AI cloud infrastructure company Boost Run has reached an agreement to go public on the Nasdaq through a merger with Willow Lane https://t.co/IDCyOG1luo ...

All right, let's take a look at tech stocks. Joining us right now is Tony Wang, Troll Price Portfolio Manager. Um Tony, thank you for being with us today.We've been talking a lot about how some of the other stocks have finally tried to start catching up with tech, but no doubt it's the tech that's been leading the way once again, and that has helped your portfolio pretty handsomely, I'd assume. Yeah, I think uh you know we are betting on the long term of technology companies that have really good sustainabl ...

Economic Data and Job Market - The Bureau of Labor Statistics (BLS) revised employment data, indicating that the US economy created over 900,000 fewer jobs from April 2024 to March 2025 than initially reported, highlighting a weaker job market under the Biden and early Trump administrations [2][3] - The job market had been deteriorating prior to the implementation of Trump’s tariff policy, suggesting that tariffs are not the primary cause of job losses [3] - The significant job revision implies that the Federal Reserve is likely to cut interest rates in its upcoming meeting, which could be a bullish signal for stocks [4] Inflation and Economic Outlook - The Producer Price Index (PPI) showed a decline of 0.1% for the month, contrary to expectations of a 0.3% increase, with year-over-year core PPI rising only 2.8%, below the anticipated 3.5% [5] - The inflation data suggests that the consumer is not bearing the full burden of tariffs, as many foreign companies and importers are absorbing the costs [5] AI Industry Developments - Nebius Group secured a five-year deal worth over $17 billion with Microsoft, significantly impacting its market cap and demonstrating the trickle-down effect of big tech's capital expenditures [7][9] - Oracle reported a Remaining Performance Obligation (RPO) increase of 359% to $455 billion, indicating strong future revenue growth and a substantial contract backlog [10] - The AI industry's growth is compared favorably to the internet boom of the late 1990s, with current AI companies being more profitable and having stronger balance sheets than their internet counterparts at that time [14][15] Market Sentiment and Valuation - Despite skepticism regarding the AI industry's growth, recent developments from Nebius and Oracle counter these criticisms, suggesting that the AI boom is still in its early stages [20] - Current valuations in the AI sector are more reasonable compared to the internet boom, with the Nasdaq price-to-earnings ratio around 30x, indicating that companies like Oracle are likely to grow into their valuations [15]

Lambda, a cloud infrastructure firm which counts Nvidia among its backers, is in talks about a funding round that could value the company at $4 billion to $5 billion ahead of a potential IPO, according to sources https://t.co/hdYltmH9bk ...

Core View - CoreWeave Inc (CRWV) has experienced a significant increase of over 250% year-to-date, maintaining a strong upward trend as it approaches its second quarter earnings report [1] Stock Performance - CoreWeave's stock is currently priced at $143.60 per share, well above its major moving averages, indicating strong buying pressure and positive momentum [2] - The eight-day simple moving average is at $120.78, the 20-day at $120.85, and the 50-day at approximately $140.68, all suggesting bullish signals [2] - The MACD indicator is at -1.72, having crossed over the signal line, which supports a bullish outlook and indicates potential stabilization before another surge [3] - The Relative Strength Index (RSI) is at 60.01, suggesting that the stock is neither overbought nor oversold, allowing for further upside potential [3] Earnings Expectations - Analysts predict a loss of 17 cents per share on revenue of approximately $1.08 billion, reflecting CoreWeave's substantial investment in its proprietary cloud platform aimed at AI applications [4] - The earnings report is seen as a critical checkpoint for CoreWeave to demonstrate its ability to convert technological advancements into sustained financial growth [5] Market Outlook - The technical indicators and market demand for AI innovation suggest that CoreWeave's upward trend may continue, but the earnings report will be the definitive test [6] - A strong earnings performance and positive guidance could propel shares towards the 52-week high of $187, while any disappointment could lead to short-term challenges for the stock [6]

