Alpha Coverage #109
Free Weekly Stock Market Newsletter
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This Week’s Alpha Coverage: YouTube Playlist.
Editor’s Pick:
#BTC #Bitcoin
[News] New Hampshire becomes first state to open public funds to crypto
The new law permits up to 5% of public funds to be invested in a crypto asset with a market cap of at least $500B -- a threshold that, for now, makes bitcoin (BTC-USD) the sole eligible token.
Bitcoin (BTC-USD), the world's largest crypto, boasted a market cap of $1.86T at press time.
The move lays "the groundwork for a strategic bitcoin reserve," State House Republicans in New Hampshire said in a separate X post.
Link to Seeking Alpha News Article - May 06, 2025
SPY 0.00%↑ QQQ 0.00%↑ DIA 0.00%↑ FXI 0.00%↑
[News] Top officials from U.S. and China to hold trade talks on Saturday in Geneva
The meeting is aimed at easing the escalating trade tensions between the two nations. This is the first official interaction since Trump announced broad tariffs in April.
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will meet their counterparts in Geneva. Vice Premier He Lifeng, widely regarded as China’s chief economic policymaker and trade negotiator, will represent China.
"My sense is this will be about de-escalation," Bessent told Fox News.
The discussions will likely focus on reducing broad tariffs, eliminating duties on specific products, U.S. de minimis policies, and export controls, sources told Reuters.
Link to Seeking Alpha News Article - May 07, 2025
[News] Canada clears construction of small modular reactor in boost to nuclear industry
Canada's federal government said Thursday it approved a C$20.9B (~US$15.1B) plan to begin construction of the first small modular nuclear power plant to be deployed by a G-7 country, providing a significant shot in the arm for the young industry.
Ontario Power Generation won approval to build the first of four planned reactors from GE Vernova (NYSE:GEV), following last month's decision by Canada’s nuclear regulator to issue a construction license for the new reactor at the company's Darlington New Nuclear Project site.
The estimated construction cost of the initial SMR is $7.7B; it would provide 300 MW of power, enough electricity to supply ~300K homes.
Link to Seeking Alpha News Article - May 08, 2025
SPY 0.00%↑ QQQ 0.00%↑ DIA 0.00%↑ FXI 0.00%↑ MP 0.00%↑
[News] Trump administration seeks tariff reductions and rare earths concessions in China talks - report
The Trump administration is reportedly considering a significant reduction in tariffs during weekend talks with China, aiming to ease tensions and mitigate the economic strain both countries are beginning to experience.
Sources familiar with the preparations told Bloomberg that the U.S. has set an initial goal of cutting tariffs to below 60%, a move they believe China may be willing to reciprocate.
Also high on the US wish list is securing the removal of China’s export restrictions on rare earths used to make magnets, as a range of industries face disruption, the people said.
China imposed new restrictions in April on the export of six heavy rare earth elements—metals that are refined exclusively in China, as well as rare earth magnets.
Beijing produces around 90% of the world's rare earths, a group of 17 elements used across the defense, electric vehicle, energy and electronics industries.
Progress has also been made on the fentanyl issue, according to the sources, who said separate discussions may soon take place to curb Chinese exports of the ingredients used to produce opioids.
Link to Seeking Alpha News Article - May 09, 2025
[YouTube/TCAF] The Soul of a Short-Seller | TCAF 191
On episode 191 of The Compound and Friends, Michael Batnick and Downtown Josh Brown are joined by Carson Block, Founder and Chief Investment Officer of Muddy Waters Capital to discuss: how activist short-sellers expose fraud, Carson's biggest shorts, the problem with CEO compensation, and much more!
Primarily the short thesis on $APP.
Link to Full Video (01:29 Hours) - May 09, 2025
News, Facts, Analyst & Market Commentary - Short Reads:
Trump orders sweeping 100% tariff on movies made overseas to save 'dying' Hollywood
In a move that shakes up the entertainment sector, U.S. President Donald Trump announced a sweeping 100% tariff on all movies produced outside the U.S., citing the need to protect a "dying" American film industry.
Trump claims that foreign governments are offering incentives to lure filmmakers and studios away from Hollywood, which he describes as a coordinated effort that threatens national security and acts as propaganda.
He authorized the Department of Commerce and the United States Trade Representative to institute the tariff, according to his post on the Truth Social platform.
