Core Viewpoint - Software stocks are experiencing significant declines due to concerns that artificial intelligence (AI) may disrupt their business models, leading to reduced reliance on software solutions [1][2]. Group 1: Market Trends - Investors are selling shares of software companies in anticipation of future struggles as AI changes business operations [2][3]. - The iShares Expanded Tech-Software Sector ETF, which includes major software stocks like Salesforce and Adobe, has dropped approximately 20% this year, despite a recent bounce following comments from Nvidia's CEO [8]. Group 2: Nvidia's Perspective - Nvidia CEO Jensen Huang argues that it is "illogical" to believe AI will completely replace software, suggesting instead that AI will enhance existing tools and solutions [5]. - Nvidia has significantly contributed to AI growth, reporting nearly $100 billion in profits over the past 12 months, a stark increase from under $5 billion a few years ago [6]. Group 3: Investment Opportunities - Current market conditions may present attractive buying opportunities for software stocks, with Salesforce and Adobe trading near multi-year lows [9]. - Investors are advised to evaluate each software company individually, focusing on upcoming earnings reports and growth amidst AI developments to determine the viability of investments [11].

Market Overview - The market is experiencing volatility, with a recent rally bringing positive sentiment, particularly for those with retirement accounts [2][16] - The Dow has seen significant movement, with a 1200-point increase and a 4% jump in technology stocks, indicating strong market participation [16] Economic Indicators - Expectations for the upcoming jobs report include the addition of 55,000 new jobs, an increase from the previous period's 50,000 [11] - The unemployment rate is projected to remain at 4%, with wage inflation expected to decrease by 0.1% [12] Federal Reserve Outlook - The Federal Reserve is likely to remain data-dependent, focusing on employment and inflation metrics, with potential rate cuts anticipated later in the year [14][15] - A June rate cut of 25 basis points is considered possible, with further cuts contingent on rising unemployment and decreasing inflation [15] Sector Performance - The technology sector, while previously trading at a 62% premium, has seen its valuation cut to a 27% premium, indicating a correction [9] - Earnings in the tech sector are expected to grow by over 30% in 2026 and another 20% in 2027, suggesting a favorable outlook for investors [10] Year-End Projections - The S&P 500 is projected to end the year with a sub-7% gain, targeting around 7400, consistent with historical performance in midterm election years [18][19] - Defensive sectors such as healthcare and energy are showing signs of improvement and may be good bets for the year [21]

Feb 9 (Reuters) - Apollo Global Management is close to finalizing a roughly $3.4 billion loan to an investment vehicle that plans to ​buy Nvidia chips and lease them to Elon Musk's xAI, The ‌Information reported on Monday, citing a person familiar with the matter. Less than a week ago, ‌Musk announced that SpaceX acquired the artificial intelligence company he also leads in a deal that values the rocket and satellite company at $1 trillion and the AI outfit at $250 billion. Musk has said the rationale ...

Apollo Global Management is nearing a deal to lend about $3.4 billion to an investment vehicle that will purchase Nvidia chips and lease them to Elon Musk's xAI, the Information reported on Monday, ci... ...

Jim Cramer is urging Amazon investors to remain patient and trust the cloud and e-commerce company's massive spending strategy despite the evident risks it poses to profits. "I have total faith," Jim said on Friday's "Squawk on the Street." "[Amazon CEO Andy Jassy] knows how to do this. So, I believe, and I'm not bolting." Amazon shares fell 5.6% on Friday to $210 each after management issued the evening before a 2026 capital expenditures guide of $200 billion, compared to the $146.6 billion expected. The c ...

The tech industry's surging capital expenditures for AI infrastructure is justified, appropriate and sustainable, Nvidia CEO Jensen Huang said Friday on CNBC's "Halftime Report.""The reason for that is because all of these companies' cash flows are going to start rising," Huang said. Nvidia shares were up 7% during trading on Friday. Huang's comments come after key Nvidia customers Meta, Amazon, Google and Microsoft reported their latest earnings over the past two weeks. These companies told their investors ...

Core Viewpoint - The technology sector, particularly the AI trade, is experiencing significant volatility, raising concerns among investors about its sustainability and future growth potential [1][2][3]. Group 1: Market Performance and Investor Sentiment - The tech sector is currently the worst-performing sector this year, leading to questions about whether this is a temporary pause or a more serious issue within the AI trade [1][2]. - Despite a robust earnings season for tech companies, investor concerns are growing regarding capital expenditures and monetization strategies [2][4]. - There is a palpable nervousness among investors, with some feeling that the AI trade is beginning to crack, reminiscent of past market downturns [3][4]. Group 2: Company-Specific Insights - Companies like Nvidia and Oracle are under scrutiny due to their capital expenditure plans, which could impact investor confidence [7][8]. - Oracle has outlined a plan to spend $45 to $50 billion, which is seen as a positive move towards transparency in their operations [8]. - Software stocks, including Oracle, ServiceNow, and Salesforce, have seen declines of nearly 30% in 2026, raising fears about their future viability in the face of AI advancements [9][10]. Group 3: Investment Opportunities - There is a belief that the current market conditions present a buying opportunity for long-term investors, particularly in companies that are well-positioned to benefit from the AI revolution [13][19]. - Microsoft is highlighted as a generational buying opportunity, with potential for significant growth over the next 12 to 24 months [16]. - The overall sentiment is that while there are short-term challenges, the long-term outlook for AI and related technologies remains strong, with expectations of 20-25% returns for the NASDAQ this year [19][20].

Core Insights - Nvidia has emerged as a leading success in the stock market, driven by the demand for its chips due to trends in blockchain technology and artificial intelligence [1] - The company is now the largest by market capitalization, with expectations of continued growth [1][2] Group 1: Financial Performance and Market Position - Nvidia has experienced significant sales and profit growth due to high demand from hyperscalers and tech first-adopters [3] - The company has transitioned from producing solid gains to remarkable financial success in recent years [2] Group 2: Growth Drivers and Future Outlook - Nvidia identifies three key platform shifts that will sustain demand: accelerated computing, the need for powerful AI models, and the rise of agentic AI applications [4] - AI infrastructure spending is projected to increase from nearly $1 trillion to between $3 trillion and $4 trillion by 2030, indicating substantial growth potential for Nvidia [5] - The rapid growth of generative AI and its applications, along with the concept of physical AI, suggests a bright future for the company [5]

US stock futures rose on Tuesday following a broad rally to kick off the new month on Wall Street. S&P 500 futures (ES=F) moved up 0.3%, while those on the tech-heavy Nasdaq 100 (NQ=F) climbed roughly 0.7%. Meanwhile, Dow Jones Industrial Average futures (YM=F) were little changed, after the blue-chip benchmark led gains on Monday with a 500-point advance. AI-related infrastructure names including Sandisk (SNDK) finished the day in positive territory. Nvidia (NVDA), however, slid by nearly 3% amid news ...

Joining us, Niles Investment Management founder and portfolio manager, Dan Niles. See what I did there, Dan. You're welcome.Um, let's get to the the real the big story right now obviously potentially is Nvidia and this may not happen. I want to make that very clear. It was a journal story over the weekend.If Nvidia were to pull back or out of that 100 billion OpenAI investment, what would it mean if anything. Well, I mean, I think it shows you how the world has changed from September, but we kind of know th ...