AI Industry: nvidia and amd Moves

The US stock market is reaching new all-time highs, with the S&P 500, Nasdaq, and Dow all seeing record levels. This surge is largely propelled by the artificial intelligence sector, with companies like NVIDIA, AMD, and Intel experiencing significant gains. NVIDIA, in particular, has hit new all-time highs, boosting the Nasdaq. The AI excitement is fueled by developments such as OpenAI's new $500 billion valuation and its unveiling of the video AI model Sora. Despite a government shutdown impacting economic data, market momentum in AI appears to be outweighing these concerns. In the automotive sector, Tesla reported strong Q3 vehicle deliveries, though questions about demand persist. Meanwhile, investor sentiment is shifting within the AI space; billionaire Stanley Druckenmiller has sold Amazon to buy Microsoft, citing its AI investments and partnership with OpenAI. Analysts are also weighing in on AI hardware, with Bernstein favoring Super Micro Computer over Apple for its direct role in AI data center infrastructure. Beyond direct AI plays, RBC Capital Markets suggests vertical software firms like Autodesk and Bentley Systems are well-positioned to remain relevant despite AI advancements. In other tech news, CarMax is aiming to save $150 million through AI and technology upgrades, including AI-powered virtual assistants. Shopify and TE Connectivity also reached new highs, reflecting the broad market interest in AI-related stocks.

Key Takeaways

• US stock indexes including the S&P 500, Nasdaq, and Dow have reached record highs, driven significantly by the artificial intelligence sector.
• NVIDIA has hit new all-time highs, contributing to the Nasdaq's performance, while AMD and Intel also saw gains.
• OpenAI has achieved a $500 billion valuation and unveiled its video AI model, Sora, further fueling AI sector excitement.
• Tesla reported strong Q3 vehicle deliveries, though concerns about post-subsidy demand remain.
• Billionaire investor Stanley Druckenmiller sold Amazon to buy Microsoft, signaling a strategic shift towards AI investments, particularly Microsoft's Azure and OpenAI partnership.
• Bernstein analyst Mark Newman favors Super Micro Computer over Apple as the top AI hardware stock due to its focus on essential AI data center infrastructure.
• RBC Capital Markets identifies vertical software firms like Autodesk and Bentley Systems as potentially 'AI-proof' due to their specialized industry expertise.
• CarMax plans to save at least $150 million over 18 months by implementing AI and technology upgrades, including AI-powered virtual assistants.
• Vertiv, an AI infrastructure company partnered with Nvidia, has seen its stock surge due to high demand from major funds.
• Shopify and TE Connectivity reached new highs, indicating a broad market trend where AI stock interest is driving gains across various technology and financial sectors.

US stocks reach new highs driven by AI and Tesla, despite government shutdown

US stock futures held steady after a record-setting week, with the S&P 500, Nasdaq, and Dow all reaching new all-time highs. The artificial intelligence sector, led by companies like NVIDIA, AMD, and Broadcom, continues to drive market momentum, fueled by OpenAI's new $500 billion valuation and its unveiling of the video AI model Sora. Despite a government shutdown impacting economic data releases, Tesla reported strong Q3 vehicle deliveries, though concerns about post-subsidy demand linger. Energy markets faced pressure as oil prices dropped, while gold and Bitcoin saw significant gains.

AI trade boosts stocks to record highs as government shutdown continues

US stock futures showed little change as the market reached new highs, primarily driven by the artificial intelligence sector. This AI-driven strength appeared to outweigh concerns about the ongoing two-day government shutdown. Major US indexes, including the S&P 500, Dow, and Nasdaq, all hit record levels on Thursday, with NVIDIA's performance significantly boosting the Nasdaq. While the shutdown has caused economic data blackouts, analysts suggest these events typically have minor economic impacts that are erased upon reopening.

Dow futures climb on strong AI sector performance

US stock futures indicated a positive opening on Friday, with the Dow Jones futures rising 0.22% and S&P 500 futures up 0.2%. This optimism is largely fueled by the artificial intelligence sector, where NVIDIA hit a new all-time high on Thursday, alongside gains in Intel and AMD. Tesla shares saw a slight pre-market increase after exceeding third-quarter delivery expectations, despite a previous day's drop. Boeing shares edged lower due to reports of a delayed 777X aircraft launch, and Chevron saw a slight dip following a fire at its refinery.

Bernstein picks Super Micro Computer over Apple as top AI hardware stock

Bernstein analyst Mark Newman identifies Super Micro Computer as the top AI hardware stock to buy, favoring it over Apple. Newman believes hardware stocks offer significant long-term opportunities despite near-term AI bubble concerns. Super Micro Computer, founded in 1993, is a major producer of high-performance computer systems and servers essential for AI data centers. Apple, while a tech giant with a strong ecosystem and loyal user base, is seen as well-positioned but less of a pure-play AI hardware investment compared to Super Micro.

