1. Can everyone win the artificial intelligence arms race? We know our Club favorite Nvidia (NVDA) can. After last week’s surge, the semiconductor powerhouse is up another 6.5%, and opens over $1 trillion market cap. But who else can win in AI, as I asked in my weekly column? Club names Alphabet (GOOGL), Meta Platforms (META), Amazon (AMZN), Microsoft (MSFT), Advanced Micro Devices (AMD)? Matt Murphy, CEO of former Club stock and current bullpen name Marvell Technology (MRVL)? He’s on “Mad Money” tonight.
2. Google claims its Tensor Processing Units (TPU) v4 for machine learning is better than Nvidia’s A100 chips. Sure, but is it better than the H100? That hasn’t been tested yet. Google gives lots of business to Broadcom‘s (AVGO) custom chip division, says JPMorgan analysts. AVGO also gets orders from Club name Apple (AAPL) and Meta.
3. Wells Fargo increases price target on Salesforce (CRM) to $250 per share from $225. Keeps outperform (buy) rating. Spending is coming back. Canaccord goes to $230 from $215. Keeps buy.
4. Can the debt ceiling deal really pass on Capitol Hill? The agreement, which was reached over the weekend by President Joe Biden and House Speaker Kevin McCarthy, needs to pass the House and the Senate before the June 5 default deadline.
5. Wall Street opened mixed to start the holiday-shortened week. In Friday’s powerful rally, the Dow broke its five-session losing streak, and both the S&P 500 and Nasdaq closed higher two days in a row. Citi says time to buy defense stocks. The worst is over. So typical. Always like these after-budget deals calls.
6. Despite a small bump, gold keeps going lower. Lowest in two months. What does it say? I think it’s worldwide recession worries. The Fed out of step with the potential collapse of inflation? Natural gas is not rallying because coal plants are still online, which we thought would be offline. Freeport outage over. No need for nat gas now in Europe.
7. Club holding Constellation Brands (STZ) is upgraded to buy from hold at Roth MKM, which also raised its price target to $270 per share from $216. Important upgrade because Modelo is strong and Corona Light is turning around because of problems with Bud Light over at beer rival Anheuser-Busch Inbev (BUD).
8. Kenvue (KVUE), the J&J consumer health-care spinoff, mostly started by Wall Street research shops with neutral ratings. Bank of America and JPMorgan, RBC Capital stand out with KVUE buy ratings. BofA price target at $30 per share. JPMorgan and RBC price targets both $29.
9. Citi resumes Johnson & Johnson (JNJ) with a buy with a $185-per-share price target, a nearly 20% premium to Friday’s close. We own a ton of J&J for the Club but can’t tell people to buy more until we get some sort of clarity on the talc litigation.
10. Jefferies upgrades Club holding Ford (F) to buy from hold; goes to $16-per-share price target from $13. More confident after last week’s investor event. Wall Street, for the most part, is very bearish. Ford is way more positive than people think.
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