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Microsoft earnings due out later this month could serve as the next major test for artificial intelligence as investors hunt for signs that the buzzy technological innovation is actually boosting companies' bottom lines. Nvidia has been an exception, blowing past Wall Street's guidance for the past few quarters due to AI tailwinds . The remarks led some Wall Street analysts to fret over a delayed ramp-up in AI availability. "There are going to be some outliers, but for the most part there is more risk-reward related to AI going into this earnings period." More loosely, Wall Street analysts have expressed concerns about AI monetization and expectations across the sector heading into the fourth-quarter reporting period.
Persons: Paul Meeks, Merrill Lynch, Piper Sandler, OpenAI, Amy Hood, Copilot, Micrsoft, Meeks, Amy Kong, Nancy Tengler, Gene Munster, Corient's Kong, Wolfe, Alex Zukin, Dubravko, Michael Bloom Organizations: Microsoft, Merrill, Merrill Lynch Investment, Nvidia, Wall, Baker School of Business, The, Investments, Asset Management, Munster, Wall Street, Tech Locations: OpenAI, hasn't
After 2023's blowout run, it's hard to recall the once gloomy investing setup for technology stocks last December. As the calendar year turns, don't expect technology stocks to match 2023's blowout gains, but the year's performance is no fluke. AI stocks may dominate tech-focused investing, but don't sleep on the other emerging themes. GOOGL YTD mountain Alphabet shares in 2023 Both companies have rolled out new initiatives in the months since. Arm Holdings made headlines this year as one of the first major companies to go public , reviving the IPO market after a roughly two-year drought.
Persons: behemoths, Jay Woods, Mark Zuckerberg, didn't, chipmakers, David Waddell, Everybody's, Copilot, Paul Meeks, Gene Munster, Alphabet's, Meeks, Morgan Stanley, Andrew Slimmon, They're, Slimmon, CNBC's, Wall, Nvidia's, He's, Mahoney, Ken Mahoney, it's, Brent Fredberg, Munster's, Management's Albert Tsuei, Tsuei, William Blair's Jonathan Vo, Keith Weiss Organizations: Federal Reserve, Treasury, Freedom, Microsoft, Waddell & Associates, Oracle, Arista Networks, Morgan, Morgan Stanley Investment, Meta, Nvidia, Devices, Dell, Hewlett Packard Enterprises, Broadcom, Holdings, Micron Technology, Brandes Investment Partners, Micron, Samsung, Taiwan Semiconductor Manufacturing, MGM Resorts, Johnson, Okta, UBS, Management's, Palo Alto Networks, Palo Alto Locations: British, Clorox
Megacap technology stocks reascended the throne in 2023 after a debilitating 2022 left some investors sour on the outlook for the industry. The stocks are really going to have to show what the next big thing is." Even as it outperformed the market, the e-commerce giant's gains were overshadowed by other large megacaps flaunting their latest AI innovations, with some worrying Amazon may be falling behind on AI technology . Semiconductor companies Intel , Broadcom and Lam Research also look attractive even if Mag 7 stocks maintain their leadership position as AI proliferates, Woods said. "It's a story that is just starting to play out and we're just going to build on it going forward," he said.
Persons: Tesla, Jay Woods, hasn't, Capital's, Woods, aren't, DoorDash, Uber, Neuberger, Dan Flax, Bard, missteps, Gene Munster, Ken Mahoney, Richard Bernstein, wouldn't, Brent Fredberg, we're Organizations: Federal, Nvidia, Amazon, Apple, Microsoft, Meta, Tesla, Freedom Capital, Asset Management, Richard Bernstein Advisors, Brandes Investment Partners, outperformance, Micron Technology, Semiconductor, Intel, Broadcom, Lam Research Locations: GOOGL
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAI opportunity will 'get bigger than the internet', predicts Big Tech investor Gene MunsterGene Munster, Deepwater Asset Management Managing Partner, joins 'Fast Money' to talk the AI boom and whether the returns from the technology are worth the hype.
Persons: Gene Munster Gene Munster Organizations: Big Tech, Deepwater Asset Management
Tesla's Cybertruck still makes no sense. Elon Musk livestreamed a delivery event for the pickup truck on Thursday. How it makes sense for Tesla, Elon Musk, or people's daily commutes is still anyone's guess. On its website, Tesla describes the vehicle as being "built for any planet," thanks to its durable and rugged design. "The truck looks absolutely awful.
