Core Insights - NVIDIA's CEO Jensen Huang highlighted the rapid advancements in AI technology, particularly with the introduction of Alpamayo, the world's first thinking and reasoning model for autonomous vehicles, which utilizes a 10 billion-parameter vision-language-action model [1][2] - The demand for AI computing is surging, with model sizes increasing by 10 times annually and reasoning generating 5 times more tokens per year, while the cost of tokens is decreasing by 10 times [3] - NVIDIA's new Vera Rubin GPU system features significant innovations, including a design stripped of cables, hoses, and fans, utilizing hot-water liquid cooling at 45°C, which could disrupt the data center cooling market [6][7] NVIDIA Innovations - The Vera Rubin system is expected to be a game-changer in the robotics industry, with a projected cost of approximately $5 million per supercomputer rack-scale system [5] - The system's design allows AI factories to eliminate mechanical water chillers, relying instead on simpler cooling solutions, which has raised concerns for companies like Modine Manufacturing that specialize in data center chillers [7][9] Market Reactions - Modine's stock experienced a significant drop of over 20% following the announcement of the Vera Rubin system, reflecting investor concerns about the future demand for traditional cooling solutions [8][9] - Credo Technology Group also faced stock volatility, with shares falling due to fears that the new systems would replace copper cabling with optical interconnects, although a subsequent recovery was noted as investors reassessed the situation [10][11] Credo Technology Developments - Credo is diversifying its product offerings, focusing on both copper-based Active Electrical Cables and optical interconnect solutions, with recent innovations including ZeroFlap optical transceivers and a strategic acquisition of Hyperlume, Inc. [14][15][16] - The company aims to expand its Total Addressable Market (TAM) by prioritizing optical solutions while maintaining its leadership in the AEC market [16]

Industry Overview - U.S. semiconductor industry is expected to experience 30% year-over-year growth, marking the first-ever $1 trillion year in chip sales [1] - Key drivers include strong demand visibility, secular growth from AI, and cyclical industrial inventory replenishment [2] - The PHLX Semiconductor Sector Index has risen about 7% year-to-date and 45% over the past year, outperforming the S&P 500 [5] Company Insights - **NVIDIA Corp**: - Maintains unmatched leadership with a full-stack AI strategy and projected $26 billion in R&D spending for CY26, significantly higher than competitors [6] - Next-generation Vera Rubin platform is on track for second-half shipments, promising substantial performance improvements [7] - Expected to maintain gross margins in the mid-70% range despite rising costs, with potential upside from China H200 shipments estimated to exceed $40 billion [8] - **Credo Technology Group**: - Recent sell-off presents a compelling buying opportunity, with a Buy rating maintained despite trading 34% below its 52-week high [9] - Positioned as a leader in active electrical cables, with fiscal 2027 EPS estimates up approximately 160% over the past year [10] - **Analog Devices**: - Maintains a Buy rating, noted for strong pricing power due to differentiated products and a favorable mix related to aerospace, defense, and AI [11] - Offers a balance of strong free cash flow generation and pricing leverage amidst macro uncertainty [12]

Key Takeaways Despite macro and geopolitical worries, January momentum remains strong across equities.Small caps, momentum, semis and defense are early 2026 leaders amid AI and security spending.Healthcare stands out as a defensive but winning play as investors balance risks and safety.As the market has entered 2026, the S&P 500 is coming off a third straight year of returns well above its long-term annual average of roughly 10%.Investors entered 2026 with notable concerns.While GDP growth has accelerated a ...

A top-rated analyst at Piper Sandler has made a massive bet on Micron Technology (MU), slapping a $400 price target on the stock with unusual confidence. That’s a steep 45% climb from the previous $275 target, an eyebrow-raising $125 increase, and it matters a ton because Micron has been flying. In the past month alone, the stock has skyrocketed 43%, dwarfing the S&P 500’s gains at just under 1%. In the past week alone, it has jumped almost 20%. For perspective, from its Jan. 7 close of $339.55, Piper ...

In Brief Nvidia is now requiring its customers in China to pay upfront in full for its H200 AI chips even as approval stateside and from Beijing remains uncertain, Reuters reported, citing anonymous sources.The chipmaker isn’t leaving any room for refunds or changes to orders, the report said. While some customers may be allowed to use commercial insurance or asset collateral, the terms are far stricter than Nvidia’s earlier policies, which sometimes permitted partial deposits, Reuters reported.Nvidia dec ...

CES 2026 put a spotlight on how fractured the AI opportunity really is. On the same stage, Intel Corp (NASDAQ:INTC) and NVIDIA Corp (NASDAQ:NVDA) pitched radically different visions of how they plan to tap what investors broadly frame as a $10 trillion AI era. Track NVDA stock here.One focused on fixing what it lost. The other focused on expanding what it already owns.Intel's Pitch: AI Starts On Your LaptopIntel's CES narrative was all about execution. Panther Lake, part of the Core Ultra Series 3 lineup, m ...

In our prepared remarks that our HBM for 2026 is sold out in terms of volume and our negotiations with customers have been completed for calendar year 2026 for volume as well as pricing.One concern that may weigh on investors' minds is whether Micron is able to live up to its lofty outlook. However, the company has sold out its available capacity of the high-bandwidth memory (HBM) chips that are used in AI data center chips. Responding to an analyst query on the December 2025 earnings call, Micron CEO Sanja ...

Oil Market - Brent crude increased by 2% to $61.16 per barrel, while West Texas Intermediate (WTI) rose by 1.8% to $57.01 per barrel, following a decline in US crude oil stockpiles by 3.8 million barrels to 419.1 million barrels, contrary to analysts' expectations of a rise [1][7]. Retail Sector - Tesco's shares fell by 6.5% despite achieving a 10-year high in market share in the UK, while Associated British Foods, owner of Primark, saw a 13% decline in shares due to weaker-than-expected sales [2][3]. Defence Sector - BAE Systems' shares surged by up to 7% after President Trump announced plans to increase the US defence budget from $1 trillion to $1.5 trillion, adding over £4 billion to its market value [6][40]. - UK defence stocks, including Babcock and Rolls Royce, saw significant gains, with nearly £7 billion invested in early trading following Trump's military spending pledge [53][41]. - European defence stocks also rose, with notable increases in companies like Rheinmetall and Airbus, reflecting investor confidence in increased government spending on defence [40][55]. Economic Indicators - A major credit rating agency predicts the US Federal Reserve will lower interest rates two more times this year due to a slowdown in the jobs market, with expectations of a decrease from the current range of 3.75% to 3% [19]. - The US trade deficit fell to its lowest level since 2009, dropping 39% to $29.4 billion in October, attributed to a $11 billion decrease in imports [24][25].

On the valuation side, Nvidia is extremely rich. NVDA trades at a trailing price-to-earnings (P/E) multiple of around 48 times and a price-to-cash flow multiple of 61 times. These multiples imply very high growth built in. In short, Nvidia's valuation is in “bubble” territory, reflecting sky-high expectations for its AI/data-center role.The most valuable company in the world with a market capitalization of around $4.6 trillion, NVDA stock rallied strongly in the last two years on the AI boom but has since r ...

Volkswagen plans a long-term supply deal with U.S. chip designer Qualcomm to deliver infotainment technology for the German carmaker's new software platform. ...