet: Tesla to Ramp Up AI Development with Nvidia's Powerful Chips

Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) has set a <a href="https://www.benzinga.com/news/large-cap/24/01/36686998/meta-platforms-zuckerberg-announces-major-ai-initiatives-7-things-you-need-to-know">goal of buying 350,000 Nvidia Corp.</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) H100 GPUs by 2024 to power its AI ambitions, but that was not Mark Zuckerberg's original intention.
What Happened: Zuckerberg revealed that Meta's massive $1 billion bet on Nvidia's H100 GPUs was originally meant to be used for a different product, not AI.
In a recent episode on Dwarkesh Patel's podcast, Zuckerberg spilled the beans on something previously unknown – those 350,000 Nvidia H100 GPUs were to help make Instagram Reels better, not to help make Meta a leading AI company.
See Also: <a href="https://www.benzinga.com/news/24/04/38358203/mark-zuckerberg-wont-just-open-source-instagrams-code-but-would-he-do-it-for-a-10b-ai-model-he-says">Mark Zuckerberg Won&#8217;t Just Open-Source Instagram&#8217;s Code But Would He Do It For A $10B AI Model? He Says, Well…</a>
But how did Zuckerberg even know Meta would need $1 billion worth of GPUs? Zuckerberg explains that Instagram Reels is what made the company take the plunge.
"It was because we were working on Reels."
He explains that Meta needed more GPUs to "train the models" behind Reels recommendations.
"We made this big push to start recommending what we call unconnected content," he added, explaining that this resulted in the number of recommendable Reels rising from thousands to "hundreds of millions."
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Zuckerberg wanted to make Instagram Reels as addictive as TikTok, but Meta's infrastructure was proving to be the bottleneck.
"We have to make sure that's never an issue again, so let's order enough GPUs to do what we need to do on Reels." That's where the 350,000 Nvidia H100 GPUs come in.
Training large AI models like Llama was an unintended but fruitful coincidence for Meta, and Zuckerberg thinks it "ended up being a very good decision, in retrospect."
Why It Matters: Meta says that its latest AI model, <a href="https://www.benzinga.com/news/24/04/38330339/mark-zuckerbergs-meta-says-llama-3-beats-googles-gemini-mistral-and-jeff-bezos-backed-anthropics-cla">Llama 3, has outperformed</a> Alphabet Inc.'s Google Gemini, Anthropic's Claude 3, and Mistral AI's model.
The Llama 3 model, which comes in two sizes with 8B and 70B parameters, has shown significant improvements in text-based responses, including answering prompts and refusing fewer times.
This comes after Anthropic announced that <a href="https://www.benzinga.com/news/24/03/37481165/this-google-backed-ai-model-could-help-sundar-pichai-achieve-what-gemini-couldnt-beat-openais-gpt-4">Claude 3 outperformed</a> rivals like Microsoft Corp.-backed OpenAI's GPT-4.
Interestingly, Meta did not mention GPT-4 in its comparison, but OpenAI is expected to release a <a href="https://www.benzinga.com/news/24/03/37838131/openai-is-reportedly-gearing-up-to-release-a-significantly-better-gpt-5-by-mid-year">"significantly better"</a> GPT-5 model later this year.
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
<div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Mark Zuckerberg - Llama 3, $10B Models, Caesar Augustus, &amp; 1 GW Datacenters" width="500" height="281" src="https://www.youtube.com/embed/bc6uFV9CJGg?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div>
</figure>
Check out more of Benzinga&#8217;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: <a href="https://www.benzinga.com/news/24/04/38398735/jeff-bezos-backed-perplexity-ai-is-now-a-unicorn-after-latest-fundraise-softbanks-masayoshi-son-nvid">Jeff Bezos-Backed Perplexity AI Is Now A Unicorn After Latest Fundraise: SoftBank&#8217;s Masayoshi Son, Nvidia &#8216;Doubled Down&#8217; On Support</a>
Photo courtesy: Shutterstock

Social Media

Meta's Massive $1B Bet On Nvidia H100 GPU Cluster Will Dwarf Every Other Company's Target, But Zuckerberg Reveals Original Goal Was This, Not AI

