Core Viewpoint - The U.S. technology sector has experienced weak performance in 2025, with the Technology Select Sector SPDR Fund returning -6% as of March 7, making it the second worst performing sector among SPDR S&P 500 ETFs [1] Group 1: Overall Sector Performance - As of March 7, only 33 out of 96 large-cap U.S. tech stocks have provided a positive total return in 2025 [1] - The consumer discretionary sector has performed worse, with a total return of -8% [1] Group 2: Top Performing Stocks - Okta has emerged as the best performer among large-cap U.S. tech stocks, with a return of nearly 43% in 2025 [2] - Cloudflare's stock is up nearly 18% as of March 7, driven by strong performance and growth in large customers [6] - IBM has provided a total return of nearly 20% in 2025, benefiting from positive earnings reports and strategic discussions with government officials [10] Group 3: Okta's Performance Details - Okta reported impressive earnings in early March, leading to a stock surge of over 24% in one day [3] - The company raised its full-year revenue growth guidance from 7% to 10% and adjusted earnings growth guidance to 13% [3] - Okta achieved its first quarter of $1 billion in bookings, with 20% coming from new products [4] - The average contract size of Okta's top 25 deals in Q4 was just under $13 million, and the company plans to cut 3% of its workforce to enhance growth [5] Group 4: Cloudflare's Performance Details - Cloudflare's significant gains were driven by strong earnings on February 7, with shares spiking 18% after beating Wall Street expectations [8] - The number of large customers increased by 27%, with $1 million+ customers rising by 47% [8] Group 5: IBM's Performance Details - IBM's shares gained nearly 5% on March 7 following news of a meeting between its CEO and President Trump regarding tariff policies [11] - The company reported a $2 billion GenAI-related business, with 75% of revenue coming from consulting services [12]

Core Insights - Walmart and Amazon are leading retail giants with significant market capitalizations of approximately $750 billion and over $2 trillion respectively, both focusing on future investments and evolution [1][2] - A comparison of long-term return potential requires an analysis of their underlying businesses and valuations [2] Walmart - Walmart's business model emphasizes cost reduction to offer lower prices to customers, a strategy that has proven effective for over sixty years [3] - Investments in technology and omnichannel capabilities have enhanced customer convenience, including same-day delivery options [4] - In the fiscal fourth quarter, Walmart U.S. same-store sales increased by 4.6%, driven by higher store traffic contributing 2.8 percentage points and increased spending [5] - Management's guidance for the current year anticipates sales growth of 3% to 4% and operating income growth of 3.5% to 5.5%, which has been conservative in the past [6] - Walmart's stock appreciated by 58% over the past year, significantly outperforming the S&P 500's 13% gain, leading to a P/E ratio increase from about 30 to 39 [7] Amazon - Amazon started as an online book retailer over 30 years ago and has since expanded to sell a vast array of products, known for competitive pricing and fast delivery [8] - The company generated $638 billion in sales last year, with 83% from North America and international operations [9] - Amazon Web Services (AWS) accounts for a smaller portion of sales but generates the majority (58%) of profits, with rapid growth driven by demand for cloud computing services [10] - AWS sales grew by 18.5% to $107.6 billion in the fourth quarter, with profits increasing by 61.7% to $39.8 billion [12] - AWS holds a 30% market share in cloud infrastructure, leading the segment, while cloud spending grew by 22% year over year [11] Investment Decision - Both companies present strong investment opportunities, but Amazon is favored for its more reasonable valuation and the robust position of AWS in a rapidly growing market [13]

Core Viewpoint - The recent Nasdaq correction presents an opportunity for investors to consider historically cheap and well-diversified AI stocks, rather than focusing solely on high-profile companies like Nvidia and Palantir Technologies [1][5]. Group 1: Market Context - The Nasdaq Composite officially entered correction territory, sitting 10% below its all-time high of 20,173.89 as of March 6, 2024 [2]. - AI stocks have been particularly hard-hit during this correction, reflecting a broader market trend where stocks can move in both directions [2][4]. Group 2: AI Market Potential - The global addressable market for AI technology is estimated to reach $15.7 trillion by the end of the decade, indicating significant growth potential for various businesses [3]. Group 3: Investment Opportunities - **Amazon (AMZN)**: - Amazon's growth is primarily driven by its cloud service platform, AWS, which has an annual revenue run-rate of $115 billion as of the end of 2024 [7]. - Amazon's stock is currently valued at 12 times forward-year cash flow, which is 43% below its five-year average [9]. - **Alphabet (GOOGL)**: - Alphabet's long-term growth is also tied to its cloud service, Google Cloud, which accounted for 11% of cloud-service spending in Q4 2024 [11]. - The company's forward P/E ratio of 17 is approximately 26% below its five-year average, and it has $95.7 billion in cash and equivalents [13]. - **Baidu (BIDU)**: - Baidu has maintained a significant market share in China's internet search, with a 50% to 85% share over the past decade [15]. - The stock is currently valued at about 8 times forward-year earnings, and the company holds over $19 billion in cash and equivalents [17]. - **Meta Platforms (META)**: - Meta generates nearly 98% of its net sales from advertising, with a strong user base of 3.35 billion daily active users [19]. - The company has a forward P/E ratio below 22, which is attractive given its double-digit sales and profit growth rates [21].

