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Stock futures were falling following three straight days of losses for Wall Street. Federal Reserve Chairman Jerome Powell again will be delivering testimony before Congress. His comments on Wednesday that the central bank likely would be raising rates further this year pushed markets lower.
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U.S.-listed shares of Logitech International SA, a Swiss maker of computer peripherals and software, were down about 3.6% Monday, amid reports that one of the company’s gamepads was being used to steer the submersible that went missing while taking five people down to the wreck of the Titanic.
Logitech’s $30 F710 gamepad was the controller of the OceanGate submarine vessel that is the subject of a massive sea-and-air search, according to a segment on the “CBS News Sunday Morning Show” by reporter David Pogue that aired last November.
In the segment, OceanGate Chief Executive Stockton Rush, one of the five people currently onboard the submersible, showed Pogue the game controller that he said “runs the whole thing,” causing the reporter to burst out laughing.
Pogue later describes the “MacGyver jerry-riggedness” of the whole thing, which included off-the-shelf components such as lights from Camper World and construction pipes as ballast. Rush explained that other parts of the vessel were made in cooperation with Boeing, NASA and the University of Washington.
As The Verge pointed out, game controllers are used in other instances to control submarine periscopes, including by the U.S. Navy and Elon Musk’s The Boring Company.
On Monday, Pogue tweeted that during his report which was filmed last summer, the submersible got lost for a period — while he was on the surface.
In that instance, the vessel still had contact with the surface. This time, there are no communications, although a Canadian military surveillance aircraft detected underwater noises early Wednesday, as the Associated Press reported.
A statement from the U.S. Coast Guard did not elaborate on what rescuers believed the noises could be, though it offered a glimmer of hope for those lost aboard the Titan. Estimates suggested as little as a day’s worth of oxygen could be left if the vessel is still functioning.
Also on the vessel with Rush are a British adventurer, two members of a Pakistani business family and a Titanic expert.
Authorities reported the carbon-fiber vessel overdue Sunday night, setting off the search in waters about 435 miles (700 kilometers) off the coast of of St. John’s.
The submersible had a four-day oxygen supply when it was put to sea around 6 a.m. Sunday, according to David Concannon, an adviser to OceanGate Expeditions, which oversaw the mission.
Questions remain about how teams could reach the lost submersible, which could be as deep as about 12,500 feet (3,800 meters) below the surface near the watery tomb of the historic ocean liner. Newly uncovered allegations also suggested there had been significant warnings made about the vessel’s safety prior to its disappearance.
Read: Missing Titanic submersible: Here’s what we know so far
Logitech’s stock
LOGI,
is down about 18% in the month to date.
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U.S. stock index futures slipped lower Tuesday after a three-day break, with Chinese equities wilting on disappointment over the monetary stimulus efforts in the world’s number-two economy.
On Friday, the Dow Jones Industrial Average
DJIA,
fell 109 points, or 0.32%, to 34299, the S&P 500
SPX,
declined 16 points, or 0.37%, to 4410, and the Nasdaq Composite
COMP,
dropped 93 points, or 0.68%, to 13690.
Investors were in a cautious mood following the U.S. long weekend in honor of the Juneteenth federal holiday, but that’s after a strong run. The S&P 500 gained 2.6% last week, its fifth week in a row of gains, as the tech-heavy Nasdaq Composite took its winning run to eight weeks.
Mike Wilson, Morgan Stanley’s chief U.S. equity strategist, said both retail and institutional investor sentiment are at their highest levels in over two years.
“We note that the consensus is right about 80% of the time, which means such shifts in sentiment and positioning can often be right as the collective intelligence of the market knows best,” he said. “However, given our fundamental view on growth, we find it hard to get on board with the current excitement and narrative supporting it. In other words, if second half growth re-accelerates as expected, then the bullish narrative being used to support equity prices will be proven correct.”
One event that investors have to weigh is the resumption this fall of student loan payments, and what that may mean for consumers’ disposable income. Student loan payments have been paused since the start of the pandemic in March 2020.
China cut its 1- and 5-year lending rates by 10 basis points, which investors viewed to be modest, particularly after a Friday state council meeting didn’t result in other concrete measures. According to Societe Generale, there were expectations the 5-year rate, the benchmark for mortgages, would be cut by 15 basis points.
The Hang Seng
HSI,
fell 1.5% in Hong Kong.
