Chuck, I do not apologize for this next question. Are we or are we not in an AI bubble. >> Oh, it's just it's so funny.Um, look, the customers that are buying the predominant amount of this technology, have incredible balance sheets, have incredible cash flow, have incredible profitability. I think Caroline said it. They they actually pay their bills and uh and so and they view it as an existential issue for them.That that's that's a really key element. They don't view this as something that's nice to have. ...

Core Insights - Nvidia shares have increased nearly 40% in 2025, reflecting strong demand for its AI chips, despite recent pullbacks due to concerns over an AI bubble [1][8] - Oppenheimer analysts raised their price target for Nvidia from $225 to $265, citing the company's strong positioning in the AI market [1][8] - Nvidia is set to report its quarterly earnings next Wednesday, which could significantly impact the AI trade sentiment [4][5] Stock Performance - Nvidia shares were down 4% to around $186 recently, following a 44% gain since the beginning of the year, although they have declined from a record high of $212 [2][8] - The stock's performance has been influenced by broader tech sector trends, including a recent pullback amid fears of an AI bubble [3][5] Market Sentiment - There is growing skepticism in the market regarding AI stocks, as evidenced by muted reactions to strong earnings from competitors like AMD and declines in stocks like Palantir [3][5] - Despite this skepticism, most Wall Street analysts remain optimistic about Nvidia, with 13 out of 14 analysts rating it a "buy" and a mean target suggesting a 9% upside from recent closing prices [9]

Market Overview - The US stock market experienced a significant downturn, with the Nasdaq falling 1.7%, the S&P 500 dropping 1.1%, and the Dow slipping 382 points (0.8%) after reaching new highs earlier in the week [1][12][18] - Tech and AI stocks were particularly hard hit, with major declines in Nvidia, Broadcom, and Alphabet [1][6][7] Sector Performance - Traders shifted focus to value sectors, with healthcare, industrials, and financials showing relative strength, while small-cap stocks also rose [2][12] - The market breadth expanded beyond tech, but overall risk appetite diminished [2][12] Company-Specific Developments - Nvidia's shares fell approximately 4.18% to $185.71, driven by concerns over high valuations in the AI semiconductor market and tightened US export restrictions to China, which constitutes nearly 20% of its revenue [7][8] - Broadcom's stock declined by about 5.65% to $335.16, reflecting similar valuation concerns and competitive pressures in the semiconductor sector [9] - Alphabet's shares dropped around 2.28% to $280.89, amid fears of cooling demand for high-growth tech services and digital advertising [10] Economic Context - The end of the government shutdown added uncertainty to the market, with key inflation and jobs data remaining offline, leading to cautious investor sentiment [4][13] - U.S. Treasury yields increased, with the 10-year note yield rising to about 4.10%, contributing to downward pressure on high-growth tech stocks [15][16] Earnings Reports - Disney's stock fell 9% after reporting mixed fiscal Q4 results, with revenue of $22.46 billion missing expectations, although earnings per share beat estimates at $1.11 [2][14] - Firefly Aerospace's shares surged over 20% following a narrower loss and revenue beat, while Dillard's gained over 8% after reporting revenue of $1.49 billion and a 3% rise in comparable sales [3][14]

Core Viewpoint - Palantir CEO Alex Karp expressed concerns that the costs associated with building artificial intelligence technology may not yield sufficient returns, raising questions about the value of significant investments in AI by companies [1][3]. Group 1: AI Market Insights - Karp identified two distinct AI markets from Palantir's perspective: one focused on basic enhanced intelligence applications that do not significantly impact revenue or margins, and another that can deliver quantifiable results that affect battlefield dynamics or financial performance [2][4]. - He argued that while the overall AI market appears large, it may not generate enough value to justify the expenses related to large language models and their implementation [3][4]. Group 2: Financial Projections and Concerns - Major tech companies, referred to as hyperscalers, are projected to invest $470 billion in AI infrastructure in 2025 and an additional $620 billion in 2026, according to Morgan Stanley estimates [4]. - Despite Palantir's stock rising by 141% in 2025, concerns arose following its latest earnings report, which led some investors to question the company's high valuation [5]. Group 3: Market Dynamics - Karp believes that Palantir will excel in the AI market, providing significant value to enterprises and governments, while he described the consumer-facing AI market as "very weak and dissipating" [6].

Market Overview - Stock futures are trading lower, following a record high for the Dow Jones Industrial Average (DJIA) which closed at 48,254, up 327 points or 0.68% [2] - The S&P 500 finished slightly positive at 6850, while the NASDAQ closed down 0.26% at 23,406, indicating a rotation from high-valuation technology stocks [2] - Concerns persist regarding a potential bubble in AI investments that could impact the broader stock market and economy [2] Treasury Bonds - The bond market saw yields decrease across the Treasury curve, with the 30-year bond yield closing at 4.67% and the 10-year bond yield at 4.07% [3] - This movement follows the expected signing of a funding bill by the House of Representatives to end the longest government shutdown on record [3] Oil and Gas - Brent Crude and West Texas Intermediate (WTI) oil prices fell significantly, with Brent down 3.74% at $62.72 and WTI down 4.18% at $58.49 [4] - Concerns about weak global economic growth, particularly in the U.S. and China, are affecting oil prices, alongside worries about potential oversupply due to OPEC+ output increases [4] - Natural gas prices also declined, finishing down less than 1% at $4.53 after a strong previous week [4] Dow Jones Industrial Average - The DJIA reached a new all-time high, driven by large-cap money center banks [5] - There is a continuing shift from technology stocks to value and large-cap dividend stocks amid discussions about the AI bubble [5]

By Elvira Pollina MILAN (Reuters) -Italian tech company Bending Spoons could list as early as next year, when it expects to double adjusted earnings after buying video streaming platform Vimeo and web ​portal AOL, its chief executive told Reuters. In a wide-ranging interview, one of Europe's leading tech ‌investors and operators joined other business leaders in warning about the risk of an artificial intelligence bubble, and urged Europe to focus on deregulation to ‌retain innovative companies. "I don't ...