Link to Seeking Alpha News Article - May 05, 2025
$BRK.A $BRK.B
[Newsletter Exclusive] Warren Buffett to stay on as Berkshire Hathaway chairman as board votes to make Greg Abel next CEO
Warren Buffett surprised shareholders on Saturday by announcing that he plans to recommend Greg Abel take over as CEO of the company by the end of the year.
Berkshire Hathaway’s (NYSE: NYSE:BRK.A) (NYSE:BRK.B) board has voted unanimously to name Greg Abel as the company’s next president and CEO, effective January 1, 2026.
Warren Buffett, who currently holds both the chairman and CEO title, will continue to serve as chairman of the board.
Abel is currently the vice chairman of Berkshire's (NYSE:BRK.A)(NYSE:BRK.B) non-insurance operations. He is also unit Berkshire Hathaway Energy's chairperson.
Link to Seeking Alpha News Article - May 05, 2025
US lawmaker plans to bring bill to stop smuggling of Nvidia AI chips - report
U.S. Representative Bill Foster intends to bring legislation in the coming weeks to verify the location of AI chips such those made by Nvidia (NASDAQ:NVDA) after they are sold, Reuters reported.
The initiative to keep track of chips intends to address reports of smuggling of Nvidia's chips into China in violation of U.S. export control rules, the report added.
Nvidia has claimed it cannot track its products after they are sold, according to the reports.
Foster, a Democrat from Illinois who once worked as a particle physicist, said the technology to track chips after they are sold is available, with much of it already built in to Nvidia's chips, the report noted. Independent technical experts interviewed by Reuters have also agreed.
Foster, who has designed several computer chips previously, intends to bring a bill in coming weeks that would direct U.S. regulators to come up with regulations in two main areas — tracking chips to make sure they are where they are authorized to be under export control rules, and prevent the chips from booting up if they are not properly licensed under export curb rules, the report added.
"This is not an imaginary future problem," Foster told the media outlet. "It is a problem now, and at some point we're going to discover that the Chinese Communist Party, or their military, is busy designing weapons using large arrays of chips, or even just working on (AI), which is as immediate as nuclear technology," the report added.
The technology to verify the location of chips already exists. Alphabet's (GOOGL) (GOOG) Google already tracks the location of its self-developed AI chips and others in its large network of data centers for security purposes, the report added citing people familiar with the operation.
Foster's legislation would give the U.S. Department of Commerce six months to introduce rules to require the technology.
The technology to track chips would depend on the chips communicating with a secured computer server which would use the length of time it takes for the signal to reach the server to verify where the chips are, a notion that relies on knowing that computer signals move at the speed of light, the report added.
Link to Seeking Alpha News Article - May 05, 2025
[Newsletter Exclusive] Apple 10-Q highlights tariff mitigation tools, rising inventories, service drivers: MS
“While Apple has referenced potential pricing actions or raising international pricing due to FX changes in past filings, this is the first time we could find this exact, and explicit, phrase in Apple's quarterly and annual filings, which opens the door for potential pricing increases in the September quarter (with the iPhone 17 launch),” analyst Erik Woodring wrote in a note to clients. “That said, we still assume Apple is more likely to eliminate lower-end storage SKUs over raising like-for-like pricing with its next iPhone launch.”
The filing also confirmed that Apple did indeed pull-forward finished goods and components to above-seasonal levels ahead of the tariffs going into effect, Woodring said, as inventory and vendor non-trade receivables rose 17% year-over-year to $30B, a three-year-high. Its manufacturing purchase obligations for the quarter were $38.4B, down 4% sequentially, compared to a five-year average of a 15% decline.
“Taken together, this implies nearly $70B of components and inventory on Apple or its CM's balance sheet exiting the quarter, a 3-year March quarter high and equivalent to about 80% of Apple's Product COGS in F2H25, confirming that Apple accelerated component purchases and product builds in the quarter more so than in past years,” Woodring added.
Other notable call-outs from the 10-Q include that advertising, the App Store and cloud services were the top three drivers for Apple's Services division, which saw “record” gross margins.
Link to Seeking Alpha News Article - May 05, 2025
[Newsletter Exclusive] Ocean Power wins unmanned surface vehicle contract for international defense firm
Ocean Power Technologies (NYSE:OPTT) +10.4% pre-market Monday after saying it was awarded a contract for multiple WAM-Vs for delivery to "certain Allied Forces" of vehicles, integrated sensors, and operators as a contractor-owned contractor-operated delivery in spring 2025; terms were not disclosed.
