**Market Update: AI Server Company Sees Surge in GPU Shipments**
Super Micro Computer, a leading AI server company, has reported a significant surge in GPU shipments, with over 100,000 units shipped per quarter. The company has also delivered 2,000 liquid-cooled racks since June and recently deployed more than 100,000 GPUs with liquid cooling solutions for some of the largest AI factories ever built. CEO Charles Liang attributed the success to the company’s innovative approach, stating that their complete liquid cooling solutions have reduced costs and improved performance for clients.
**Yield Curve Inverts Again, Stocks Under Pressure**
Following strong September payrolls figures, rates continued to move higher, causing the 2-year and 10-year Treasury yield curve to briefly invert again. Both yields are hovering around 4%, sparking concerns about a potential recession. However, James Demmert, chief investment officer at Main Street Research, believes that the market’s expectations for future rate cuts are too optimistic and that the strength of the economy will drive equity returns going forward.
**Brokerage Downgrades and Upgrades**
Apple saw a rare brokerage downgrade as Jefferies cut the stock to Hold from Buy, citing high expectations for iPhone 16/17 as premature. Wells Fargo cut Amazon to Equal Weight from Overweight, citing pressure on earnings revisions. J.P. Morgan also cut Lamb Weston to neutral from overweight, citing limited visibility.
**Google Faces New Threats to Search Dominance**
Google’s dominance over the $300 billion search advertising market is facing growing threats from newer rivals such as AI and social video. ByteDance’s TikTok has given brands a way to target consumers based on their search queries, directly challenging Google’s biggest source of revenue. Perplexity AI, a search venture backed by Amazon founder Jeff Bezos, will also show ads alongside answers generated by AI.
**Hedge Funds Buy the Dip in Healthcare**
Hedge funds continued to buy the dip in Healthcare, with Goldman’s Prime Services desk reporting that it was among the most net-bought sectors last week. Pharmaceuticals, biotechnology, and healthcare providers and services were the most popular subsectors for hedge funds to buy during the week. The top healthcare stocks according to the Quant Rating system are Clover Health, CareDX, Personalis, GeneDX, and CorMedix.
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