Bernstein favors Super Micro Computer over Apple for AI hardware investment

Bernstein analyst Mark Newman has selected Super Micro Computer as the top AI hardware stock to buy, viewing it as having greater upside potential than Apple. Newman highlights that while AI hardware stocks face near-term bubble concerns, they offer significant long-term growth opportunities. Super Micro Computer designs and builds essential hardware for AI data centers, including servers and GPU systems. Apple, despite its strong ecosystem and loyal customer base, is considered less of a direct play on AI hardware compared to Super Micro.

Vertical software firms seen as 'AI-proof' by RBC Capital Markets

RBC Capital Markets identifies vertical software companies as potentially 'AI-proof' due to their deep industry expertise and regulatory knowledge. These specialized software firms, designed for specific industries like healthcare and insurance, are considered essential and have high customer retention rates. Companies like Autodesk, Bentley Systems, and Clearwater Analytics are recommended by RBC for their defensibility and ability to innovate around AI. While not entirely immune, these firms are expected to weather AI disruption better than others.

CarMax aims to save $150M using AI and technology upgrades

CarMax expects to save at least $150 million over the next 18 months by implementing AI and technology enhancements. These investments are projected to lower licensing costs and improve call center efficiency, partly through AI-powered virtual assistants like Skye. The company is also retiring legacy systems and optimizing third-party contracts. These cost-saving measures come as CarMax faces declining sales, with executives focusing on efficiency and reinvesting some savings into sales-driving initiatives.

Stanley Druckenmiller sells Amazon, buys Microsoft amid AI investments

Billionaire investor Stanley Druckenmiller has sold his stake in Amazon and purchased shares in Microsoft, signaling a shift in his AI-focused investments. Druckenmiller had previously exited positions in Nvidia and Palantir, citing rich valuations. He now holds approximately 200,930 shares of Microsoft, a key player in AI through its Azure cloud services and partnership with OpenAI. This move suggests continued confidence in the AI sector, with Microsoft seen as a strong contender due to its market leadership and significant AI investments.

Vertiv stock surges as AI infrastructure demand grows

Vertiv, an AI infrastructure company aligned with Nvidia, has seen its stock break out due to high demand from major funds. The company expanded its partnership with Nvidia in May to accelerate AI evolution. Wall Street has shown strong support, with Vertiv being a new buy for top mutual funds for four consecutive months. This surge in Vertiv's stock reflects the growing investor appetite for companies supporting the expanding AI infrastructure.

Tech stocks rally on AI excitement, ignoring government shutdown

US stocks advanced, led by technology shares, fueled by the AI sector's momentum after OpenAI's $500 billion valuation. The S&P 500 rose 0.3% and the Nasdaq 100 gained 0.5% despite the ongoing US government shutdown. Traders are focused on the AI euphoria, boosted by OpenAI's stock sale and a successful IPO of the energy REIT Fermi. Options markets indicate strong bullishness on US stocks, with high call option volumes. Tesla and Stellantis shares also saw gains, while Berkshire Hathaway agreed to buy Occidental Petroleum's petrochemical business.

Analyst sees upside for Alphabet (GOOG) despite AI search competition

Saira Malik, chief investment officer at Nuveen, stated that Alphabet Inc. (GOOG) remains a leader in the artificial intelligence space. Despite potential competition in AI search, analysts are discussing Alphabet as a stock to watch. Nuveen's perspective highlights Alphabet's continued strength and potential for growth within the evolving AI landscape, positioning it as a significant player in the market.

Shopify, TE Connectivity hit new highs amid AI stock interest

Shopify (SHOP) stock reached a new high on Friday, influenced by the strong performance of artificial intelligence stocks. The e-commerce software maker, along with Interactive Brokers (IBKR) and TE Connectivity (TEL), entered buy zones. This surge reflects a broader market trend where renewed interest in AI plays is driving significant gains across various technology and financial sectors.

Sources

• Pre-Market Stock Market Today - Nasdaq Futures 22,844, S&P 500 6,715, Dow 46,885 as AI and Tesla Data Drive Moves
• Stock futures are little changed as AI trade drives market to fresh highs, shutdown grinds on: Live updates
• Dow Futures Rise Driven By Strength In AI Trade: TSLA, NVDA, BA, CVX Among Stocks To Watch
• Apple or Super Micro Computer: Bernstein Selects the Top AI Hardware Stock to Buy
• Apple or Super Micro Computer: Bernstein Selects the Top AI Hardware Stock to Buy
• These are the most 'AI-proof' software companies, according to analysts
• CarMax leans on AI, tech investments to trim $150M in costs
• After Dumping Nvidia and Palantir, Billionaire Stanley Druckenmiller Recently Dropped Another AI Giant -- and Bought Shares of This Key AI Player
• Nvidia-Aligned AI Infrastructure Stock Breaks Out. Funds Love It.
• Tech stocks jump on AI euphoria as traders brush off shutdown
• Analyst Highlights New Upside for Alphabet (GOOG) Amid AI Search Threats
• Shopify Stock, TE Connectivity Hit New Highs As Appetite For AI Plays Rises