Market Momentum: Tech Stocks Lead the Charge
The market is poised for a muted open on Tuesday, following a second consecutive day of gains for the S&P 500 and Nasdaq. Tech stocks, particularly chip names, are driving the buying frenzy.
Nvidia Takes Center Stage
Nvidia’s CEO Jensen Huang stole the show at the annual CES conference in Las Vegas, unveiling a slew of innovative AI-powered technologies. The company’s stock surged nearly 3.5% on Monday, reaching a record close, and added another 2% in early Tuesday trading.
AI Revolution Gains Traction
Huang showcased artificial intelligent agents that can complete tasks, advancements in “physical AI” with robotics, and a new video game chip that uses AI to render graphics. This could be the spark needed to ignite the AI PC movement. Additionally, Nvidia’s partnership with Toyota on self-driving cars is expected to drive growth.
Winners and Losers
Micron shares soared over 3.5% after Nvidia announced it would source “G7 memory” from the company for its new AI-powered graphics processing units. Getty Images and Shutterstock, both of which have generative AI image tools powered by Nvidia, saw their shares jump over 55% and 25%, respectively, following a merger announcement.
Meta Platforms Shifts Gears
Meanwhile, Meta Platforms CEO Mark Zuckerberg announced the company is ending its third-party fact-checking and moving to a community notes model. The company also welcomed Dana White, CEO of the Ultimate Fighting Championship, to its board.
Analyst Insights
MoffettNathanson downgraded Apple to sell from neutral, citing negative news and a soft launch of iPhone 16. On the other hand, Barclays raised its price target on Starbucks to $119 per share, citing potential upside to top-line growth and margins. Bernstein hiked its price target on TJX to $145 per share, citing exposure to higher income shoppers and sportswear as positives. Bank of America downgraded Tesla to neutral from buy, but raised its price target to $490 per share.
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