CBC Daily Digest

Gainers in the stock market

1. Trump Media & Technology Group Corp

Three factors led to the increase in the stock value of Trump Media & Technology Group Corp. (DJTWW)-

• Supreme Court Decision: The stock market benefited from this week’s lack of negative news and the Supreme Court denying to hear a case related to a Justice Department search warrant for Trump’s social media data.

• Election Momentum: New visibility and optimism for affiliate marketing were due to Trump’s ongoing presidential campaign and criticism of Biden policies.

• Corporate Developments: This stock performance was boosted by leadership changes within Trump Media.

2. Tesla's stock

Factors led to the increase in the stock Tesla's stock-

• Strong Q3 Delivery Expectations: Its hope for the Q3 delivery report also seems to be encouraged the investor’s confidence for the car maker. It is forecasted that there will be more than 470 thousands deliveries by analysts, up by 8 % year on year, which means there are still more demands in the EV market.

• Upcoming Robotaxi Launch: One of Tesla’s big upcoming events is the launch of the robotaxi capable of fully autonomous driving planned for October. This product is expected to redefine the market for autonomous driving that Tesla had considered itself as being a competitive player in. Regarding tech valuation, the robotaxi launch proves that the company is dedicated to the use of Artificial Intelligence in solving the transportation issues.

• Increasing Affordability and EV Market Growth: Bigger sales volumes have been realised by Tesla by introducing cheaper models of electric vehicles. This coupled with recovery in the broader Electric Vehicle market especially in the US and China have helped drive the stock up.

3. Palantir Technologies Inc

Few key reasons for rise in stock are:

• Increased Confidence in AI Potential: It is worth mentioning that an experienced asset management company called Ark Invest emphasized the possibility of companies like Palantir in the context of increasing the popularity of AI solutions. Palantir specializes in big data and AI, which places the company squarely in line to unseat the giants in such a market and puts it in the driver’s seat with regards to AI.

• Shift in AI Investment Focus: Ark’s managing director said that even though most companies have been investing in AI hardware and infrastructure, the future will be in software firms such as Palantir. This change has created interest among investors as Palantir offers specific AI solutions, which translate to higher prospects in the market.

Year-to-Date Performance and Institutional Confidence: Some may argue that, for instance, Palantir has responded better to the pandemic by already having revealed a YoY stock increase of over 140% year to date. This growth has been driven by factors such as sound financial performance, profitability and company’s position fit for AI trends.

Trending stocks for this week 

• WW International, Inc. (WW)

Here are three reasons for making this stock trendy-

• Analyst Upgrades and Price Target Adjustments: A few weeks ago, a few analysts have revised their picture for WW International higher, with some target as high as $6, which is significantly above the current price. This has probably also led to increased investor interest in the particular stock thereby inflating the price.

• Renewed Focus on Weight-Loss Solutions: Inhuman terms, WW International has been diversifying its service offering exploring improved and, potentially, the incorporation of relevant weight loss products such as weight loss pills and the new behavior change program. With increased focus on medical weight management, this shift in focus coincides with more investor attention being paid to the company.

• Positive Market Momentum: The stock seems to be buoyed by the general positive sentiment towards equities and is part of the health and wellness department that investors are paying particular attention to firms such as WW International that are looking for new approaches to obesity management.

2. Intel Corporation (INTC)

Reasons for trending are:

• Strong Quarterly Performance: While Intel’s overall revenue has fallen by roughly 8% compared to the third quarter of 2014, the results beat market expectations for Q3. It posted EPSs that were much better than estimates, mainly thanks to healthy operational and cost performances. Some of these segments include Mobileye and the Foundry Group that indicated that Intel is capable of overcoming the various changes and grasping the chance to have its profitability boosted.

• Optimistic Future Guidance: Intel’s outlook for Q4 is oriented upwards and exceeds analysts’ estimates, having a sequential and annual forecast. The estimated sales for the said quarter also went beyond expectations as the company seeks to demonstrate improvements with its recovery plans and strategies that has delighted its stockholders and investors.

• AI and Semiconductor Advancements: Particularly, the appearance of the new chips focused on AI work; for instance, Xeon 6 and Gaudi 3. These new chips give a boost in AI computations by about 20% and places Intel in good stead to go head to head with rivals such as NVIDIA. Moreover, attracting large governmental support to increase the industry of semiconductor production is also demonstrated, thereby establishing Intel’s important position in the supply chain of chips globally.

3. NVIDIA Corporation (NVDA

Trending upward for several reasons:

Demand for AI Technology: NVIDIA still reaps substantial value because of the enormously increasing demand for artificial intelligence (AI) and, particularly, machine learning. Specializing in microprocessors, particularly GPU for artificial intelligence, it is well placed in an industry that will experience rapid growth. More recently, Foxconn revealed its ambitious plan to develop AI servers based on NVIDIA’s Blackwell architecture, which also added to investor’s optimism on the firm’s future AI strategies

Strong Financial Performance and Forecasts: In its latest financial figures, NVIDIA has posted very healthy revenues, especially in its data center business and is expected to continue doing so. The company expects the growth of its top line potential to triple in the following fiscal quarters and remain on the rise thanks to the increasing demand for artificial intelligence and data processing platforms.

Product Expansion and Innovation: The company’s stepped up pace in the development and commercialisation of its sophisticated semiconductor chips such as H200, GH200, B100 among others are expected to expand the competition gap. Experts opine that this sort of operating model of continuous innovation and product led growth will drive the stock further upwards in the future.