TMTB EOD Wrap
Good afternoon. QQQs +70bps led by certain parts of Large Cap AI (NVDA, TSM, AVGO all 4%+) and Neoclouds, in addition to cybersecurity sw, which continues to remain one of the few bright spots in sw. CSCO’s big AI number continues to keep AI sentiment elevated, and it wasn’t just that as they sounded positive around enterprise/hw demand as well. It’s not just stocks flying, but #s largely supporting what’s going behind the surface price action. NVDA finally getting the AI laggard love, up 7 days in a row and touching 4 month relative highs vs. SOX after touching 2 year relative lows. When it’s time, it’s time.
Post-close:
AMAT +3% with a muted reaction despite a very solid beat and raise across the board driven by growth in memory. Revs well above midpt and upside to guide better than what buyside had been expecting. Raised the C26 Semi Systems guide from 20%+ to 30%+.
Q2 Numbers:
Revs: $7.9B vs $7.68
EPS $2.86 vs $2.68
GM: 50% vs 49.3%
Q3 Guide
Revs: $8.450-9.450 vs $8.14b
EPS Guide : $3.16-3.56 vs $2.89
FIG +11% as numbers look solid with a big rev beat ($333M vs street at $313M, raising the full year guide and guiding Q2 revs to $349M vs street at $329M. Bulls will say this one of few stocks seeing significant AI monetization already. Good discussion in TMTB Slack here
Onto the good stuff…
AI/SEMIS
CBRS +68% to close above $300 on its debut. Options start trading on Monday.
AMD +1% / INTC -3.6%: Some noise around CPUs today, with some pointing to Tencent’s comments. Funda.ai had some good color, as always:
All the checks I’ve been hearing on CPUs still positive: