Venu Krishna, Barclays head of U.S. equity strategy, said while talking to CNBC in a latest program that he is not revising his S&P 500 year-end projection of 5,600 because he believes stock valuations are “full.”
“If you see what’s happening, numbers (earnings) have been cut sharply going into the end. What is still anchoring the market is big tech, even though their earnings themselves are kind of decelerating. Then seasonality comes into play. October is the weakest month, and you don’t want to get ahead of that.”
Asked whether he does not believe the market really broadened out, Krishna said while there were some signs of market broadening, the “anchor” of the rally remains big tech, which according to him, are just six stocks.
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Moving beyond the earnings and valuations debate, another factor still impacting investor sentiment is the Federal Reserve’s next moves.
Talking about the latest Fed minutes released October 9, Wolfe Research’s Stephanie Roth said on CNBC that a “substantial” majority of Fed officials wanted a 50-basis-point rate cut. However, she said in the next meeting, a 50bps rate cut is “off the table.”
For this article we picked 10 AI stocks trending on latest news. With each stock we mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Nvidia (NASDAQ:NVDA): Leading AI Chip Demand Despite Blackwell Delay
Wedbush analyst Dan Ives has yet again reiterated that NVIDIA Corp (NASDAQ:NVDA) will be among the top beneficiaries of the huge AI spending.
“The supply chain is seeing unparalleled demand for AI chips led by the Godfather of AI Jensen and NVIDIA Corp (NASDAQ:NVDA) and ultimately leading to this tidal wave of enterprise spending as AI use cases explode across the enterprise,” analyst Dan Ives wrote in a note to clients. “We believe the overall AI infrastructure market opportunity could grow 10x from today through 2027 as this next generation AI foundation gets built, with our estimates [showing] a $1 trillion of AI cap-ex spending is on the horizon [over] the next 3 years.”
Nvidia’s declines after the Q2 results were more or less expected amid Blackwell delay reports confirmed by management. However, the delays were mainly due to a change in Blackwell GPU mask. That does not affect the main functional logic or design of the chip, according to analysts. While Blackwell has been delayed for a few months, it does not change the core growth thesis for Nvidia.
Nvidia is set to see huge growth on the back of the data center boom amid the AI wave.
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At Nvidia’s GPU Technology Conference in March 2024, CEO Jensen Huang estimated annual spending on data center infrastructure at about $250 billion. Over the next decade, this could total between $1 trillion and $2 trillion, depending on how long this level of investment continues. During the same Q&A session, Bank of America’s Vivek Arya echoed this estimate, suggesting the total addressable market would fall in the $1-2 trillion range, particularly as countries invest in their own AI infrastructure. By the end of the decade, spending could be at the high end of that range.
Of course, Nvidia won’t dominate the entire $2 trillion opportunity, as it faces competition from companies like AMD and internally developed AI accelerators from Google, Amazon, and even Apple. Some analysts believe Nvidia’s data center market share between 2025 to 2029 will be over $950 billion—less than half of the total market—but still enough to make it the leader in the sector.
Generation Investment Management Global Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“Recent net performance is behind market averages. However since the fund’s inception, we have spent only about 8% of the time underperforming on a rolling five-year basis.1 We do not enjoy these spells. A number of different factors has contributed to the current period of underperformance. The fact that we do not own NVIDIA Corporation (NASDAQ:NVDA) is one. That single company accounted for roughly 25% of returns in the benchmark so far this year, meaning almost everyone who does not own Nvidia has lost out. Year-to-date, not owning Nvidia explains about a third of our relative underperformance.
Nvidia is, clearly, an earnings juggernaut. In the past year its revenue has more than tripled, as cloud companies load up on hardware to power AI models. So while its earnings multiple has increased, we are not seeing a repeat of the dotcom mania of the late 1990s. This company’s valuation is backed by cold, hard cash…” (Click here to read the full text)
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Overall, NVIDIA Corp (NASDAQ:NVDA) ranks 5th on Insider Monkey’s list titled Top 10 AI Stocks Investors are Talking About in October. While we acknowledge the potential of NVIDIA Corp (NASDAQ:NVDA), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Renault defends the decision by emphasizing that with continuous updates—what would typically be called facelifts—the Renault 5 can remain relevant for at least 10 to 15 years.