Jeff Bezos-backed Perplexity AI, a <a href="https://www.benzinga.com/news/24/03/37421021/this-jeff-bezos-backed-ai-tool-can-replace-search-engine-for-many-people-says-top-ex-googler-but-the">startup challenging Alphabet Inc.&#8216;s</a> (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>) Google with its AI-driven search engine, has successfully secured a new funding round, which has more than doubled its valuation, making it a unicorn.
What Happened: The startup has raised approximately $63 million in its latest funding round, which now values the company at over $1 billion.
The round was led by investor Daniel Gross, with contributions from billionaire Stanley Druckenmiller, Y Combinator CEO Garry Tan, and Figma Inc. CEO Dylan Field.
Existing investors, including Jeff Bezos, Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), and SoftBank Group Corp., among others, "doubled down" on their support.
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Perplexity AI, founded less than two years ago, has already <a href="https://www.benzinga.com/news/24/04/38378083/whats-cooking-nvidias-jensen-huang-meets-jeff-bezos-backed-perplexity-ai-ceo-search-like-a-billionai">made a mark</a> in the industry with its AI chatbot that provides users with summarized search results, and citations, and helps refine queries. The company has seen a significant increase in user queries, processing 169 million queries per month now.
It is now focusing on selling AI services to businesses and has launched an enterprise version of its chatbot, priced at $40 a month, with additional features such as enhanced security and data protection.
Perplexity is also expanding its user base in other regions through distribution partnerships with major carriers such as Japan&#8217;s SoftBank Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) and Germany&#8217;s Deutsche Telekom AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/DTEGF#OTC">DTEGF</a>). The startup is offering some of these customers a <a href="https://www.benzinga.com/news/24/02/37360463/ceo-of-jeff-bezos-backed-perplexity-ai-lauds-carls-peis-new-nothing-phone-2a-i-am-getting-one">free one-year subscription</a> to its service.
Why It Matters: Perplexity AI has been making significant strides in the AI industry, with its innovative approach to search technology <a href="https://www.benzinga.com/news/24/03/37450685/perplexity-ai-vs-chatgpt-vs-google-gemini-which-ai-chatbot-is-the-best-for-you">setting it apart from other AI chatbots</a> like OpenAI's ChatGPT and Google's Gemini AI.
Perplexity&#8217;s ability to attract high-profile investors and users, such as Nvidia CEO Jensen Huang, <a href="https://www.benzinga.com/news/24/02/37316083/nvidia-ceo-jensen-huang-uses-these-ai-tools-almost-every-day-for-research">who is a fan of the product</a>, demonstrates the industry&#8217;s enthusiasm for new generative AI products.
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: <a href="https://www.benzinga.com/news/24/04/38357333/elon-musk-reacts-to-tucker-carlson-saying-theres-ton-of-evidence-that-aliens-live-among-us-with-6000?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk Reacts To Tucker Carlson Saying There&#8217;s &#8216;Ton Of Evidence&#8217; That Aliens Live Among Us</a>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

Startups

DTEGF

SFTBF

SFTBY

Jeff Bezos-Backed Perplexity AI Is Now A Unicorn After Latest Fundraise: SoftBank's Masayoshi Son, Nvidia 'Doubled Down' On Support

Elon Musk, the CEO of Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), has expressed his dissatisfaction with the term GPU while announcing that the company&#8217;s core AI infrastructure is no <a href="https://www.benzinga.com/news/23/08/34128510/elon-musk-affirms-training-compute-will-not-be-a-constraint-for-teslas-full-self-driving-improvement">longer training-constrained</a>.
What Happened: During the <a href="https://www.benzinga.com/news/earnings/24/04/38390883/tesla-q1-earnings-highlights-ev-giant-misses-wall-street-estimates-makes-cost-cuts-invests-in-ai-sp">first-quarter earnings call</a> on Tuesday, Musk revealed that Tesla has been actively expanding its core AI infrastructure. He stated, &#8220;We are, at this point, no longer training-constrained, and so we&#8217;re making rapid progress.&#8221;
The tech billionaire also disclosed that Tesla has installed and <a href="https://www.benzinga.com/news/24/04/38111017/tesla-ceo-elon-musk-disagrees-with-nvidias-jensen-huang-that-anyone-can-make-their-own-neural-networ">commissioned 35,000 H100</a> computers or GPUs and Tesla anticipates this number to potentially reach around 85,000 by the end of the year, primarily <a href="https://www.benzinga.com/markets/equities/24/01/36707594/not-clear-quips-elon-musk-as-tesla-enthusiast-questions-metas-plan-to-buy-nvidias-ai-chips-equiv">for training purposes</a>. 
See Also: <a href="https://www.benzinga.com/news/24/04/38395385/elon-musk-says-tesla-optimus-humanoid-robot-might-be-available-externally-by-the-end-of-next-year-he">Elon Musk Says Tesla Optimus Humanoid Robot Might Be Available Externally By The End Of Next Year: Here&#8217;s The Progress Report</a>
&#8220;We are making sure that we&#8217;re being as efficient as possible in our training,&#8221; Musk said, adding that it is not just about the number of H100s but &#8220;how efficiently they&#8217;re used.&#8221; 
During the conversation, Musk also expressed his discomfort with the term GPU. &#8220;I always feel like a wince when I say GPU because it&#8217;s not. GPU stand — G stands for graphics, and it doesn&#8217;t do graphics,&#8221; the tech mogul stated. 
&#8220;GPU is [the] wrong word,&#8221; he said, adding, &#8220;They need a new word.&#8221;
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Why It Matters: Musk&#8217;s statement came after Tesla reported its first-quarter financial revenue of $21.0 billion, which showed a 9% year-over-year decrease, missing the Street consensus estimate of $22.15 billion. The company stated that its revenue was affected by reduced average selling prices and decreased vehicle deliveries during the quarter.
On the other hand, Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) last year made a significant impact on the AI and computing sectors by introducing its H100 data center chip, which added more than $1 trillion to the company&#8217;s overall value. 
In February, earlier this year, it was reported that the demand for the H100 chip, which is four times faster than its predecessor, the A100, in training large language models or LLMs and 30 times faster in responding to user prompts, has been so substantial that customers are <a href="https://www.benzinga.com/government/24/02/37283133/nvidias-h100-chip-sparks-ai-revolution-boosting-value-by-1t-as-it-unveils-new-chips-for-china">encountering wait times of up to six months</a>.
Meanwhile, earlier this month, Piper Sandler&nbsp;analyst <a href="https://www.benzinga.com/news/24/04/38257652/nvidias-hopper-demand-and-blackwell-launch-position-makes-it-a-top-large-cap-pick-analysts">Harsh V. Kumar</a> engaged directly with Nvidia's management team and reported that despite Nvidia&#8217;s Hopper GPU being on the market for almost two years, demand remains strong, outstripping supply. <a href="https://www.benzinga.com/news/24/04/38257652/nvidias-hopper-demand-and-blackwell-launch-position-makes-it-a-top-large-cap-pick-analysts">Customers are hesitant to shift their orders</a> from the Hopper to the Blackwell, fearing extended wait times due to anticipated supply limitations.
Check out more of Benzinga&#8217;s Future Of Consumer Tech by <a href="https://www.benzinga.com/topic/consumer-tech">following this link.</a>
Read Next: <a href="https://www.benzinga.com/general/gaming/24/04/38395097/elon-musk-likes-games-originating-from-this-country-because-because-they-havet-been-corrupted-by-w">Elon Musk Likes Games Originating From This Country Because They Haven&#8217;t Been Corrupted By &#8216;Woke DEI Lies&#8217;</a>
Disclaimer: This content was partially produced with the help of <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Tesla CEO Elon Musk Says He Feels 'Like A Wince' When Saying 'GPU' As He Boasts Rapid Progress With AI Compute: 'Need A New Word'

