Markets
markets
Luke Kawa
1/29/25

Nvidia slumps despite reassuring AI demand news from around the world

Nvidia’s business outlook is seemingly getting a boost from companies all over the world — but the stock is still retreating.

The chip designer bounced back from the worst one-day destruction of market value of a single company on Monday with a big gain on Tuesday, but is now down 2% in the premarket.

The dip comes after Dutch semi supplier ASML said its bookings were more than twice what Wall Street anticipated in the fourth quarter, and Japanese-based chip-testing equipment maker Advantest significantly upgraded its earnings outlook through March 2025. Nvidia has referred to Advantest’s US unit as one of its “industry leading suppliers.”

And DeepSeek AI isn’t the only Chinese entity to undercut the case for spending billions on Nvidia’s chips this week: Alibaba is also boasting of a best-in-class AI model.

Advantest CEO Douglas Lefever provided an indication that the AI boom may begin to lift more boats for broader semiconductor demand thanks to AI-enabled hardware (or its “edge” business), though perhaps not imminently. From the earnings call transcript (this appears to have been translated from Japanese, so it’s a little clunky):

“As far as edge, we have seen some goodness in edge compute when it comes to some of the consumer electronics in the handsets. A lot of the handsets now are equipped with a lot of AI compute capabilities and so that is leading to some business upside. But it’s clear that most of our business is going into more infrastructure level AI.”

If chipmakers are so eager to test chips and have more of the highest-power design systems, they must be pretty bullish about how much demand there’s going to be from the so-called hyperscalers, among others. But this optimism could be misplaced: reassurance from companies that are upstream from Nvidia is much less a vote of confidence than support from its downstream customers.

Thankfully, we’ve got Meta and Microsoft reporting after the close on Wednesday, which should shed some more light on this matter.

More Markets

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Nia Warfield, Luke Kawa
9/12/25
S&P 500 goes nowhere, Nasdaq 100 hits another record, small-caps tumble

Warner Bros. Discovery led gains for the second day in a row, and only three S&P 500 sector ETFs finished in the green.

Horse Ranch In Zhangye
markets
Matt Phillips
9/12/25

Rocket lab soars to new record close amid rally for retail faves

Rocket Lab ripped by roughly 10% Friday to close at a new all-time high, riding an upturn of retail enthusiasm for a coterie of tech-themed favorites, even as the broader market was more or less flat on the day.

Goldman Sachs’ basket of “retail favorites” — its heaviest weights are Reddit, AppLovin, and Tempus AI — was the second-biggest gainer among the company’s flagship US equity baskets on Friday, rising about 1.6%. The S&P was almost dead flat.

It’s not Rocket Lab’s first retail rodeo, as the money-losing company has more than doubled this year and is up nearly 700% over the last 12 months.

Oracle Wall Street Revisions

Analysts revise up anything and everything they thought about Oracle

After the company’s bombshell earnings this week, Wall Street thinks Oracle’s trajectory has changed.

Matt Phillips9/12/25
markets
Nia Warfield
9/12/25

Six Flags pops after reiterating its guidance as theme park attendance rebounds

Six Flags shares rose more than 7% today after the company reported a rebound in attendance and early season pass sales heading into the fall. The nine-week period ended August 31 saw 17.8 million guests, up about 2% from the same stretch last year, with stronger momentum in the final four weeks. 

More importantly, Six Flags reaffirmed its full-year adjusted EBITDA guidance of $860 million to $910 million, showing confidence that its cost and operations strategy can stay strong for the duration of the year. Riding that wave, Six Flags also said early 2026 season pass unit sales are pacing ahead of last year, and average season pass prices are up about 3%.

The good vibes come despite a drop in in-park per-capita spending, especially from admissions, where promotions and changes to attendance mix (which parks or days guests visit) have weighed. Earlier this week, the amusement giant signed a new agreement that extended its position as the exclusive amusement park partner for Peanuts™ in North America through 2030.

Despite the rally, Six Flags shares are down about 52% year to date.

markets
Max Knoblauch
9/12/25

Rivian turns red on the year, squeezed by a recall and the looming end of the EV tax credit

Shares of EV maker Rivian are down more than 5% on Friday following the company’s recall of 24,214 vehicles due to a software issue. The stock move erases Rivian’s year-to-date gain and turns the company negative on the year.

Rivian’s 2025 model year R1S and R1T are affected by the defect, which was identified after a vehicle’s hands-free highway assist software failed to identify another vehicle on the road, causing a low-speed collision. Rivian said it’s released an over-the-air update to fix the issue.

The recall marks Rivian’s fifth this year, affecting nearly 70,000 of its vehicles.

Rivian’s shares are down more than 20% from their 2025 high, which came prior to the passage of President Trump’s “big, beautiful bill.” Through the legislation, the $7,500 EV tax credit is set to expire at the end of the month.

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