Articles Tagged: dcf

5 articles found

Nvidia beats on earnings and guidance, but stock wobbles as data center whispers loom large

Nvidia cleared Wall Street’s bar again. For fiscal Q2 2026 (reported Aug. 27), the AI leader delivered adjusted EPS of 1.05 versus 1.01 expected and revenue of $46.74 billion versus $46.06 billion expected, and guided the current quarter to $54 billion (±2%), modestly ahead of the roughly $53.1 billion consensus — while reiterating that multiyear AI infrastructure demand should remain robust. Yet shares slipped as investors digested a second straight quarter of data center revenue arriving a touch light versus whisper numbers and as China-related H20 shipments remained excluded from guidance amid licensing uncertainty. The reaction underscores how perfection has become the default expectation two years into the AI buildout (according to CNBC).

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TSMC’s Premium: Parsing Taiwan Semiconductor’s Value Amid Policy Shifts, High Capex, and a Steepening Curve

Taiwan Semiconductor Manufacturing Company (TSMC) sits at the center of the AI compute supply chain. As of intraday Tuesday, its ADRs trade near $237.45, within sight of the 52‑week high at $248.28 and well above the $134.25 low, as investors balance 3nm/5nm leadership, a multi‑year capex program, and evolving policy risk. The macro backdrop remains supportive for capital‑intensive leaders: the effective federal funds rate has held at 4.33% throughout 2025, while the 10‑year Treasury yield is about 4.28% and the 2s10s curve has re‑steepened to roughly +55 bps (10Y 4.28% minus 2Y 3.73%). Ten‑year breakeven inflation is anchored near 2.41%, implying a proxy real 10‑year near 1.87%—a level that enforces valuation discipline but does not preclude premium multiples for cash‑generative cyclicals with durable moats, per FRED and U.S. Treasury data. Cross‑asset pricing corroborates that mix: SPY around $642.10, QQQ near $569.84, gold (GLD) near $310.92, long bonds (TLT) depressed near $86.56, and oil (USO) around $74.66, per Yahoo Finance.

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Apple’s AI Play: Strategic Upside Meets Legal and Valuation Crosswinds

Apple’s operating-system-level push into generative AI—bringing ChatGPT-powered capabilities alongside on-device intelligence to iPhone, iPad, and Mac—arrives with markets steady and rates gradually normalizing. As of today, Apple trades at $227.16, up about 8.9% over the last 30 days, while SPY is at $642.47 (+2.8%) and QQQ at $570.32 (+2.5%), reflecting firm risk appetite across mega-cap tech and broad equities (per Yahoo Finance - Market Data). Cross-asset signals are constructive but nuanced: the 10-year U.S. Treasury yield is 4.28% versus 3.73% on the 2-year—about +55 bps 2s/10s—while the 3-month is 4.29%, leaving the 3M/10Y essentially flat at roughly -1 bp, a marked improvement from the deep inversions seen in 2023–24 (U.S. Treasury - Yield Data).

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AI Wars in the Cloud: How Microsoft, Amazon and Google Are Repricing the Market’s Next Profit Cycle

Big Tech’s AI-and-cloud arms race is setting the tone for equity leadership as late summer trading unfolds. Microsoft, Amazon and Alphabet anchor enterprise AI budgets and control hyperscale infrastructure that Europe increasingly relies on—elevating both return potential and regulatory scrutiny. As of Monday’s session, the market tone is constructive: the S&P 500 (SPY) trades near 644.32 and the Nasdaq-100 (QQQ) around 572.23, with gold (GLD) near 310.53 and long-duration Treasuries (TLT) around 87.00, per Yahoo Finance. The Treasury curve has re-steepened at the long end even as policy remains tight: 3-month ~4.27%, 2-year ~3.68%, 10-year ~4.26%, and 30-year ~4.88% (U.S. Treasury), implying a positive 10s–2s spread of roughly +58 bps. With the effective fed funds rate steady at 4.33% and unemployment at 4.2% (FRED), investors are rewarding earnings durability, operating leverage, and clear AI monetization paths.

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Powell’s Rate‑Cut Signal: What a Looming Fed Cut Means for Bonds, Stocks and Your Portfolio

Federal Reserve Chair Jerome Powell’s Jackson Hole remarks opened the door to a policy pivot, signaling that a rate cut as early as September is possible while emphasizing policy remains data‑dependent and “not on a preset course.” Markets quickly translated that guidance into easier front‑end rates and firmer risk appetite. The effective federal funds rate has been steady at 4.33% in recent months (July reading), unemployment stands at 4.2% (July), and the 10‑year Treasury yield hovered at 4.26% on August 22—firmly in the mid‑4s—according to Federal Reserve Economic Data and the U.S. Treasury. Cross‑asset moves reflect the same narrative. Over the last 30 days through midday August 25, the S&P 500 ETF (SPY) gained about 3.5%, the Nasdaq 100 ETF (QQQ) rose 2.6%, long Treasuries (TLT) advanced roughly 2.0%, and gold (GLD) climbed about 1.2%, per Yahoo Finance market data. The Treasury curve has re‑steepened between 2s and 10s (+58 bps) while the 3M/10Y spread is essentially flat (−1 bp), per U.S. Treasury yield data. This article unpacks the market context and policy dynamics, analyzes valuation and sentiment through a bellwether stock lens, and offers forward‑looking scenarios with portfolio implications for the months ahead.

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