Qualcomm & Intel, triple witching: Market Domination Overtime

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Julie Hyman Nachrichten

Josh Lipton,Kamala Harris,Nasdaq Composite

On today's episode of Market Domination Overtime, Hosts Julie Hyman and Josh Lipton analyze the market close and discuss some of the biggest stories from the...

the market is"well positioned to continue to gain ground over the long term and the intermediate term."

Just in the red, had a little blip of green in the last hour of trading, but didn't quite make it there about 1/5 of 1% though, still again up on the week as for the NASDAQ, up on the week as well on the day. Just a huge growth in A I, the power needed to propel those data centers to do the training and inference of the A I models.Vistra also a big 16.5%.But as we talked with the guest about earlier in the show, maybe there's a little optimism that there could be some kind of a turning point.Does that momentum continue, Ron?

The rest of the market only delivered about 5% earnings growth year on year, by the fourth quarter of this year, the consensus is that's gonna narrow down to a 21% earnings growth for the big six tech stocks and 9 to 10% for the rest of the market. Um If you look at the small cap index, the Russell 2000, it has about twice the debt to capitalization of the S and P 500.So that's a real tangible example where companies will get an immediate benefit from the reduction of interest rates by the fed.

So it's not going to just be six companies or, you know, a couple a couple of dozen companies globally that are going to win from this A I revolution. So, so again, I don't think it's a slam dunk that you want to be, you know, running away or pulling capital on mass from these companies.Thank you getting back to some breaking news.

Um It also, you know, so right there a full stop, Intel was once the largest semiconductor company in the world.I mean, this company had an operating loss last quarter quarter, last quarter of $2 billion.Um They are still very much wedded to selling chips into P CS because their, their business of selling chips into the data center has just not worked out.

It's got manufacturing prowess, it's got a place in data centers and in PC, Qualcomm has some plans around PC, but Qualcomm is largely a smartphone company.They've got an automotive unit that's, that's also not doing great guns right now.And so that is something that the Intel's famously missed out on for decades now.

And so something that would help intel survive and do better, which this merger might be seen as might be welcomed by Washington. And it's not as simple as, as looking at what's on the balance sheet and seeing that that's what you're going to acquire, looking at the customer list and seeing that's what you're going to acquire.And I think that that's another reason why a deal like this would be hard to integrate.

But designing semiconductors and changes Intel usually moves in a, in a not a glacial pace but the kinds of decisions they make, take a decade to play out.So it's not the kind of business you can turn on a dime despite the best um mckinsey consultants out there that might want to see that happen.Well, maybe not anymore.Yeah, a lot of polls recently showing that Kamala Harris is really closing the gap with Donald Trump when you ask voters who they trust the most on the economy.

But this is a very intriguing development with more voters saying they trust Kamala Harris on the economy. It's a function of just a lot of, they're defending a lot of tough seats even if Democrats uh get, um, get a, get a sweep. The thing that worries people of economists about Trump is the two, two big parts of his, uh, his proposal he can do without Congress and that's impose tariffs and start mass deportations.And those are the reasons you see a lot of forecasters.

But I think what's really interesting is when you look at the seasonality, so you look at seasonality in September, it tends to be pretty bad for, for us stocks. Utilities was a big one and, and it's become a great performer and, and a few others have done great as well ahead of, you know, ahead of the feds, you know, finally they, they've cut rates and, you know, a lot of sectors performed well into that.It's, it's healthy to see, you know, improved breadth, it's healthy to see better market participation, more sectors joining the party.

 

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