Core Insights - Nvidia is set to report quarterly results next Wednesday, which is anticipated to be a pivotal moment for the bull market, with heightened anxiety about AI on Wall Street leading up to the report [1][2] - The recent sale of Nvidia shares by SoftBank, intended to fund other AI investments, has contributed to market jitters, despite clarifications from SoftBank executives [2][3] - Concerns are growing among investors about a potential AI bubble, driven by excessive investments and circular business deals, with notable figures like Michael Burry shorting Nvidia and Palantir stocks [3][5] Company Performance - Nvidia has experienced significant sales and earnings growth over the past three years, largely due to the massive spending by major tech companies on AI infrastructure [4] - Analysts from BCA Research have suggested shorting stocks of hyperscalers, indicating that the rapid pace of AI investments may negatively impact their returns on equity and stock valuations [6] Market Dynamics - JPMorgan estimates that tech companies would need approximately $650 billion in annual revenue indefinitely to achieve a 10% return on their AI investments through 2030, equating to nearly six basis points of global GDP [7] - OpenAI's recent revenue run rate of $20 billion and its agreements to pay Nvidia, AMD, and Broadcom between $1.2 trillion and $1.5 trillion for data center capacity over the next five years highlight the growing importance of AI in the market [8] Investor Sentiment - Despite skepticism regarding the sustainability of AI investments, many investors remain bullish, arguing that current tech valuations are below their Dotcom peaks and that major companies investing in AI are among the most profitable [9] - The potential for a Federal Reserve rate-cutting cycle could stimulate data center construction and increase liquidity in financial markets, positively impacting stock prices [10] Industry Outlook - AMD has projected that the AI chip market could reach $1 trillion by 2030, aiming to capture a double-digit market share, which has positively influenced its stock price [11]

Market Overview - The Dow Jones Industrial Average increased by over 300 points, or nearly 0.7%, closing at a record high of 48,254.82, marking its second consecutive record close [1] - The S&P 500 remained roughly flat, while the Nasdaq experienced a decline of about 0.3% due to ongoing concerns regarding an AI bubble [1] Government Shutdown and Economic Data - The Senate passed a spending bill that is now in the House, with a vote expected on Wednesday night, which aims to end the government shutdown [2] - Resuming government operations will restore SNAP benefits and economic data related to the labor market and inflation, which are critical for Federal Reserve interest rate decisions [2] Financial Sector Performance - Financial stocks led the Dow's rally, with shares of Goldman Sachs, JPMorgan, and American Express reaching new record highs [3] - Morgan Stanley and Bank of America also achieved all-time highs, while the Financial Select SPDR Fund, tracking S&P 500 financial stocks, rose nearly 1% [4] Earnings and Market Sentiment - S&P earnings have consistently exceeded street estimates this year, contributing to the positive market sentiment [4] - As government data resumes, there is anticipation regarding whether market positioning has been accurate or if a significant repricing is necessary [5] Technology Sector Dynamics - The tech sector experienced volatility, with concerns about overvaluation of AI firms leading to a sell-off last week [5] - AMD shares rose by 9% after the CEO highlighted strong expected revenue growth of 35% per year over the next three to five years due to demand for AI chips [7] - Conversely, shares in Oracle, Palantir, and Meta fell by 3.9%, 3.6%, and 2.9%, respectively, amid fears of excessive capital expenditure on data centers and AI [7] Investment Perspectives on AI - Concerns about potential AI bubbles were discussed, with an emphasis on the need for diversified exposure to AI investments rather than focusing on a few stocks [8] - The argument was made that while bubbles can persist, the real risk lies in insufficient overall AI exposure as an investment theme [8]

Yeah. And look in that party it's 10:30 p. m.was 9 p. m. , but that party goes to 4 a.m. But look, we've talked about it. There's going to be the deejay is going to stop playing music.Sometimes there could be glass on the dance floor. Maybe cops come to the party, but the party is going to form. These are just white knuckle moments.What I view is this tech bull market is two more years ahead of it in terms of a supercycle of CapEx. Dan, I know you travel, you spend a lot of your time traveling around the wo ...

Core Viewpoint - Palantir's stock has experienced significant growth, with a tripling in value over the past year and an increase of over 860% in the last two years, driven by strong demand for AI solutions [4][5]. However, concerns are rising about the sustainability of this growth amid discussions of an AI bubble [3][4]. Group 1: Stock Performance - Palantir's stock has gained more than 860% over the past two years, reflecting robust AI demand [5]. - The stock has more than tripled in the past year, creating substantial wealth for retail investors [4]. Group 2: Market Sentiment - There is increasing chatter about an AI bubble, suggesting that future performance may require more than just strong earnings reports [3][4]. - Legendary investor Dr. Michael Burry has purchased significant put options against Palantir, indicating a bearish outlook, while CEO Alex Karp has dismissed this bet as "crazy" [5][6]. Group 3: Analyst Opinions - Wedbush analyst Dan Ives believes that Burry is mistaken and sees further upside potential for Palantir despite its elevated valuation [5][6]. - While concerns about valuation and market enthusiasm are valid, timing a potential correction is challenging, and bearish bets may not yield profits if the downturn does not occur in a timely manner [6][7].