Alibaba
BABA,
the Chinese internet giant, also was in the spotlight after announcing that its CEO and chairman will step down to focus on the cloud division, with Brooklyn Nets owner Joseph Tsai becoming chairman.
Tuesday’s economic data include housing starts data, which showed a 21.7% rise in May after a revised 2.9% drop in April. Building permits also climbed 5.2% in May.
A panel later Tuesday will include both New York Federal Reserve President John Williams and Fed Vice Chair for Supervision Michael Barr. On Wednesday Fed Chair Jerome Powell is due to deliver semi-annual congressional testimony.
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This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.
https://www.barrons.com/articles/virgin-galactic-stock-price-space-flight-d6f730d1
Virgin Galactic
shares were up more than 40% in premarket trading Friday after the company announced its first commercial flight into space.
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Shares of Virgin Galactic Holdings on Thursday made a scorching run higher after the space-travel company said it plans to begin offering commercial flights into space near the end of this month, a significant breakthrough for the nearly 20-year-old company founded by Richard Branson.
Shares rocketed 44% after hours on the news.
“We’re opening…
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Adobe
Systems reports financial results after the close of trading on Thursday, but the stock is more likely to move on any tidbits the company shares about its push into artificial intelligence—and the status of its pending $20 billion acquisition of the collaborative design software company Figma.
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A federal judge late Tuesday approved a request by the Federal Trade Commission to temporarily block Microsoft Corp.’s $69 billion acquisition of Activision Blizzard Inc.
U.S. District Judge Edward Davila in San Francisco issued a temporary restraining order in order to “maintain the status quo,” and set a evidentiary hearing to be held June 22-23 on whether a preliminary injunction should be issued.
The deal was set to be finalized as soon as this Friday. Tuesday’s order said the deal may not close until at least five days after the court’s preliminary injunction ruling.
The acquisition has raised antitrust concerns that Microsoft
MSFT,
with its Xbox gaming console, could withhold hit Activision Blizzard
ATVI,
videogame franchises such as “Call of Duty” and “Overwatch” from competing console platforms.
On Monday, the FTC filed for a restraining order and injunction to block the deal, arguing “a preliminary injunction is necessary to maintain the status quo and prevent interim harm to competition.”
“This loss of competition would likely result in significant harm to consumers in multiple markets at a pivotal time for the industry,” the FTC said in its filing Monday.
In a statement Tuesday evening, a Microsoft spokesperson said: “Accelerating the legal process in the U.S will ultimately bring more choice and competition to the gaming market. A temporary restraining order makes sense until we can receive a decision from the court, which is moving swiftly.”
While EU regulators approved the deal in May, British regulators have tentatively scheduled appeal hearings after saying in April they would prohibit the purchase.
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Shares of Oracle Corp. rose after hours Monday after the IT and cloud infrastructure provider reported fiscal fourth-quarter results that topped expectations, helped by a jump in cloud revenue that executives said positioned the company well for the year to come.
The company reported fourth-quarter net income of $3.32 billion, or $1.19 a share, compared with $3.19 billion, or $1.16 a share, in the same quarter last year. Revenue rose 17% to $13.84 billion, compared with $11.84 billion in the prior-year quarter.
Excluding stock-based compensation, amortization and other charges, Oracle earned $1.67 a share, compared with $1.54 a year ago.
Analysts polled by FactSet expected Oracle to report adjusted earnings per share of $1.58, on revenue of $13.74 billion.
Oracle also declared a quarterly cash dividend of 40 cents a share. Revenue from Oracle’s cloud software and infrastructure services rose 54% during the quarter.
“So, both of our two strategic cloud businesses are getting bigger — and growing faster,” Chief Executive Safra Catz said in a statement. “That bodes well for another strong year in FY24.”
Oracle shares
ORCL,
were up 4.8% after hours on Monday. The stock closed regular trading up 5.8% to $116.43, putting it at a record high.
Prior to the results, analysts were focused on Oracle’s cloud business — which has faced concerns about tighter tech budgets in IT departments as inflation raises concerns about the economy — as well as its AI potential, which has catapulted shares of other tech companies higher. More executives inside and outside of tech, hoping for a similar pop from investors, have been talking about AI on earnings calls more this year.
Earlier on Monday, Wolfe Research upgraded Oracle, saying its cloud business could double its market share by 2025 “on the backs of architectural advantages, partnerships” and generative AI.
