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Luke Kawa

Nvidia gains after being named Morgan Stanley’s top pick in semis, striking two optical communications partnerships

Shares of Nvidia are on the rise in early trading Monday after Morgan Stanley called the world’s most valuable company its most attractive opportunity among semiconductor stocks and after management reached a pair of deals with optical communications companies.

Morgan Stanley analyst Joseph Moore writes that concerns about a peak in AI-driven demand should give way to optimism about Nvidia’s 2027 sales prospects.

“In each of the last three years, early in the year there was skepticism about the following year, and each time when visibility filled in and we realized the strength was durable, the stock had bursts of outperformance,” the analyst wrote.

He expects that Nvidia’s upcoming GPU Technology Conference, which the company is hosting from March 16 through 19, will enhance investors’ confidence about its ability to retain a dominant market position.

The analyst returned Nvidia to Morgan Stanley’s top slot, replacing Micron, which had taken the pole position in November from Sandisk, which had supplanted Nvidia back in September.

Per Moore:

“Memory vs. NVIDIA is an interesting debate. There is a commonly voiced view that memory stocks are pricing in a much longer and more durable cycle than processor stocks; we actually somewhat disagree with that. Our memory conversations with clients are very similar to NVIDIA conversations — a clear recognition that conditions are exceptional in both right now, But a very strong peak year at current valuations has been viewed as more investable for memory, because upward revisions are more dynamic. There is not much conviction about 2027 for either stock.”

As we discussed ahead of Nvidia’s earnings, memory has been the AI shortage that commanded more investor attention because that cohort was both cheaper and seeing more dramatic boosts to sales and earnings estimates than the $4 trillion chip designer.

Separately, Nvidia this morning announced a pair of $2 billion investments into Lumentum and Coherent, which includes purchase commitments for their optical technologies.

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Luke Kawa
7/13/26
Meet the newly public, Bezos-backed company that’s recreating the sun and stars

General Fusion CEO Greg Twinney spoke with Sherwood News from the Nasdaq during the stock’s first day of trading.

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J. Edward Moreno

SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

Luke Kawa
7/2/26
US job growth falls far short of estimates in June; unemployment rate unexpectedly dips to 4.2%

Job growth was 57,000. Analysts foresaw job growth of 113,000; prediction markets were more optimistic, looking for job growth above 125,000 but below 150,000.

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Luke Kawa
7/1/26
Meta surges on report it’s starting a cloud business to sell excess AI compute

The story of the hyperscalers in 2026 has largely been “the beatings will continue until the cash flow outlook improves;” this could help change the story for Meta. Or not.

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Paige Oamek

Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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