All 3 Indexes Hit Record Highs In Todays Session 💸 | $AAPL WWDC Is Here…. 😬 | $NVDA 10-1 Split Price Took Into Affect & Flew 🤑 | AI Chip Market Updates 👀
Our three major indexes had a day closing all green in the end of todays trading session, with investors bracing themselves for a Federal Reserve policy decision and inflation data that is set to release in the week ahead. Let’s dive right in and take a look at how our indexes performed today:
The S&P500 rose 0.4% today reaching a new high
The Dow Jones Industrial finished with a slight 0.2% bump
The Nasdaq Composite closed on a mini bump of 0.3%
May nonfarm payrolls report today reinforced bets that the Federal Reserve will keep interest rates at a two-decade high for longer, and the latest CME FedWatch tool has shown that investor confidence for a rate cut in September have fallen while positive sentiment for November has increased. On Wednesday investors will be waiting for the Fed’s next rate decision and May’s CPI inflation reading which will provide another big test for the market.
Unveils Apple Intelligence: A Game-Changer In Generative AI? 🤖
In a highly anticipated move, Apple has finally entered the generative AI arena with its innovative Apple Intelligence initiative, announced at the WWDC conference in Cupertino, California. This cutting-edge technology will be deeply integrated across Apple’s hardware and software products, including the iPhone, Mac, Mail, Messages, and Photos.
Unlike broad-based AI systems like ChatGPT or Google’s AI Overview, Apple Intelligence is designed to understand you and your data, providing a unique and personalized experience. The technology will be available on iPhone 15 Pro and iPads and Macs running Apple’s M1 series chips and newer, starting this fall.
Siri, Apple’s original smartphone voice assistant, is getting a major overhaul with Apple Intelligence. The updated version will feature a new look, feel more natural, and be more responsive. You’ll be able to ask follow-up questions, interrupt yourself, and even type requests instead of speaking them out loud.
But what really sets Apple Intelligence apart is its ability to understand users’ own data. For instance, you can ask Siri to show you specific photos from your Photos app, and it will deliver the exact result. You can then ask Siri to move the photo to another app, such as an email in Mail.
Beyond Siri, Apple Intelligence will also prioritize your notifications, bring up the most important notes, and minimize less relevant ones. Writing tools will be able to rewrite, write, or summarize information for you, and you’ll be able to create generative AI images of people, places, and animals across your apps.
With Apple’s focus on privacy, the company has developed a new cloud service called Private Cloud Compute, which ensures that your data remains secure and private. Apple Intelligence is poised to revolutionize the way we interact with our devices, and the tech giant has a reputation for delivering software that works seamlessly out of the box. Will Apple Intelligence live up to the hype? Only time will tell.
10-1 Split Happened Today & Stock Flew 💸
Nvidia’s stock (NVDA) began trading on a new 10-for-1 split basis on Monday, and investors are rejoicing. The stock closed up nearly 1% on its first day, with shares now trading at $120.88, down from $1,208.88 before the split.
The split means that existing shareholders received 10 shares for every one share they held, making owning Nvidia stock more affordable and accessible to retail traders. “The stock split is going to make Nvidia a lot more reachable for a lot of these retail traders,” said Matt Amberson of Option Research & Technology Services.
Nvidia’s market valuation briefly eclipsed $3 trillion last week, making it the second-most-valuable publicly traded US company, surpassing Apple. The company’s revenue has skyrocketed thanks to the growing demand for generative AI, with hyperscalers like Amazon, Google, and Microsoft clamoring for Nvidia’s hardware to power their own AI platforms.
In the first quarter, Nvidia reported adjusted earnings per share of $6.12 on revenue of $26 billion, jumps of 461% and 262%, respectively, from the same period a year ago. The company’s Data Center revenue increased 427% year over year to $22.6 billion, accounting for 86% of its total revenue.
Nvidia continues to innovate, with CEO Jensen Huang announcing new hardware upgrades and platforms, including Blackwell Ultra and Rubin, set to launch in 2025 and 2026, respectively. The company’s stock split is seen as a sign of strength, and historically, companies that split their stock tend to outperform the S&P 500 in the year following the announcement.
With a growing total addressable market beyond tech companies, including government organizations and research institutions, Nvidia’s future looks bright. As the company continues to dominate the AI hardware market, its stock is likely to remain a hot commodity.
AI Stock Report 🤝 Taiwan Semiconductor & Broadcom Soar, While Advanced Micro Devices Tumbles
The artificial intelligence (AI) revolution continues to drive the stock market, with semiconductor stocks experiencing a mixed day on Monday. Taiwan Semiconductor Manufacturing (TSM) and Broadcom (AVGO) saw their stocks surge, while Advanced Micro Devices (AMD) plummeted.
The catalyst behind these stock price movements was a series of analyst reports from Morgan Stanley. The firm resumed coverage of Broadcom with an overweight rating and a price target of $1,658, representing potential upside of 18%. Analysts believe Broadcom’s AI-related revenue will more than triple over the next couple of years, growing from $4.2 billion in fiscal 2023 to $14 billion by fiscal 2025.
As a result, Broadcom’s stock jumped 2.5%, while TSMC, which manufactures many of Broadcom’s chips, saw its stock rise 1.6%. On the other hand, Morgan Stanley downgraded AMD’s stock to equal weight from overweight, citing high expectations and limited upside. AMD’s stock fell 4.3% as a result.
The contrast between AMD and industry leader Nvidia (NVDA) is stark. Nvidia has seen triple-digit sales and profit growth for four consecutive quarters, leading to a 10-for-1 stock split. Meanwhile, AMD’s revenue grew just 2% year over year in Q1, and its stock is much more expensive than Nvidia’s.
The AI market is expected to continue its rapid growth, surging to $1.3 trillion over the coming decade. Broadcom and TSMC are well-positioned to benefit from this growth, with attractively priced stocks selling for 30 times and 27 times forward earnings, respectively.