UBS analysts also said they expected Oracle to highlight its cloud-AI partnership with chip maker Nvidia Corp.
NVDA,
which analysts say is set to benefit from more AI development. Those expectations were confirmed on Monday, when Oracle management name-checked Nvidia in its earnings release.
“Nvidia themselves are using our clusters, including one with more than 4,000 GPUs, for their AI infrastructure,” Larry Ellison, Oracle’s co-founder and chief technology officer, said in the release.
Shares of Oracle have marched 81.7% higher over the past 12 months. The S&P 500 Index
SPX,
has risen 15.7% over that period.
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The Federal Trade Commission just announced that Microsoft has been fined $20 million “over charges it illegally collected personal information from children who signed up for its Xbox gaming system without their parents’ consent”.
The ruling follows a larger one from December 2022, when Epic Games, developers of Fortnite, were hit with a $550 million fine for using “privacy-invasive default settings and deceptive interfaces that tricked Fortnite users, including teenagers and children”.
In this instance, the FTC says the issue centred around the creation of children’s accounts on an Xbox console, a process that until late 2021 would allow a child to enter a certain amount of personal information before requiring a parent’s assistance and permission. Microsoft had been keeping that data (sometimes for “years”), even if the account wasn’t created, which is a violation of the Children’s Online Privacy Protection Rule (COPPA).
Microsoft have already responded to the ruling with a post on the official Xbox blog, with Dave McCarthy, CVP Xbox Player Services, saying the violation was a result of a “glitch”, and that Microsoft will “continue improving” going forwards:
We recently entered into a settlement with the U.S. Federal Trade Commission (FTC) to update our account creation process and resolve a data retention glitch found in our system. Regrettably, we did not meet customer expectations and are committed to complying with the order to continue improving upon our safety measures. We believe that we can and should do more, and we’ll remain steadfast in our commitment to safety, privacy, and security for our community.
McCarthy goes on to explain the details of this “glitch”, and how it led to retention of children’s data despite this being “inconsistent with our policy to save that information for only 14 days”:
During the investigation, we identified a technical glitch where our systems did not delete account creation data for child accounts where the account creation process was started but not completed. This was inconsistent with our policy to save that information for only 14 days to make it easier for gamers to pick up where they left off to complete the process. Our engineering team took immediate action: we fixed the glitch, deleted the data, and implemented practices to prevent the error from recurring. The data was never used, shared, or monetized.
The FTC’s statement, meanwhile, says:
Microsoft will pay $20 million to settle Federal Trade Commission charges that it violated the Children’s Online Privacy Protection Act (COPPA) by collecting personal information from children who signed up to its Xbox gaming system without notifying their parents or obtaining their parents’ consent, and by illegally retaining children’s personal information.
“Our proposed order makes it easier for parents to protect their children’s privacy on Xbox, and limits what information Microsoft can collect and retain about kids,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “This action should also make it abundantly clear that kids’ avatars, biometric data, and health information are not exempt from COPPA.”
As part of a proposed order filed by the Department of Justice on behalf of the FTC, Microsoft will be required to take several steps to bolster privacy protections for child users of its Xbox system. For example, the order will extend COPPA protections to third-party gaming publishers with whom Microsoft shares children’s data. In addition, the order makes clear that avatars generated from a child’s image, and biometric and health information, are covered by the COPPA Rule when collected with other personal data. The order must be approved by a federal court before it can go into effect.
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Luke Plunkett
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Apple Inc.’s $3,499 Vision Pro headset stole the show Monday as Apple kicked off its annual WWDC event.
Chief Executive Tim Cook and other executives showed off the next chapter of Apple
AAPL,
technology — “spatial computing” — during a keynote event that failed to maintain Apple’s record stock price. Shares had been on track to close at an all-time high before the event began, but were trading in the red once the event wrapped.
While the Vision Pro and its eye-popping price tag was the biggest news from the presentation, Apple also teased forthcoming software enhancements and new Mac computers.
Here’s everything that was announced Monday.
Apple was widely expected to roll out a mixed-reality headset at Monday’s event, but the announcement still brought a few surprises.
While Apple was rumored to be planning a price tag in the range of $3,000 for its new Vision Pro headset, the actual price of $3,499 was higher. Also, Apple won’t be selling the device until early next year, later than expected, in a move that means the company will miss the holiday season.