Persons: Tesla's, Elon Musk, , Musk, 04EfaB01Fb — Jon Erlichman, Gun, I've, Gene Munster, Morgan Stanley, Tesla Organizations: Service, Texas, Porsche, Plaid, CNBC Locations: Texas, Wyoming
It led to a shortage of Nvidia's chips as companies raced to incorporate similar generative AI technologies into their products. Amazon's own Trainium2 chips are built for training AI models, including the sort that AI chatbots like OpenAI's ChatGPT and its competitors run on. More than 50,000 AWS customers are already using Graviton chips, Amazon said. Finally, as part of its deepening relationship with Nvidia, AWS said it will operate more than 16,000 Nvidia GH200 Grace Hopper Superchips, which contain Nvidia GPUs and Nvidia's Arm-based general-purpose processors. AWS didn't announce release dates for virtual-machine instances with Nvidia H200 chips, nor instances relying on its Trainium2 silicon.
Persons: Maia, Grace Hopper Superchips, Deepwater's Gene Munster Organizations: Services, Nvidia, Microsoft, Big, Intel, AMD, AWS Locations: Las Vegas, Graviton
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailExpect a shift in performance from 'Magnificent Seven' to mid-sized tech in 2024, says Gene MunsterGene Munster, Deepwater Asset Management managing partner, joins 'Squawk Box' to discuss the latest market trends, Big Tech sector growth outlook , why he believes there might be more opportunities in mid-sized tech, and more.
Persons: Gene Munster Gene Munster Organizations: Deepwater Asset Management, Big Locations: Big Tech
Just before hard-right House Republicans staged a floor mutiny over spending on Wednesday that sent lawmakers home early for their Thanksgiving break, they managed one final vote, on a measure to reduce the salary of an obscure Biden administration official to $1. On Wednesday, the would-be victims included Xavier Becerra, the health secretary, and Vincent J. Munster, a virus scientist at the National Institute of Allergy and Infectious Diseases. Last week, it was Karine Jean-Pierre, the White House press secretary. But others, such as ones taking aim at Lloyd J. Austin III, the defense secretary, and Pete Buttigieg, the transportation secretary, have succeeded. But House Republicans’ choice to repeatedly push such proposals highlights their slash-and-burn approach to federal spending, and why Congress is facing such a steep challenge reaching a longer-term deal to fund the government.
Persons: Biden, Mike Johnson, Biden’s, Xavier Becerra, Vincent J ., Jean, Pierre, Lloyd J, Austin III, Pete Buttigieg Organizations: Republicans, Vincent J . Munster, National Institute of Allergy, White House, Democratic
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMicrosoft will have a great position in AI in the long term, says Deepwater's Gene MunsterGene Munster, Deepwater Asset Management managing partner, and CNBC’s Steve Kovach join 'The Exchange' to discuss Microsoft's new AI chips, the company's outlook on China, and more.
Persons: Deepwater's Gene Munster Gene Munster, Steve Kovach Organizations: Microsoft, Deepwater Asset Management Locations: China
Microsoft is not focused on China as a domestic market, though the company has notable Chinese customers with operations outside the world's second most-populous country, CEO Satya Nadella said on Wednesday. "A lot of the Chinese multinationals operating outside of China are our bigger AI customers, perhaps." Microsoft provides artificial intelligence services to electric vehicle maker Li Auto and consumer electronics company Xiaomi, among others. Still, Nadella acknowledged on Wednesday that the U.S. government has important restrictions to follow when it comes to doing business in China. The U.S government uses Microsoft Azure cloud services and Microsoft 365 productivity apps.
Persons: Satya Nadella, Nadella, CNBC's Jon Fortt, Li, Nadella's, Joe Biden, Xi Jinping, Meta's, Bing, Deepwater's Gene Munster Organizations: Microsoft, Microsoft's Ignite, Li Auto, U.S, . Commerce Department, Meta's Facebook, Baidu, USG, LinkedIn Locations: China, Seattle, San Francisco, Bing, Beijing, United States, U.S, Europe, Asia
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTSMC could be the eighth company added to the Magnificent 7 says Deepwater's Gene MunsterHosted by Brian Sullivan, “Last Call” is a fast-paced, entertaining business show that explores the intersection of money, culture and policy. Tune in Monday through Friday at 7 p.m. ET on CNBC.
Persons: Deepwater's Gene Munster, Brian Sullivan, Organizations: CNBC
A strong advertising market may be starting to feel the pressure from geopolitical risks erupting aboard and a higher-for-longer interest rate environment. But comments from some major technology players last week led to increasing questions that some investors have struggled to shake off. META 5D mountain Meta shares in recent trading sessions That concern added to declines in other ad-focused technology names, with Alphabet dropping nearly 10%. Instead, Tengler favors companies such as Amazon and Microsoft , which offer some, but less concentrated, exposure to advertising. Technology investor Paul Meeks is also shying away from the most popular advertising players — and big technology as a whole — until he sees a better setup for interest rates.
