The AI trade has gotten stretched—and the market has plenty of other things to worry about. ...

Let's bring in Doug Clinton now who in interestingly likes other hyperscalers over the NVIDIA. You like Amazon, Apple, and Google more than Nvidia. And in that order, why >> we do and and we own Nvidia too, Scott, and going into the print.I think the reality though is we just heard from many of these hyperscalers. They're boosting their capex guidance 30 to 50%. I think everyone is sort of expecting a pretty strong number from Nvidia.And so you have to ask yourself what is the incremental upside story. If y ...

Nvidia’s stock has become a market object. It’s big enough to tug the major indexes, with a 7.8% weight in the S&P 500. When it moves, it drags money and sentiment with it, which helps explain why people talk about its quarterly reports as if they’re a major weather event.The company can clear consensus and still disappoint a crowd that paid for a bigger and louder fireworks show. Meet the expectations treadmill: A good quarter gets a shrug. A great quarter gets a shrug. Now, the market’s daring Nvidia to d ...

Group 1 - ATI is included in this year's SA Quant Top 10 selection, with a portfolio that is 60% focused on the AI trade [1] - The author has over 35 years of experience in the investment field, having worked as both a sell-side and buy-side analyst, as well as a portfolio manager for debt and equity funds [1] - The analysis provided aims to deliver a fundamental view of companies and funds, emphasizing the importance of operating and financial forecasts in driving valuation [1] Group 2 - The author manages a high yield Latam bond fund and frequently takes positions in various investment ideas for personal accounts [1] - The article reflects the author's personal opinions and does not involve compensation from any company mentioned [2] - Seeking Alpha does not guarantee future results and the views expressed may not represent the platform as a whole [3]

The US stock market, typically considered the engine of the global economy, has struggled to find its footing through the first months of 2026, even as the rest of the world has surged ahead. As a result, US stocks are off to their worst start of the year since 1995 against the global market, according to data from Goldman Sachs. While the S&P 500 (^GSPC), tracking the largest US companies, has fallen by 1% since the start of the year, an index tracking market returns throughout the rest of the global ...

Core Viewpoint - The small-cap rotation is emerging as a market trend for 2026 as investors become cautious about the AI trade, particularly due to the performance of mega-cap technology stocks negatively impacting large-cap indices [1] Group 1: Market Trends - Investors are shifting focus towards small-cap stocks as momentum in the AI sector diminishes [1] - The performance of large-cap indices is being driven down by mega-cap technology stocks, prompting a reevaluation of investment strategies [1] Group 2: Analyst Background - Michael Del Monte is a buy-side equity analyst with over a decade of experience in various sectors including technology, energy, and industrials [1]

Group 1 - Astera Labs, Inc. (NASDAQ:ALAB) decreased by 23.74% after reporting fourth-quarter financial results [1] - Medpace Holdings, Inc. (NASDAQ:MEDP) slumped 20.69% following its fourth-quarter financial results and multiple analyst price target reductions [2] - Zillow Group, Inc. (NASDAQ:Z) decreased by 20.89% after reporting mixed fourth-quarter financial results [2] - Karman Holdings Inc. (NYSE:KRMN) fell 20.96% this week [2] Group 2 - AST SpaceMobile, Inc. (NASDAQ:ASTS) decreased by 17.9% after announcing a $1 billion convertible senior notes offering [3] - Ryan Specialty Holdings, Inc. (NYSE:RYAN) slumped 17.90% after reporting worse-than-expected fourth-quarter financial results and announcing a $300 million buyback [3] - Flutter Entertainment (NYSE:FLUT) fell 18.88% amid sympathy with DraftKings after its fourth-quarter financial results [3] Group 3 - CBRE Group (NYSE:CBRE) decreased by 15.55% despite reporting better-than-expected fourth-quarter adjusted EPS results and issuing FY26 adjusted EPS guidance above estimates [4]

Core Insights - The AI trade is transitioning from a focus on purchasing more GPUs to optimizing the entire system for performance [1] Company Insights - Astera Labs (ALAB) is positioned to benefit from this shift in the AI trade [1] - The company is associated with a GARP (Growth at a Reasonable Price) investment strategy, indicating a focus on aggressive growth prospects while aiming for profitability within 1-2 years [1] Investment Philosophy - The investment philosophy emphasizes long-term discipline, consistent alpha generation, and a cautious approach to risk [1] - The goal is to empower underprivileged communities and enhance financial literacy through informed investment strategies [1]

Economic Overview - The jobs data for January showed an addition of 130,000 jobs, with the unemployment rate decreasing to 4.3%, both better than expected. However, previous months' job gains were revised down significantly, with 2025's total job additions revised from 584,000 to 181,000, indicating a weaker job market than previously thought [3][4][5]. - Inflation data revealed a Consumer Price Index (CPI) of 2.4% for the headline number and 2.5% for core CPI, which remains above the Federal Reserve's 2% target, suggesting ongoing inflationary pressures despite a cooler-than-expected report [7][8]. Company Earnings and Stock Performance - Caterpillar (CAT) reported modest earnings growth, with a 3% increase, but has seen a significant rise of 21% since the earnings announcement, driven by capital expenditures from major tech companies [10][12]. - Alphabet is selling debt, including a 100-year bond, to finance its AI expansions, indicating a long-term commitment to AI despite current profitability concerns [13]. - Cisco (CSCO) experienced a 12% drop in stock price post-earnings, despite exceeding earnings guidance, due to margin and cost concerns, although it remains up 19% year-over-year [14]. - Applied Materials (AMAT) saw a 10% increase in stock price following strong earnings and guidance, benefiting from increased spending in the AI sector [15]. Market Trends and Future Outlook - The economic landscape is characterized by uncertainty, with AI investments becoming a significant part of capital expenditures, raising questions about the overall economic stability [9]. - Walmart (WMT) is positioned well in the current market, recently reaching a market cap of over $1 trillion, and is expected to provide insights into consumer spending and technological integration in its upcoming earnings report [28][30].

LATEST: ⚡ Wintermute says AI has been vacuuming up available capital "at the expense of everything else" for months, and that "air needs to come out of the AI trade" for crypto to outperform again. https://t.co/8nxxU0z6Il ...