Market Overview - Easing volatility, AI-driven tech strength, and falling rates are supporting stock picking and potential new market highs [1] - The VIX has declined from above 20 to around 16, indicating that recent market volatility was an overreaction [1] - The market is broadening, with a downward trajectory of interest rates acting as a tailwind for US equities [2] Investment Opportunities - The AI revolution is creating a 10% to 15% run-up opportunity in tech stocks that investors should not miss [2] - There is excitement over the president's commitment to $18 trillion in domestic investments, which is expected to drive market performance [1] Company Analysis: WSFS Financial Corporation - WSFS Financial Corporation (NASDAQ:WSFS) is considered one of the most undervalued quality stocks, with a price target increase from $63 to $70 by Keefe Bruyette [7][8] - TD Cowen raised its price target for WSFS Financial to $73 from $67, reflecting an updated financial model anticipating sustained growth through 2026 [9] - The company reported a 29% year-over-year increase in EPS to $1.43 in Q4 2025, driven by strong performance in its Wealth and Trust divisions [9] Company Analysis: Primerica Inc. - Primerica Inc. (NYSE:PRI) is also identified as an undervalued quality stock, with TD Cowen increasing its price target to $326 from $322 [11] - The company reported a 7% increase in adjusted net operating income to $206 million, with diluted adjusted operating EPS rising 11% to $6.33 in Q3 2025 [12] - The Investment and Savings Product segment achieved record sales of $3.7 billion, a 28% year-over-year surge, although the Term Life segment faced challenges with a 15% drop in new policies issued [12][13]

Core Viewpoint - Recent developments surrounding NVIDIA Corp and OpenAI have heightened investor scrutiny, but these are seen as constructive steps that bolster the long-term momentum of the AI revolution [1] Group 1: NVIDIA's Investment Plans - NVIDIA plans to build at least 10 gigawatts of computing power for OpenAI and invest up to $100 billion, making CEO Jensen Huang's comments critical for investor sentiment [2] - Huang clarified that NVIDIA's investment will not exceed $100 billion while expressing strong support for OpenAI and CEO Sam Altman, which eases fears about OpenAI becoming "too big to fail" [3] Group 2: Market Reactions and Analyst Insights - Investor anxiety around circular financing and "too big to fail" concerns has turned NVIDIA's planned investment into a closely watched market issue [1] - Transparency from both NVIDIA and Oracle supports a bullish outlook on tech stocks, as AI-driven capital spending and enterprise monetization are expected to accelerate in 2026 [4] - NVIDIA stock was down 0.72% at $189.96 at the time of publication [4]

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Core Insights - GSI Technology reported a revenue of $6.1 million for the third quarter of fiscal 2026, representing a 12% increase year-over-year, driven by sustained demand for SRAM solutions [3][4][7] - The company achieved significant milestones in the development of its Gemini-II technology, including a successful proof-of-concept for an autonomous perimeter security system [3][7] - GSI's gross margin for the quarter was approximately 52.7%, a decrease from 54.0% in the same quarter last year, attributed to product mix changes [4][6] Financial Performance - Net revenues for the third quarter of fiscal 2026 were $6.1 million, compared to $5.4 million in the same quarter of fiscal 2025 and $6.4 million in the previous quarter [4][10] - The operating loss for the third quarter was $(6.9) million, compared to $(4.1) million in the prior-year period [9][10] - The net loss for the quarter was $(3.0) million, or $(0.09) per diluted share, an improvement from a net loss of $(4.0) million, or $(0.16) per diluted share, in the same quarter last year [10][21] Cash Flow and Balance Sheet - The company ended the quarter with a cash balance of $70.7 million, significantly up from $13.4 million at the end of the previous fiscal year [12][13] - Total operating expenses for the quarter were $10.1 million, an increase from $7.0 million in the same quarter last year, primarily due to higher research and development costs [6][9] - Cash used in operating activities was $(7.9) million, reflecting investments in the development and commercialization of Gemini-II and Plato [12][13] Customer and Market Insights - Sales to KYEC were $1.1 million, accounting for 17.9% of net revenues, while sales to Nokia increased to $675,000, representing 11.1% of net revenues [5] - Military and defense sales constituted 28.5% of third-quarter shipments, slightly down from 30.0% in the same period last year [5] - The company is pursuing initial design wins for Gemini-II in defense-oriented programs and select commercial edge deployments [3][7]

Economic Data Summary - Initial Jobless Claims increased to 209K, slightly above the estimated 205K, but down from the revised 210K the previous week, indicating a stable labor market with an average of 206K claims over the past six weeks [2] - Continuing Claims fell to 1.827 million, the lowest level in a year and a half, showing a significant decrease from the range of 1.9-1.974 million observed last year [3] - Q3 Productivity remained unchanged at +4.9%, marking the best quarter since Q3 2023, potentially linked to advancements in AI [3] - Unit Labor Costs stayed at -1.9%, the lowest since -2.9% in Q2 of the previous year, suggesting a favorable economic environment with higher productivity and lower labor costs [4] - The U.S. Trade Deficit for November dropped to -$56.8 billion from -$29.2 billion the previous month, significantly better than the all-time low of -$136.4 billion in March of last year [4] Company Earnings Reports - Mastercard (MA) reported earnings of $4.76, exceeding expectations by +13%, with a trailing four-quarter average beat of +3.1% [5] - Caterpillar (CAT) achieved earnings of $5.16 per share, a +10.5% surprise, with revenues of $19.13 billion, surpassing expectations by +6.6% [5] - Lockheed Martin (LMT) experienced its first negative earnings surprise since 2017, reporting $5.80 per share against expectations of $6.24, but shares rose due to a +9.1% increase in revenue [6] - Valero (VLO) delivered strong results with earnings of $3.82 per share and revenues of $30.37 billion, exceeding expectations by +18.62% and +8.24% respectively [6] Upcoming Earnings Reports - Apple (AAPL) is expected to report fiscal Q3 results with a projected earnings growth of +10.4% and revenue growth of +10.87%, having only one earnings miss in the past five years [7] - Visa (V) is anticipated to report a +14.18% increase in earnings and +12.5% in revenues, maintaining a strong track record with an average earnings beat of +2.7% over the last four quarters [8]