The company spent ample time during Monday’s presentation showing off what the Vision Pro can do in terms of bringing photographs, movies and everyday web browsing into physical spaces. Though the company discussed some gaming applications, and a partnership with Unity Software Inc.
U,
executives didn’t dwell on gaming and focused the immersive experience more fully.
See MarketWatch’s enhanced coverage of the Vision Pro launch here.
Apple’s iPhone software enhancements are typically a focus of WWDC, an event aimed at developers who create apps for that and other Apple platforms. This year’s update — iOS 17 — will feature new ways to share contact information, journal and make use of the iPhone while it’s locked.
With iOS 17 this fall, Apple users will also be able to set up contact “posters” for themselves, which will appear in full screen when they call others. They’ll be able to see live transcriptions of voice mails so they can determine whether to pick up calls they initially ignored.
See MarketWatch’s full guide to the new iOS 17 features here.
Apple is making the MacBook Air bigger with a new 15-inch model that features the company’s M2 chip. This version will start at $1,299 and become officially available next week, though preorders begin today. The device gets 18 hours of battery life, is 11.5-millimeters thin and weighs just over 3 pounds.
Apple had set out to infuse its personal-computer lineup with custom chips, and the company rounded that out Monday with new Mac Pro and Mac Studio devices that feature Apple Silicon processing. The Mac Studio will start at $1,999, and the Mac Pro will begin at $6,999.
Don’t miss: AI could give a big boost to profit margins — but there’s one key unknown, Goldman Sachs says
Apple will refresh its iPad software as well, with a new custom lock screen, widget enhancements, machine-learning tools that help with PDF editing and better annotation functions for PDFs. Plus, users will be able to at last set multiple timers.
Apple plans to upgrade its Mac operating system as well with a new version that will be called Sonoma. A key feature of this update is a redesign of the widgets function, giving users the ability to place widgets on their home screens and see these automatically fade when necessary so they don’t become distracting.
The new Sonoma operating system will add various tools for web presentations, including a feature that lets people appear as overlays on top of their presentation content and new reaction animations that can show balloons and confetti in response to meeting content.
Within Safari, family members will be more easily able to share passwords. The company will also let people create separate profiles for home, work, and school use of a Mac.
Apple is adding Adaptive Audio to help AirPods users drown out distracting sounds when appropriate. The technology will proactively lower outside volume when someone is on a call and detect when someone is talking to a real-life companion in order to lower music volume for the duration of the conversation.
Within video, Apple will let people use their phone cameras to engage in FaceTime conversations shown on an Apple TV. The company will also support AirPlay connectivity at hotels.
WatchOS 10, the new Apple Watch operating system, will let users retain their aesthetic watch faces but twist the digital crown to see widgets for information like weather, timers and events. The company is also looking to make the Apple Watch more useful for cyclists with advanced tracking features. One part of this allows users to pair an iPhone and see cycling data on the phone’s lock screen, which can be useful for those who dock their phones on a bike while also wearing the watch.
Watch owners will receive a new hiking app as well, which will let users see elevation data and topographical information.
Read: Apple could be cooking up 3 more $10 billion-plus businesses, one analyst says
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Users of Apple Inc.’s iPhone will soon be able to more easily screen calls, check-in with loved ones and exchange contact information.
Apple
AAPL,
executives teased the elements of its forthcoming iOS17 software update at the keynote address of its WWDC event Monday, which also brought the introduction of new Macs.
Consumers will gain the ability to choose how they come up when they call others through a new “poster” feature. Users will be able to customize posters with photographs and fonts, and have these appear in another person’s contacts app.
The company is also changing up how calls work by adding a way for people to pick up calls while they’re in the middle of receiving a voice mail. A new on-device live-voicemail feature will show transcripts of a voice mail while it’s in progress, so people can determine that a call isn’t spam or is important enough to stop what they’re doing before they pick it up.
Users will also gain the ability to leave a message when using FaceTime, Apple’s video-calling app.
See also: Apple’s stock at all-time highs ahead of WWDC headset reveal
Within iMessage, Apple will offer the ability for people to share their locations within a conversation and check in with loved ones. People will be able to set up a check-in option that can notify loved ones when they get home and offer alerts about battery, cell service, and location if they end up running late.
Apple is also enhancing the Stickers feature within iMessage with the ability to create “live stickers” from photos. Further, it’s tucking iMessage apps like Stickers behind a menu so they don’t initially clutter the message screen.