The contract is "further proof that our systems form an important part of building out the future of ocean security," President and CEO Philipp Stratmann said. "Using highly adaptable and attritable Unmanned Surface Vehicles, like our WAM-V, is a cost-efficient force multiplier for surface and seabed warfare efforts for the US Government and other Allied Forces."
Link to Seeking Alpha News Article - May 05, 2025
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Yardeni Research lowers recession odds as it echo's confidence in the U.S. economy
“We’re lowering the odds we see of a recession back to 35%, where it had been in early March,” Yardeni Research stated in an investor note.
This revision reflects several positive indicators, including a willingness by both the U.S. and China to re-engage in trade negotiations. According to Yardeni Research, both nations may suspend tariffs as they work toward a deal, with neither side able to withstand the long-term effects of an escalating trade war—particularly China.
The investment institution also anticipates that President Trump will claim success in his trade war campaign, especially as the 90-day delay on new tariffs approaches its conclusion. Such a move could help stabilize the economic outlook and minimize political risk for Republicans ahead of upcoming elections.
Link to Seeking Alpha News Article - May 05, 2025
AAPL 0.00%↑ #EpicGames
[Newsletter Exclusive] Apple files appeal after judge ruled it violated App Store-related court order
Apple (NASDAQ:AAPL) has filed an appeal after a U.S. judge said last week that the iPhone maker had violated a court order related to the App Store.
Following Judge Rogers' ruling, Apple said it would comply with the ruling, but that it strongly disagreed with the ruling and would appeal.
Bank of America said that if the ruling were to go against Apple, it could impact “billions” of dollars of high-margin revenue.
Link to Seeking Alpha News Article - May 05, 2025
GOOG 0.00%↑ MGA 0.00%↑ ZK 0.00%↑ TM 0.00%↑ $HYMLF #Waymo
Waymo continues to expand its robotaxi fleet aggressively
Waymo announced a major expansion of its autonomous ride-hailing operations to meet the growing demand, Waymo said it is investing in a new 239,000-square-foot autonomous vehicle factory in Metro Phoenix, in partnership with Magna International (MGA), which will build thousands of Jaguar I-PACE vehicles equipped with Waymo's fully autonomous technology. The facility is designed to scale production rapidly, including the integration of Waymo's sixth-generation Driver on new platforms like the Zeekr RT (ZK).
The factory features automated assembly lines and new efficiencies that allow vehicles to be validated and deployed into service within hours, significantly reducing launch time and cost. When the facility is operating at full capacity, Waymo said it will be capable of building tens of thousands of fully autonomous Waymo vehicles per year.
Waymo's expansion is supported by partnerships with companies like Moove for fleet management and recent collaborations with Toyota (TM) and Hyundai (HYMLF) to bring its technology to more vehicle models. The company's rapid growth is reflected in its ride volume, with long-term projections of tens of millions of rides annually.
Link to Seeking Alpha News Article - May 05, 2025
Uber and WeRide expand partnership to 15 more cities
Uber Technologies (NYSE:UBER) and WeRide (WRD) announced on Monday a significant expansion of their previously announced strategic partnership, adding 15 additional cities globally over the next five years, including in Europe.
Following a successful launch in Abu Dhabi and soon Dubai, the companies have committed to expanding their autonomous vehicle partnership to several new cities each year, all outside of the US and China.
In these cities, WeRide’s Robotaxi services will be available through the Uber app, and Uber will be responsible for fleet operations.
Link to Seeking Alpha News Article - May 05, 2025
[Newsletter Exclusive] Palantir raises 2025 revenue guidance to $3.89B amid 39% Q1 growth
CEO Alex Karp emphasized the company's significant momentum, noting "71% growth in U.S. commercial" and "45% growth in U.S. government business."
Chief Revenue Officer Ryan Taylor noted extraordinary demand for AIP, with U.S. commercial revenue achieving a $1 billion annual run rate.
Closed 139 deals of at least $1 million, 51 deals of at least $5 million, and 31 deals of at least $10 million
Management raised full-year 2025 revenue guidance to $3.89 billion to $3.902 billion, with adjusted income from operations expected between $1.711 billion and $1.723 billion. Adjusted free cash flow guidance was increased to between $1.6 billion and $1.8 billion.
Link to Seeking Alpha News Article - May 05, 2025
Link to Seeking Alpha News Article - May 05, 2025
[Newsletter Exclusive] Hims outlines 2030 targets with $6.5B revenue and $1.3B EBITDA projections
The company unveiled a long-term financial objective of generating at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030.
New offerings in low testosterone and menopause support are planned for later this year, with ongoing integration of lab diagnostics to improve treatment precision and expand specialty capabilities.
