Yesterday, $377 BILLION of Market Cap were added to AI infrastructure stocks in a single session.
NVDA +6.19% MU +6.51% DELL +10.79% SNDK +3.72% WDC +3.70% STX +4.71% Every single one of these companies directly supplies the hardware that runs AI, chips, memory, servers, and storage. Demand from data centers is outpacing supply across the board. Dell booked $24.4 billion in new AI server orders in a single quarter. Micron is sold out through 2026. SanDisk and Western Digital are one of the two biggest suppliers of NAND flash memory used in AI storage. Seagate supplies the hard drives filling new data center being built. The market is repricing every company in the AI hardware supply chain at the same time. Source: Bull Theory
JENSEN AT COMPUTEX TAIPEI:
- Marvell will become the next trillion-dollar company - Marvell and Nvidia are strengthening their partnership to expand critical networking & connectivity to power AI data centers Jensen touch...plus 17% Source: amit
U.S. distillate fuel inventories fall to the lowest level since 2003
Source: Bloomberg, Hedgeye
One of the most striking charts out there: the SOX index has risen sixfold since 2020, while SOX earnings per share have climbed fivefold.
In other words, most of the rally has been backed by real earnings growth, not just higher valuations. The key question now is whether these profits will actually come through and whether they can keep rising. (HT Goldman Sachs) Source: HolgerZ, Bloomberg
Here’s the current bull market (red line) charted against the nine other bulls since 1928 that lasted 1,000+ days:
Source: Bespoke
The pullback in CEO confidence hasn't shown up in capex intentions though.
“Planned business investment stayed the course in Q2, as most CEOs cited no revisions to capital investment plans. However, the share anticipating increases to capital spending plans in the next 12 months rose further, while fewer CEOs expect to reduce capex compared to Q1." Source: Neil Sethi
Tech giant SoftBank is up nearly 73% so far this year
AI demand powered the country’s stocks to an all-time high and helped Masayoshi Son’s company dethrone Toyota after more than 20 years at the top. Source: FT
South Korean stocks have more than quadrupled over the last 17 months, trouncing every other country.
The reason? 2 South Korean companies in the AI memory space, both of which now have a market cap above $1 trillion: SK Hynix & Samsung. Source: Charlie Bilello
