My top 10 things to watch Monday, June 3, 2024
- Nvidia CEO Jensen Huang crushes it in Taiwan at the Computex tech conference, unveiling on Sunday the company’s next-generation artificial intelligence chips. Called Rubin, the AI chip architecture was introduced just months after the March reveal of the Blackwell chip platform. The Club stock was up 3% early Monday. Bank of America loves Jensen’s plans and maintains its $1,500 per share price target.
- Advanced Micro Devices CEO Lisa Su on Monday announced new AI chips at the conference: both for AI personal computers to compete with Intel and Qualcomm and data centers to compete with Nvidia. AMD shares were up about 2% on the news.
- Best Buy got a double upgrade from Citi, which went to buy from sell and raised its price target to $100 per share from $67. That’s good for another 2.5% bump in shares. The analysts believe in the AI-driven PC and device refresh cycle that I’ve been talking about for months. Best Buy is where people are going to purchase their upgrades. The Club stock got a huge post-earnings boost last week.
- Tech stocks were driving things higher on the first trading day of June. The Dow, the S&P 500 and the Nasdaq all dropped in the final week of May as enterprise software stocks hit a wall. But for the entire month, they all posted significant gains. No “sell in May and go away” this year: the Nasdaq jumped nearly 7% for the month.
- There are no Club earnings out this week. But Friday brings the big May employment report, which investors and the Federal Reserve will be watching closely. Economists are looking for 178,000 payroll additions, with an unchanged unemployment rate of 3.9%. Hourly wages are seen rising 4% year over year.
- GameStop shares were soaring more than 70% in the premarket after meme trader Keith Gill, a.k.a. Roaring Kitty, posted a screenshot showing a $116 million position in the video game retailer. GameStop just sold 45 million shares at $933 billion. Will it sell more?
- Another meme stock, AMC Entertainment, was getting a lift on the news, rising over 20%. The movie theater company rose 48% in the month of May, with speculators driving the action. AMC also sold shares recently: 72.5 million worth roughly $250 million.
- Melius Research said Broadcom is a must. The analysts said the Club’s other chipmaker is integral to AI and that recently acquired VMWare is not an overhang or a problem. Melius started coverage with a buy and an $1,850 per share price target. That’s 40% upside to Friday’s close. Broadcom is set to deliver earnings on June 12. It will be the last in our 33-stock portfolio to report this quarter.
- Jefferies starts Club name Danaher with a buy and a $295 per share price target, which represents nearly 15% upside to Friday’s close. The analysts see “durable growth stories” at the life sciences and diagnostics company. Operating leverage, healthy free cash flow and balance sheet optionality “should be rewarded,” the firm added.
- Club industrial name Honeywell raised its fiscal year 2024 earnings-per-share guidance to range of $10.15 to $10.45 from $9.80 to $10.10. The company also announced the completion of its $4.95 billion purchase of Carrier’s security unit. During last week’s May Monthly Meeting, I was talking about how Honeywell should break-up its disparate businesses; kind of along the lines of what fellow Club holding DuPont did.
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