AI supercomputer, shaky oil outlook, Shopify beat, and more… ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
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| S&P 500 5,984 (-0.29%) Nasdaq 19,281 (-0.09%) Dow 43,911 (-0.86%) Bitcoin 88,713 (+0.78%) |
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1. SoftBank’s Supercomputer
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Nvidia (NASDAQ:NVDA) and SoftBank have announced plans for an AI supercomputer in Japan in early 2025, which makes the multinational’s telecoms unit the first customer for Nvidia’s new Blackwell chips. |
| “Together we're going to build Japan's largest AI factory”: CEO Jensen Huang revealed the plan at the Nvidia AI Summit Japan, with generative AI development one of the new computer’s goals. No delays: Despite fears that Blackwell chips might not reach the market until into next year, Huang says we’ll see billions of dollars worth in Q4 this year. |
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Oil analysts predict a bearish year ahead for crude, suggesting it could fall to $40 a barrel, or even lower, if OPEC+ fully unwinds its current output cuts. |
| “There is more fear about 2025′s oil prices than since the Arab Spring”: Tom Kloza of OPIS says we could “get down to $30 or $40 a barrel” if the group doesn’t have plans to control production. Slow and steady: Most observers expect the oil cartel to gradually unwind its cuts rather than doing anything too drastic. |
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3. Tuesday’s Star Performer
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Shopify (NYSE:SHOP) rose 21% Tuesday, after Q3 revenue and earnings per share (EPS) both smashed through estimates again. |
| Double-digit beats: Excluding Shopify’s divested logistics business, revenue has grown by at least 25% for six quarters in a row. Free cash flow in Q3 jumped 53%. A fourth consecutive quarter of operating profitability: Fool analyst Yasser El-Shimy highlighted how “Gross Merchandise Volume's persistently robust growth is attributable to merchant sales growing over time, and merchants signing up for more Shopify products and subscriptions.” |
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4. Next Up: Cost-of-Living Indicator |
Today’s October Consumer Price Index (CPI) print is expected to show a rise in inflation, with estimates lifted to 2.6% year over year and 0.2% month over month. Analysts expect core CPI, which excludes food and gas, to hit 3.3% year over year. |
| Core inflation stubborn: Costs of essentials like housing and medical care mean core CPI is resisting the Federal Reserve’s efforts. “The last mile of inflation's journey back to target will be the hardest”: Jay Bryson at Wells Fargo (NYSE:WFC) believes the battle to reach 2% is not won yet. |
5. Healthy Mediterranean Diet |
Cava (NYSE:CAVA) is set to open Wednesday trading over 16%, after the Mediterranean restaurant chain posted a Q3 EPS beat of 56% after market close yesterday. |
| Racing since IPO: Earnings have hugely beaten estimates in every quarter since IPO in June 2023, with the stock up 238% in that short time. “A key part of the fast-casual chain's multi-dimensional growth strategy”: Cava launched its upgraded loyalty program a month ago; Fool analyst Kirsten Guerra highlighted how “the move aims to improve Cava's data and drive greater sales per customer through higher visit frequency and a greater average ticket.” |
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