Trendless Markets are an Investor&#39;s Worst Nightmare
Over my two-decade active investing career, I have learned valuable lessons by studying my trading history extensively. In looking back at my investments and the investing environment when I made the investment, I learned unsurprisingly that my best results came during bull markets (defined by the S&amp;P 500 Index trending above its 50-day moving average). Because about 75% of a stock&#39;s performance is correlated to the general market&#39;s direction, the results of my post-analysis make sense. However, the most surprising takeaway from my historical study of my trading history was that I did not lose the most money in bear markets. Instead, the biggest drawdowns in my equity curve occurred during trendless, choppy markets (as defined by the S&amp;P 500 Index stuck between the intermediate-term 50-day moving average and the long-term 200-day moving average.)
Don&#39;t only take my word for it; listen to two investing juggernauts from completely entirely different eras:
Jesse Livermore, who amassed his massive fortune during the Great Depression crash of 1929, warned of trendless markets by saying, &quot;There is a time to go long, a time to go short, and a time to go fishing.&quot;
Similarly, Ed Seykota, a trend following pioneer with a money management track record of ~60% annually net of fees over 30 years, felt so strongly about trendless markets that he composed his own tune appropriately named &quot;The Whipsaw Song.&quot;
While amateur investors seek to extract money from the market regardless of conditions, elite investors understand the importance of sitting on their hands and waiting patiently for a trend to develop. For equity investors, five items suggest that a trendless market may be in the works over the next few months, including:
Seasonality: Sell in May and Go Away?
Historical seasonality trends dating back to 1949 indicate that the S&amp;P 500 Index tends to fluctuate in election years until June before rallying into year end.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/f0/65561.png?v=1236224273" /> 
Image Source: Almanac Trader
Geopolitical Uncertainty
As the Russia/Ukraine war drags on, tensions between Iran and Israel have escalated recently. Though the tit-for-tat between the adversaries appears to be over in the short-term, the cloud of war continues to hang over equity markets and could lead to a &quot;headline-driven&quot; market.
Sentiment Bearish, But Room Lower
Sentiment indicators suggest that investors have one foot out the door. Despite the relatively tame pullback in the S&amp;P 500 Index, sentiment has shifted from &quot;Extreme Greed&quot; to &quot;Fear&quot; in just a handful of days. While the poor sentiment is bullish from a contrarian perspective, there is room to go lower in the next few months.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/f5/65562.png?v=975948455" /> 
Image Source: CNN
Muddled Fed Policy Picture
Wall Street&#39;s interest rate expectations have fluctuated dramatically as several Fed officials have opposing views, inflation remains stubborn, and commercial real estate concerns loom. For example, the Chicago Mercantile Exchange (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cme#NASDAQ">CME</a>) &quot;FedWatch&quot; tool gives the odds of a rate cut and no change in rates for July at around a coin flip. Because Fed liquidity is a significant market driver, the uncertainty around monetary policy may lead to uncertainty in equities.
Digestion Pullbacks are Normal 
Nvidia (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>), Super Micro Computer (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smci#NASDAQ">SMCI</a>), and Arm Holdings (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/arm#NASDAQ">ARM</a>) were victims of carnage in the tech sector last week. However, before the correction, each had gone on tremendous bull runs. In other words, some digestion is expected and warranted at this juncture. Meanwhile, Ryan Detrick of Carson Research points out that, &quot;The S&amp;P 500 has a max pullback of 5.5% in 2024 so far. Since 1980, only 4 years saw a smaller pullback. The average year since 1980 saw a 14.2% max pullback.&quot; Investors should reach the conclusion that even though the recent pullback may have felt painful, it would be normal for stocks to retreat further and still maintain their bull trend.
Bottom Line
Savvy investors understand that choppy, trendless markets are the most dangerous. Five indicators suggest a choppy market ahead.
<a href="https://www.zacks.com/commentary/2260411/cracking-the-code-5-reasons-a-choppy-market-looms?cid=CS-BENZ-FT-investment_ideas-2260411">To read this article on Zacks.com click here.</a>

