Technology

The Digital Revolution Marches On As Nvidia Beats

Feb 26, 2025 3 min read paid

Artificial intelligence, and all the capital spending that comes along with it, is here to stay. Nvidia reported today that its sales last quarter rose 78% y/y to $39.3 billion, and management’s revenue guidance of $43.0 billion (+/- 2%) for the current quarter was above the consensus estimate of $41.8 billion. Moreover, the company laid out plans to get its new Blackwell chips to market

Ed Yardeni
Eric Wallerstein

MARKET CALL: Will DeepSeek Sink The Unsinkable Mag-7?

Jan 26, 2025 3 min read paid

The Q4-2024 earnings reporting season is going well so far. It started out two weeks ago with better-than-expected big bank earnings. As a result, industry analysts increased their consensus expected Q4 earnings growth rate for the S&P 500 companies collectively from 8.2% y/y to 9.1% y/y (chart). We raised our expected earnings growth rate from 10.0% to 12.0%. The next round of

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

Anatomy of a Meltup

Oct 20, 2024 3 min read paid

Ed Yardeni
Eric Wallerstein

Market Call: Carry-Trade Unwind Part II

Sep 8, 2024 3 min read paid

Something doesn't make sense. Why are stock prices falling when the Fed is set to lower interest rates to avert a recession and to stop the unemployment rate from rising by boosting economic growth? We had a glimpse of the answer in early August: The carry trade is still unwinding. Expectations that the Fed will lower our interest rates, while the Bank of Japan raises their interest rates

Ed Yardeni
Eric Wallerstein

Technology Now & Then

Jun 24, 2024 3 min read paid

Are stock market valuations too high? There is no obvious answer to the valuation question. So we are dependent on history for some guidance. We don’t have to go very far back in time to find a meltup that looks similar to the current one. The obvious analogy is to that of the late 1990s: (1) Valuation multiples, now & then. The S&P 500 peaked at a

Ed Yardeni

Stock Market Meltup: Earnings-Led Or Valuation-Led?

Jun 19, 2024 2 min read paid

Ed Yardeni
Eric Wallerstein

Market Call: Momentum Meltup, Blowoff Top, Or Both?

Jun 16, 2024 3 min read paid

Consumer price disinflation is raising expectations for a Fed rate cut, which is fueling a meltup in stock prices. This morning on CBS' "Face the Nation," Minneapolis Fed President Neel Kashkari said that a rate cut by year-end is a “reasonable prediction.” On Friday, the 10-year Treasury bond yield fell below 4.25% to 4.20%. The technical picture is signaling that it might continue to fall

Ed Yardeni
Eric Wallerstein

Moon Shot

Mar 21, 2024 2 min read paid

The S&P 500 rose to yet another record high today closing at 5241.53 (chart). We wrote the following last year on July 19 in our Morning Briefing: "The S&P 500 is now almost at [our yearend target of] 4600. It closed at 4556.27 on Tuesday. Rather than raise our year-end target, we are raising our expectations for what the bull market could deliver

Ed Yardeni

Stock Market Has Discounted Lots Of Good News

Mar 19, 2024 2 min read paid

Nvidia was up a measly 1% today despite the exciting presentation, after Monday's close, by CEO Jensen Huang about the company's future in the AI ecosystem. He announced a new generation of GPU chips and software for running AI models. The first chips in the new Blackwell platform will be shipped later this year. They are more powerful (with a five-fold increase in petaflops) and consume

Ed Yardeni

Market Call: Nvidia's Lovefest Versus Powell's (Perhaps Depressing) Presser

Mar 17, 2024 2 min read paid

Nvidia's three-day AI lovefest for developers starts Monday afternoon in San Jose, California. The FOMC meets Tuesday and Wednesday followed by Fed Chair Jerome Powell's press conference at 2:30 pm following the meeting. During his congressional testimony on March 7, Powell indicated that the Fed "is not far from...dial[ing] back the level of restriction." After last week's hotter than

Ed Yardeni

Core CPI Continues To Moderate

Mar 12, 2024 2 min read paid

Ed Yardeni

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