JOUMANNA: GOOD MORNING. THIS IS "HORIZONS MIDDLE EAST AND AFRICA. " OUR TOP STORIES THIS MORNING. OIL STEADIES AFTER ITS BIGGEST DAILY GAIN SINCE OCTOBER FOLLOWING A REPORT THAT AMERICAN MILITARY INTERVENTION IRAN COULD COME SOONER THAN EXPECTED. THE FED SURPRISES MARKETS BY SHOWING WARINESS ABOUT CUTTING RATES AT ITS JANUARY MEETING WITH OFFICIALS CONSIDERING HIKES. OPENAI NEARS A MASSIVE FUNDING ROUND THAT MAY EXCEED $100 BILLION. WE’RE BRING YOU OUR SCOOP. AND BEFORE WE JUST GET ON TO MARKETS, IT IS 9:00 ...

Core Viewpoint - Advanced Micro Devices (AMD) shares dropped 11% following the fourth-quarter 2025 earnings report, despite a significant year-over-year earnings growth of 40.4% and revenue increase of 34.1% [2][3] Financial Performance - AMD reported non-GAAP earnings of $1.53 per share and revenues of $10.27 billion for Q4 2025, marking a 27.5% sequential increase in earnings and an 11.1% sequential increase in revenue [2] - For Q1 2026, AMD expects revenues of $9.8 billion (+/- $300 million), indicating a year-over-year growth of approximately 32% but a sequential decline of about 5% [3] Competitive Landscape - AMD faces intense competition from NVIDIA, Broadcom, and Intel in AI-powered data centers and high-performance computing [5] - Despite a 93.9% increase in AMD shares over the past year, Intel outperformed with a 139.5% increase, while NVIDIA and Broadcom saw returns of 43.1% and 46.7%, respectively [5] AI and Data Center Strategy - AMD introduced its "AI Everywhere, for Everyone" strategy at CES 2026, showcasing new products aimed at enhancing its AI capabilities [13] - The company anticipates the data center total addressable market to reach $1 trillion by 2030, with a projected CAGR of over 40% from approximately $200 billion in 2025 [15] Revenue Growth Drivers - AMD's Data Center revenues are benefiting from strong demand for Instinct MI350 Series GPU deployments and increased adoption of fourth and fifth-generation EPYC chips [15] - The number of EPYC cloud instances grew by over 50% year-over-year, with significant launches from major cloud providers [16] Earnings Estimates - The Zacks Consensus Estimate for AMD's 2026 revenues is $45.21 billion, reflecting a 30.5% growth from 2025, while the earnings estimate is $6.59 per share, indicating a 58% growth from the previous year [17] Valuation Concerns - AMD's stock is currently considered overvalued, with a forward price/sales ratio of 7.52X compared to the sector average of 6.54X, indicating a stretched valuation [10]

Core Viewpoint - Arm Holdings PLC (NASDAQ:ARM) has experienced a 30% decline in share price over the past year, but has seen a 1.7% increase year-to-date, with mixed analyst ratings reflecting both optimism and caution regarding its future prospects [2]. Group 1: Analyst Ratings and Price Targets - Susquehanna upgraded Arm Holdings to Positive from Neutral, setting a price target of $150, citing the potential growth in the AI chip industry as a key factor [2]. - Bank of America downgraded Arm Holdings from Buy to Neutral, with a price target of $120, highlighting concerns over potential revenue declines due to lower global smartphone shipments, while acknowledging the company's potential benefits from broader chip usage growth [2]. Group 2: Partnerships and Market Position - Arm Holdings has formed a partnership with Broadcom to develop an AI processor for OpenAI and a custom chip for Meta, which could provide significant growth opportunities [2]. - Softbank owns 87% of Arm Holdings and is a major customer, which raises questions about the company's market dynamics and future sales strategies [3]. Group 3: Investment Sentiment - There is a belief that while Arm Holdings has potential, other AI stocks may offer higher returns with less downside risk, indicating a competitive landscape in the AI sector [3].

>> "BLOOMBERG TECHNOLOGY" IS LIVE FROM COAST-TO-COAST COME UP WITH CAROLINE HYDE IN NEW YORK AND ED LUDLOW IN SAN FRANCISCO. ED: THIS IS "BLOOMBERG TECHNOLOGY." AMAZON CUT 16,000 OF CORPORATE JOBS TO INCREASE OWNERSHIP. CAROLINE: POSTING STRONG FOURTH-QUARTER EARNINGS.ED: SOFTBANK IS IN TALKS WITH INVESTORS AS MUCH AS 30 BILLION DOLLARS MORE INTO OPENAI. CAROLINE: LET'S CHECK IN ON THE MARKETS. AN INTERESTING WHIPSAW.AT ONE POINT, WE SAW THE S&P 500 ABOVE THAT $7,000 LEVEL. WE HAD NEVER SEEN THAT BEFORE. TH ...

