Core Viewpoint - Efficient Power Conversion (EPC) has entered into a comprehensive licensing agreement with Renesas Electronics Corporation, which will enhance the adoption of high-voltage GaN transistors in the semiconductor industry [1] Group 1: Company Overview - EPC is recognized as the world leader in enhancement-mode gallium nitride (eGaN®) power devices, indicating its strong position in the power electronics market [1] - Renesas Electronics Corporation is identified as a premier global supplier of advanced semiconductor solutions, highlighting its significant role in the semiconductor industry [1] Group 2: Agreement Details - The licensing agreement allows Renesas to access EPC's proven low-voltage eGaN technology, which is expected to accelerate the adoption of high-voltage GaN transistors [1] - The agreement also includes access to EPC's established supply-chain ecosystem, further supporting the integration of eGaN technology into Renesas's offerings [1]

Group 1 - Semiconductor stocks have significantly outperformed other sectors, particularly in the context of the AI boom during the bull market, with their advantage becoming more pronounced in 2026 [1] - Software companies have faced challenges and negative market sentiment, contrasting with the strong performance of semiconductor stocks [1] - The Q4 earnings season has highlighted a disparity in performance among sectors, creating a divide between companies that are thriving and those that are struggling [1]

Core Insights - The relationship between U.S. stocks and international stocks often shows an inverse trend, with U.S. equities typically outperforming for extended periods, followed by a reversal where international stocks take the lead [1][2]. Group 1: Performance of International Stocks - In 2025, non-U.S. developed market stocks returned 35.2%, while emerging market stocks returned 25.6%, significantly outperforming the U.S. stock market, which rose 17.7% [3]. - In 2026, international stocks continued to outperform, with the Vanguard FTSE Developed Markets ETF (VEA) up 9.2% year to date and the Vanguard Emerging Markets Stock Index Fund ETF (VWO) up 8.1%, compared to a mere 1.5% increase in the S&P 500 index [4]. Group 2: Factors Influencing Performance - The declining value of the U.S. dollar, which fell about 9% last year against a basket of trade partner currencies, is contributing to the favorable performance of non-U.S. economies and their stock markets [4]. - The current U.S. administration is encouraging a weaker dollar, which is expected to continue benefiting international equities [4].

Group 1 - Artificial intelligence (AI) is significantly impacting the technology sector, with Micron Technology (MU) emerging as a major beneficiary due to increased demand for memory chips from AI hyperscalers [1][2] - Micron's stock has seen substantial returns over the past year, driven by the surge in memory chip demand as companies expand their data center capacities [1] - Recent developments indicate that Samsung Electronics is nearing certification for its next-generation HBM4 chips, which could alter competitive dynamics in the AI memory market [2][3] Group 2 - Micron Technology is a key supplier of advanced memory products, including DRAM, NAND, and NOR memory, essential for data centers and AI infrastructure [5][6] - The company has a market capitalization of approximately $465 billion, positioning it as a significant player in the semiconductor industry [6] - Micron's engineering expertise and manufacturing scale are critical for supporting AI workloads and other compute-intensive applications across various platforms [6]

Global Economic Outlook - The International Monetary Fund (IMF) projects global GDP growth of approximately 3.3% for 2026, supported by corporate investment in digital infrastructure and advanced technologies [1] - The U.S. labor market shows resilience, with nonfarm payrolls increasing by 130,000 in January 2026 and an unemployment rate of 4.3% [1] Industry Projections - The global semiconductor industry is expected to reach $975 billion in annual sales in 2026, driven by an AI infrastructure boom [2] - The Semiconductor Industry Association forecasts global semiconductor sales to approach $1 trillion in 2026, indicating a 26% growth, primarily due to advanced logic and high-bandwidth memory for generative AI workloads [5] Sector Performance - AI-linked infrastructure and healthcare innovation are expected to outperform the broader market in 2026, supported by strong demand drivers and favorable earnings momentum [3] - Hyperscalers like Microsoft, Amazon, and Alphabet are significantly investing in AI data centers and cloud infrastructure, which remains a core earnings catalyst [4] Aerospace and Defense - The industrial sector benefits from sustained defense spending, with U.S. national defense spending exceeding $800 billion annually, providing multi-year revenue visibility for prime contractors [8] - Companies like Lockheed Martin and RTX report substantial backlogs, with Lockheed Martin exiting 2025 with a $194 billion backlog and RTX with a $268 billion backlog, indicating extended revenue streams [9] Electrification and Grid Modernization - Electrification and grid modernization are identified as powerful structural drivers, with companies like Eaton and Siemens focusing on data center power demand and energy transition investments as key growth catalysts [10]