Core Viewpoints - CoreWeave's IPO was undersubscribed and priced below its target at $40, with Nvidia providing support [1] - The stock experienced significant volatility, peaking with a gain of over 300% before falling more than a third due to valuation concerns [2] - The company is seen as a battleground stock with strong arguments for buying, selling, or holding ahead of its earnings report [3] Buy Arguments - CoreWeave's revenue surged by 420% to $981.6 million, indicating strong demand for AI computing power [4] - The company has secured substantial financial backing, including a $1.75 billion debt offering and a $2.6 billion debt facility, enhancing its capacity for expansion [6] - CoreWeave's customer base includes major AI players like OpenAI, Microsoft, Meta Platforms, and Alphabet, which supports its growth potential [7] Sell Arguments - CoreWeave is currently unprofitable, with operating losses of $27.5 million and significant interest expenses of $263.8 million on nearly $9 billion in debt [8] - The company's business model relies on continuously updating data centers with new GPUs, posing a risk of financial strain [9] - The 9% interest rate on its latest debt indicates that lenders view the company as a high-risk borrower [9] Hold Arguments - The macroeconomic environment and semiconductor industry issues complicate the assessment of CoreWeave's valuation [10] - Investors may benefit from waiting for more clarity on the company's prospects after additional earnings reports [11] - Holding CoreWeave may be prudent given its volatility and potential for future growth if it can manage its losses [12]

Core Insights - Dell Technologies (DELL) and Nutanix (NTNX) are significant players in the cloud infrastructure and hyperconverged infrastructure (HCI) market, with both companies positioned to benefit from the increasing adoption of hybrid cloud solutions [1][2] Dell Technologies - Dell's Infrastructure Solutions Group (ISG) revenues, which include cloud offerings, increased by 12% year over year to $10.31 billion in Q1 FY26 [3][9] - The company is expanding its cloud services through partnerships and infrastructure solutions, including a recent collaboration with Singapore's Institute of Technical Education to launch a hybrid cloud VDI Center [4] - Dell is experiencing strong demand for AI-optimized servers, particularly the PowerEdge XE9680L, driven by digital transformation and interest in generative AI applications [5][9] - Despite a challenging macroeconomic environment, Dell's innovation in AI infrastructure and positive earnings outlook support its long-term strength, with a Zacks Consensus Estimate for fiscal 2026 earnings at $9.44 per share, indicating a 15.97% year-over-year increase [15][16] Nutanix - Nutanix offers software-defined HCI solutions that support multi-hypervisor and multi-cloud environments, gaining traction as a cost-effective alternative for customers [6] - The company added 620 customers in Q3 FY25, bringing its total client count to 27,490, demonstrating strong recurring revenue momentum [7][9] - Nutanix expanded its portfolio with new solutions like Cloud Native AOS and Nutanix Kubernetes Platform, as well as launching Nutanix Enterprise AI to support modern applications [8] - The Zacks Consensus Estimate for Nutanix's fiscal 2025 earnings is $1.74 per share, reflecting a 32.82% year-over-year increase, although its high valuation may limit near-term upside [15][17] Stock Performance and Valuation - Year-to-date, DELL shares have appreciated by 5.7%, while NTNX shares have increased by 22.9%, with Nutanix's outperformance attributed to its expanding partnerships and clientele [10] - DELL shares are currently trading at a forward Price/Sales ratio of 0.77X, indicating a cheaper valuation compared to NTNX's 6.97X, which is considered overvalued [13] - DELL holds a Zacks Rank of 1 (Strong Buy), while NTNX has a Zacks Rank of 2 (Buy), suggesting a stronger investment case for Dell [19]

Tax Incentives and Economic Impact - 16 states have provided nearly $6 billion in data center tax breaks over the past 5 years [2] - Virginia recoups approximately 48 cents for every dollar it foregoes in sales tax from data centers [7] - A Microsoft data center in Illinois received over $38 million in tax breaks but created only 20 permanent jobs [4] Job Creation and Industry Comparison - Data centers may not create the same permanent job threshold as other industries like the auto industry [15] - A 250,000 square foot data center might have only 50 permanent jobs, half of which are contract positions [15] - Construction jobs are a significant but temporary benefit of data center projects [7][14] Concerns and Re-evaluation - There are growing calls to re-examine whether data center tax breaks should remain in place [11] - Concerns exist that data centers' immense power demand could impact states' carbon neutrality goals and drive up power costs for customers [11][12] - Local pushback against data centers is increasing due to their rapid expansion [10] Big Tech Perspective - Microsoft, Google, Meta, and Amazon state they follow all disclosure requirements on incentives and work with local communities [8] - Big tech companies argue that data centers generate tremendous income during construction and build an ecosystem of contractors [6]