Education

Cracking the Code: 5 Reasons a Choppy Market Looms

Advanced Micro Devices,&nbsp;Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) stock continued its upward trajectory Tuesday after&nbsp;the&nbsp;Friday&#8217;s selloff, along with&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) stock.
The key artificial intelligence beneficiaries lost close to 6% &#8211; 10% in stock value last Friday as the Street grew wary of the U.S. Federal Reserve&#8217;s rate cuts and Iran and Israel strike.
Meanwhile, reports indicated that Chinese companies are succeeding in procuring advanced Nvidia chips from&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/asia/24/04/38369354/nvidias-high-end-chips-ended-up-in-chinese-hands-despite-us-ban-heres-how-beijing-scored-them" rel="noreferrer noopener">third-party vendors</a>.&nbsp;
Previously, Chinese tech juggernaut&nbsp;Alibaba Group Holding Limited&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) voiced how the U.S. embargo harmed&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38140039/us-embargo-on-nvidia-stings-hard-chinas-ai-development-lags-peers-alibabas-joe-tsai-reveals" rel="noreferrer noopener">China&#8217;s AI ambitions</a>.
Prior reports had also indicated how the U.S. embargo led to a captive underground market for&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/02/36910198/whats-going-on-with-nvidia-stock-friday" rel="noreferrer noopener">AI chips in China</a>.
Analysts expect Nvidia to dominate the ~$90 billion calendar year 2024 accelerator market (rising to $200 billion by calendar year 2027), primarily backed by&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38188367/nvidia-eyes-continued-leadership-in-90b-accelerator-market-despite-recent-dip-bofa-analyst" rel="noreferrer noopener">its Blackwell product</a>.
Analysts have identified&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38278064/whats-going-on-with-amd-stock-tuesday" rel="noreferrer noopener">several growth catalysts</a>&nbsp;for AMD&#8217;s recent surge, beginning with&nbsp;the introduction of&nbsp;new products. AMD unveiled the Ryzen PRO 8040 and 8000 Series processors, AI-enabled and built using advanced 4-nanometer technology, targeting business laptops, mobile workstations, and desktops.&nbsp;
The anticipated expansion of the AI PC market will likely benefit AMD significantly. Analysts have also highlighted AMD&#8217;s competitive positioning against Nvidia in the merchant accelerators market, bolstered by its Mi300 series products and an evolving chip, hardware, and software ecosystem.
Further financial upside is likely from the acquisition of Xilinx, which will likely offer substantial revenue synergies exceeding $10 billion.
Nvidia stock gained over 203% in the last 12 months&nbsp;, and&nbsp;AMD gained 74%. Investors can gain exposure to Nvidia via&nbsp;VanEck Semiconductor&nbsp;ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and&nbsp;Global X&nbsp;Robotics &amp; Artificial Intelligence ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BOTZ#NASDAQ">BOTZ</a>).
Price Actions: NVDA shares traded higher by 3.68% at $824.48 at the last check Tuesday. AMD shares traded higher by 3.01% at $153.10.
Photo via Shutterstock

BABA

BOTZ

What's Going On With Nvidia and AMD Stocks On Tuesday?