Full-year revenue projections for 2025 are estimated between $2.3 billion and $2.4 billion, with adjusted EBITDA anticipated between $295 million and $335 million, maintaining a 13% margin at the midpoint of guidance.
Management expects gross margins to improve starting Q2 2025, driven by economies of scale and enhanced fulfillment capabilities.
Hims & Hers reported a 50% year-over-year increase in monthly online revenue per average subMarketing efficiency improved significantly, with marketing spend decreasing to 39% of revenue, down from 46% in Q4 2024.scriber, rising to $84 in Q1 2025.
Free cash flow for the quarter was $50 million, contributing to a total cash position of $323 million.
CEO Dudum explained that the company remains on track to meet its $725 million target for weight loss revenue in 2025, supported by new launches and partnerships.
Link to Seeking Alpha News Article - May 05, 2025
[Newsletter Exclusive] State AGs sue to block Trump's halt of wind projects
A group of 17 Democrat state attorneys general filed a lawsuit Monday in an attempt to block President Trump's suspension of leasing and permitting new wind projects.
The lawsuit, led by New York state, accused Trump of exceeding his authority and said his administration violated federal administrative law by not offering any detailed justification for the suspension.
The lawsuit seeks a court order declaring the indefinite pause unlawful and barring the agencies including the U.S. Departments of Commerce and Interior and the Environmental Protection Agency from implementing Trump's directive.
Trump announced the pause on January 20, the first day of his term, when he ordered a halt of offshore wind lease sales as well as the issuance of permits, leases and loans for onshore and offshore wind projects.
The states argued in their lawsuit that Trump's orders have harmed their efforts to secure reliable, diversified sources of energy and jeopardized billions of dollars they have already invested to reduce greenhouse gas emissions to combat climate change.
Link to Seeking Alpha News Article - May 05, 2025
[Newsletter Exclusive] IBM pushes for tools to manage numerous AI agents and more U.S. investment
A new IBM study indicates that business leaders expect the growth rate of AI investments to more than double over the next two years, and 61% of CEOs are actively adopting AI agents. However, only 25% of current AI initiatives have delivered the expected return on investment, highlighting ongoing challenges with integration and disconnected technology.
Link to Seeking Alpha News Article - May 06, 2025
[Newsletter Exclusive] Pony AI, Uber ink robotaxi partnership
Robotaxi firm Pony AI (NASDAQ:PONY) is partnering with Uber Technologies (NYSE:UBER) to launch in a key market in the Middle East later this year, with a goal of scaling deployments to additional international markets in the future.
Once the service becomes available, riders requesting eligible trips through the Uber app may be offered the option to be picked up by a Pony.ai autonomous vehicle. During the initial pilot phase, these vehicles will include a safety operator on board to monitor operations, until the companies' fully autonomous commercial launch.
Link to Seeking Alpha News Article - May 06, 2025
Planet Labs signs 7-figure contract expansion with German government
Planet Labs Germany GmbH, a unit of Planet Labs PBC (NYSE:PL), announced the German Federal Ministry of the Interior and Community and the German Federal Agency for Cartography and Geodesy have signed a seven-figure contract with Planet with a one-year term and an option to renew for two more years.
The deal includes a fixed rate of all of Planet’s data products over Germany, including insights from Planetary Variables, water monitoring services from Planet’s partner EOMAP and access to Planet’s Insights Platform.
Link to Seeking Alpha News Article - May 06, 2025
Tesla sales drop by double-digits in UK and Germany
According to data from the UK’s Society of Motor Manufacturers and Traders and Germany’s federal motor transport authority (KBA), the company sold 62% fewer cars in the UK and 46% less in Germany in April, following the trend of disappointing sales across Europe.
Despite growing demand for battery electric vehicles (BEVs) across Europe—with sales rising 53.5% in Germany and 8.1% in the UK—Tesla (NASDAQ:TSLA) faced declining sales, a reflection of the backlash against the company and its CEO, Elon Musk.
Link to Seeking Alpha News Article - May 06, 2025
UBER 0.00%↑ #TrendyolGO
[Newsletter Exclusive] Uber picks up Trendyol GO as its aggressive acquisition strategy continues
Uber Technologies (NYSE:UBER) disclosed on Tuesday that it entered into an agreement with Trendyol Group to acquire an 85% controlling stake in its Trendyol GO online meal and grocery delivery business in Türkiye for approximately $700 million in cash on a cash and debt-free basis.