Core Insights - Copper prices have surged to record highs, with futures up 10% recently, exceeding $13,000 per ton, driven by supply chain disruptions, trade policy, and increasing demand [1] - Global copper demand is projected to rise from 28 million tons in 2025 to 42 million tons by 2040, leading to a potential 10 million-ton shortfall without significant supply expansions [2] - Speculation and preemptive trading may have inflated copper prices, with analysts suggesting that current levels may not reflect market realities [3] Supply Chain and Market Dynamics - The copper market has faced significant supply shocks, including earthquakes and flooding affecting major mines, which have contributed to supply constraints [6][7] - U.S. tariff risks have influenced trading behavior, with traders moving copper into American channels to avoid duties, impacting supply availability in Europe and Asia [5] - The initial announcement of a 50% tariff on copper imports by the U.S. government led to a temporary price increase, although the tariffs were later clarified to apply only to semi-finished products [4][5]

It's not just silver (SI=F) and gold (GC=F) surging to record highs — copper is also ripping to a record as the metals complex continues to be the defining trade of 2026. Copper futures (HG=F) were up as much as 10%, topping $13,000 per ton as supply chain disruptions, trade policy, and quickly growing demand have pushed prices higher. Priced per pound, copper is currently trading near $6.30; a year ago, prices were closer to $4.25. Copper is essential for data centers and the other technologies underp ...

Our 72 hours to decide this rally as mega cap earnings, the Fed decision and potential government shutdown hang over this market. We'll discuss and debate with the investment committee and joining me for the hour today, Joe Terteranova, Stephanie Link, Shannet Sosha, and Jason Snipe. We will go to the markets.The Dow is red as you see. Everything else though is green led by the NASDAQ as we get ever closer to those mega cap earnings that will begin tomorrow. The S&P hitting a fresh all-time high today.Gold ...

Group 1: Core Insights - The semiconductor sector is experiencing a significant shift, with Bank of America highlighting preferred companies like Nvidia (NVDA), Broadcom (AVGO), AMD, and Cadence Design Systems (CRDO) projected to grow sales by an average of 42% [1] - Major cloud chip companies are currently trading at a compelling valuation of 0.5x their price-to-earnings growth (PEG) ratio, suggesting they are undervalued relative to their growth potential [2] - The semiconductor industry is entering a critical earnings week, with key players such as ASML, Lam Research, and Texas Instruments set to report, while macroeconomic factors, including a Federal Reserve rate decision, are being closely monitored [3] Group 2: Market Dynamics - The Philadelphia Semiconductor Index (SOX) has risen approximately 11% year-to-date, outperforming the S&P 500, but Bank of America warns that the easy gains in equipment makers may have been realized, indicating a potential shift back to compute engines like Nvidia [4] - Current valuations for major semiconductor equipment manufacturers like Applied Materials and Lam Research exceed 2.1x their PEG ratio, making them susceptible to profit-taking, while KLA Corp is noted as a more reasonable investment at 1.8x PEG [6] - The focus is shifting towards AI chip designers, with Nvidia and peers trading below historical multiples despite a projected 49% earnings growth rate through 2027, presenting a unique investment opportunity compared to infrastructure builders [7] Group 3: Cautionary Notes - Investors interested in the analog chip sector should be cautious, as Texas Instruments is expected to report solid numbers, but seasonality should not be mistaken for the start of a new upcycle [8]

Core Viewpoint - Jensen Huang has established a $4.6 trillion empire through Nvidia, focusing on AI infrastructure, but there are three significant threats to the company's future that are not addressed in earnings calls [1] Group 1: Threats to Nvidia - **Threat 1: Major Customers Developing In-House Chips** Microsoft, Meta, Amazon, and Alphabet account for 40-50% of Nvidia's revenue and are all creating custom AI chips, which could replace Nvidia's offerings. Inference workloads, which represent 80% of long-term AI compute, are at risk if these companies build their own chips [2][3] - **Threat 2: AMD as a Competitive Alternative** AMD's MI300X chips have gained traction, offering competitive performance at 20-30% lower costs compared to Nvidia. Microsoft Azure and Oracle Cloud are adopting AMD technology, and OpenAI is reportedly testing AMD chips to reduce dependency on Nvidia [4][5][6] - **Threat 3: Geopolitical Risks from China** China's approval of H200 chips may seem positive, but it poses a risk as the country has a history of extracting technology and then developing domestic alternatives. If Nvidia becomes too reliant on the Chinese market, future bans could severely impact revenue [7][8] Group 2: Nvidia's Strategic Omissions - **Lack of Discussion on Customer Developments** Jensen Huang focuses on AI demand and partnerships in earnings calls but avoids discussing customer chip development, AMD's market share, and the implications of inference versus training margins [9][10] - **Market Realities Ignored** The optimistic view assumes AI growth benefits all players, while the pessimistic view recognizes that customers are building their own solutions, AMD is providing cheaper options, and geopolitical tensions could threaten Nvidia's market position [10]