Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
Microsoft (NASDAQ: MSFT) is spending aggressively to control AI models, chips, and infrastructure, but that same strategy may also be creating a sovereign AI trap investors aren't fully pricing in. The upside could be huge if the market is missing what Microsoft is really buildin
Microsoft (NASDAQ: MSFT) is spending aggressively to control AI models, chips, and infrastructure, but that same strategy may also be creating a sovereign AI trap investors aren't fully pricing in. The upside could be huge if the market is missing what Microsoft is really buildin
Stockman Warns This Is Not Your Grandfather's Stagflation Authored by David Stockman via The Brownstone Institute, It was pretty obvious even before February 28th that the US economy was grinding to a halt, even as inflation was already working up a head of steam. But then came war. We are going to get a globe-shaking economic conflagration erupting from the void that was the Persian Gulf commodit...
Stockman Warns This Is Not Your Grandfather's Stagflation Authored by David Stockman via The Brownstone Institute, It was pretty obvious even before February 28th that the US economy was grinding to a halt, even as inflation was already working up a head of steam. But then came war. We are going to get a globe-shaking economic conflagration erupting from the void that was the Persian Gulf commodity fountain. That includes between 20% and 50% of all the basic commodities that drive global GDP, including crude oil, LPGs, LNG, ammonia, urea, sulfur, helium, and sundry more. Accordingly, the global share of crucial industrial commodities that now stand in harm’s way. This includes both those directly transiting the Strait of Hormuz and also the share of supply from the wider Middle Eastern region that is also exposed to the current Iranian War disruptions but is delivered by pipeline, train, or alternative waterways like the Red Sea/Suez Canal route. This ballooning dislocation of daily global commodity flows will have a double whammy effect : It will both cause production and output to fall immediately in response to soaring input costs or limited availability... even as it encourages the central banks to “help” by printing more inflationary money. This all adds up to a bout of classic stagflation, but it is not going to be merely the mildly painful type that unfolded during the 1970s. After all, despite a 120% rise in the price level during the decade, it wasn’t a total wipeout when measured from the vantage point of real median family income. As it happened, the 1970s stagflation came on the heels of what had been an actual Golden Age by the standards of history between 1954 and 1969. During that period, real median family incomes rose from $39,700 to $66,870 or by a robust 3.53% per annum. Of course, that uphill march of Main Street prosperity slowed sharply during the inflationary 1970s, but the blue line in the chart below did at least keep drifting higher. So bet...
First SpaceX's IPO filing and then NASA's successful Artemis II launch. Now, Amazon is exploring a multi-billion-dollar satellite acquisition to accelerate its own low-Earth-orbit network. It highlights the tech giant's race to catch up in a sector once dominated by pure-play rocket companies.
First SpaceX's IPO filing and then NASA's successful Artemis II launch. Now, Amazon is exploring a multi-billion-dollar satellite acquisition to accelerate its own low-Earth-orbit network. It highlights the tech giant's race to catch up in a sector once dominated by pure-play rocket companies.
mesh cube/iStock via Getty Images Micron ( MU ) is down 17% in one month, which is a clear sign that something big happened. This came after it beat EPS estimates by 25% ($12.2 vs. $9) and revenue estimates by 17% ($23.86B vs. $19.76B). Not only that, but gross margin doubled and operating and net margins tripled in 9 months. I can go on about the strong earnings Micron reported, but the market re...
