Group 1 - Nvidia Corp.'s negotiations to invest up to $100 billion in OpenAI have broken down, indicating a potential rift between two major players in the AI industry [1][2] - The discussions stalled due to concerns from some Nvidia insiders regarding the transaction, which was intended to support new data centers and AI infrastructure [2][3] - The initial agreement announced in September included a letter of intent for a strategic deal, aiming for 10 gigawatts of computing power, equivalent to New York City's peak electricity demand [3] Group 2 - Nvidia stated it has been OpenAI's preferred partner for the last 10 years and looks forward to continuing collaboration, although it did not comment on the current state of negotiations [4] - OpenAI is seeking to raise up to $100 billion in its current funding round, with Amazon in talks to invest up to $50 billion [5] - Nvidia has made other significant investments in AI, including a recent $2 billion investment in CoreWeave Inc., a cloud computing provider [5][6] Group 3 - Concerns have been raised about the sustainability of the AI boom due to circular deals, where companies invest in businesses that purchase their products [6] - Nvidia's CEO Jensen Huang dismissed these criticisms, stating that such investments represent a small portion of the total funding needed [6]

Core Insights - NVIDIA Corporation (NVDA) and Taiwan Semiconductor Manufacturing Company Limited (TSMC) have experienced significant stock price increases of 59.9% and 62% respectively over the past year, driven by strong demand for AI technologies and easing trade tensions [1][2]. TSMC Insights - TSMC is expected to see continued growth due to strong demand for its advanced process technologies, projecting revenues of $34.6 billion to $35.8 billion for Q1 2026, which represents a 25.5% year-over-year increase and a 1.9% sequential rise [3][4]. - The company's gross profit margin for Q1 2026 is anticipated to be between 63% and 65%, slightly up from 62.3% in Q4 2025, driven by increased demand from AI hyperscalers [4]. - TSMC's earnings growth is projected at 46.2% for the current quarter and 29.1% for the full year, with a Zacks Consensus Estimate for EPS of $14.01 indicating a 27.1% year-over-year growth [5]. - Analysts are optimistic about TSMC's stock, with an average short-term price target of $408, suggesting a 19.2% increase from the last close, and a highest target of $520 indicating a potential upside of 51.9% [6]. NVIDIA Insights - NVIDIA is positioned for growth due to eased U.S.-China trade tensions, allowing selective Chinese tech companies to purchase its H200 AI chips, which could enhance its market presence in the region [10][11]. - The company anticipates revenues of nearly $65 billion for the fiscal fourth quarter of 2026, with expected earnings growth rates of 70.8% for the current quarter and 55.9% for the full year [12][13]. - The Zacks Consensus Estimate for NVIDIA's EPS is $4.66, reflecting a year-over-year growth of 10.7% [13]. - Brokers project an average short-term price target for NVDA stock at $254.81, indicating a 33.1% increase from the last closing price, with the highest target at $352 suggesting an upside of 83.8% [15].

Semiconductor giant Taiwan Semiconductor (TSM) reported solid fourth-quarter earnings, with profit jumping 35% to beat analyst estimates and reach a record high. While TSM stock surged on the news, legacy chip giant Intel (INTC) also reaped the gains. Citi analysts raised INTC stock’s rating from “Sell” to “Neutral” and set a $50 price target, citing TSM’s tightness in advanced packaging, which should benefit Intel. Analyst Atif Malik noted that the company has a “unique window of opportunity” to attract ...

Core Insights - Nvidia has transformed from a company primarily focused on gaming GPUs to a leader in AI processors, significantly impacting the AI revolution [1][2] - The company's gaming GPUs have provided substantial advantages for cloud computing and AI model training, leading to increased sales and earnings [2] - Nvidia's stock has delivered extraordinary returns, with a total return of approximately 26,080% over the last decade and 1,290% over the past year [3] Company Performance - Nvidia's current stock price is $186.23, with a market capitalization of approximately $4.55 trillion, making it the world's most valuable company [4][5] - The stock has shown a day's range between $186.08 and $190.44, and a 52-week range from $86.62 to $212.19 [5] - The company boasts a gross margin of 70.05% and a dividend yield of 0.02% [5]