Persons: Susan Li, Gene Munster, Laffer, Nancy Tengler, Paul Meeks, Meeks, Roth, Rohit Kulkarni, Kulkarni, Michael Bloom Organizations: Apple, Meta, YouTube, Federal, Investments, Microsoft, Technology Locations: Israel, Munster, Ukraine
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailApple has a China problem when it comes to phone sales, says Deepwater's Gene MunsterHosted by Brian Sullivan, “Last Call” is a fast-paced, entertaining business show that explores the intersection of money, culture and policy. Tune in Monday through Friday at 7 p.m. ET on CNBC.
Persons: Deepwater's Gene Munster, Brian Sullivan, Organizations: Apple, CNBC Locations: China
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAnalysts are going to have to raise their AWS growth estimates, says Deepwater's Gene MunsterGene Munster, Deepwater Asset Management, joins 'Fast Money' with updates on Amazon's investor call following Q3 earnings.
Persons: Deepwater's Gene Munster Gene Munster Organizations: Analysts, Deepwater Asset Management
Big technology stocks may surprise to the upside when they report results in coming days. But even a better-than-expected quarter and companies' improved earnings and revenue forecasts may not be enough to save the market from its recent reversal, according to some professional investors. That continues Tuesday with results from Alphabet and Microsoft , followed by Meta Platforms on Wednesday and Amazon Thursday, all after the market closes. The earnings setup Heading into the earnings, many companies face easier comparisons over last year. Of the largest tech stocks, Meta Platforms is expected to show rapid revenue growth acceleration, at 21%.
Persons: Adam Sarhan, there's, Ken Mahoney, bode, Gene Munster, Bernstein's Mark Shmulik, Nvidia, Munster, Sarhan Organizations: Investments, Big Tech, Netflix, Microsoft, Meta, Federal, Asset Management, Federal Reserve Locations: what's, East, Europe
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailGoogle is investing more in AI but doing it 'judiciously', says Deepwater's Gene MunsterGene Munster, Deepwater Asset Management, joins 'Fast Money' to talk Google and Microsoft quarterly earnings.
Persons: Deepwater's Gene Munster Gene Munster Organizations: Google, Deepwater Asset Management, Microsoft
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailUltimately Tesla needs to improve its margins, says Deepwater Asset's Gene MunsterGene Munster, Deepwater Asset Management managing partner, joins 'Squawk Box' to discuss Tesla's quarterly earnings results, after the EV maker missed on both revenue and earnings for the first time since 2019, and more.
Persons: Tesla, Asset's Gene Munster Gene Munster Organizations: Asset's, Deepwater Asset Management
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHollywood and Netflix are in a tight spot, says Deepwater Asset Management's Gene MunsterHosted by Brian Sullivan, “Last Call” is a fast-paced, entertaining business show that explores the intersection of money, culture and policy. Tune in Monday through Friday at 7 p.m. ET on CNBC.
Persons: Gene Munster, Brian Sullivan, Organizations: Hollywood, Netflix, CNBC
Apple might be headquartered in Cupertino but its heart is in China. AdvertisementAdvertisementApple's leadership may operate from the 175-acre, tree-covered campus in sunny Cupertino, California but, in reality, the company's center of gravity is in China. Roughly 95% of Apple products including iPhones, AirPods, Macs and iPads are reported to be made in China . And multiple media outlets reported that China had banned iPhones for government staffers, knocking its share price. Apple CEO Tim Cook likes to present the company's decades-long involvement with China as a cause for celebration.
Persons: , Research, Tim Cook, Anshuman, Gene Munster, Jay Newman Organizations: Apple, CCP, Service, Hindustan Times, Deepwater Asset Management, Elliott Management, Huawei, China, Forum Locations: Cupertino, China, Cupertino , California, iPhones, India, Taiwan, Beijing
Over the year to date, the stock of the auto giant, which designs and manufactures electric vehicles, battery energy storage devices, and solar panels, has surged around 100%. This comes as factory shutdowns hit production and demand for electric vehicles sagged in the face of higher interest rates. Tesla bear For David Trainer, founder and chief executive officer at investment firm New Constructs, Tesla is "one of the most overvalued stocks in the market." TSLA YTD mountain Shares in Tesla have surged substantially in the past year Tesla bull However, Gene Munster, managing partner at Deepwater Asset Management, disagrees. "Tesla can no longer enjoy its first mover advantage as many other major automakers are producing electric vehicles.