Core Viewpoint - The recent market volatility in AI stocks presents potential buying opportunities for long-term investors, particularly in three highlighted companies: Nvidia, Amazon, and Salesforce [1] Group 1: Nvidia - Nvidia has reported significant revenue growth but has seen its stock decline nearly 25% from its all-time high in January [2] - The company holds a dominant 90% market share in the GPU market, essential for training AI models, aided by its CUDA software [4] - Nvidia's stock is currently valued at a forward price-to-earnings ratio of 25.5 times 2025 analysts' estimates and a price/earnings-to-growth ratio of under 0.5, indicating potential undervaluation [6] Group 2: Amazon - Amazon's cloud computing unit, AWS, is the fastest-growing segment, with revenue increasing 19% to $28.8 billion last quarter and operating income rising 47% to $10.6 billion [7] - The company is investing $100 billion in AI data centers this year to meet demand, leveraging its custom AI chips (ASICs) for cost advantages [9] - Amazon's stock is down about 15% from recent highs, trading at a forward P/E of 32 times [10] Group 3: Salesforce - Salesforce's stock has decreased 20% from recent highs, focusing on becoming a leader in agentic AI with its new offering, Agentforce [11] - The Agentforce platform has gained traction with 5,000 deals, including 3,000 paying customers, and offers no-code and low-code tools for customization [12] - The company launched the AgentExchange marketplace with over 200 partners, enhancing the potential use cases for Agentforce [13] - Salesforce's stock is valued at 26 times 2025 analyst earnings estimates and a PEG ratio of 0.35, indicating attractive valuation [14]

Core Viewpoint - AI stocks have been leading the market with significant gains, but recent economic concerns and government policies have caused a decline in their performance [1][2][4]. Group 1: AI Market Performance - AI stocks have driven double-digit gains in the S&P 500 and Nasdaq over the past two years, showcasing their potential to enhance company operations and earnings [1]. - The tech-heavy Nasdaq has dropped more than 7% in the past two weeks, primarily due to the decline in AI stocks [4]. Group 2: Economic Concerns - New government policies and tariffs imposed by President Trump on major trading partners like Canada, Mexico, and China are raising concerns about inflation and increased costs for companies manufacturing outside the U.S. [2][3]. - Higher inflation could negatively impact consumer spending, leading to lower revenues for affected companies [3]. Group 3: Company Analysis - Amazon - Amazon has leveraged AI in its e-commerce and cloud computing sectors, enhancing efficiency and customer satisfaction [5]. - Amazon Web Services (AWS) has achieved a $115 billion annual revenue run rate, driving overall profitability through a variety of AI products and services [6][7]. - Amazon shares have declined over 10% in the past month, now trading at about 32 times forward earnings estimates, indicating a potential buying opportunity [8]. Group 4: Company Analysis - Palantir Technologies - Palantir Technologies has faced challenges due to proposed budget cuts from the Pentagon, a key customer, which could impact its revenue [9]. - Despite these concerns, Palantir's AI software aligns with government efficiency goals, potentially leading to more contracts [10]. - The company has seen significant growth in its commercial business, achieving over $800 million in U.S. commercial contract value, a 134% increase year over year [11]. - Palantir's stock has declined 27% over two weeks, bringing its valuation down and suggesting it may be a good time for growth investors to consider purchasing shares [12].

Nvidia (NVDA 1.92%) has been one of the best long-term investments of all time. Since 1999, shares have increased in value by more than 285,000%, pushing the company's market capitalization into the trillions of dollars. The cause of Nvidia's soaring valuation has been the rise of artificial intelligence (AI).But Nvidia isn't the only company exposed to the massive tailwind that is AI spending. Long term, there's another chipmaker that could end up giving Nvidia a run for its money. And unlike Nvidia's stoc ...