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders will search for circumstances when the market estimation of an option diverges heavily from its normal worth. High amounts of trading activity could push option prices to exaggerated or underestimated levels. 
Below are some instances of options activity happening in the Information Technology sector: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>NVDA</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>04/26/24</td>
<td>$820.00</td>
<td>$30.3K</td>
<td>7.3K</td>
<td>36.2K</td>
</tr>
<tr>
<td>APH</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>05/17/24</td>
<td>$125.00</td>
<td>$36.0K</td>
<td>984</td>
<td>9.1K</td>
</tr>
<tr>
<td>AMD</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>04/26/24</td>
<td>$152.50</td>
<td>$29.4K</td>
<td>5.0K</td>
<td>8.5K</td>
</tr>
<tr>
<td>CLSK</td>
<td>CALL</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>04/26/24</td>
<td>$19.00</td>
<td>$184.2K</td>
<td>4.9K</td>
<td>4.4K</td>
</tr>
<tr>
<td>MSFT</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>04/26/24</td>
<td>$407.50</td>
<td>$28.8K</td>
<td>1.4K</td>
<td>3.7K</td>
</tr>
<tr>
<td>SMCI</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>04/26/24</td>
<td>$750.00</td>
<td>$27.9K</td>
<td>719</td>
<td>3.0K</td>
</tr>
<tr>
<td>IREN</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>11/15/24</td>
<td>$5.00</td>
<td>$170.0K</td>
<td>5.3K</td>
<td>1.0K</td>
</tr>
<tr>
<td>AVGO</td>
<td>CALL</td>
<td>SWEEP</td>
<td>NEUTRAL</td>
<td>04/26/24</td>
<td>$1280.00</td>
<td>$54.4K</td>
<td>155</td>
<td>965</td>
</tr>
<tr>
<td>CDNS</td>
<td>CALL</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>11/15/24</td>
<td>$300.00</td>
<td>$44.6K</td>
<td>9</td>
<td>864</td>
</tr>
<tr>
<td>SOUN</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>07/19/24</td>
<td>$4.00</td>
<td>$31.8K</td>
<td>2.2K</td>
<td>714</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These bullet-by-bullet explanations have been constructed using the accompanying table. 
• For NVDA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), we notice a call option sweep that happens to be bullish, expiring in 3 day(s) on April 26, 2024. This event was a transfer of 20 contract(s) at a $820.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $30.3K, with a price of $1515.0 per contract. There were 7309 open contracts at this strike prior to today, and today 36255 contract(s) were bought and sold. 
• Regarding APH (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APH#NYSE">APH</a>), we observe a call option sweep with bullish sentiment. It expires in 24 day(s) on May 17, 2024. Parties traded 300 contract(s) at a $125.00 strike. This particular call needed to be split into 6 different trades to become filled. The total cost received by the writing party (or parties) was $36.0K, with a price of $120.0 per contract. There were 984 open contracts at this strike prior to today, and today 9190 contract(s) were bought and sold. 
• For AMD (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), we notice a put option trade that happens to be bullish, expiring in 3 day(s) on April 26, 2024. This event was a transfer of 100 contract(s) at a $152.50 strike. The total cost received by the writing party (or parties) was $29.4K, with a price of $294.0 per contract. There were 5050 open contracts at this strike prior to today, and today 8589 contract(s) were bought and sold. 
• Regarding CLSK (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CLSK#NASDAQ">CLSK</a>), we observe a call option trade with neutral sentiment. It expires in 3 day(s) on April 26, 2024. Parties traded 996 contract(s) at a $19.00 strike. The total cost received by the writing party (or parties) was $184.2K, with a price of $185.0 per contract. There were 4968 open contracts at this strike prior to today, and today 4459 contract(s) were bought and sold. 
• For MSFT (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), we notice a call option sweep that happens to be bullish, expiring in 3 day(s) on April 26, 2024. This event was a transfer of 33 contract(s) at a $407.50 strike. This particular call needed to be split into 9 different trades to become filled. The total cost received by the writing party (or parties) was $28.8K, with a price of $875.0 per contract. There were 1454 open contracts at this strike prior to today, and today 3776 contract(s) were bought and sold. 
• For SMCI (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>), we notice a put option trade that happens to be bearish, expiring in 3 day(s) on April 26, 2024. This event was a transfer of 10 contract(s) at a $750.00 strike. The total cost received by the writing party (or parties) was $27.9K, with a price of $2791.0 per contract. There were 719 open contracts at this strike prior to today, and today 3053 contract(s) were bought and sold. 
• For IREN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IREN#NASDAQ">IREN</a>), we notice a put option trade that happens to be neutral, expiring in 206 day(s) on November 15, 2024. This event was a transfer of 1000 contract(s) at a $5.00 strike. The total cost received by the writing party (or parties) was $170.0K, with a price of $170.0 per contract. There were 5390 open contracts at this strike prior to today, and today 1000 contract(s) were bought and sold. 
• For AVGO (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), we notice a call option sweep that happens to be neutral, expiring in 3 day(s) on April 26, 2024. This event was a transfer of 75 contract(s) at a $1280.00 strike. This particular call needed to be split into 6 different trades to become filled. The total cost received by the writing party (or parties) was $54.4K, with a price of $726.0 per contract. There were 155 open contracts at this strike prior to today, and today 965 contract(s) were bought and sold. 
• Regarding CDNS (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDNS#NASDAQ">CDNS</a>), we observe a call option trade with neutral sentiment. It expires in 206 day(s) on November 15, 2024. Parties traded 20 contract(s) at a $300.00 strike. The total cost received by the writing party (or parties) was $44.6K, with a price of $2230.0 per contract. There were 9 open contracts at this strike prior to today, and today 864 contract(s) were bought and sold. 
• Regarding SOUN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOUN#NASDAQ">SOUN</a>), we observe a call option trade with bearish sentiment. It expires in 87 day(s) on July 19, 2024. Parties traded 350 contract(s) at a $4.00 strike. The total cost received by the writing party (or parties) was $31.8K, with a price of $91.0 per contract. There were 2288 open contracts at this strike prior to today, and today 714 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more about unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

AVGO

CDNS

CLSK

IREN

SOUN

<a href="https://asia.nikkei.com/Business/Tech/Semiconductors/New-York-woos-Japan-companies-to-join-Micron-in-nascent-chip-hub" title="https://asia.nikkei.com/Business/Tech/Semiconductors/New-York-woos-Japan-companies-to-join-Micron-in-nascent-chip-hub">https://asia.nikkei.com/Business/Tech/Semiconductors/New-York-woos-Japan-companies-to-join-Micron-in-nascent-chip-hub</a>

Micron To Invest $100B Over 20 Years In Upstate New York Chip Hub

NXPI

Shares of semiconductor stocks are trading higher amid a continued rebound following Friday's drop.