Persons: Elon Musk's Tesla, Tesla, David Trainer, Gene Munster, CNBC's, Munster Organizations: Wall, Federal, CNBC, Tesla, Deepwater Asset Management, Munster, Ford, General Motors Locations: Elon, U.S, China
2023's surge in technology stocks fizzled in September as rising rates put a heavy dent in the artificial intelligence-fueled rally . Over the next few weeks, Deepwater Asset Management's Gene Munster is keeping an eye on September's consumer price index and nonfarm payrolls report ahead of the start of big technology earnings later in the month. "The good news is that this should right itself once the September quarter earnings come up." Sean Sun, a portfolio manager at Thornburg Investment Management, likened the earnings season to a "gut check" on AI beneficiaries. But these drawdowns could offer opportunities for long-term investors to snatch up technology bets at bargain prices, said Nancy Tengler.
Persons: what's, behemoths, Street's, Gene Munster, Erika Klauer, Sean Sun, Paul Meeks, Nancy Tengler, Meeks, Klauer Organizations: Nasdaq, Reserve, Enphase, Lucid, ASML, Netflix, Apple, Microsoft, Devices, Nvidia, Tech, Thornburg Investment Management, Laffer, Investments, ServiceNow, Adobe, Broadcom, Oracle, Meta, Jennison, AMD
The world needs affordable EVs more than ever as electric cars will play a big role in hcelping countries cut planet-heating pollution. “When legacy [carmakers] talk about catching up to Tesla or catching up to the leading Chinese automakers, it’s difficult. It is by far the world’s biggest EV battery manufacturer and dominant in the supply and processing of many critical components needed to make the batteries. Global automakers have had little choice but to enter into joint ventures with Chinese EV and battery manufacturers. EU lawmakers have voiced concerns that government subsidies allow Chinese EV makers to keep prices artificially low, creating unfair competition for European rivals.
Persons: Henry Ford’s, carmaking, Jeff Kowalsky, , Gene Munster, Tesla, — Tesla, , Patrick Hummel, Krisztian Bocsi, Ford, “ It’s, ” Dan Ives, Bill Pugliano, Daniel Röska, Bernstein, China …, Marco Rubio, “ They’re, Bill Ford, CNN’s Fareed Zakaria Organizations: London CNN —, Ford Motor Company, Toyota, Volkswagen, United, Getty, Deepwater Asset Management, Volkswagen Group, Audi, Porsche, Chrysler, Jeep, Ford, General Motors, International Energy Agency, Honda, Renault, Nissan, Mitsubishi, Hyundai, Kia, Benz, BMW —, Investment, UBS, EV, Atlas Public, VW, Bloomberg, Reuters, Twitter, Stellantis, Wedbush Securities, CNN, United Auto Workers, Refining, Global, Republican, European Union, EU, Jato Dynamics Locations: Europe, United States, Dearborn , Michigan, AFP, China, Japan, South Korea, Asia, US, Germany, ” Munster, Munster, Lansing , Michigan, Michigan, Beijing, America
Apple has become a revenue-generating machine thanks in large part to products made in China. Apple's revenue from products made in China could drop to less than a third of overall revenue. AdvertisementAdvertisementApple's dependence on China for manufacturing could drastically drop within the next five years, with revenue from products manufactured in the country projected to plummet to less than a third, analysts said. Deepwater Asset Management's managing partner Gene Munster and research analyst Brian Baker predicted on Monday that revenue from Apple products manufactured in China could drop from an estimated 40-45% today to 25-30% by 2027. AdvertisementAdvertisementIndia increasingly looks like it will provide that alternative, Munster and Baker said, with around half of the revenue projected to be lost from products manufactured in China estimated to go to the sub-continent state.
Persons: , Gene Munster, Brian Baker, Luxshare, Baker, Muster Organizations: Apple, Service, Asset, Munster, Huawei Locations: China, Beijing, Washington, India
Instacart shares slumped nearly 11% in their second day of trading Wednesday, continuing a slide that began immediately after the stock hit the Nasdaq on Tuesday, and leaving it narrowly above its initial public offering price. On Monday, Instacart sold shares in its long-awaited IPO at $30 apiece. Trading under ticker symbol CART , the stock popped 40% to open at $42, but then sold off throughout the day to close at $33.70. Instacart's offering helped reignite a sleepy IPO market, which has been mostly closed since late 2021 as companies were plagued by inflationary pressures and rising interest rates. Analysts at Needham issued a hold rating on Instacart's stock in a Tuesday note.
Persons: Instacart, Uber, Gene Munster, CNBC's, Munster, it's, Needham Organizations: Nasdaq, Deepwater Asset Management
Deepwater's Gene Munster is betting on Uber over Instacart
  + stars: | 2023-09-19 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDeepwater's Gene Munster is betting on Uber over InstacartGene Munster, Deepwater Asset Management managing partner, joins 'Closing Bell' to discuss Instacart as the company's stock pops on the first day of trade.
Persons: Deepwater's Gene Munster, Instacart Gene Munster Organizations: Deepwater's, Instacart, Deepwater Asset Management
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