amit

AI Infrastructure

AI spending remains the market’s central growth engine, but rising yields and credit concerns expose how dependent the trade is on continued funding and returns.

• Nvidia (NVDA): Jensen Huang expects compute spending to keep rising; hyperscaler capex is projected to reach $1.3T in 2029.
• Micron (MU): Beat estimates with $54.23B revenue and guided to $61B; management expects tight memory and storage conditions through FY2027–28.
• CoreWeave (CRWV): A sharp risk split: bonds reportedly yield 15% and one analyst warns of severe downside, despite a cited $130B backlog and Nvidia support.
• Nebius (NBIS) and Broadcom (AVGO): NBIS joined CRWV among top-ranked neoclouds; AVGO is tied to major AI-chip financing and custom-chip programs.

Memory And Semiconductors

Memory demand and AI compute supply remain compelling, though rapid rallies and capacity headlines create volatility across chip and storage names.

• SanDisk (SNDK): Rosenblatt initiated Buy with a $2,400 price target; JPMorgan expects memory supply constraints to persist through at least 2028.
• Western Digital (WDC) and Seagate (STX): Cantor called the selloff a buying opportunity, citing AI-driven HDD demand and long-term cash-flow potential.
• AMD (AMD): Management expects AI compute demand to stay strong for several years and plans a substantial supply increase in 2027.

AI Applications

Investors are rewarding companies showing measurable AI adoption, while valuation and post-rally pullback risk remain relevant.

• Meta (META): Strong AI ROI and roughly 30% topline growth underpin bullish views; one investor sees $800, but flags a pullback toward $680 as a concern.
• Palantir (PLTR): Goldman and Barclays set 12-month targets of $230 and $265; cited growth includes 94% topline expansion and 50% operating margins.

Rates And Risk

High Treasury yields and geopolitical uncertainty complicate the equity outlook; weaker payrolls briefly supported risk assets, but bond-market pressure persisted.

• U.S. 10-Year Treasury (US10Y): Yields repeatedly reached roughly 5.1%–5.3%, with investors questioning whether 5.5%–6% is possible.
• Bitcoin (BTC): Reached $85K amid strong momentum, while another market recap placed it near $81K—a volatile backdrop for crypto-linked risk appetite.