Market Overview
Markets were worried about the CPI data to be announced today.
On the other hand, the statement that raised the US stock markets towards the closing came from FED member Bostic.
According to Bostic, the fact that inflation is at the consensus expectation level today is good enough for the FED.
The market expects 0.3% monthly inflation for both headline and core inflation. According to Bostic's statement, inflation at this level may pave the way for interest rate cuts and therefore a new market rally.
My comment: The rise in commodity prices, especially oil, worries me. Today, for a reasonable inflation, real rents, landlords' rental expectations and vehicle insurance need to soften. I didn't break my long positions, but I hedged myself by buying some VIX call options.
3 Winners and 3 Losers of the Day
Winners
EGOX 👉 16.13% (No explanation, it is a small share and very open to manipulation🙃)
INDI 👉 5.02% (Expedra announces investment, collaboration will provide customized artificial intelligence solutions for autonomous driving software)
DNA 👉 4.5% (Bird flu rumors seem to have benefited the stock. DNA develops effective solutions for the early discovery of new dangerous viruses)
Losers
DXYZ 👉 -35.87% (Correction of extremely sharp rise, correction may continue)
DELL 👉 -2.69% (Description below)
NVDA 👉 - 2.04% (Description below)
Intel (INTL) - Good News / Nvidia (NVDA) - Bad News
Intel is launching a new version of its AI chip that aims to potentially challenge Nvidia's dominance in the field.
At the Intel Vision 2024 conference, the company introduced the Gaudi 3 accelerator for enterprise productive AI. According to Intel, the Gaudi 3 AI accelerator offers an average of 50% better results and an average of 40% better power efficiency compared to Nvidia's H100.
According to CNBC, the price of the chip will be "much lower" than Nvidia's H100, which starts at $30,000.
The company stated that Gaudi 3 will be available to original equipment manufacturers, including Dell Technologies, HPE, Lenovo and Super Micro Computer, in the second quarter of 2024.
Intel announced a partnership with Google Cloud, a unit of Alphabet, to leverage Intel's computing capabilities in cloud instances.
My comment: Good news for INTEL if they can truly rival NVIDIA's H100 chips. But I learned a long time ago not to trust companies' announcements too much.
On the other hand, when the news came yesterday that Google would focus on its own GPU, AXION, Nvidia shares were negatively affected. I think these are enlightening developments for those wondering why I downsized my Nvidia portfolio.
Sofi Technologies (SOFI) - Good News
Citi reinitiated coverage of SoFi Technologies with a Buy/High Risk rating, with analyst Ashwin Shirvaikar factoring in SOFI's recent financing actions that are expected to save $40 million to $60 million in interest expense and dividend payments.
In response, SOFI shares rose 1.68% yesterday.
My comment: I made the same comment about Sofi's mentioned financial action.
As I said before, Wall Street will wake up one day about Sofi, but I don't know when. Maybe this new upgrade is also a good sign.
Apple (AAPL) and Dell (DELL) - Good News
According to research company Canalys, Lenovo became the leader of the PC market with a 24% market share in the first quarter of 2024, with shipments increasing by 7.8% to 13.7 million laptops and desktops.
HP retained its second place position, although its shipments remained flat at 12.0 million units. Dell took third place, but its shipments fell 2.2% to 9.3 million units.
Apple ranked fourth with shipments reaching 5.4 million units, up 2.5% with the launch of new MacBook Air models in March. Acer completed the top five suppliers with shipments reaching 3.7 million units, up 5.8%.
Overall, the worldwide PC market has had a healthy start to 2024, with total shipments of desktop and laptop computers reaching 57.2 million units in the first quarter, up 3.2% year on year.
This growth highlights the ongoing recovery in PC demand across all segments, and purchases will accelerate throughout the year, fueled by the Windows 11 refresh and AI-enabled PCs, according to Canalys.
The research firm estimates that approximately 50 million computers shipped in 2024 will be AI-enabled, integrating a dedicated AI accelerator such as an NPU.
My comment: The reason for the decline in Dell is that it has not yet released devices with NPU chips. In Apple, the situation is exactly the opposite. I predict PC sales will continue to rise through 2024.
The information, comments and recommendations contained herein are not within the scope of investment consultancy. Investment consultancy services are provided within the framework of the investment consultancy agreement to be signed between brokerage firms, portfolio management companies, banks that do not accept deposits and customers. The comments in this article are only my personal comments and these comments may not be appropriate for your financial situation and risk return. For this reason, investments should not be made based on the information and comments in my articles.