SHERY: THIS IS THE ASIA TRADE. I AM SHERY AHN IN TOKYO. AVRIL: I AM AVRIL HONG IN SINGAPORE.THE DOLLAR YEN SLIDES TO NEAR FOUR-YEAR LOWS AS PRESIDENT TRUMP WELCOMES A WEAKER U.S. CURRENCY. JAPAN'S FINANCE MINISTER WARNS AGAIN THAT THE GOVERNMENT WILL TAKE ACTION ON THE YEN IN COORDINATION WITH THE U.S. IF NEEDED. INVESTORS BRACING FOR THE 40 YEAR SALE.INDIA AND THE EU SUCCEED ON A DEAL. SHERY: WE ARE KEEPING OUR EYES FIRMLY ON THE JAPANESE YEN WHICH HAS SEEN THE BEST RUN SINCE THE IMPLOSION OF GLOBAL CARRY ...

The Nasdaq led US stock futures higher on Wednesday as AI trade fervor spread ahead of the Federal Reserve’s latest policy decision and earnings from megacap techs. Contracts on the tech-heavy Nasdaq 100 (NQ=F) climbed about 0.9%, while those on the Dow Jones Industrial Average (YM=F) hovered below the flat line. S&P 500 futures (ES=F) moved up 0.3% on the heels of an all-time closing high. Techs are set to buoy markets again as a surprise record surge in orders for ASML's (ASML) chipmaking machines sto ...

Nasdaq futures popped, leading Wall Street stocks higher on Wednesday as investors braced for the Federal Reserve’s latest policy decision and potentially pivotal earnings from megacap tech giants. Contracts on the tech-heavy Nasdaq 100 (NQ=F) climbed about 0,8%, while those on the Dow Jones Industrial Average (YM=F) hovered just above the flat line. S&P 500 futures (ES=F) rose 0.3%, eyeing another record on the heels of an all-time closing high. Attention now turns to Wednesday’s Fed announcement, the ...

Quick Read Arm Holdings stock dropped 43% from its peak amid analyst downgrades over valuation concerns. Softbank’s margin loan backed by Arm shares has raised investor worries about forced selling in market downturns. Arm Holdings launched a physical AI division and restructured to target humanoid robots and autonomous vehicles. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. The tech and AI trad ...

Core Viewpoint - Arm Holdings experienced a volatile year in 2025, with strong results driven by AI trends, but faced valuation concerns and fears of an AI bubble, leading to an 11% decline in stock price by year-end [1]. Group 1: Company Performance - Arm started the year positively, benefiting from the $500 billion Stargate Project involving major companies like Nvidia and Oracle [2]. - The stock saw a sharp decline in March due to a broader market retreat and the "Liberation Day" tariff announcement [2]. - Despite the fluctuations, Arm reported a 24% revenue growth for the first half of the current fiscal year, although growth can be erratic due to its licensing model [5]. Group 2: Business Model and Product Development - Arm's business model relies on licensing and royalty revenue, which results in slower growth compared to other chip manufacturers that sell chips directly [4]. - The company is expanding its product portfolio with compute subsystems (CSS), enhancing production efficiency for customers [6]. - Arm is gaining traction in cloud computing through partnerships with Microsoft, Alphabet, and Amazon [6]. Group 3: Future Outlook - For the upcoming third quarter, Arm is guiding for $1.225 billion in revenue, reflecting a 24% increase year-over-year, and adjusted earnings per share are expected to rise to $0.41 from $0.39 [9]. - While investors may seek stronger bottom-line growth, Arm's competitive advantages and investments in AI are anticipated to yield positive results in the future [9].

Core Viewpoint - The article discusses the volatility and investment potential surrounding Bloom Energy, particularly in the context of the booming AI data center market and the associated capital requirements for energy solutions [2][4][12]. Group 1: Company Overview - Bloom Energy, founded in 2001, has transitioned from a struggling startup to a significant player in the energy sector, particularly for AI data centers, with its stock price increasing approximately 400% over the past year [4][6]. - The company utilizes solid oxide fuel cells to provide reliable power solutions, which are increasingly in demand due to the rapid expansion of data centers [4][11]. - Bloom's stock is currently valued at around $32 billion, trading at 125 times forward earnings, reflecting its high market expectations [4][7]. Group 2: Financial Performance - In the third quarter, Bloom reported revenue of $519 million, a 57% increase year-over-year, and a net profit of $7.8 million, compared to a loss of $9.7 million the previous year [7]. - The stock experienced a significant spike of approximately 30% following news of a major data center project approval, which is expected to generate about $3 billion in revenue for Bloom [6][7]. - Analysts expect Bloom to report $1.9 billion in sales for 2025, with forecasts of $2.46 billion for the following year, indicating strong growth potential despite stock volatility [23]. Group 3: Market Dynamics - The demand for data centers is projected to require around $7 trillion in capital investments by 2030, highlighting the critical role of energy providers like Bloom in this sector [2][12]. - Bloom has established partnerships with major companies, including a $5 billion strategic partnership with Brookfield Asset Management, which is expected to enhance sales and operational efficiencies [14][15]. - The company has a competitive edge in the market, being recognized as a leading provider of standalone power solutions for data centers, with a focus on lower emissions through its fuel cell technology [24][27]. Group 4: Future Outlook - Analysts predict continued growth for Bloom, with expectations of increased orders from major tech companies like Oracle and Google, which could further bolster revenue [22]. - The company is positioned to scale up production capacity to 2 GW by the end of 2026, supported by a recent $600 million credit facility [20][21]. - Despite the optimistic outlook, there are concerns regarding the sustainability of Bloom's stock price, which will depend on ongoing revenue growth and profitability improvements [12][18].