NVDA - Wall Street Breakfast Podcast: Vegas Gets The AI Treatment

2024-01-09 06:49:40 ET

Summary

• CES 2023 in Las Vegas focuses on AI.
• Netflix wins an account sharing lawsuit.
• Juniper Networks jumps 25% on reports of advanced talks with Hewlett Packard Enterprise.

Listen below or on the go on Apple Podcasts and Spotify

Nvidia (NVDA), Microsoft ( MSFT ) and others roll into CES as Vegas gets the AI treatment. (00:21) Netflix ( NFLX ) wins account sharing lawsuit filed by investor. (01:36) Juniper Networks ( JNPR ) jumps 25% on report HPE is nearing buyout deal . (02:34)

This is an abridged transcript of the podcast.

The Consumer Electronics Show kicks off today in Las Vegas. Sin City is getting the AI treatment.

Wedbush Securities analyst Dan Ives said, "We believe AI will take center stage at CES as the most talked about topic as this AI led 4th Industrial Revolution is now on the doorstep for enterprises and consumers globally," Ives wrote.

We can expect to hear from Nvidia (NASDAQ: NVDA ), Microsoft ( MSFT ), Intel ( INTC ), Dell ( DELL ) and many others.

Nvidia is expected to showcase several new GPUs at the event — the RTX 4080 Super, the 4070 Ti Super, and the 4070 Super —as it looks to maintain its lead in the space and keep companies on the cutting edge as their generative AI needs to continue to mount.

AMD ( AMD ), which recently unveiled its own AI accelerator lineup to the world (to much enthusiasm), is also expected to have a presence and make several announcements.

CES has become more of a car show in recent years and companies like BMW, Mercedes, Ford ( F ), Honda ( HMC ), GM ( GM ) and others are expected to have a large showing.

Ives said the usual announcements about infotainment updates, new automotive tech and new electric vehicles should make headlines, though the increased use of AI in cars is also likely to be a theme.

CES runs through Friday.

Netflix (NASDAQ: NFLX ) has won an account sharing lawsuit filed by an investor.

The streaming giant beat a lawsuit accusing the company of hiding how much account sharing hurt growth.

The suit was filed on behalf of Texas-based Imperium Irrevocable Trust, in a federal court in California in 2022. Netflix lost 30% of its value from January to April 2022 after saying subscribers were decreasing for the first time in 10 years.

The lawsuit sought damages on behalf of investors who bought Netflix shares between January 2021 and April 2022, Reuters reported.

Netflix has since taken action on account sharing outside of households, by offering an ad-based subscription tier.

On Friday, U.S. District Judge Jon Tigar ruled that the lawsuit included no evidence that the company was aware of the extent of the problem for as long as the investors alleged, Reuters said.

The investor can refile if it can find facts to bolster its claims.

Netflix shares rose 2.3% on Monday.

Juniper Networks (NYSE: JNPR ) is up 23% premarket following a WSJ report that Hewlett Packard Enterprise ( HPE ) was in advanced talks to buy the networking name for about $13B.

HPE is down 7.8% premarket.

According to the report, a deal could come as soon as this week.

HPE is worth about $23B, while Juniper is worth a little under $10B after declining about 5% over the past year.

It's of interest to HPE, though, because of its growing artificial intelligence position via the Mist AI business, which optimizes wireless access.

On our catalyst watch for the day,

• Mobileye ( MBLY ), VinFast Auto ( VFS ) and Honda Motor ( HMC ) will each hold a press conference at CES.

• 5:00 p.m. Walmart ( WMT ) CEO Doug McMillon will give a keynote address at CES. He’ll talk about Walmart’s vision to design and build technology for the next generation of retail.

• 8:00 p.m. Intel ( INTC ) CEO Pat Gelsinger will participate in a keynote conversation at CES, discussing the critical roles that silicon and software play in making AI more accessible, providing powerful compute and enabling modern economies.

On our earnings watch for the day, Albertsons Companies (NYSE: ACI ) is scheduled to announce Q3 earnings results today before the market opens. The consensus EPS Estimate is $0.66 (-24.1% Y/Y) and the consensus Revenue Estimate is $18.36B (+1.2% Y/Y). Over the last 2 years, ACI has beaten EPS estimates 100% of the time and has beaten revenue estimates 88% of the time.

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U.S. stocks on Monday kicked off the first full trading week of the new year on a positive note.

The Nasdaq ( COMP.IND ) ended 2.20% higher. The S&P 500 ( SP500 ) added 1.41%. The Dow ( DJI ) climbed 0.58%.

All 11 S&P sectors ended in the green, with the exception of Energy. WTI crude oil futures ( CL1:COM ) slipped nearly 4% after Saudi Arabia said it would cut crude prices to all regions, including its largest market in Asia.

Treasury yields were largely to the downside on Monday. The 10-year yield ( US10Y ) was down 3 basis points to 4.01%. The 2-year yield ( US2Y ) was also down 3 basis points to 4.36%.

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 in the red. The Dow is down 0.3%, the S & P 500 is down 0.3% and the Nasdaq is down 0.5%. Crude oil is up 2% at more than $72 per barrel. Bitcoin is up 4.2% and above $46,000.

In the world markets, the FTSE 100 is up 0.1% and the DAX is down 0.3%.

The biggest movers for the day premarket: Extreme Networks (NASDAQ: EXTR ) is down 6.4% following a revision in the company's Q2 guidance.

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