Core Insights - The emergence of Agentic AI, particularly through tools like Anthropic's Claude Code, is causing significant shifts in the software and data center industries, leading to a notable sell-off in software stocks [1][2] Group 1: Impact of Agentic AI - Claude Code is predicted to account for over 20% of daily code commits on GitHub by year-end, a substantial increase from the current 4%, marking a pivotal moment in AI development [2] - The transition from manual coding to "vibecoding," where code is generated through natural language prompts, is expected to accelerate the deployment of AI agents that can operate independently [3] Group 2: Companies Benefiting from Agentic AI - Arm Holdings is positioned to benefit from the growth of Agentic AI, as it is known for licensing CPU instruction sets, which are becoming increasingly vital for handling workloads in this new AI landscape [5][6] - The demand for CPUs is anticipated to rise significantly due to their role as agents in orchestrating tasks, which could lead to increased revenue for Arm [6] Group 3: Financial Performance and Future Outlook - Arm's data center royalty revenue has more than doubled year-over-year, with expectations that its data center business will surpass mobile as the largest revenue category in the coming years [7] - Despite a guidance for slower revenue growth in the fiscal fourth quarter, the strong performance in the third quarter reassures investors about Arm's growth potential [7] - The company is also expected to benefit from increasing royalty rates as it introduces newer products like Armv9, enhancing its revenue streams [10]

Options traders believe Advanced Micro Devices (AMD) shares will 7.04% in either direction this week after the company reports Q4 earnings on Feb. 3. According to Barchart, consensus is for the chipmaker to record $1.11 per share of earnings for its fourth quarter, up more than 26% on a year-over-year basis. More News from Barchart AMD stock has already ripped higher ahead of the quarterly release. At the time of writing, it’s up some 25% versus its year-to-date low. www.barchart.com Where Options Da ...

Summary of Key Points from the Conference Call Industry and Companies Involved - **Industry**: Hardware & Networking, specifically focusing on Cloud Capital Expenditures (Capex) - **Companies**: Meta Platforms Inc (META), Microsoft (MSFT) Core Insights and Arguments - **Capex Growth Trends**: - Meta and Microsoft reported strong capex trends for the December quarter, with aggregate capex increasing by +10% quarter-over-quarter and +60% year-over-year to $60 billion [1] - Both companies expect significant capex growth in their respective fiscal years, with guidance for increases exceeding +$50 billion year-over-year and growth rates above +60% [1] - **Meta's Capex Outlook**: - Meta's capex for Q4 2025 rose by +14% quarter-over-quarter and +49% year-over-year to $22 billion, driven by investments in data centers, servers, and network infrastructure [3] - For 2026, Meta is guiding a full-year capex outlook of $115-$135 billion, indicating a year-over-year growth of nearly +75% at the midpoint, translating to an increase of approximately +$55 billion compared to 2025 [3] - **Microsoft's Capex Outlook**: - Microsoft’s capex is projected to grow by more than +60% year-over-year in FY26, with Q2 FY26 capex rising +7% quarter-over-quarter and +66% year-over-year to $38 billion [3] - The majority of Microsoft's spending is focused on short-lived assets, including GPUs and CPUs, with significant investments in data center capacity, including nearly 1 gigawatt added in Q2 FY26 [3] - Microsoft anticipates a sequential decline in capex heading into Q3 FY26, but year-over-year growth is still expected to be +65%, equating to an increase of +$14 billion [3] Additional Important Information - **Positive Tailwinds for Related Companies**: The strong capex growth from Meta and Microsoft is expected to benefit companies in the coverage universe that are leveraged to AI infrastructure spending, including Amphenol, Arista, Celestica, Ciena, Coherent, Fabrinet, Flex, Jabil, and Lumentum [1] - **Analyst Coverage**: The report is produced by J.P. Morgan Securities LLC, with analysts Samik Chatterjee, Joseph Cardoso, Manmohanpreet Singh, and Marc Vitenzon involved in the analysis [2] This summary encapsulates the key points from the conference call, highlighting the robust capex growth expectations for Meta and Microsoft, along with the implications for related companies in the industry.

Core Insights - Lam Research Corporation (NASDAQ:LRCX) has experienced a significant stock rally, with a 137% increase last year and an additional 39% gain in January 2026, primarily driven by demand for CPUs that Intel is unable to produce in sufficient quantities [1] - The company is a leading provider of equipment for both CPU and memory chip manufacturing, positioning it to benefit from increased production efforts in the semiconductor industry [1] - Upcoming earnings reports from semiconductor capital equipment companies are anticipated to be strong, but the high stock valuations may lead to uncertain market reactions [1] Company Overview - Lam Research Corporation specializes in developing equipment for depositing, etching, and cleaning semiconductor materials, including systems for tungsten and copper metallization, plasma and atomic-layer deposition, dielectric and conductor etch, and wafer cleaning [2]

How do you play the memory boom without chasing these data storage stocks. The four big players in the space, Micron, Western Digital, Seagate just reported, and Sandis, each more than tripled last year, and they keep running in 2026. Just since the beginning of the year, SanDisk has more than double.The other three are up anywhere from 35 to 50%. I don't want to chase those. I don't chase the storage memory place because even though there's a severe shortage of this stuff thanks to the data center buildout ...

In a blockbuster move that’s sending shockwaves through Wall Street and the artificial intelligence (AI) infrastructure market, NVIDIA Corporation (NVDA) has just handed investors a $2 billion reason to take another look at CoreWeave (CRWV) stock. The world’s preeminent AI chipmaker isn’t merely selling silicon anymore. It’s doubling down as a strategic growth partner, committing billions of dollars of fresh capital to fuel CoreWeave’s expansion of AI-optimized data centers and AI factories. NVDA is inve ...

Intel (NASDAQ:INTC), which designs and manufactures computer components like CPUs and related products, closed at $45.07, down 17.03% for Friday’s session. The stock moved lower after Q4 2025 earnings, with a weaker-than-expected Q1 2026 outlook highlighting supply constraints and foundry losses. Investors are watching to see whether Intel can execute on its turnaround plans and meet AI data center demand. Trading volume reached 290 million shares, about 189% above its three-month average of 100.3 million. ...

Core Viewpoint - Intel's stock experienced significant volatility, rising nearly 50% before its fourth quarter report, but subsequently fell over 17% due to concerns about its recovery path [1]. Group 1: Stock Performance and Market Sentiment - Intel shares surged recently due to government investments and support from Nvidia, reaching a four-year high driven by optimism around AI data center demand and the release of new Panther Lake chips [2]. - The stock's rapid increase led to high expectations for the earnings report, but the results were not as strong as anticipated, particularly for the first quarter forecasts [3]. Group 2: Operational Challenges - Intel is facing internal supply constraints that hinder its ability to meet demand for server chips, indicating potential inefficiencies in its manufacturing processes and an underestimation of AI data center demand [3]. - The CEO stated that the company is focused on improving efficiency and output from its manufacturing plants, but the stock's decline highlighted a disconnect between market hype and the company's current operational realities [4]. Group 3: Competitive Landscape - Intel's product business is losing market share to competitors like AMD and Arm, complicating the justification for its manufacturing costs without significant external customers [5]. - The challenges in execution and competition from TSMC may hinder Intel's ability to attract outside customers and catch up in manufacturing capabilities [6].

As Intel stock reminded traders, what may seem bullish on paper doesn't necessarily translate to the market. Despite beating Wall Street expectations on earnings per share and revenue, the stock dropped by as much as 13% after the market was already closed following the company's Q4/full-year earnings report on Wednesday (January 22). It's a cautionary tale for traders to always pay attention to the market reaction, and in this case, the market's response to weaker guidance. Intel CFO David Zinser noted tha ...

Core Viewpoint - Intel's stock experienced a significant decline of up to 15% following a disappointing first quarter financial outlook, which fell short of Wall Street expectations, particularly due to supply shortages impacting demand for AI data center chips [1][2]. Financial Performance - Intel expects first quarter revenue of $12.2 billion, below the $12.6 billion forecasted by analysts, and projects earnings per share of $0, missing the estimated $0.08 [1]. - The company reported fourth quarter earnings per share of $0.15, slightly above the previous year's $0.13 and exceeding the projected $0.09, with fourth quarter revenue of $13.7 billion, a 4% decline from the previous year but higher than the expected $13.4 billion [3]. AI Demand and Supply Challenges - Intel's AI-related businesses grew in "double digits" during the fourth quarter, both sequentially and year-over-year, indicating rising demand for its CPUs [4]. - The company is currently facing supply constraints, particularly in the first quarter, which limits its ability to meet customer demand [2]. Manufacturing and Cost Pressures - The development of new manufacturing process nodes, such as 18A, is expected to impact gross margins negatively, with the adjusted gross margin for the fourth quarter at 37.9%, down from 42.1% the previous year but above the estimated 36.5% [5]. - Rising costs for memory and storage components may also affect demand for systems utilizing Intel processors, potentially impacting revenue [6]. Future Outlook - CFO David Zinsner indicated that current challenges could limit revenue opportunities for Intel in 2026 [7].