Interest rates rise again ahead of CPI announcement…NVIDIA, Intel, etc. continue to raise funds
Interest rates rise again ahead of CPI announcement…NVIDIA, Intel, etc. continue to raise funds [Wall Street Newsletter]
Speakers
Park Myung-seok
— Curator
Summary
Ahead of the US CPI release, markets are in wait-and-see mode. The curator highlights a scenario where a soft CPI could lift semiconductor hardware, while already strong neocloud and server earnings (CoreWeave, Nebius, SMCI) are restoring AI confidence. He flags Google’s weakness on AI leadership concerns, Sea Limited’s earnings recovery, IBM’s quiet comeback, and a potential software vs. hardware leadership rotation that may be resolved after CPI. Nvidia’s circular financing stirs debate but offers no clear trade.
- Markets are treading water before the CPI release; direction will be determined tonight.
- Semiconductor hardware is seen as the biggest beneficiary if core CPI comes in soft.
- Neocloud names like CoreWeave and Nebius are surging on strong results and backlog growth.
- Super Micro Computer's blowout guidance lifts the entire server and AI hardware complex.
- Google is under pressure after the departure of a key AI executive and doubts about Gemini.
- Sea Limited posted its best quarter since August 2025, reviving beaten‑down software platforms.
- IBM is building a large AI supercomputing cluster and its stock is quietly recovering.
- A software vs. hardware sector leadership rotation is underway, with CPI acting as a tiebreaker.
Ideas
Google under pressure from executive loss and AI doubts
Google's stock has been underperforming due to the departure of a key AI executive (Demis Hassabis) and growing doubts about its AI competitiveness, especially in coding, making the stock unattractive near term.
Semiconductor hardware to rally if CPI cools
Software has recently taken over leadership from hardware, but whether this rotation is sustainable depends on CPI; if CPI cools and software still outperforms, it will confirm software as the new leader, otherwise hardware may reclaim dominance.
Supermicro strong results drive server rally
Super Micro Computer's earnings and guidance were very strong, lifting the entire server segment including Dell, HP and Oracle, and signaling robust AI-driven server demand.
Neocloud stocks gain strength, AI confidence restored
Neocloud companies are showing strong earnings and momentum, with CoreWeave and Nebius delivering positive surprises and C3.ai joining the rally, restoring confidence in the AI sector and making neocloud stocks worth watching.
Watch software vs hardware leadership shift after CPI
Software has recently taken over leadership from hardware, but whether this rotation is sustainable depends on CPI; if CPI cools and software still outperforms, it will confirm software as the new leader, otherwise hardware may reclaim dominance.
Sea Limited strong earnings signal recovery
Sea Limited (SE) reported its best earnings since August 2025, confirming a recovery in its Southeast Asian platform business and helping to lift beaten-down software/platform names.
CoreWeave turnaround with surging backlog and margins
CoreWeave is showing a clear operational turnaround: EBITDA margins are expected to improve to 59%, backlog surged 250% YoY, and over $? billion in new contract bookings in Q3 have not even been included yet, driving a sharp after-hours rally.
IBM AI cluster build drives stock recovery
IBM is building a massive AI supercomputing cluster, and its stock has been quietly recovering from a sharp pullback, suggesting the market is starting to price in its AI infrastructure bets.
