AI - Yardeni QuickTakes

The AI Trade

Mar 28, 2025 3 min read

Two months ago at the World Economic Forum in Davos, Microsoft CEO Satya Nadella said, "All I know is, I'm good for my $80 billion" regarding the $500 billion Stargate AI announcement. His comments followed the emergence of DeepSeek's R1 large language model and chatbot, which was supposedly trained at much lower cost than state-of-the-art models built in the US. A February note from

Ed Yardeni
Eric Wallerstein

Back On The Happy Trail

Jan 28, 2025 3 min read paid

Today, the US stock market quickly confirmed our view that DeepSeek is a positive for the proliferation of AI, which should boost productivity and economic growth, especially in the US. The Nasdaq added 2% as Nvidia rose 9%. Both regained much of Monday's losses from the DeepSeek mini panic. It was yet another buying opportunity in the current bull market, as we anticipated in Sunday's QT.

Ed Yardeni
Eric Wallerstein

Stocks Stay Afloat in Deep Waters

Jan 27, 2025 3 min read paid

DeepSeek took a bite out of semiconductor, other tech, as well as nuclear power stocks today. Many of these AI plays dropped by double-digit percentage points, and Nvidia fell 17%. Other than the impact of the largest US stock nearly entering a bear market in one day, plus some collateral damage in other large stocks, the broader market held up just fine. The S&P 500 fell less than

Ed Yardeni

MARKET CALL: AI Coming To Vegas, Baby, Vegas!

Jan 5, 2025 3 min read paid

The Q4-2024 earnings reporting season is about to start, led by the big banks. We expect that during their conference calls, company managements will discuss how AI may be starting to boost their productivity. In effect, they'll be trying to convince investors that every company is now a technology company either producing AI hardware and software or using them. The AI excitement will be palpable this week. As

Ed Yardeni
Eric Wallerstein

Supercomputers vs Supercore Inflation

Dec 10, 2024 3 min read paid

The stock market appeared calm ahead of tomorrow's November CPI report, which is likely to show that supercore inflation (i.e., CPI services less shelter) remains stuck around 4.5% (chart). However, there was plenty of action just below the surface of the stock market's calm. Oracle dropped 6.7% on disappointing earnings results. Google rallied 5.3% on a new state-of-the-art chip "Willow,"

Ed Yardeni
Eric Wallerstein

Let The Good Times Roll

Dec 5, 2024 2 min read paid

Salesforce beat Q3 earnings expectations today, but that's not what drove the company's shares 11% higher. CEO Marc Benioff did that by touting the company's AI-powered chatbots on today's quarterly earnings call. He sparked renewed AI optimism that lifted the Nasdaq and S&P 500 to new record highs. AI differs from the dotcom mania of the late 1990s. It is

Ed Yardeni
Eric Wallerstein

Zettascale Computing Is Coming Using Nvidia's Blackwell Chips!

Sep 12, 2024 2 min read paid

Yesterday, stock prices initially fell sharply following August's CPI report, but AI fever quickly turned the S&P 500 around to a 1% gain. Yesterday, Oracle announced it is taking orders for the first "zettascale" AI supercomputer, which will be powered by up to 131,072 Nvidia Blackwell chips. Nvidia CEO Jensen Huang also told a Goldman Sachs conference that demand for their Blackwell chips

Ed Yardeni
Eric Wallerstein

Will Nvidia Trump The Fed?

May 23, 2024 2 min read paid

Yesterday's FOMC minutes confirmed that Fed officials are in no rush to lower the federal funds rate (FFR) and some are considering the possibility that they might have to raise it if inflation stalls above the Fed's 2.0% target. The 2-year Treasury yield is back up to 4.94% implying one 25bps rate cut over the next 12 months. So stocks sold off on fears

Ed Yardeni
Eric Wallerstein

The Economic Week Ahead: March 4 - 8

Mar 2, 2024 2 min read paid

The week ahead is jampacked with employment indicators. We expect that January's JOLTS report (Wed) and February's employment report (Fri) will confirm that the labor market remains strong. That's based on weekly initial unemployment claims remaining just north of 200,000 in recent weeks and February's consumer confidence survey showing that 41.3% of respondents agreed that jobs are plentiful (chart). Bad

Ed Yardeni

Nvidia For Fun & Profit

Feb 21, 2024 2 min read paid

As a result of the AI gold rush, billions of dollars are being spent on Nvidia’s GPUs. They seem to be the only game in town. Huge investments in AI-related hardware and software are likely, eventually, to boost productivity significantly. That’s great for our Roaring 2020s scenario. We simply don’t know at this time how long “eventually” will turn out to be. The lack of numerous suppliers

Ed Yardeni

NVIDIA Leads The Way

Jan 8, 2024 2 min read paid

Nvidia led the stock market higher today after the world's most valuable chipmaker announced new desktop graphics processors taking advantage of artificial intelligence. The company's stock climbed 6.4% to end at $522.53, its highest close ever (chart). Nvidia's rally boosted the PHLX Semiconductor index by 3.3%. Semiconductors and related technology companies are benefitting from the enthusiasm about AI. Is it hype?

Ed Yardeni

AI Driving Market Meltup

Jul 18, 2023 2 min read paid

Today's economic indicators were weak, but the stock market rose to yet another new bull market high boosted by better-than-expected earnings from some of the big banks. Also leading the market higher was Microsoft, which rose 4.4% to a new record high. The company introduced Copilot to its suite of Office software. The $30-per-month subscription service adds AI which can design presentations, offer writing prompts, summarize meetings,

Ed Yardeni

AI

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