To gain an edge, this is what you need to know today.
<img alt="" src="https://thearorareport.com/wp-content/uploads/2024/04/2024-04-23_08h41_13.png" style="height:362px; width:624px" />
<h3>Hedges Are Profitable</h3>
The Arora Report gave several signals to put&nbsp;hedges on to protect large profits on long-term positions. Hedges are now profitable.&nbsp;It is time to book partial profits on some hedges.&nbsp;&nbsp;
<h3>Semiconductors Stabilizing After 17% Drop&nbsp;</h3>
Please <a href="https://thearorareport.com/stock-market-chart-analysis-semiconductors-leading-sector-smh-mc-04232024">click here</a> for an enlarged chart of semiconductor ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smh#NASDAQ">SMH</a>).
Note the following:
<ul>
<li>Historically, semiconductors are the leading sector.&nbsp;Often semiconductors move first and then the rest of the market follows.</li>
<li>This time, there has been an additional factor &ndash; semiconductors have been at the center of the AI revolution.</li>
<li>The chart shows semiconductors have had a massive run.&nbsp;As full disclosure, The Arora Report&#39;s ZYX Allocation Core Model Portfolio has a large allocation to semiconductors, up to 16% of the portfolio.</li>
<li>The chart shows when the Arora signal was given to take partial profits close to the top.</li>
<li>The chart shows semiconductors dropped 17% from the top.</li>
<li>The chart shows semiconductors are attempting to stabilize at the microsupport zone.</li>
<li>The chart shows RSI is oversold.&nbsp;Oversold RSI often, but not always, leads to a bounce.</li>
<li>Among the earnings, there are two notable earnings.
<ul>
<li>General Motors Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gm#NYSE">GM</a>) reported earnings significantly better than the whisper numbers.&nbsp;This indicates that in spite of high interest rates, consumers feel secure enough to buy new cars.</li>
<li>Cadence Design Systems Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cdns#NASDAQ">CDNS</a>) is a leading provider of semiconductor design software.&nbsp;CDNS stock has run up due to the AI frenzy.&nbsp;The presumption has been that as chips become more complex, CDNS will benefit.&nbsp; CDNS guidance is below expectations.&nbsp;This indicates that the momo crowd euphoria about AI is overdone.&nbsp; As full disclosure, CDNS is one of 18 stocks on the Arora Artificial Intelligence List.&nbsp;&nbsp;</li>
</ul>
</li>
<li>In the short term, the course of the stock market will depend on earnings from Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</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>),&nbsp;Alphabet Inc Class C (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>), and Alphabet Inc Class A (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>).</li>
</ul>
<h3>Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Amazon.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Alphabet (GOOG), Meta (META), NVIDIA Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>), Microsoft (MSFT), and Tesla (TSLA).
In the early trade, money flows are neutral in Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>).
In the early trade, money flows are mixed in SPDR S&amp;P 500 ETF Trust (ARCA:SPY) and Invesco QQQ Trust Series 1 (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>).
<h3>Momo Crowd And Smart Money In Stocks</h3>
The momo crowd is buying stocks in the early trade.&nbsp;Smart money is inactive in the early trade.
<h3>Gold</h3>
The momo crowd is selling gold in the early trade.&nbsp;Smart money is inactive in the early trade.
For longer-term, please see gold and silver ratings.
The most popular ETF for gold is SPDR Gold Trust (ARCA:GLD). The most popular ETF for silver is iShares Silver Trust (ARCA:SLV).&nbsp;
<h3>Oil</h3>
The momo crowd is selling oil in the early trade.&nbsp; Smart money is inactive in the early trade.
For longer-term, please see oil ratings.
The most popular ETF for oil is United States Oil ETF (ARCA:USO).
<h3>Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is range bound.&nbsp;Bitcoin bulls are disappointed that bitcoin is not running up immediately after the halving.&nbsp;
<h3>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.
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>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 seven 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">Generate Wealth Newsletter</a>.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Commodities

Hedges Are Profitable, Semiconductors Stabilizing After 17% Drop

Artisan Sustainable Emerging Markets Fund Q1 2024 Commentary

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<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Intel (NASDAQ:<a href="https://investorplace.com/stock-quotes/intc-stock-quote/">INTC</a>) stock pulled back in recent weeks, but you may be confident that a rebound for Intel stock is just around the corner. Analysts walked back their forecasts leaving room for Intel to surprise the market. Promising guidance and updates on Intel&rsquo;s move into AI chips could spark a post-earnings rally.



Yet while INTC could bounce back in the near-term, it may be a different story when it comes to the quarters and years ahead. Intel may be a more formidable AI contender than the market initially gave it credit, yet keep in mind that even this catalyst may fail to counter major headwinds that are likely to persist.



<h2>Intel Stock Earnings Preview</h2>



Post-market on April 25, Intel will report results for the quarter ending March 31, 2024. There is solid potential for the market to react positively to this earnings release. 



After just recently disclosing <a href="https://www.reuters.com/technology/intel-discloses-financials-foundry-business-2024-04-02/">big losses in 2023 for the company&rsquo;s foundry unit</a>, investors may not be too surprised if the foundry segment, which manufactures chips for &ldquo;fabless&rdquo; designers, reports big losses yet again for Q1 2024.



Also, as Citi&rsquo;s Christopher Danely argued last week, <a href="https://www.barrons.com/articles/intel-stock-pc-demand-rebound-ea939fdc?mod=md_stockoverview_news">a channel check of notebook computer shipments in March</a> may suggest that&rsquo;s not just hope and hype to believe that Intel&rsquo;s results for the preceding quarter could beat sell-side consensus. Revisions to outlook or further AI chip updates could help drive a post-earnings surge for Intel stock.



Yes, Intel has already made some big AI chip announcements in recent weeks. You may recall that just two weeks prior, the company unveiled its Gaudi 3 AI accelerator chip. 



This AI chip could give Nvidia&rsquo;s (NASDAQ:<a href="https://investorplace.com/stock-quotes/nvda-stock-quote/">NVDA</a>) H100 <a href="https://arstechnica.com/information-technology/2024/04/intels-gaudi-3-ai-accelerator-chip-may-give-nvidias-h100-a-run-for-the-money/">a run for its money</a>, in terms of speed and price. 



However, further commentary by the company could indicate how quickly this new product will start making an impact on Intel&rsquo;s fiscal performance.



