Market Overview - The U.S. stock market is showing resilience, with major indexes trending higher due to a positive inflation report suggesting the Federal Reserve's restrictive policy may be nearing its end [1] - Major market indexes are largely in the green, with the S&P 500 trading between 6,500 and 7,000, the Dow Jones Industrial Average gaining over 150 points, and the Nasdaq Composite up approximately 0.4% [2] Inflation Data - The January Consumer Price Index (CPI) showed a month-over-month increase of just 0.2%, below the consensus estimate of 0.3%, and a year-over-year CPI of 2.4%, the lowest since early 2024 [3] - This "muted" inflation reading has led traders to price in a higher probability of a rate cut in the second quarter, benefiting growth-oriented equities [3] AI Capital Expenditure Trends - The combined AI-related capital expenditure for Alphabet, Amazon, Microsoft, and Meta Platforms is expected to exceed $650 billion in 2026, reflecting confidence in long-term AI demand but raising concerns about near-term free cash flow [4] - Amazon is expected to generate significant cash flow, but most is being reinvested into data centers and GPUs, limiting buybacks or dividends [5] - Microsoft is experiencing slight margin pressure due to costs associated with Azure AI workloads, while Nvidia benefits as a primary supplier of hardware for these infrastructure projects [5] Corporate Earnings and News - Restaurant Brands International reported an 8% organic growth in adjusted operating income for full-year 2025 [6] - Apple is adjusting its supply chain in India to mitigate potential tariff impacts [7] - Tesla projects vehicle delivery growth of 47% to 59% for the 2026 fiscal year [7] - Baxter International shares are under pressure following an earnings miss and cautious forward guidance [7] - Advance Auto Parts reported steady performance in a challenging retail environment [7] Upcoming Market Events - U.S. markets will be closed on February 16th for President's Day, with focus shifting to the December Personal Consumption Expenditures (PCE) price index upon resumption of trading [8]

Market Overview - Stocks are higher due to cooler than expected inflation data, although there has been a recent sell-off [1][2] - The Nasdaq composite and S&P 500 are up, with real estate, healthcare, and utilities leading the gains as investors rotate away from tech [2] - Walmart reached an all-time high, while Visa, Nvidia, and Apple saw declines [3] Inflation and Economic Indicators - January's consumer price index (CPI) showed slower inflation, the lowest since May, with improvements in food and energy prices [6][7] - Services inflation remains high, indicating persistent inflationary pressures [7][22] - The unemployment rate dropped to 4.3%, with job growth concentrated in healthcare and social assistance sectors [9][10] Federal Reserve Outlook - Chicago Fed President Austin Goulby emphasizes the need for more progress on inflation before considering further rate cuts [28][29] - Core inflation is projected to remain around 3%, which is above the Fed's target [30][31] - The Fed is cautious about making premature rate cuts, focusing on actual inflation and employment data [21][26] Sector Performance - Semiconductor and software stocks are showing mixed performance after a recent sell-off [4][5] - Defensive sectors like consumer staples and utilities are gaining traction as investors seek stability amid market volatility [57] - AI disruption fears are impacting various industries, including transportation and real estate, as companies adapt to new technologies [51][52] Company Highlights - Rivian reported better-than-expected Q4 results, achieving its first annual gross profit and strong guidance for future vehicle deliveries [63][64] - Applied Materials, a major supplier of chipmaking equipment, has seen significant stock gains due to increased demand driven by AI investments [70][71] - American Superconductor is focusing on enhancing grid reliability and power quality to meet rising electricity demands [81][82]

U.S. equity markets extended their slide on Friday, February 13, 2026, as a deepening sell-off in the technology sector overshadowed a surprisingly cool inflation report. Despite data showing that price pressures are easing faster than economists anticipated, investor anxiety regarding the long-term profitability of artificial intelligence (AI) and a significant technical setback for the world’s largest company sent major indexes into the red for a second consecutive session.Major Market Indexes Performance ...

