NVDA - Wall Street Breakfast Podcast: Unity Software Unveils AI Marketplace

2023-06-28 06:29:44 ET

Summary

• Unity Software's shares surged by over 15% after Wells Fargo initiated coverage on the company with an outperform rating and a price target of $48 per share. The company also launched a new AI marketplace, contributing to the stock's rise.
• Nvidia and AMD shares dipped following a Wall Street Journal report that the U.S. may impose new restrictions on chip exports to China used for training AI models. The U.S. Department of Commerce could halt shipments of these chips as early as July.
• Google has been accused of violating its own standards for placing video ads on other websites, according to research by Adalytics. The firm claims Google breaches its standards 80% of the time, but Google refutes these claims, calling them "extremely inaccurate".

Listen on the go! Subscribe to Wall Street Breakfast on Apple Podcasts and Spotify Unity Software ( U ) surges as it unveils AI marketplace , Wells Fargo starts coverage (00:27). Nvidia (NVDA), AMD dip as US mulls new AI chip curbs for China - report (01:05). Google ( GOOG ) ( GOOGL ) violating its video-ad promises , research suggests (01:49).

This is an abridged transcript of the podcast

Unity Software surges on its new AI marketplace. The chips war is heating up between the U.S and China and Google says that’s not true after a report said it's violating its video-ad promises.

Unity Software (NYSE: U ) closed Tuesday up more than 15%.

This happened as Wells Fargo started coverage on the video game software company with an outperform rating.

The company also unveiled an AI marketplace.

Analyst Brian Fitzgerald, also put a per-share price target of $48 on Unity Software ( U ).

Earlier this month, Apple ( AAPL ) unveiled the Vision Pro, with Unity ( U ) apps running on the device during the presentation.

Separately on Tuesday, Unity ( U ) unveiled a dedicated place in the Unity Asset Store for AI-driven game development.

Nvidia (NASDAQ: NVDA ) and Advanced Micro Devices (NASDAQ: AMD ) are down ~4% premarket following a report that the U.S. is considering new restrictions on exports to China of chips used for training artificial intelligence ( AI ) models.

The report is from The Wall Street Journal, citing people with knowledge of the matter.

Nvidia and AMD are the market leaders for chips important for developing generative AI models such as ChatGPT, which is developed by Microsoft (NASDAQ: MSFT )-backed OpenAI.

According to the report , The U.S. Department of Commerce could stop shipments of certain chips made by Nvidia and other chip companies to customers in China as early as July.

According to new research, Google (NASDAQ: GOOG ) (NASDAQ: GOOGL ) is violating its own standards when it comes to placing video ads on other websites.

The research firm Adalytics told the WSJ , that they studied campaigns from more than 1,100 brands (including Johnson & Johnson, American Express, and Macy's) that garnered billions of impressions from 2020-2023.

Google runs ads on the YouTube site and app, but also places video ads on third-party sites and apps. The ads are supposed to run on high-quality sites, before main video content, with audio on, and the advertiser is supposed to only be charged when someone watches the video and doesn’t skip.

But Adalytics says Google is violating its own standards some 80% of the time.

Google took issue with the research in a blog post saying the report "made extremely inaccurate claims."

Other headlines to look out for on Seeking Alpha:

Eargo to lay off 32%-42% of workforce, announces CEO exit

German consumer confidence dips more than expected in July

Russia poised to surpass Saudi Arabia as China's top oil supplier

SiriusXM said to close Stitcher podcast app this summer

Newell Brands bounces off its recent 52-week low

On our catalyst watch for the day, MultiPlan Corporation ( MPLN ) will host an analyst and investor day event that will include a question and answer session with top execs. And Roblox ( RBLX ) CFO Michael Guthrie and CTO Dan Sturman will participate in an AI discussion with Morgan Stanley.

U.S. stocks advanced on Tuesday. The Nasdaq ended 1.65%. The Dow ( DJI ) added 0.63%. The S&P 500 ( SP500 ) rose 1.15%.

All 11 S&P sectors with the exception of Health Care closed in positive territory. Consumer Discretionary and Tech rose more than 2% each.

Treasury yields were higher. The 10-year yield ( US10Y ) was up 4 basis points to 3.76% while the 2-year yield ( US2Y ) was up 3 basis points to 4.76%.

The Conference Board's reading of consumer confidence on Tuesday showed that recession fears have appeared to ease considerably in June, with 69.3% of consumers saying a recession is "somewhat" or "very likely" over the next 12 months, down from 73.2% in May.

The durable goods orders report for May, showed an unexpected 1.7% increase compared to an anticipated 1.0% decline. Core durable goods orders also increased versus an expectation of no change.

New home sales unexpectedly surged in May to 763K versus an estimated figure of 675K.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are pointing lower. The Dow is down 0.04%, the S&P 500 is down 0.2% and the Nasdaq is down 0.4%. Crude oil is up 1% at less than $69 a barrel. Bitcoin is down 1.2% and is still above 30,000.

In the world markets, the FTSE 100 is up 0.7% and the DAX is up 0.8%.

On today’s economic calendar, at 930 am Fed chair Jerome Powell speaks at the European Central Bank Forum.

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