<h2>An After-Earnings Rebound Could Prove Fleeting</h2>



A sentiment shift may be imminent for Intel stock. It&rsquo;s also possible that investors are warming back up to the AI chip stocks, after <a href="https://seekingalpha.com/news/4091625-semiconductors-stocks-tumble-amid-super-micro-ai-fears">a sharp sector sell-off on April 19</a>. However, an after-earnings rebound due to these factors may prove fleeting. 



Again, due to key headwinds for the company that are not going away anytime soon. For instance, headwinds related to Intel&rsquo;s foundry business. Intel is spending billions to expand its foundry manufacturing capacity. 



On the surface, it may appear that the ingredients are in place for this big gamble to pay off. 



Namely, because not only is Intel is <a href="https://www.cnbc.com/2024/03/20/intel-awarded-up-to-8point5-billion-from-chips-act-with-loans-available.html">partially funding this expansion</a> with U.S. Federal Government subsidies. There is a big push to &ldquo;reshore&rdquo; chip production, in order to reduce reliance on chips manufactured in geopolitically-vulnerable Taiwan. 



Yet even if the foundry segment achieves success, this success may only take shape a few years from now. 



Per CEO Pat Gelsinger, <a href="https://www.intc.com/news-events/press-releases/detail/1687/intel-outlines-financial-framework-for-foundry-business">it may not be until 2030</a> that this becomes a profitable segment for Intel. In the meantime, further foundry losses and <a href="https://www.theregister.com/2024/04/16/intel_foundry_vision">buildout delays</a> could weigh on Intel&rsquo;s overall performance, and on INTC stock. That&rsquo;s not all. China-related risks may soon come back into focus.



<h2>Bottom Line: Wait for a Better Entry Point</h2>



Besides disheartening foundry news, there&rsquo;s also been some <a href="https://www.barrons.com/articles/intel-amd-stock-china-chips-909eaeb1?mod=md_stockoverview_news">negative China-related news</a> for Intel over the past few weeks. U.S.-China relations keep growing tense. This may lead to further actions by the Chinese government that could decimate the tens of billions worth of annual revenue the company generates in China.



Hence, expect this factor to also weigh on shares. Although an Intel comeback is no longer as strongly priced-in as it was when INTC was trading north of $50 per share earlier this year, as the market takes the above-mentioned risks more into account, a slide back down towards Intel&rsquo;s 52-week low in the mid-$20s per share is very possible.



This provides a clear takeaway. Even if you&rsquo;re bullish on better times ahead for Intel stock, sit tight for now. Wait for a better entry point before buying.



On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<div>Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.</div><h3>More From InvestorPlace</h3>
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	The post <a href="https://investorplace.com/2024/04/the-elephant-in-the-chip-room-why-intel-stock-post-earnings-pop-may-be-short-lived/">The Elephant in the Chip Room: Why Intel Stock&#8217;s Post-Earnings Pop May Be Short-Lived</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

The Elephant in the Chip Room: Why Intel Stock's Post-Earnings Pop May Be Short-Lived

Micron: CHIP Grants Are Rocket Fuel (Rating Upgrade)

Intel Q1 earnings preview: AI progress in focus

Preliminary look at the market charts tells me the selling is not over, but we may still get a push higher first, albeit much weaker than the broadly soft-landing-supportive data of yesterday.

A Pause In The Bounce

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
As the market pulls back in April, it&rsquo;s time to put some dry powder to work. Some of the top Nasdaq stocks have pulled back significantly and present opportunities at current levels.



After a 25% rally since November 2023, when the market barely had any pullback, a bigger correction was in the cards. It appears this is happening now, with the Nasdaq declining for the third consecutive week. However, the narrative for stocks hasn&rsquo;t changed, and it&rsquo;s an opportune time to start loading up on top Nasdaq stocks.



Although there are some geopolitical tensions in the Middle East, the U.S. economy remains resilient. <a href="https://www.atlantafed.org/cqer/research/gdpnow">Atlanta Fed GDPNow model</a> is projecting U.S. Q1 economic growth at 2.9%, one of the best rates in the developed world. Furthermore, consumer spending is robust, supported by the low unemployment rate.



This bull market is still intact as long as the economy remains resilient. Use this pullback to buy these top Nasdaq stocks that the market has unfairly punished.



<h2>Netflix (NFLX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/06/nflx1600-1-300x169.png" alt="Netflix (NFLX) logo displayed on smartphone on top of pile of money."><div>Source: izzuanroslan / Shutterstock.com</div></div>After the 9% post-earnings selloff, Netflix (NASDAQ:<a href="https://investorplace.com/stock-quotes/nflx-stock-quote/">NFLX</a>) has become one of the top Nasdaq stocks to buy. It&rsquo;s surprising that the stock fell after an impressive quarter. Although the company disappointed investors by stating it would stop disclosing subscriber numbers, the selloff was unwarranted.



Indeed, everything else about <a href="https://s22.q4cdn.com/959853165/files/doc_financials/2024/q1/FINAL-Q1-24-Shareholder-Letter.pdf">Q1 2024 results</a> was stellar. Netflix remains the number one entertainment company, reporting 269.6 million subscribers. The streamer blew past Wall Street&rsquo;s subscriber estimates, adding 9.33 million subscribers, almost double the 4.9 million expected.



Revenue for the quarter was $9.37 billion, representing 14.8% growth. The company showed impressive operating leverage, with operating income of $2.6 billion compared to $1.7 billion in Q1 fiscal year 2023. As a result, operating margins improved from 21% to 28.1%. Meanwhile, the firm generated $2.1 billion in free cash flow in the quarter.



