AI Has Investors Going All In

AI Has Investors Going All In

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NEWS
AI Has Investors Going All In

Source: Tenor.com

Weakness in the broader market was masked by the “Magnificent Seven” continuing their latest run, with many of them hitting new all-time highs. Optimism about AI continues to run hot, with Trump signaling major investments ahead and companies lining up to catch the wave. The next two days are light on earnings, but next week is a showstopper with many of the market’s biggest names reporting. 👀

Today’s issue covers the AI trade coming back online, AST SpaceMobile’s after-hours offering, and other noteworthy pops & drops. 📰

Here’s the S&P 500 heatmap. 2 of 11 sectors closed green, with technology (+2.26%) leading and utilities (-2.16%) lagging.

Source: Finviz.com

And here are the closing prices: 

S&P 500

6,086

+0.61%

Nasdaq

20,009

+1.28%

Russell 2000

2,304

-0.61%

Dow Jones

44,157

+0.30%

STOCKS
Investors Amp Up Their AI Bets 🤖 

Three top tech firms announced they will create a new company, Stargate, to grow artificial intelligence (AI) infrastructure in the U.S. OpenAI, SoftBank, and Oracle executives all appeared at the White House on Tuesday alongside President Donald Trump to announce “the largest AI infrastructure project in history.”

The companies will invest $100 billion to begin, with plans to expand to $500 billion in the coming years and potentially create 100,000 U.S. jobs. 🥳 

AI leaders have been raising concerns that more data centers and the chips, electricity, water, and other resources needed to run them are critical to powering the U.S.’s AI ambitions in the years ahead. OpenAI CEO Sam Altman said, “I think this will be the most important project of this era.”

AI-linked stocks soared across the board, with equipment makers like Arm Holdings gaining the most. Still, many are playing the AI trend through the big boys, like Nvidia, which is once again the largest company in the world. 🤩 

The “Magnificent Seven” ETF is back on its way to all-time highs, with several of its components already there and pulling the broader market higher with them. 🏋️ 

Source: Stocktwits

Meanwhile, private market investment in AI continues. Google agreed to invest another $1 billion in Anthropic, building on its past investments of $2 billion and ownership of 10%. 💪 

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*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here. This is a paid advertisement for Elf Labs’ Regulation CF offering. Please read the offering circular at elflabs.com.

COMPANY NEWS
$ASTS Sinks On Private Offering 🧑‍🚀 

The mid-cap satellite designer and manufacturer has cooled off over the last five months following an epic run that rocketed it to new all-time highs.

However, getting to space is apparently expensive, which is why the company and its peers are raising capital when they have the ability to. An elevated share price kept that door open, and now management is walking through it. 💸 

After the bell, the company announced plans to offer $400 million in convertible senior notes dues in 2032 through a private offering to qualified institutional buyers. Initial purchasers will have an option to buy an additional $60 million in notes within 13 days of issuance. 📝 

Although the company will enter into capped call transactions to offset potential dilution and cash payments above the principal amount of the notes, there are risks in adding significant debt to the balance sheet, raising interest payment obligations, and potentially diluting shareholders down the line.

Despite the 14% dip after hours, the Stocktwits community’s sentiment toward the stock remains in “extremely bullish” territory. Time will tell if its cult-like followers will continue to buy the dip. 🤔 

Source: Stocktwits

Meanwhile, a current Stocktwits poll with 2,200 respondents has the top space stocks in a close battle for the crown. So far, Rocket Lab has a slight edge over Intuitive Machines and AST SpaceMobile, but it’s still early. Go cast your vote and share a comment with your view! 🗳️ 

Source: Stocktwits

STOCKS
Other Noteworthy Pops & Drops 📋️ 

Progress Software ($PRGS -9%): The application development platform provider’s fiscal year 2024 fourth-quarter earnings beat, but its revenue was short of guidance.

DigitalOcean Technologies ($DOCN +5%): Announced a new generative AI platform at Deploy 25, its annual developer conference. The new tech allows customers to use foundational models from third-party providers.

Recursion Pharmaceuticals ($RXRX +9%): The Nvidia-backed biotech caught a bid alongside other AI plays as investors look to ride the next wave.

GE Vernova ($GEV +3%): The company’s fourth-quarter profit more than doubled, sending shares to a new all-time high.

C3.ai ($AI +3%): The enterprise AI software applications company has forged a strategic alliance with management consultancy firm McKinsey & Co. to help clients and prospects accelerate AI transformation at scale.

Textron ($TXT -4%): The industrial conglomerate’s 2025 profit guidance missed analyst expectations as the company recovers from a work stoppage.

Comerica ($CMA -5%): The lender’s earnings fell short of analyst estimates, with loans pressured by paydowns in Commercial Real Estate.

Haliburton ($HAL -3%): The oilfield services firm’s fourth-quarter earnings were weighed down by weakness in North American driactivity.

Celestica ($CLS +5%): The company announced that one of its board members and chair of the Audit Committee is stepping down.

Seagate Technologies ($STX +7%): The data storage devices company announced upbeat fiscal year 2025 second-quarter results driven by AI demand.

SEALSQ Corp. ($LAES -10%): The company said it has developed a solution in collaboration with WISeSat to execute secure blockchain transactions from space.

Agilysys ($AGYS -20%): The provider of hospitality industry-focused software-enabled solutions and services reported mixed results and cut its guidance.

Johnson & Johnson ($JNJ -2%): The pharmaceutical giant’s fourth-quarter earnings and revenue narrowly topped estimates, but its 2025 sales outlook disappointed.

Amphenol ($APH +7%): The Connecticut-based electronics maker posted revenue of $4.32 billion, surging 30% YoY and beating estimates of $4.06 billion.

Capital One ($COF +5%): “Our fourth quarter results included steady top-line growth in our domestic card business, strong originations and a return to loan growth in our auto business, and stable credit results across our businesses.”

Ally Financial ($ALLY +4%): The bank’s fourth-quarter earnings topped estimates and its net income more than doubled, with net interest margin rising 11 bps YoY.

PRESENTED BY STOCKTWITS
CMT Lunch & Learn: Brian Shannon (@alphatrends) 

Pro trader and Stocktwits user Brian Shannon is back again, this time analyzing the market’s latest moves and some of the Stocktwits community’s most popular names. Plus, what Brian thinks of the Trump Coin and how he’s playing crypto. 👀 

WHAT’S ON DECK
Tomorrow’s Top Things 📋

Economic data: Initial/Continuing Jobless Claims (8:30 am ET), EIA Energy Inventories (11:00 am ET), Bank of Japan Rate Decision (10:00 pm ET). 📊

Pre-Market Earnings: GE Aerospace ($GE), American Airlines ($AAL), Alaska Air Group ($ALK), Freeport-McMoRan ($FCX), TAL Education ($TAL), Union Pacific ($UNP), NovaGold Resources ($NG), McCormick ($MKC), MakeMyTrip ($MMYT). 🛏️

After-Hour Earnings: Intuitive Surgical ($ISRG), Texas Instruments ($TXN), CSX Corp. ($CSX). 🎧

P.S. You can listen to all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! We’ll see you there. 👍

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