Investment Learning

  • August 22, 2024

How AI investments are shaping the tech sector's future

Nvidia's (NVDA) stock continues to rally ahead of its highly anticipated quarterly earnings report on August 28th. To discuss the potential impact of the semiconductor giant's results on the broader tech sector (XLK), Bernstein Internet Equity Research Analyst Mark Shmulik joins Morning Brief. Shmulik notes that when it comes to the AI trade, tech giants have made it clear that "the risk of underinvesting is much higher than the risk of overinvesting." He believes that "so long as that momentum continues," the entire tech sector stands to benefit. Regarding tech valuations, Shmulik observes they have cooled and "are not demanding." However, he emphasizes that companies must "deliver on the core business ahead of you today" to fund their ongoing AI investments. Notably, with companies like Alphabet's Google (GOOG, GOOGL) beginning to see returns on their AI investments, Shmulik points out that "it's no longer talk of a theoretical, it's actually showing up in the numbers." When it comes to investment opportunities in the AI space, Shmulik highlights Meta (META) as "one of the cleaner names" for those looking to participate in the AI trade. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith

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  • August 21, 2024

This is the one big advantage public homebuilders have

The homebuilder sector (XHB) is in focus as notable stocks continues to hold steady, though the impending Federal Reserve rate cuts raise questions about the impact on these companies. UBS US homebuilders & building products equity research analyst John Lovallo joins Market Domination to share his outlook. Lovallo notes that homebuilders have been highly focused on maintaining sales volume, but this quarter "they showed some restraint" amid interest rate volatility. "I think it's that pace versus price-type formula that builders are always trying to optimize, and I felt like they did a very good job this quarter in doing so," he tells Yahoo Finance. With high mortgage rates creating continued affordability issues, Lovallo notes that homebuilders have implemented effective incentives to attract homebuyers, such as mortgage rate buydowns. He notes that individuals purchasing homes from public homebuilders are often not paying the headline rate, but a lower one: "That is a tool that these folks have in their toolbox that the existing home market cannot compete with, and frankly the smaller private builders can't compete with either," Lovallo says. When discussing investment strategies, Lovallo names D.R. Horton (DHI) as a top pick, though he remains bullish across the homebuilder sector overall. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Angel Smith

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  • August 21, 2024

As Nvidia recovers, Big Tech has led the way in summer rally

Nvidia (NVDA) is recovering from the wider tech sell-off in early August, now back up over 30% since then. Is 2024's tech rally broadening out even further as more companies outperform the S&P 500 (^GSPC) market index? Yahoo Finance markets reporter Josh Schafer puts the tech sector — led by the Magnificent Seven names — into the greater context of the broadening summer rally. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Luke Carberry Mogan.

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  • August 21, 2024

What could stop this bull market in gold?

The gold market has seen a significant price increase, with gains of 21% in 2024 and 32% over the past year. While other commodities, including precious metals like silver and platinum, have struggled, palladium has seen significant declines. Unlike previous gold bull markets, this rally is occurring under unique circumstances, raising the question of what factors could potentially halt its upward trajectory.

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