Core Insights - NVIDIA Corporation has become the world's most valuable company with a market capitalization of approximately $4.5 trillion, a significant increase from around $0.5 billion at its IPO [1] - NVIDIA's shares have surged 427,191.5% since inception, driven by the demand for its GPUs, which are essential for AI training and data centers [2] - Micron Technology and Palantir Technologies have also seen substantial gains, with stock increases of 405.9% and 412.6% respectively, outpacing NVIDIA's growth of 153% over the past two years [3] NVIDIA - NVIDIA's growth is primarily attributed to its GPUs becoming the backbone of AI technology, particularly with the demand for chips based on its Blackwell architecture [2] - The company has experienced strong quarter-over-quarter growth in sales and profits due to relentless demand for its products [2] Micron Technology - Micron has gained attention due to the rising demand for its high-bandwidth memory (HBM) chips, driven by AI expansion [5] - The company expects fiscal Q2 2026 revenues to be between $18.3 billion and $19.1 billion, an increase from $13.64 billion in Q1 2026 [6] - Micron's expected earnings growth rate for the current year is 300.7%, supported by sustained demand for HBM chips despite supply constraints [7] Palantir Technologies - Palantir is experiencing growth due to its competitive edge and the popularity of its Artificial Intelligence Platform (AIP), which has seen robust demand among U.S. commercial clients and government agencies [9][10] - The U.S. commercial segment revenues increased by 137% year over year, reaching $507 million in Q4 2025, while government revenues rose 66% year over year to $570 million [10] - Palantir anticipates full-year 2026 revenues to exceed $7.182 billion, more than doubling from $3.320 billion in 2025, supported by a remaining deal value of $4.38 billion [11]

Core Viewpoint - NVIDIA Corporation (NVDA) is currently positioned as a stronger investment compared to Super Micro Computer, Inc. (SMCI) due to its superior profitability metrics and robust demand for its AI chips, despite both companies benefiting from the AI infrastructure boom [1][12]. Group 1: NVIDIA's Performance - NVIDIA's revenues surged 62% year over year and 22% sequentially to $57 billion in the fiscal third quarter of 2026, with expectations for the fiscal fourth quarter to reach nearly $65 billion, plus or minus 2% [2][8]. - The company's gross margin increased to 73.4% in fiscal third-quarter 2026 from 72.4% in the previous quarter, indicating strong profitability [6][8]. - NVIDIA's return on equity (ROE) stands at an impressive 99.2%, showcasing its effective management and profitability compared to competitors [7][8]. Group 2: Supermicro's Performance - Supermicro's fiscal second-quarter 2026 sales climbed 123% year over year to $12.7 billion, significantly exceeding analysts' expectations of $10.4 billion [3][4]. - However, Supermicro's gross margins fell to 6.3% in fiscal second-quarter 2026 from 11.8% in the same quarter last year, indicating challenges in profitability [6][10]. - The company has a debt-to-equity ratio of 66.9%, which is considerably higher than NVIDIA's 6.3%, suggesting greater financial risk [10]. Group 3: Market Dynamics - The thawing trade tensions between the United States and China are expected to support NVIDIA's sales, as the U.S. government has approved the shipment of NVIDIA's H200 AI chips to China [2]. - Supermicro is scaling its AI server and storage capabilities, with its Data Center Building Block Solutions (DCBBS) gaining traction among AI clients [4][5].

Core Insights - Generative AI is viewed as a transformative technology by Amazon's CEO Andy Jassy, indicating its potential to reinvent customer experiences across the company [1] - Elon Musk predicts that humanoid robots could create a market worth $250 trillion by 2040, representing a significant shift in the global economy driven by AI innovation [2] - Major firms like PwC and McKinsey acknowledge the multi-trillion-dollar potential of AI, suggesting a broad consensus on its economic impact [3] Company and Industry Analysis - A breakthrough in AI technology is redefining work, learning, and creativity, leading to increased interest from hedge funds and top investors [4] - There is speculation about an under-owned company that may play a crucial role in the AI revolution, with its technology posing a threat to competitors [4] - Prominent figures in technology and investment, including Bill Gates and Warren Buffett, recognize AI as a significant advancement with the potential for substantial social benefits [8] Market Trends - The AI ecosystem is expected to reshape how businesses, governments, and consumers operate globally, indicating a paradigm shift in various sectors [2] - The investment landscape is becoming increasingly competitive, with major tech companies like Tesla, Nvidia, Alphabet, and Microsoft being closely watched, while a smaller company is suggested to have greater potential [6]