“We won’t keep the 5 exactly the same for seven years. But it’s an iconic product, so we don’t want to change the design. The structure will stay the same for a long time—perhaps 10, 12, or even 15 years—just like the Fiat 500. But you can change everything inside,” Renault CEO Luca de Meo told the publication.
The French automaker is already considering the first updates to the car, even before the first customers take the wheel. One such update includes adding shift paddles on the steering wheel.
However, unlike traditional cars with combustion engines, these paddles won’t be used to shift gears.
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Instead, Renault plans to allow drivers to control braking and energy regeneration through the steering wheel paddles.
Additionally, the car will feature a ‘one-pedal’ driving mode, where the car slows down enough on its own that drivers only need to keep their right foot on the accelerator.
Making Europe safe for democracy will take much more than just maintaining Nato country defence budgets at 2 per cent of GDP, according to the organisation’s outgoing secretary-general Jens Stoltenberg (“So far, we have called Putin’s bluff”, Lunch with FT, Life & Arts, October 5).
Probably. But wouldn’t it be possible to improve the organisation’s weapons, capabilities and troops if the national defence forces of each country were put under one command?
Maybe we could start with the Nordic countries. Why do they each have their national defence forces and not one common defence force? Are they afraid of a future conflict and possible war with each other?
Jan Erik Grindheim Professor, University of South-Eastern Norway; and Afflliate, Civita Think Tank (Oslo), Notodden, Norway
One person is dead and 12 others trapped hundreds of metres underground after an elevator failure at a former Colorado gold mine that is now a tourist attraction.
Another 11 people were rescued from the Mollie Kathleen Gold Mine attraction in Cripple Creek, Colorado, Teller County Sheriff Jason Mikesell told reporters.
Emergency responders were attempting to repair the elevator to bring back the 11 tourists and one tour guide who were trapped, he added.
A mechanical failure in the elevator occurred with one tour group below ground and another group aboard while it was about halfway down the mine shaft.
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This resulted in one fatality while four other people suffered minor injuries, Mikesell said without providing details of how the person died.
Responders had radio communication with the people trapped below, and they had water, blankets and chairs to keep them comfortable, Mikesell said.
Engineers from the state, mine safety experts and firefighters were on hand.
In the event the elevator cannot be safely repaired, firefighters were preparing for a rescue operation, but using the elevator would be much safer.
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“If we have to, we can bring people up on those ropes, but it also subjects those first responders now to the threat and endangerment of doing so,” Mikesell said.
A family business has been operating tours at the mine, which is about 180 km south of Denver, for 50 years.
The renters’ rights bill, which passed its second reading in the House of Commons this week, is set to be the biggest change to the private rented sector in England for over 30 years with proposed changes to ban Section 21 evictions, the introduction of open-ended tenancies and new requirements for property standards and rent increases (Report, September 12).
Propertymark is the UK’s leading membership body for property agents. While we want to see improved standards, the government must fully understand the impact these changes will have, with agents left wondering how this legislation will help meet the much-needed demand for homes for people to rent.
Our monthly Housing Insight Report shows on average eight registrations for each available property with fewer new properties coming on to the market. The bill in its current form is highly likely to exacerbate this situation with more landlords withdrawing homes from the private rented sector, frequently moving them to short-term lets.
Tax is reducing the investment appetite of new and existing landlords with higher rates of stamp duty on buy-to-let properties and the withdrawal of tax relief on mortgage interest costs. Ministers must recognise the financial implications of this bill and the impact it has on the supply of homes to rent.
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Through the renters’ rights bill, the UK government must commit to reviewing all costs and taxes impacting on private landlords to ensure landlords continue in the market and more landlords can meet the demand for homes to rent.
Additionally, with no security of a rental term for a landlord beyond the proposed two months’ notice period and no long-term guarantee of rent, we would expect to see a significant number of landlords attracted to higher rents in the short-term letting market, which also offers them the advantage of being unregulated.
With landlords exiting the private rented sector, the result would be a reduction in the rental stock available for long-term tenants and increased rents. To help mitigate this, the government must also enact the registration of short-term rental property requirements, as passed in the Levelling-up and Regeneration Act 2023, alongside these reforms to level the playing field for landlords and the long-term rental market.
Timothy Douglas Head of Policy and Campaigns, Propertymark, Warwick, UK
All Creatures Great and Small viewers were left in tears as James Herriot made a heartbreaking admission to Helen Alderson after a devastating conversation
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