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During the Amazon Web Services cloud conference on Tuesday, Amazon unveiled upgraded AI chips, a new chatbot and an expanded partnership with Nvidia. Expanded Nvidia partnership Amazon on Tuesday outlined the details of its deepening partnership with semiconductor firm Nvidia – the global leader in the development of AI chips. Amazon's announcements involved not only Nvidia' bread-and-butter AI chips known as graphics processing units, or GPUs, but also its fast-growing – yet still underappreciated – software-and-service offerings. In general, Amazon has touted its own AI chips as being a lower-cost option for customers. Nvidia's AI hardware is known to carry a hefty price tag .
Persons: Grace Hopper Superchip, , Jensen Huang, Jim Cramer's, Jim Cramer, Jim, Arjun Kharpal Organizations: Nvidia, Services, Amazon, Microsoft, Oracle, JMP Securities, CNBC, IAA, Qualcomm, Samsung Locations: Munich
Club holdings Apple (AAPL) Ford Motor (F) and Estee Lauder (EL) were in the news Thursday. Apple has primarily released its content directly on Apple TV+, with some projects getting limited runs in a handful of cinemas. The Club's take: We welcome Apple making smart, strategic investments that make Apple TV+ a more valuable streaming service to potential subscribers. Estee Lauder EL YTD mountain Estee Lauder stock performance year-to-date. The news: Citi outlined its bull and bear cases for Club holding Estee Lauder in a research note Thursday.
Club holdings Caterpillar (CAT), Emerson Electric (EMR) and Pioneer Natural Resources (PXD) are in the news Monday. Emerson's decline is overblown EMR YTD mountain Emerson Electric (EMR) YTD performance The news: UBS upgraded its rating on American industrials giant Emerson Electric back to a buy but lowered its price target by $3-per-share to $97. We also agree that EMR stock has an attractive valuation. So, we were never contemplating any deal with Range Resources," Sheffield said. The Club continues to ponder whether to continue owning three different exploration and production companies: Pioneer, Coterra Energy (CTRA) and Devon Energy (DVN).
Here's an update on our energy, industrials and materials names in Jim Cramer's Charitable Trust, the portfolio we use at the CNBC Investing Club. In 2022, by contrast, the priority was its variable dividend, which changed quarter by quarter depending on its financial results. The industrial company is one of our more recently added holdings. He also mentioned that Halliburton's top boss, Jeff Miller, has expressed notable conviction that the company's stock price is too cheap. The alternative would be consolidating our holdings to two oil-and-gas producers, along with Halliburton as our third energy stock.
The news: Morgan Stanley said Alphabet, Amazon (AMZN) and Meta are among the stocks that are best positioned to capture long-term gains from maturing artificial intelligence (AI) capabilities. AI has the ability to "accelerate digital transformation, change consumer behavior and drive more durable multi-year digital growth," Morgan Stanley analysts wrote in a research note this week. Moreover, this "AI Effect" could create a $780 billion online advertising opportunity, with "GOOGL and META as the largest beneficiaries," according to Morgan Stanley. The Club take: The Morgan Stanley note is further validation of just how real the generative AI opportunity is. So, it's encouraging to see Morgan Stanley paint a positive picture about Apple in the near-to-medium term.
Further support came Monday, when closely followed Apple analyst Ming-Chi Kuo reported the company asked manufacturing giant Foxconn to "switch production lines of the iPhone 14 to iPhone 14 Pro models." "Aggregate, Pro mix increased from an average of 41% to 56%, reflecting the benefit from Apple's efforts to concentrate upgrades in the Pro Models. The result is the average selling price of the iPhone 14 is probably around $940, the analysts concluded, compared with around $852 last year. As the strength of Pro models becomes an established view, the question shifts to what's happening with demand for the base iPhone models. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER .
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