Market Performance - The Dow Jones Industrial Average (DJI) achieved record closes at the beginning of the week but faced declines towards the weekend due to limited job growth in certain sectors and concerns about interest rates [1] - The S&P 500 Index (SPX) and Nasdaq Composite Index (IXIC) are also expected to end the week with losses, despite a brief uptick on Friday following soft inflation data [2] - The Cboe Volatility Index (VIX) is on track for its fifth consecutive weekly gain, marking its longest winning streak since March 2020 [2] Earnings Reports - Dynatrace (DT) and ON Semiconductor (ON) experienced declines after missing quarterly earnings expectations, while Fastly (FSLY) saw a rally due to positive full-year revenue and profit forecasts [3] - Roku (ROKU) rose after exceeding earnings expectations and providing an optimistic outlook, while Applied Materials (AMAT) reached a record high driven by strong results and guidance related to AI demand [3] - Coca-Cola (KO) fell due to a revenue miss, and Mattel (MAT) faced its worst daily drop in decades following disappointing quarterly results and a weak outlook [4] - Upstart (UPST) declined despite surpassing profit and revenue expectations, influenced by a C-suite shakeup and a softer margin forecast [4] - QuantumScape (QS) dropped after reporting a wider-than-expected quarterly loss and downbeat projections [4] Corporate Developments - Kroger (KR) appointed former Walmart executive Greg Foran as its new CEO [5] - STMicroelectronics (STM) surged following a partnership announcement with Amazon's AWS, which includes a multiyear share purchase agreement [5] - Novo Nordisk (NVO) initiated a lawsuit against Hims & Hers Health (HIMS) for alleged patent infringement related to a weight-loss drug, causing significant stock movements for both companies [5] Upcoming Events - Markets will be closed on Monday, February 16, for Presidents' Day, but the following week is expected to be busy with a significant amount of economic data to analyze [6]

U.S. Commerce Secretary Howard Lutnick addressed the licensing requirements governing Nvidia Corp.’s (NASDAQ:NVDA) sales of its advanced AI chips to China during a hearing on Tuesday. Lutnick stated that Nvidia must adhere to the detailed licensing terms for the sale of its second-most-advanced AI chip, the H200, to China, Reuters reported on Tuesday. He explained that the terms, which were developed in collaboration with the State Department, are detailed and non-negotiable. Don't Miss: Delays and Unce ...

Open AAI is unveiling its first model to run entirely on chips from the startup Cerebras. It's a sign of companies diversifying beyond Nvidia's GPUs. Dear Jabosa has more in today's tech check.Very important story here. Deerra. Yeah.So, Kelly, this look, this is not OpenAI's flagship model. This is GPT 5.3% Codex Spark. It's a stripped down coding model built for speed.But an AI speed and cost that can beat raw power. And if the high volume everyday workloads, if they're moving off of Nvidia hardware, that ...

DANI: HAPPY FRIDAY THE 13TH, CPI DATA. 30 MINUTES UNTIL THE START OF THE CASH EQUITY TRADE. MATT MILLER IS ON A WELL DESERVED VACATION. OPEN INTEREST STARTS NOW. DANI: COMING UP, AN INFLATION REPORT CAP IS A BUSY WEEK OF ECONOMIC DATA. CORE CPI RISING IN JANUARY ON HIGHER SERVICING COSTS. THE AI SCARE TRADE CAME FOR A WIDE RANGE OF STOCKS, EVERYTHING LOGISTICS. THAT IS THE LATEST VICTIM. ANOTHER WAVE OF EARNINGS FROM EV'S TO PHARMA AND FOOD. THE LATEST READ ON CORPORATE AMERICA. ONE OF THOSE READS, RIVIAN D ...

Core Insights - Applied Materials stock has nearly doubled over the past 12 months, reflecting strong market performance driven by AI-related demand for chips [1] - The company anticipates its semiconductor equipment business to grow by more than 20% this year, fueled by rising demand for advanced, energy-efficient chips [1] - In the latest quarter, Applied Materials reported a profit increase of over 70%, reaching $2.03 billion or $2.45 per share, despite a 2% decline in revenue to $7.01 billion [1] Company Performance - The demand for higher performance and energy-efficient chips is driving significant growth in leading-edge logic, high-bandwidth memory, and advanced packaging [1] - The forecast for the current quarter indicates revenue between $7.15 billion and $8.15 billion, with adjusted earnings per share projected between $2.44 and $2.84, suggesting double-digit growth in both metrics [1] - The stock has risen nearly 28% since the beginning of the year and is up about 95% over the last 12 months [1] Industry Context - The rapid expansion of AI data centers is increasing the demand for semiconductors and the specialized tools required for their production, positioning Applied Materials at the forefront of the AI investment cycle [1] - The CEO estimates that global semiconductor industry revenues will reach $1 trillion this year, indicating robust market growth [1] - The company faces a $252 million penalty from the Department of Commerce for illegally exporting chipmaking equipment to a company in China, which may impact its operations [1]