Upgrades - Loop Capital upgraded Union Pacific (UNP) to Hold from Sell with a price target of $227, up from $214, noting that the shares are down 5% year-to-date and valuation multiples are modestly above their five-year ranges [2] - BofA upgraded Prologis (PLD) to Buy from Neutral with a price target of $130, up from $118, highlighting improved conversion rates of new lease proposals into signed leases during Q3 compared to Q2, and an optimistic outlook for demand versus supply dynamics through 2026 [3] - Goldman Sachs upgraded Hershey (HSY) to Buy from Sell with a price target of $222, up from $170, citing a compelling risk/reward scenario following multiple guidance reductions over the past year [4] - Arete upgraded Baidu (BIDU) to Buy from Sell with a price target of $143, emphasizing the potential of Baidu's Kunlun chip venture to offset challenges in its online advertising business due to AI chip shortages in China [5] - Citizens JMP upgraded CoreWeave (CRWV) to Outperform from Market Perform with a price target of $180, projecting significant growth for its graphics processing unit-as-a-service business from $3B-$4B to an estimated $300B [4] Downgrades - TD Cowen downgraded Warner Bros. Discovery (WBD) to Hold from Buy with an unchanged price target of $14, expressing concerns about the stock's risk/reward profile following a recent rally and potential bid from Paramount Skydance [6] - Rothschild & Co Redburn downgraded Live Nation (LYV) to Neutral from Buy with a price target of $170, up from $144, indicating that margin expansion will slow from fiscal 2026, limiting upside potential to earnings estimates [6] - Stifel downgraded VF Corp. (VFC) to Hold from Buy with a price target of $16, up from $15, stating that the stock's risk-reward is now balanced after a 12.5% one-month return, despite a strong outcome from the $600M sale of Dickies [6] - JPMorgan downgraded Camp4 Therapeutics (CAMP) to Neutral from Overweight without a price target, noting that while the company has a cash runway into 2027, its lead program is in the early stages [6] - JPMorgan downgraded Neumora Therapeutics (NMRA) to Underweight from Neutral without a price target, citing a failed Phase 3 trial for its navacaprant treatment in major depressive disorder [6]

Five things to know ahead of today's opening bell. Chinese internet authorities have reportedly told the country's tech giants to stop buying all AI chips from Nvidia and to cancel existing orders. The FT says that this includes a new a new chip custom made for China.This is something that they apparently would like to see them buying Chinese-made chips instead. They think that they are equitable to the H2O or H20 chip coming from China. CNBC has reached out to Nvidia for comment.Mortgage rates dropping sha ...

Upgrades - Loop Capital upgraded Union Pacific (UNP) to Hold from Sell with a price target of $227, increased from $214, noting shares are down 5% year-to-date and valuation multiples are modestly above five-year lows [2] - BofA upgraded Prologis (PLD) to Buy from Neutral with a price target of $130, up from $118, citing improved lease conversion rates in Q3 compared to Q2 and positive demand-supply dynamics expected through 2026 [3] - Goldman Sachs upgraded Hershey (HSY) to Buy from Sell with a price target of $222, raised from $170, highlighting a compelling risk/reward scenario after multiple guidance reductions [4] - Arete upgraded Baidu (BIDU) to Buy from Sell with a price target of $143, emphasizing the potential of Baidu's Kunlun chip venture to offset challenges in its online advertising business [5] - Citizens JMP upgraded CoreWeave (CRWV) to Outperform from Market Perform with a price target of $180, projecting growth of its GPU-as-a-service business to an estimated $300 billion from $3 billion to $4 billion currently [4] Downgrades - TD Cowen downgraded Warner Bros. Discovery (WBD) to Hold from Buy with an unchanged price target of $14, expressing concerns about the stock's risk/reward after a recent rally [6] - Rothschild & Co Redburn downgraded Live Nation (LYV) to Neutral from Buy with a price target of $170, up from $144, indicating slower margin expansion and reduced earnings upside potential [6] - Stifel downgraded VF Corp. (VFC) to Hold from Buy with a price target of $16, increased from $15, stating that the stock's risk-reward is now balanced after a 12.5% one-month return [6] - JPMorgan downgraded Camp4 Therapeutics (CAMP) to Neutral from Overweight without a price target, noting early-stage challenges in its lead program despite a cash runway into 2027 [6] - JPMorgan downgraded Neumora Therapeutics (NMRA) to Underweight from Neutral without a price target, citing a failed Phase 3 trial for its treatment in major depressive disorder [6]

Market Dynamics - Broadcom's stock surged more than 9% to a new record after announcing a $10 billion order for AI chips, thought to be from OpenAI [1] - Nvidia's stock dropped more than 4%, marking its sixth down day in seven sessions, losing over 8% since its earnings report [2] - The semiconductor space experienced rotation, with Broadcom's gains potentially impacting other AI-related stocks [2][3] Company Performance & Outlook - Broadcom's AI spend is accelerating, reaching staggeringly large numbers [6] - Nvidia hinted at a future slowdown in its growth rate [7] - Broadcom's projected growth rate is higher, supporting a higher valuation [9] Investment Considerations - The market views Broadcom as having more growth potential compared to Nvidia [9] - Broadcom's stock closed on its intraday low after the news-related pop, indicating potential weakness [10] - Semiconductors, as a whole, have not exceeded their July highs [11][12]