mesh cube/iStock via Getty Images Micron ( MU ) is down 17% in one month, which is a clear sign that something big happened. This came after it beat EPS estimates by 25% ($12.2 vs. $9) and revenue estimates by 17% ($23.86B vs. $19.76B). Not only that, but gross margin doubled and operating and net margins tripled in 9 months. I can go on about the strong earnings Micron reported, but the market reacted by declining 30% since its earnings. With this kind of reaction, it confirms the thesis of my previous article, where I said what the market was pricing in made no sense. In its earnings call , Micron’s CEO, Sanjay Mehrotra, guided CapEx to increase by $5B to $25B due to expansion work at its site in Tongluo, Taiwan. Micron’s $100B megafab construction project is experiencing labor shortages and longer construction cycles, and its Fab 1 was delayed 2 years, with a completion date of 2030. Micron CapEx Lag It is a known problem for Micron and other memory producers that it is impossible to time CapEx to meet demand for their chips. It is a highly cyclical business due to technological innovations creating a shortage and prompting Micron and its peers to invest in new fabs. As you can see in the previous table, fabs take a long time to build, and when these projects are finished, supply catches up and chip prices fall. I think it is relevant to show a graph I included in my previous article, as it shows how reminiscent this period is of previous cycles. Seeking Alpha Because this time the high-margin, non-commoditized HBM chip is in high demand, it offers a cushion to its bottom line. This is different from previous cycles, as they involved commoditized products like SSDs and NAND. Still, with its fabs under construction for such a long time and the AI world moving so fast, demand for memory chips will be very different once it is complete. Competition has intensified with the HBM4 chip; previously, with HBM3E, Samsung Electronics ( SSNLF ) did not pass Nvidia’s qualifi...
mesh cube/iStock via Getty Images Micron ( MU ) is down 17% in one month, which is a clear sign that something big happened. This came after it beat EPS estimates by 25% ($12.2 vs. $9) and revenue estimates by 17% ($23.86B vs. $19.76B). Not only that, but gross margin doubled and operating and net margins tripled in 9 months. I can go on about the strong earnings Micron reported, but the market re...
mesh cube/iStock via Getty Images Micron ( MU ) is down 17% in one month, which is a clear sign that something big happened. This came after it beat EPS estimates by 25% ($12.2 vs. $9) and revenue estimates by 17% ($23.86B vs. $19.76B). Not only that, but gross margin doubled and operating and net margins tripled in 9 months. I can go on about the strong earnings Micron reported, but the market reacted by declining 30% since its earnings. With this kind of reaction, it confirms the thesis of my previous article, where I said what the market was pricing in made no sense. In its earnings call , Micron’s CEO, Sanjay Mehrotra, guided CapEx to increase by $5B to $25B due to expansion work at its site in Tongluo, Taiwan. Micron’s $100B megafab construction project is experiencing labor shortages and longer construction cycles, and its Fab 1 was delayed 2 years, with a completion date of 2030. Micron CapEx Lag It is a known problem for Micron and other memory producers that it is impossible to time CapEx to meet demand for their chips. It is a highly cyclical business due to technological innovations creating a shortage and prompting Micron and its peers to invest in new fabs. As you can see in the previous table, fabs take a long time to build, and when these projects are finished, supply catches up and chip prices fall. I think it is relevant to show a graph I included in my previous article, as it shows how reminiscent this period is of previous cycles. Seeking Alpha Because this time the high-margin, non-commoditized HBM chip is in high demand, it offers a cushion to its bottom line. This is different from previous cycles, as they involved commoditized products like SSDs and NAND. Still, with its fabs under construction for such a long time and the AI world moving so fast, demand for memory chips will be very different once it is complete. Competition has intensified with the HBM4 chip; previously, with HBM3E, Samsung Electronics ( SSNLF ) did not pass Nvidia’s qualifi...
We just covered the 10 Best Stocks to Buy According to Billionaire Ken Griffin. Alphabet (NASDAQ:GOOGL) ranks #9 (see the 5 Best Stocks to Buy According to Ken Griffin). Ken Griffin’s Stake Value: $913,187,829 Alphabet (NASDAQ:GOOGL) shares are down about 7% so far this year and some believe now is the right time to pile into the […]
We just covered the 10 Best Stocks to Buy According to Billionaire Ken Griffin. Alphabet (NASDAQ:GOOGL) ranks #9 (see the 5 Best Stocks to Buy According to Ken Griffin). Ken Griffin’s Stake Value: $913,187,829 Alphabet (NASDAQ:GOOGL) shares are down about 7% so far this year and some believe now is the right time to pile into the […]