Nvidia CEO Jensen Huang recently shared that the demand for their latest GPU, Blackwell, is on track and production is in full swing. The GPUs are already being released to data centers and industrial customers for AI applications, with availability for consumers expected in 2025. Huang emphasized the importance of updating their platform annually to enhance performance and revenue for customers.
The demand for AI infrastructure is rapidly growing, with hyperscalers projected to spend around $160 billion in 2024. Every new large language model requires significantly more computing power, driving the need for continuous innovation and advancement in technology. Huang highlighted the opportunity to increase capabilities, throughput, and energy efficiency amidst the fast-paced technological advancements.
In other news, crude oil futures are rallying over 5% following President Joe Biden’s comments on Israel potentially striking Iran’s oil facilities. Analysts speculate that such a strike could impact global oil supply significantly. Despite the rise in oil prices, the stock market remains steady, with growth names showing strength.
On the economic front, the ISM U.S. Services PMI for September exceeded expectations, indicating expansion in the service economy. Initial jobless claims also rose slightly, but economist Joseph Brusuelas remains optimistic about the job security for Americans.
Tesla is facing a setback as its chief information officer, Nagesh Saldi, departs the company just a week before the highly anticipated robotaxi event. Constellation Brands reported mixed fiscal Q2 earnings, citing macroeconomic challenges in the industry. However, the company reaffirmed its growth outlook for the future.
RTX was upgraded to Hold from Sell at Deutsche Bank due to its strong position in the aerospace and defense industry. Eli Lilly’s blockbuster GLP-1 medication tirzepatide is no longer facing a shortage in the U.S., addressing concerns about supply disruptions.
In the Wall Street Research Corner, UBS analyzed the restaurant sector for crowded shorts and longs. High crowding scores indicate increased upside/downside risk for positions. Texas Roadhouse, Chipotle, Wingstop, and Dave & Buster’s are among the most crowded longs, while Kara Sushi, Sweetgreen, Krispy Kreme, and Starbucks are noted as crowded short names.