To put the cherry on the cake, the guidance surprised to the upside. The company expects 13% to 15% revenue growth in fiscal year 2024 and management plans to continue increasing operating margins.



Finally, analysts weighed in with <a href="https://markets.businessinsider.com/news/stocks/netflix-stock-sized-up-by-7-analysts-post-q1-results-pivot-from-a-high-growth-low-profit-business-to-a-slow-growth-high-profit-business-1033267142#:~:text=Analysts%20weighed%20in%20on%20Netflix,target%20from%20%24650%20to%20%24700.">bullish calls</a> after earnings. Bank of America reiterated an overweight rating with a $700 price target. They believe Netflix can sustain double-digit top-line growth. The growth, alongside margin expansion and buybacks, will support 25% to 30% EPS compounded annual growth.



<h2>Costco Wholesale (COST)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/03/cost1600-300x169.jpg" alt="A Costco Wholesale (COST) warehouse in Auburn Hills, Michigan."><div>Source: ilzesgimene / Shutterstock.com</div></div>The recently released <a href="https://www.census.gov/retail/marts/www/marts_current.pdf">March retail report</a> was another sign that consumers are in healthy shape and continue to spend. And what better way to invest in more consumer spending than Costco Wholesale (NASDAQ:<a href="https://investorplace.com/stock-quotes/cost-stock-quote/">COST</a>), one of the most beloved retailers?



Since its earnings reports, COST stock has pulled back about 9% from recent highs. This pullback offers an entry into one of the best long-term compounders. Its everyday low-price strategy supports a flywheel of increased memberships and shopping volume as customers look for bargains.



Indeed, over the years, Costco Wholesale has perfected its merchandise selection, becoming a treasure hunt destination for shoppers. Shoppers always seem to find bargains at COST, from groceries to apparel and <a href="https://www.cnbc.com/2024/04/09/costco-selling-up-to-200-million-in-gold-bars-a-month-wells-fargo-estimates.html">even gold bars</a>! This, plus the virality of deals at Costco Wholesale from shopping influencers, has only boosted the company&rsquo;s appeal.



That&rsquo;s why the retailer keeps releasing industry-leading revenue growth numbers despite its size. For the fiscal year ended September 2023, it reported growth of 6.76%. Sales are still robust, with the company reporting Q1 FY2024 and Q2 FY2024 sales growth of 6.1% and 5.7%, respectively.



The strength continues. Its <a href="https://investor.costco.com/news/news-details/2024/Costco-Wholesale-Corporation-Reports-March-Sales-Results-and-Announces-an-Increase-in-Its-Quarterly-Cash-Dividend/default.aspx">March sales</a> showed comparable sales for the five weeks ended April 7 grew 7.7%. Net sales for the period were $23.48 billion, up 9.4%. Costco Wholesale remains one of the top Nasdaq stocks to buy. Its loyal fanbase will keep trooping to stores for bargains.



<h2>Nvidia (NVDA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/08/nvda1600-5-300x169.png" alt="Nvidia corporation (NVDA) logo displayed on smartphone with stock market chart background. Nvidia is a global leader in artificial intelligence hardware."><div>Source: Evolf / Shutterstock.com</div></div>One area that has corrected sharply in recent weeks is the momentum trade. <a href="https://investorplace.com/industries/technology/artificial-intelligence/">Artificial intelligence stocks</a> have been caught up in this drawdown, taking a serious beating. The king of AI, Nvidia (NASDAQ:<a href="https://investorplace.com/stock-quotes/nvda-stock-quote/">NVDA</a>), hasn&rsquo;t been spared. It has corrected over 20%, with a severe 10% drop on April 19.



This is the much-awaited pullback long-term investors hoped for, making Nvidia one of the top Nasdaq stocks to buy. The AI story is still intact, and we are in the early innings of multiyear growth. Furthermore, after the recent drop, it trades at 30 times forward earnings, a bargain multiple for a company with <a href="https://seekingalpha.com/symbol/NVDA/earnings/estimates">analyst estimates</a> forecasting over 80% revenue growth in FY2025.



Based on earnings reports and news flow, the demand for AI chips is insatiable. For instance, <a href="https://www.trendforce.com/news/2024/04/19/news-microsoft-reportedly-stockpiling-ai-chips-to-boost-hardware-capability/">reports have emerged</a> that Microsoft (NASDAQ:<a href="https://investorplace.com/stock-quotes/msft-stock-quote/">MSFT</a>) plans to double its GPU inventory to 1.8 million. Nvidia is the main supplier to cloud service providers and will directly benefit from this surge in demand.



Lastly, Taiwan Semiconductor Manufacturing (NYSE:<a href="https://investorplace.com/stock-quotes/tsm-stock-quote/">TSM</a>), the largest foundry, reported earnings on April 18, highlighting robust AI demand. Management noted they expect revenue from AI processors to grow at a 50% compounded annual growth rate. Nvidia outsources chip manufacturing to Taiwan Semi, so these comments were a positive read-through for the semiconductor giant.



On the date of publication, Charles Munyi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div>Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/04/the-top-3-nasdaq-stocks-to-buy-in-april-2024/">The Top 3 Nasdaq Stocks to Buy in April 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

The Top 3 Nasdaq Stocks to Buy in April 2024

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