On Thursday, July 10th, a significant development occurred as the Pentagon decided to invest $400 million in MP Materials, making it the largest stakeholder in the American rare earth miner. This move is intended to lessen the nation’s dependency on China for rare earths, which are crucial for producing electronics, cars, and defense technologies. Following this announcement, stocks saw a remarkable increase of over 60% early in the day.
In another noteworthy update, the Nasdaq achieved a new record, with Nvidia’s stock market value pushing beyond $4 trillion, although it closed just shy of that level. Nvidia shares were on another upswing today, while CEO Jensen Huang is set to attend the International Supply Chain Expo in Beijing next week, a visit reminiscent of last September leading up to the introduction of Chinese chips.
Airline stocks also made headlines. Delta Air Lines raised its annual profit forecast after reporting quarterly earnings that exceeded expectations, resulting in a 13% rise in its shares.
Wedbush analyst Dan Ives projected that Microsoft could be the next company to hit the $4 trillion mark, possibly reaching $5 trillion in the next year and a half. He emphasized that the AI boom is just starting to gain momentum.
Goldman Sachs released an extensive report focused on the semiconductor industry, including Nvidia and firms like Broadcom, among others such as Advanced Micro Devices and Marvell.
Taiwan Semiconductor Manufacturing Company, which produces chips for Nvidia and others, reported a quarterly revenue increase of nearly 39%, surpassing predictions. They will be sharing a full quarterly outlook next week.
Keybanc raised its price target for Synopsys from $520 to $610, noting that the U.S. is considering lifting trade restrictions on China’s chip design software, which is critical for Nvidia.
Piper Sandler upgraded Oracle’s rating from Neutral to Overweight, increasing its price target from $190 to $270. The shares closed at $235 yesterday, with analysts remaining optimistic due to recent CIO research findings.
Bank of America has also improved its price target for Meta Platforms, raising it from $690 to $765, crediting recent investments in smart glasses through brands like Ray-Ban and Oakley.
Lastly, KeyBanc lifted its Netflix price target from $1,070 to $1,390, anticipating that live events, price hikes, and advertising expansions will foster double-digit revenue growth and a near $40 Earnings Per Share over the medium term.