Within iMessage, Apple will make it easier for people to jump to the top of long group threads and swipe to reply to a given message.
Apple is introducing a NameDrop feature that lets people share contact information just by tapping their phones together. It’s also augmenting AutoCorrect with in-line predictions that go beyond one word and the ability for people to teach autocorrect their preferences better.
Read: Apple could be cooking up 3 more $10 billion-plus businesses, one analyst says
The company is rolling out two new apps, including one for journaling. People will be able to collect photos, music, and written notes into moments. A new StandBy app will turn a locked iPhone into a smart display that users can customize based on their preferences and the time of day.
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These Stocks Are Moving the Most Today: Palo Alto, Dish Network, C3.ai, EPAM Systems, and More
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Artificial intelligence may destroy humanity, but not before creating enormous wealth. Such is the paradox that now confronts investors after
Nvidia
recent earnings report inadvertently created a large-scale ethics experiment on Wall Street.
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Valve removed the Steam listing for Dolphin, a popular emulator for the GameCube and Wii, after it received a cease and desist from Nintendo, developers behind the project claim. The company behind Mario and Zelda accuses the emulator of illegally circumventing its protections, and says it’s merely protecting the “hard work and creativity of video game engineers and developers.”
A listing for Dolphin on Valve’s digital storefront first appeared back in March. “We are pleased to announce our great experiment—Dolphin is coming to Steam!” the creators wrote at the time. While the open-source project has been available online for years, interest in retro emulators has increased since the release of the Steam Deck, and an official store page would make the tool even easier to access.
On May 27, however, Dolphin’s developers announced the Steam port would be “indefinitely postponed” after Valve removed the listing following discussions with Nintendo. “It is with much disappointment that we have to announce that the Dolphin on Steam release has been indefinitely postponed,” the emulator team wrote in an update on the project’s blog. “We were notified by Valve that Nintendo has issued a cease and desist citing the DMCA against Dolphin’s Steam page, and have removed Dolphin from Steam until the matter is settled. We are currently investigating our options and will have a more in-depth response in the near future.”
According to a copy of the legal notice reviewed by PC Gamer, Nintendo accuses Dolphin of using “cryptographic keys without Nintendo’s authorization and decrypting the ROMs at or immediately before runtime.” While emulation is itself legal, providing users with ways to bypass protections on individual game ROMs could potentially violate Nintendo’s intellectual property rights. It’s an issue that would have to be hashed out in court, though the power imbalance between large corporations and homebrew projects like Dolphin means that rarely actually occurs.
“Nintendo is committed to protecting the hard work and creativity of video game engineers and developers,” a spokesperson for Nintendo told Kotaku in an email. “This emulator illegally circumvents Nintendo’s protection measures and runs illegal copies of games. Using illegal emulators or illegal copies of games harms development and ultimately stifles innovation. Nintendo respects the intellectual property rights of other companies, and in turn expects others to do the same.”
While the company has rarely looked the other way when it comes to piracy of its games and the tools that could facilitate it (like mod chips sold online), Nintendo has been particularly aggressive lately in clamping down on leaks and what it believes to be illegal misuses of its games and technology. In February it subpoenaed Discord for the personal information of someone suspected of leaking the official The Legend of Zelda: Tears of the Kingdom art book. In April it issued multiple copyright strikes against dozens of popular Breath of the Wild gameplay videos on YouTube that relied on modded versions of the game. And in May it seemingly had a Switch emulation tool, Lotpick, removed from Github after illicit copies of Tears of the Kingdom began spreading like wildfire online prior to the game’s official release.
It’s not yet clear how Dolphin’s current developers will respond, or how willing Valve will be to bring the store page back unless the matter is resolved in court, which could take years. Last year, Valve accidentally included the Switch emulator Yuzu in its YouTube trailer for the Steam Deck. The video was later edited and re-uploaded to remove the reference. The company did not immediately respond to a request for comment.
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Ethan Gach
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Nintendo just updated The Legend Of Zelda: Tears of the Kingdom to version 1.1.2, and while the company’s official patch notes don’t mention it, users are reporting that many of the game’s notorious (and handy!) duplication glitches have been removed.
As we’ve reported, there have been a few ways found for players to get easy access to loads of resources and items in the game and even stack power-ups, but it appears that at least some of those are now gone as part of the patch.
Nintendo’s official notes only mention:
Ver. 1.1.2 (Released May 25, 2023)
Audio Bug Fixes
– Fixed an issue where the sound would play at an extremely high volume in certain conditions.