Core Insights - Nvidia's stock fell nearly 3% while AMD's stock rose close to 1% following comments from Arista Networks' CEO about a shift in deployment preferences towards AMD [1][2] - Arista Networks reported that approximately 20% to 25% of its deployments are now utilizing AMD as the preferred accelerator, a significant change from a year ago when it was predominantly Nvidia [2] - Nvidia currently holds about 90% of the AI chip market, but faces increasing competition from AMD and Google, which is gaining traction with its tensor processing units [3] Company Developments - Arista Networks plays a crucial role in AI infrastructure by providing Ethernet switching technology that connects powerful chips [4] - AMD has partnered with Arista to create customized AI clusters for training and inference, indicating a strategic collaboration in the AI space [4] - Nvidia has reduced its reliance on Arista's technology by developing its own networking solutions, which has impacted Arista's stock negatively [5] Market Dynamics - Nvidia's launch of the Spectrum-X Ethernet platform in 2023 has contributed to a decline in Arista's stock value, which lost more than half its value following this development [6] - Despite the challenges, Arista's stock rebounded with a 19% increase last year and is currently up 6% in 2026 [6] - Analysts note that while Arista's diversification is necessary, being integrated with Nvidia has historically been beneficial for the company [6]

U.S. Commerce Secretary Howard Lutnick addressed the licensing requirements governing Nvidia Corp.’s (NASDAQ:NVDA) sales of its advanced AI chips to China during a hearing on Tuesday. Lutnick stated that Nvidia must adhere to the detailed licensing terms for the sale of its second-most-advanced AI chip, the H200, to China, Reuters reported on Tuesday. He explained that the terms, which were developed in collaboration with the State Department, are detailed and non-negotiable. Don't Miss: Delays and Unce ...

Open AAI is unveiling its first model to run entirely on chips from the startup Cerebras. It's a sign of companies diversifying beyond Nvidia's GPUs. Dear Jabosa has more in today's tech check.Very important story here. Deerra. Yeah.So, Kelly, this look, this is not OpenAI's flagship model. This is GPT 5.3% Codex Spark. It's a stripped down coding model built for speed.But an AI speed and cost that can beat raw power. And if the high volume everyday workloads, if they're moving off of Nvidia hardware, that ...

Group 1: Nvidia's Stock Performance - Nvidia's shares have remained in a narrow trading range for months, with a nearly 2% decline recently, despite rising global capital expenditures on AI infrastructure [1] - Since August, Nvidia's stock has gained just under 2%, which is only slightly better than broader market indexes, while competitors TSMC and AMD have seen increases of approximately 52% and 12%, respectively [1] Group 2: AI Infrastructure Spending - Major tech firms like Meta Platforms, Alphabet, Microsoft, and Amazon are expected to invest over $600 billion in AI infrastructure by 2026, indicating a sustained increase in corporate investment in machine-learning and data centers [2] - Analysts suggest that there is a disconnect in how investors are pricing future AI spending into equities, even for companies leading the AI boom [2] Group 3: Revenue Concerns - There are growing concerns that the revenue generated from AI may not keep pace with the announced capital expenditures, as noted by JoAnne Feeney from Advisors Capital Management [3] - Despite strong demand for Nvidia's chips and revenue projections exceeding most competitors, valuation multiples have compressed, with Nvidia trading at about 24 times projected profits, aligning closely with the Nasdaq-100 and only slightly above the S&P 500 [4] Group 4: Market Expectations and Future Guidance - Investors are awaiting Nvidia's next quarterly report, scheduled for February 25, which is anticipated to be a critical catalyst for the stock's performance [5] - Analysts warn that after years of accelerated capital expenditures, growth in technology infrastructure spending may slow, potentially impacting orders for data-center chips [6] Group 5: Competitive Landscape and Investment Returns - Concerns persist regarding the sustainability of AI infrastructure spending growth, which could negatively affect Nvidia's performance, as highlighted by Stifel analyst Ruben Roy [7] - Investors are also apprehensive that the substantial investments in AI may yield slower returns than anticipated, compounded by increasing competition from companies like Google and startups developing alternative AI processors [8]