Core Viewpoint - The semiconductor industry, particularly graphics processing units (GPUs), is crucial for generative AI development, but chip stocks have faced challenges in 2025, presenting a potential buying opportunity for Taiwan Semiconductor Manufacturing Company (TSMC) [1][2][3]. Group 1: Market Performance - The VanEck Semiconductor ETF has declined by 4% in 2025, with Nvidia and Advanced Micro Devices (AMD) experiencing stock drops of 7% and 17%, respectively [2]. - TSMC's stock is currently viewed as undervalued despite its strong market position and financial outlook [9][10]. Group 2: TSMC's Role and Influence - TSMC specializes in foundry solutions, manufacturing chips for other semiconductor companies, which is essential for the success of firms like Nvidia and AMD [6][5]. - TSMC has captured nearly two-thirds of the foundry market and is expected to benefit from the increasing demand for custom silicon and new architectures from Nvidia and AMD [8]. Group 3: Financial Outlook - TSMC's forward price-to-earnings (P/E) ratio is approximately 19, compared to the S&P 500's average of about 21, indicating a potential undervaluation [10]. - The semiconductor market is projected to grow tenfold over the next decade, reaching nearly $1 trillion, suggesting sustained demand for TSMC's products [10]. Group 4: Expansion Plans - TSMC plans to invest an additional $100 billion to expand its manufacturing capabilities in the U.S., aligning with the anticipated $300 billion investment in AI infrastructure by big tech in 2025 [11].

Group 1 - Nvidia's stock has recently experienced a decline, down over 20% from its all-time high, placing it in bear market territory, despite analysts maintaining a higher average price target [1][2] - The average price target among 42 analysts is $178.18, indicating a potential upside of 54%, with the highest target set at $220, suggesting a 90% upside from current levels [2] - Nvidia's GPUs are central to the AI revolution, providing significant advantages over traditional CPUs, which has allowed the company to dominate a crucial sector [3][4] Group 2 - Nvidia's revenue growth has been exceptional, with management expecting Q1 revenue of $43 billion, reflecting a 65% increase, and Wall Street projecting FY 2026 revenue of $204 billion, indicating 56% growth [6] - Historical valuation levels show Nvidia has traded around 61 times trailing earnings, but currently trades at a discount of 39.5 times trailing earnings [7][8] - For Nvidia to reach a stock price of $220, it would require an EPS of $3.67 based on a 60 times trailing earnings valuation, which is feasible given the expected revenue growth [9][10] Group 3 - Achieving a $220 stock price with a 40 times earnings valuation would necessitate an EPS of $5.50, which is higher than the expected $4.50, but analysts project EPS of $5.72 in FY 2027 [10] - While reaching $220 in one year may be challenging, a two-year horizon makes this target more attainable, representing a potential 90% return [11]

Marvell Technology (NASDAQ: MRVL) suffered a sharp sell-off, with shares plunging over 19% on March 6, following its Q4 and FY 2025 earnings report released on March 5. Despite delivering slightly better-than-expected results on both earnings per share (EPS) and revenue, and issuing forward guidance that topped Wall Street’s average expectations, the results failed to impress investors who had expected significant AI tailwinds to be reflected in the outlook.Marvell one-day price chart. Source: Google Financ ...

Group 1: Amazon's AI and Robotics Investments - Amazon is expected to spend over $100 billion on AI infrastructure in 2023, primarily for Amazon Web Services (AWS), with a focus on robotics as a significant area of investment [5] - A fully equipped Amazon warehouse utilizing various robots has seen a 25% reduction in fulfillment costs, potentially increasing operating profits by up to $3 billion [6] - Amazon's integration of robotics has established it as a leader in retail logistics, differentiating it from competitors like Target and Walmart, with Goldman Sachs predicting a total addressable market for robotics in the tens of billions over the next decade [9] Group 2: Tesla's Robotics Development - Tesla is developing its own robotics platform, Optimus, which aims to assist in manufacturing processes and has potential applications beyond factories [7] - Unlike Amazon's mechanical robots, Optimus is a humanoid robot capable of dexterous movements, highlighting a key difference in their robotic approaches [8] - Successful deployment of Optimus could lead to significant cost reductions for Tesla, similar to the cost synergies recognized by Amazon in its fulfillment centers [11] Group 3: Interconnection Between Amazon and Tesla - Amazon's advancements in robotics may provide indirect benefits to Tesla as it seeks to scale the Optimus business, with a growing market for AI robotics expected to create various use cases [10] - There is an opportunity for Tesla to partner with Amazon to showcase the Optimus bot outside of its car factories, especially as Amazon looks to generate savings amid rising infrastructure costs [12] - While Amazon's robotics may not be an immediate cause for excitement for Tesla investors, monitoring Amazon's AI investments could be beneficial [13]