Semiconductors

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

To Infinity & Beyond: Artificial Intelligence, Semiconductors & Nvidia

Nov 20, 2024 3 min read paid

In recent decades, the Digital Revolution has eclipsed the Industrial Revolution. Today, AI is a technology that has evolved from this relatively new revolution. AI simply represents another leap forward in data processing. During the 1950s through the 1970s, IBM mainframe computers processed data. The baton was passed to minicomputers sold by Digital Equipment in the 1970s. During the 1990s, desktop PCs manufactured by Compaq and Dell proliferated. Amazon Web

Ed Yardeni
Eric Wallerstein

Revisions Show US Economy Is Still Flying High

Sep 26, 2024 3 min read

Hard luck for the hard-landers today. Today's GDP report was full of upward revisions: (1) GDP versus GDI. Some of the hard-landers expected GDP to be revised lower after a large gap between GDP (which measures output) and Gross Domestic Income (GDI) (which measures economic activity via wages and profits) emerged over the past few quarters. Over time, GDI closely tracks GDP, but discrepancies tend to be revised

Ed Yardeni
Eric Wallerstein

Market Call: Ups & Downs of the Stock Market Cycle

Jul 21, 2024 2 min read paid

The S&P 500 is down 2.9% from its record high of 5667.20 on Tuesday, July 16. The following day semiconductor stocks got whacked on news that the Biden administration is considering draconian measures to clamp down on foreign companies which manufacture chipmaking machinery from selling their products in China (chart). Of course, the pain spread quickly to the Magnificent-7 including Nvidia, which should find support north

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

Tanks A Lot

Apr 17, 2024 2 min read paid

The war premium in the crude oil market fell again today. Fears of a significant disruption to global oil production continued to dissipate this week. That's even though Israel has threatened to attack Iran in response to the aerial attack launched by Iran against Israel on Saturday. The price of a barrel of Brent crude oil peaked recently at $91.17 0n April 5 (chart). It was down

Ed Yardeni

Market Call: Investing Is For Teenagers

Feb 18, 2024 2 min read

Contrary indicator alert! On Sunday, the WSJ posted an article titled "These Teenagers Know More About Investing Than You Do: Custodial investment accounts for minors have surged in popularity." According to the article, the kids are all buying technology stocks: "Brokerage executives say that technology behemoths that are ubiquitous in the lives of teens are often some of the most widely held shares." You have been

Ed Yardeni

S&P 500 Closes In On 5000

Feb 7, 2024 1 min read paid

The S&P 500 closed at a new record high today of 4994.63. This is the Rodney Dangerfield of bull markets: it's getting no respect. The naysayers say that it is too narrow to be a real bull market. Narrowness also makes it vulnerable to a reversal, according to them. However, they aren't giving the bull market due credit. It's true that

Ed Yardeni

Hot Chips

Jan 18, 2024 2 min read paid

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

Roaring Stock Market

Dec 21, 2023 2 min read paid

The stock market came roaring back today led by the stock prices of companies that are benefitting from the Roaring 2020s. Strong results and guidance from Micron Technology boosted shares 9% today, while lifting other chip and semiconductor equipment stocks (chart). Micron is the largest US memory chip maker. Its chips go into a wide range of products. The rally since the correction low on October 27 has been breathtaking

Ed Yardeni

Chips Are Hot Despite Recession Fears

Mar 29, 2023 2 min read paid

Semiconductor investors didn't get the recession memo. They have anticipated the industry’s improvement for many months. The S&P 500 Semiconductors industry stock price index has jumped 55.8% from its late 2022 low, as of Tuesday’s close (chart). The index remains 20.9% off of its November 29, 2021 peak. As is often the case in this industry, investors jumped into semiconductor shares before

Ed Yardeni

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