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Competition for A.I.? CPI, Delta Q1 Ahead of Wednesday's Open
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Tuesday, April 9th, 2024
Major indices hit the closing bell mixed, but flattish. Only the Dow was unable to fight back in the final half-hour of trading to close in the green, but as such, it was still only down -0.02% on the day. The S&P 500 finished the session +0.14%, with the small-cap Russell 2000 right behind, at +0.13%. The Nasdaq outperformed the other indices today on some perceived shake-ups in A.I. offerings, which did send Alphabet (GOOGL - Free Report) shares to all-time closing highs while A.I. chip leader NVIDIA (NVDA - Free Report) sold off -3% on the day.
Intel (INTC - Free Report) took direct aim at NVIDIA’s dominance in A.I. Unveiling its Gaudi 3 chip — meant to compete directly with NVIDIA’s popular H100 A.I. processor — it’s reported to have, on average, 50% better “inference” (making predictions/decisions based on previous models and data) and 40% better power efficiency, at a “fraction of the cost.” The Gaudi 3 is expected to be released later this year. However, part of NVIDIA’s built-in advantage its entire platform infrastructure; companies competing against the A.I. leader in this arena likely have a ways to go yet.
In any case, competition is budding in the A.I. space. That’s not only good news for future progress but also creates more excitement for the Nasdaq, which houses most of the major A.I.-related stock plays. Intel, Apple (AAPL - Free Report) and Amazon (AMZN - Free Report) are the most promising Dow components for making hay out of A.I.-related news. That said, Amazon closed just pennies shy of its all-time high, last set back in July of 2021.
The March Consumer Price Index (CPI) report is due tomorrow morning. Shelter costs remaining relatively high and rising gasoline prices over the past month are expected to help tick up from the previous month’s +3.2%. Regardless, we’ll more than likely be nearly two-thirds lower on the year-over-year Inflation Rate than we were back in June 2022, when it hit +9.1% for the first time since late 1981. That most recent +3.2% is the mean average on the Inflation Rate going back to October of last year.
We’ll also get Q1 earnings from Delta Air Lines (DAL - Free Report) tomorrow morning, with +44% expected earnings growth year over year. Guidance will also be key for the Zacks Rank #2 (Buy)-rated airline, as flight bookings for the upcoming summer are already being registered. Will notions like “demand for experiences” and “revenge travel” (following the long period of being shut-in over the pandemic) keep forward earnings guidance alight? Analysts at this stage seem to think so.
Image: Bigstock
Competition for A.I.? CPI, Delta Q1 Ahead of Wednesday's Open
Tuesday, April 9th, 2024
Major indices hit the closing bell mixed, but flattish. Only the Dow was unable to fight back in the final half-hour of trading to close in the green, but as such, it was still only down -0.02% on the day. The S&P 500 finished the session +0.14%, with the small-cap Russell 2000 right behind, at +0.13%. The Nasdaq outperformed the other indices today on some perceived shake-ups in A.I. offerings, which did send Alphabet (GOOGL - Free Report) shares to all-time closing highs while A.I. chip leader NVIDIA (NVDA - Free Report) sold off -3% on the day.
Intel (INTC - Free Report) took direct aim at NVIDIA’s dominance in A.I. Unveiling its Gaudi 3 chip — meant to compete directly with NVIDIA’s popular H100 A.I. processor — it’s reported to have, on average, 50% better “inference” (making predictions/decisions based on previous models and data) and 40% better power efficiency, at a “fraction of the cost.” The Gaudi 3 is expected to be released later this year. However, part of NVIDIA’s built-in advantage its entire platform infrastructure; companies competing against the A.I. leader in this arena likely have a ways to go yet.
In any case, competition is budding in the A.I. space. That’s not only good news for future progress but also creates more excitement for the Nasdaq, which houses most of the major A.I.-related stock plays. Intel, Apple (AAPL - Free Report) and Amazon (AMZN - Free Report) are the most promising Dow components for making hay out of A.I.-related news. That said, Amazon closed just pennies shy of its all-time high, last set back in July of 2021.
The March Consumer Price Index (CPI) report is due tomorrow morning. Shelter costs remaining relatively high and rising gasoline prices over the past month are expected to help tick up from the previous month’s +3.2%. Regardless, we’ll more than likely be nearly two-thirds lower on the year-over-year Inflation Rate than we were back in June 2022, when it hit +9.1% for the first time since late 1981. That most recent +3.2% is the mean average on the Inflation Rate going back to October of last year.
We’ll also get Q1 earnings from Delta Air Lines (DAL - Free Report) tomorrow morning, with +44% expected earnings growth year over year. Guidance will also be key for the Zacks Rank #2 (Buy)-rated airline, as flight bookings for the upcoming summer are already being registered. Will notions like “demand for experiences” and “revenge travel” (following the long period of being shut-in over the pandemic) keep forward earnings guidance alight? Analysts at this stage seem to think so.
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