Intel, CPU and Foundry Strong Performance...Houthi Rebels Attack Two Saudi Oil Tankers [Wall Street Newsletter]
Speakers
Park Myung-seok
— Curator
Summary
Wall Street faced a sharp selloff as oil surged past $92 and bond yields hit new highs following Houthi attacks on Saudi oil tankers. Intel provided a bright spot with strong earnings and a CPU cycle recovery, while Google fell on capex fears despite robust AI demand. The briefing covered a range of stock movers including AMD, Tesla, Lockheed Martin, ServiceNow, and Blackstone, and concluded with a cautious H2 outlook due to macro headwinds and upcoming IPO supply.
- Nasdaq dropped 2% and S&P 500 fell over 1% as oil spiked above $92 and yields broke through prior highs.
- Houthi rebels attacked two Saudi oil tankers, escalating geopolitical risk and driving energy prices.
- Intel shares soared 10.7% after hours on strong earnings, improved foundry yields, and an early-stage CPU upcycle.
- Google slumped 7% on capex worries and temporary negative free cash flow, but the speaker views the dip as a buying opportunity.
- Tesla crashed 14% on weak fundamentals, margin erosion, and uncertain robot/merger catalysts.
- Lockheed Martin, ServiceNow, Blackstone, and Hims & Hers all showed positive idiosyncratic catalysts.
- The speaker lowered H2 return expectations due to oil, rates, FOMC, Jackson Hole, and the potential Anthropic IPO supply drain.
Ideas
Intel CPU cycle recovery just beginning
Intel delivered strong earnings with revenue and EPS beats, margin improvement to 41.8%, and the strongest revenue growth in 15 years. The CPU cycle is still early while memory semiconductors already had a big H1 rally. The AI industry is shifting from training to inference/execution, which drives CPU demand. Intel's foundry yield improvement also supports upside. The stock surged over 10% after hours.
H2 market headwinds cap upside
Multiple headwinds—spiking oil, rising rates, upcoming FOMC, Jackson Hole meeting, and the anticipated Anthropic IPO supply drain—will cap upside for US equities in the second half. The speaker has lowered near-term return expectations and suggests waiting for clearer conditions toward year-end.
Buy Google dip on AI strength
Alphabet's 7% drop was driven by unlucky timing—rising rates and oil when capex was increased, plus a temporary negative free cash flow—but the underlying AI business is very strong. Cloud ARR growth accelerated, Gemini token processing soared, and enterprise adoption is climbing. The sell-off is seen as an opportunity because AI capex will ultimately lead to profitability; concerns are overblown.
Tesla fundamentals weak, avoid
Tesla's earnings were poor with declining margins, negative free cash flow, and a massive capex plan lacking details. Robot (Optimus) production is still vague and will be slow initially. Merger talk with SpaceX adds uncertainty. The stock fell 14% and there were no positive catalysts. Analysts advise waiting as the company slowly transitions to a physical AI firm.
AMD AI server rack system launched
AMD held up well during the semiconductor hardware selloff, gaining resilience. The company publicly launched its Helios rack system, combining CPU and GPU strengths, and claims the fastest AI accelerator in the industry. Collaboration with Cerebras and shipments starting from late Q3 expand its AI footprint. The stock joined Intel's after-hours rally on CPU momentum.
Hims weight-loss drug FDA progress
Hims & Hers received a positive FDA advisory committee vote (8 yes, 6 no) for its weight-loss drug, overcoming earlier litigation with Novo Nordisk and Eli Lilly. This marks a meaningful step toward potential approval and the stock rose on the development.
Defense stocks benefit from war
Lockheed Martin reported good earnings and its backlog significantly increased, reflecting strong demand driven by the ongoing war environment. Defense spending tailwinds are boosting the company's outlook.
ServiceNow benefits from enterprise AI
ServiceNow reported that, contrary to fears of disintermediation, enterprise customers are not building their own AI agents and still prefer its platform. The company delivered strong results, multiple analysts raised price targets, and the direction of enterprise AI benefits remains intact.
Blackstone AI bets paying off
Blackstone's earnings were solid and private credit worries have faded below the surface. The firm's AI-focused investments are producing surprising results, validating its strategic direction. The stock held up well despite the broader sell-off.
