Tech

South Korean stocks are in a technical bull market, driven by renewed global AI investment. The Kospi has rallied significantly, led by chip giants Samsung Electronics and SK Hynix. This recovery, fueled by strong tech earnings and memory chip outperformance, signals growing investor confidence. While further upside is possible, a return of rising US Treasury yields and the dollar could temper the rally. For now, South Korea and memory stocks offer attractive near-term risk-on opportunities.

Despite exceeding Wall Street’s earnings and revenue expectations, Cisco’s stock dipped in after-hours trading. The company reported strong Q4 results, driven by significant demand from hyperscalers for AI infrastructure, with orders reaching $4 billion in the quarter and $9.3 billion for the fiscal year. Cisco also provided an optimistic outlook, projecting continued growth fueled by AI investments.

The AI data center trade is experiencing a strong resurgence, driven by positive earnings from key players like Intel, Super Micro Computer, and Lumentum. CoreWeave’s report indicates sustained value for older Nvidia GPUs, supporting a new financing initiative treating compute infrastructure as an asset class. A benign CPI report further boosts confidence in growth stocks. This collective momentum has re-energized investor enthusiasm, with leading AI companies showing significant upward movement.

Cerebras Systems, post-IPO, raised its full-year revenue guidance, expecting $880M-$890M. The company reported Q2 revenue of $210M and a net loss of $450.5M, largely due to stock compensation. CEO Andrew Feldman is optimistic about AI demand and premium pricing for its specialized inference chips, positioning Cerebras to compete with Nvidia. The company announced partnerships with AMD and OpenAI, and its stock closed up 42% from its IPO price.

July’s CPI report signaled moderating inflation, boosting stocks and lowering bond yields. While Fed rate hikes are less likely in September, investors await PPI data for confirmation. Company performance, especially in AI, now drives market narratives. Cloud infrastructure firms Coreweave and Nebius beat earnings expectations, with shares soaring. Home Depot dipped on CEO medical leave news, but its strong leadership offers stability.

The CPI report is crucial for Fed rate decisions amid ongoing inflation. Election betting faces legal ambiguity as prediction markets intersect with gambling laws. CoreWeave shows accelerated AI infrastructure growth, exceeding revenue expectations. Computing power is emerging as a new tradable asset class with CME Group launching futures contracts. Housing prices are unlikely to see immediate drops due to regulatory impacts and persistent high costs. Credit card debt has surged to near-record levels, highlighting household financial pressures.

Meta and Nvidia have released open-weight AI models, joining a push against premature restrictions on AI development. Meta unveiled Muse Glimmer and Nvidia introduced Nemotron 3.5 Lightning, aiming to foster competition and innovation. This move contrasts with proprietary models from OpenAI and Anthropic, and seeks to provide domestic alternatives to Chinese AI models, despite past trust issues for Meta.

Google’s Pixel 11 launch heavily features Gemini AI, aiming to revolutionize smartphone interaction with proactive task management across apps. This move intensifies the tech giant’s competition with Apple, which is reportedly integrating Google’s AI into its upcoming Siri. While AI isn’t yet the primary upgrade driver, Google believes its advanced Gemini Intelligence offers unique Android experiences. The company also faces rising hardware costs due to memory component shortages.

CoreWeave, a key AI cloud infrastructure provider, reported a robust second-quarter with revenue doubling year-over-year to $2.6 billion, driven by high demand for AI computing power. Despite not being profitable yet, the company has a substantial backlog and an optimistic outlook. Its stock saw significant premarket gains, reflecting strong investor confidence amidst a booming AI market.

AI’s promised deflationary wave faces corporate inertia and near-term inflation. Massive AI infrastructure investments strain supply chains and energy costs. While technology is advanced, widespread adoption and deriving tangible value are complex, requiring organizational change. This contrasts with initial optimistic forecasts, leading to a nuanced economic reality where immediate costs precede long-term benefits.