Core Insights - Nvidia and Eli Lilly are collaborating to establish a joint research lab, a partnership that was announced at the JPMorgan Healthcare Conference in January [1] - The collaboration aims to leverage Nvidia's AI technology and Eli Lilly's pharmaceutical expertise to enhance drug discovery processes [5][6] Group 1: Partnership Details - The companies will invest up to $1 billion over five years for construction, staffing, and computing costs for the lab [4] - The lab will utilize Nvidia's latest AI processors, the Vera Rubin chips, to power its computational capabilities [4] Group 2: Research and Development Focus - Researchers from both companies will work together to generate new data, which will help train AI models to expedite drug discovery [5] - Eli Lilly's CEO, David Ricks, emphasized that combining their data and scientific knowledge with Nvidia's computational power could revolutionize drug discovery [6] Group 3: Industry Implications - The partnership reflects a growing trend in the biotech and pharmaceutical industries to integrate AI into drug development, aiming to make the process faster and more cost-effective [5][7] - The collaboration is seen as a significant step towards transforming how drug discovery is conducted, potentially leading to breakthroughs that neither company could achieve independently [7]

Nvidia founder and CEO Jensen Huang speaks about the Vera Rubin AI platform during a question and answer session with reporters at the annual Consumer Electronics Show (CES) in Las Vegas, Nevada, on Jan. 6, 2026.Chipmakers Nvidia and Advanced Micro Devices led an industrywide rally in the U.S. on Thursday, alongside semiconductor manufacturers like Applied Materials, after Taiwan Semiconductor Manufacturing Company reported better-than-expected earnings.Nvidia, the world's most valuable company and the lead ...

Group 1 - Intel Corporation's shares have increased by 137% over the past year and are up by 19.9% year-to-date in 2026, driven by announcements of new AI processors utilizing 18A chip manufacturing technology [2] - Melius Research upgraded Intel's shares from Hold to Buy, maintaining a price target of $50, based on the potential interest from Apple and NVIDIA in Intel's next-generation 14A chip technology [2] - Intel is focusing on its core chip business while expanding foundry operations, restructuring by spinning off non-core units, and pursuing government-backed initiatives to enhance U.S. semiconductor leadership [3] Group 2 - The company is recognized as a global leader in semiconductor design and manufacturing, producing CPUs, GPUs, and AI accelerators for various applications [3] - Intel's CEO, Lip-Bu Tan, is noted for effectively steering the company towards its core business and enhancing competitiveness against rivals like NVIDIA, AMD, and TSMC [3] - Jim Cramer highlighted Intel's connections with the U.S. government, suggesting that the President's significant position in the stock may positively influence its prospects [2]

Taiwan Semiconductor (TSM), widely known as TSMC, stands as one of the most valuable and influential technology companies in Asia by market capitalization. The chipmaking powerhouse has been a major winner from the artificial intelligence (AI) megatrend, as it manufactures some of the world’s most advanced AI processors for leading customers such as Nvidia (NVDA) and Advanced Micro Devices (AMD). Following a strong set of third-quarter earnings released last October, which highlighted the company’s conti ...

Company Highlights - Moderna's stock surged after BofA Global Research raised its price target, contributing to the increase in the S&P 500 healthcare index [1] - Memory and storage technology stocks, including SanDisk, Western Digital, Seagate Technology, and Micron Technology, reached record highs, driven by renewed AI optimism following Nvidia CEO Jensen Huang's announcements at the Consumer Electronics Show [1][9] - The PHLX chip index achieved an all-time high, with an approximate gain of 8% in the first three trading sessions of 2026 [1][9] Economic Indicators - Investors are anticipating reliable economic data as the impact of a 43-day federal government shutdown diminishes, with key releases such as the Job Openings and Labor Turnover Survey (JOLTS) and December's jobs report forthcoming [4][5] - The S&P 500 is currently trading at about 22 times expected earnings, a decrease from 23 in November but still above the five-year average of 19 [5][9] - S&P Global's final composite PMI decreased to 52.7 in December from 53.0 in the previous month, while the services PMI fell to 52.5 from 52.9 [7][10] Market Performance - The Dow Jones Industrial Average approached the historic 50,000 mark, closing at 49,466.30, with a gain of 489.12 points or 1.00% [6][9] - The S&P 500 and Nasdaq Composite also saw gains, with the S&P 500 increasing by 42.92 points (0.61%) to 6,944.97 and the Nasdaq Composite rising by 147.40 points (0.63%) to 23,543.22 [6][9]

The biggest recent beneficiaries of AI excitement haven't been makers of core AI processors like Nvidia NVDA+0.23% and Advanced Micro Devices AMD-3.45%, but rather makers of memory and storage compone... ...