Additional Fixes
– Fixed an issue in the main quest, “Camera Work in the Depths”, where players could not progress beyond a certain point. Downloading the update will allow players to proceed past that point.
– Several issues have been addressed to improve the gameplay experience.
Anyone used to Nintendo’s vague patch notes won’t be surprised by this, but that “Several issues have been addressed to improve the gameplay experience” line can sure cover a lot of ground.
Users are reporting in this Reddit thread that various duplication glitches are no longer working, while our own internal testing has found that the paragliding one in particular has also been affected.
Because more of these glitches were being discovered seemingly every day, we don’t yet know if all of them have been patched out, or if there are still some lying undiscovered in the game waiting to be exploited. But if using these workarounds has made life easier for you, and you want to keep doing it, you might want to disable auto-updates for your console/game if you still have time to do it (if you hadn’t already by the time you’re reading this you might be too late, sorry!)
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Luke Plunkett
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This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.
https://www.barrons.com/articles/amazon-misses-rally-8a6e2511
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Chip stocks experienced a significant surge Thursday in the wake of Nvidia Corp.’s upbeat commentary on AI-fueled demand — with one notable exception.
Shares of Intel Corp.
INTC,
were down more than 5% in afternoon trading Thursday, leading Dow Jones Industrial Average
DJIA,
laggards by a wide margin, on a day when Nvidia Corp.’s
NVDA,
stock was up 26% and the PHLX Semiconductor Index
SOX,
was ahead 6%.
Read: Chip index heads for highest close in 13 months as Nvidia momentum lifts semiconductor stocks
Nvidia delivered a stratospheric beat on its quarterly revenue outlook Wednesday afternoon, with executives discussing how spending on artificial intelligence is already starting to drive sizable financial benefits for the company. That discussion has Wall Street thinking that many other chip makers will also be able to capitalize on the same wave of interest in the hot technology — shares of Monolithic Power Systems Inc.
MPWR,
Advanced Micro Devices Inc.
AMD,
and Taiwan Semiconductor Manufacturing Co.
2330,
TSM,
all joined Nvidia in gaining by double-digit percentages in Thursday’s session.
Intel, though, was a key outlier. Nvidia’s commentary seemed to make investors more worried that Intel is behind the curve on what some see as a massive technological revolution.
Nvidia CFO on record-breaking forecast: ‘The inflection point of AI is here’
Intel’s revenue and profits from central processing units look “even more at risk” after Nvidia’s report, while Intel doesn’t have “any real” competitive position in graphics processing units or generative-AI compute, wrote Mizuho’s Jordan Klein, a desk-based analyst associated with the company’s sales team and not its research arm.
Nvidia’s earnings call “will reinforce the negative view that [Intel] and all their CPU share is a major loser and share donor to GPU, ASICs and lower power ARM design chips on the way,” Klein added.
While Nvidia GPUs typically would run alongside CPUs from either Intel or AMD, Nvidia has been making inroads in CPUs. Chief Financial Officer Colette Kress said on Nvidia’s call that the company has seen “growing momentum for Grace with both CPU-only and CPU-GPU opportunities across AI and cloud and supercomputing applications.”
Read: ‘Ride the Nvidia wave.’ Wall Street says the ‘undeniably pricey’ stock can keep roaring.
Nvidia is perceived to be ahead of the pack in AI-related computing technology, but AMD is at least in a better position than Intel, with more of a one-stop shop across CPUs and GPUs. That’s likely why AMD’s stock is riding on Nvidia’s coattails Thursday, up more than 10% in afternoon action.
AMD is “the only other real GPU supplier,” Klein wrote, though the company “could lose CPU spend in process and [has] a far way to go to catch [Nvidia].”
In his view, it “will take some time for more advanced and higher performance GPU and software platform to ramp and really drive upside potential” at AMD. “But seeing how fast and much [Nvidia] benefited, few will want to wait and see how long that takes for AMD.”
A more clear beneficiary, he noted, is Taiwan Semiconductor, whose stock was up more than 12% Thursday. You “cannot get any of these GPUs, inference, etc. without their fabs,” according to Klein.
As for Intel, Klein likes that the company is approaching a second-quarter bottom and positioned to capitalize on a personal-computer refresh, but he said its stock “feels totally stuck at best and could get shorted.”
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