Uh joining me now is top chip analyst Bernstein and Stacy Rasgen and Broadcom shareholder Blueline Capitals Bill Baroo. Thank you both for being here. Uh Stacy, there are, you know, reports out there that it's OpenAI that's working with Broadcom to develop a custom AI chip.What do what do you see as the implications of that. Yeah, you bet. So, by the way, it's it's been speculated. It's open AI. It's plausible.Whoever this is is moving very very quickly. um seems to sort of fit with their uh persona. Now, t ...

Market Trends & Economic Indicators - The market anticipates the August jobs report will support a Federal Reserve rate cut later this month [1][2] - Economists expect the US economy to have added 75,000 jobs in August, with the unemployment rate rising to 43% from 42%, and hourly earnings increasing 03% over the prior month [3] - The market is positioned for a weaker jobs number, but a strong number (e g, 100,000-125,000 jobs added) could make a September rate cut less certain, depending on the upcoming CPI figures [23][25] - Tariffs may be feeding through to core goods inflation, while the strength of the US economy has already impacted core services inflation [26] Company Performance & AI Investment - Broadcom and OpenAI are partnering to build AI chips, potentially challenging Nvidia [10][11] - Broadcom's valuation is approximately $145 trillion, with roughly $130 billion being traded overnight, and the company reported approximately $16 billion in revenue for Q3 [11] - Broadcom's stock has increased 450% since 2023 and over 700% in the past 5 years [11] - Meta plans to spend at least $600 billion through 2028 in the US to build data centers and infrastructure to power the next wave of innovation [9] - DocuSign beat expectations with 92 cents earnings per share on $8006 million in revenue and raised its full-year revenue outlook to $319 billion to $32 billion [37][38] Retail & Trade - Open Door shares are up approximately 8450% in the past 3 months, driven by retail investors and social media buzz [35] - Lululemon cut its annual profit and sales forecast due to tepid US demand and tariff costs, with comparable sales in America falling 1% while international sales rose 15% [40][41] - The Supreme Court may rule against President Trump's authority to impose emergency tariffs, potentially leading to $150 billion to $300 billion in refunds to domestic importers [48][56]

Core Insights - Graphjet Technology has significantly increased its production capacity by 7 times through the commissioning of new machinery and equipment, enabling the production of various types of graphite and graphene for multiple industries, including semiconductors [1][4][5] - The completion of a new laboratory enhances the company's ability to customize product properties, improve quality control, and conduct future research and development [2][3] - The company is well-positioned to benefit from the growing demand in the semiconductor industry, particularly for AI chip production, amid a recent graphite shortage [4][5] Company Developments - The new machinery and laboratory are expected to attract larger and more sophisticated customers, enhancing Graphjet's market position [2][3] - Graphjet's patented technology utilizes palm kernel shells, a waste product, to produce single-layer graphene and artificial graphite, promoting sustainable production methods [6] Industry Context - The semiconductor industry is experiencing a shift towards in-house AI chip manufacturing, with significant investments, such as SoftBank's $2 billion equity investment in Intel, indicating a favorable outlook for chip manufacturing in the U.S. [4][5] - Graphite and graphene are critical materials in semiconductor manufacturing, especially for processes requiring high temperature and precise control, positioning Graphjet to capitalize on this trend [5]

Market Dynamics - China is urging firms to avoid Nvidia's H20 chips [1] - This is happening even after President Donald Trump reversed an effective US ban on such sales [1] AI Chip Alternatives - The report questions how China's own AI chips compare to Nvidia's H20 [1] - The report explores whether China's AI chips are viable alternatives [1]

Geopolitical Strategy - The White House aims to leverage Nvidia to counter President Xi Jinping's global ambitions [1] - The US government previously attempted to restrict Nvidia's AI chip sales to China [1] Company Significance - Nvidia is considered key to thwarting China's global ambitions [1] - Nvidia is recognized as the world's most valuable company [1]

Government Regulations & Concerns - Chinese government has engaged with domestic firms like Tencent and ByteDance to inquire about their procurement of NVIDIA's H20 chips, expressing concerns over information risks [1] - Cyberspace Administration of China (CAC) along with other agencies, has held meetings with Baidu and other smaller Chinese tech companies [1] - CAC has instructed ByteDance, Alibaba, and Tencent to halt purchases of NVIDIA chips due to data security concerns [1] - China is urging local companies to avoid using NVIDIA's H20 processors, especially for government-related purposes [1] Procurement Inquiries - Companies have received inquiries about why they chose NVIDIA's H20 chips over domestic alternatives and whether such choices were necessary given the availability of local options [1] Impact on AMD - AMD's AI chips are also reportedly affected by the government's directive [1]