The acquisition of Trendyol GO is subject to regulatory approval and other closing conditions and is expected to close in the second half of 2025.
Link to Seeking Alpha News Article - May 06, 2025
[Newsletter Exclusive] Google suggests remedies to prevent breaking of its ad publisher tool
The company said it would make real-time bid amounts for open web display ads from its ad exchange available to all rival publisher ad servers, give publishers the option to set different price floors for different bidders when using Google Ad Manager, and not use “first look" and “last look” for open-web display ads, among other things.
The Justice Department on Monday proposed, under its remedies, to make Google sell its ad manager and also its ad exchange to curb the company's anticompetitive practices.
The company disagreed with the court’s ruling on Google Ad Manager and said it would appeal the decision.
On Friday, U.S. Judge Leonie Brinkema set a September trial date to hear remedies from the company and the DOJ following a ruling last month that the tech giant dominated ad spaces on the internet by having an illegal stronghold in markets for publisher ad servers and the market for ad exchanges.
Link to Seeking Alpha News Article - May 06, 2025
[Newsletter Exclusive] Array Technologies jumps on Q1 results, bullish solar outlook
Revenue was $302.4 million, with a gross margin of 25.3% and adjusted gross margin of 26.5%, for the quarter ended in March, beating the average estimate of $264 million among Wall Street analysts.
The company reported net income of $2.3 million, or $0.02 a share, while adjusted income was $0.13, beating the consensus estimate of $0.09 a share.
The company also noted a $2.0 billion backlog in executed contracts and awarded orders as of March 31, reflecting an 18% sequential increase in contracting during the quarter.
He pointed to the company’s ability to offer 100% domestic content trackers under the Inflation Reduction Act (IRA), a move he described as critical for resilience in a geopolitically volatile environment.
Array's (NASDAQ:ARRY) shipped its second-highest volume since 2023, a signed of traction in the solar tracking market, particularly as utility-scale solar continues to expand as the lowest-cost energy source, the company said.
Link to Seeking Alpha News Article - May 06, 2025
[Newsletter Exclusive] Constellation Energy rallies to lead S&P gainers, doubles down on AI data center power plans
Constellation Energy (NASDAQ:CEG) +10.5% to top the S&P 500 leaderboard in Tuesday's trading, as the largest U.S. operator of nuclear plants easily exceeded Q1 revenue estimates and reaffirmed its full-year adjusted earnings guidance despite missing Q1 consensus, citing rising demand for energy from artificial intelligence applications.
Q1 net income sank to $118M, or $0.38/share, from $883M, or $2.78/share, in the year-earlier quarter, while operating revenues rose 10.2% Y/Y to $6.79B, far above the $5.44B analyst consensus estimate.
The company reaffirmed guidance for FY 2025, seeing earnings of $8.90-$9.60/share, with the $9.25 midpoint.
Constellation (NASDAQ:CEG) is increasingly focused on potential data center projects that connect to the U.S. electrical grid in a pivot away from its previous emphasis on fueling the giant server warehouses directly from its power plants, company executives said, according to Reuters.
Link to Seeking Alpha News Article - May 06, 2025
[Newsletter Exclusive] AMD ticks up as data center strength buoys Q1 results, guidance
For the period ending March 30, AMD earned $0.96 per share as revenue rose 36% year-over-year to come in at $7.44B. Data Center revenue rose 57% year-over-year to $3.7B, aided by its MI300 AI accelerator and its Instinct and EPYC processors.
Looking ahead, AMD said it expects second-quarter sales to be between $7.1B and $7.7BB, with the mid-point above the $7.24B consensus.
Link to Seeking Alpha News Article - May 06, 2025
Trump administration will seek to speed up nuclear deployment - Axios
The White House is preparing executive actions to accelerate the deployment of nuclear reactors, aiming to meet rising energy demands.
The expected orders will likely lean on the Departments of Defense (DOD) and Energy (DOE) to bypass potential licensing delays from the Nuclear Regulatory Commission (NRC).
The plans, described as broad in scope and potentially well-received by the nuclear industry, reflect President Trump's push to achieve the first commercial deployment of an advanced reactor before his term ends.
Link to Axios News Article - May 06, 2025
[Newsletter Exclusive] Solid Power targets 75 metric tons of sulfide electrolyte capacity by 2026
CEO John Van Scoter highlighted progress on Solid Power's 2025 operational goals, emphasizing the installation of a continuous manufacturing pilot line for sulfide electrolyte production at the SP2 facility. This project aims to expand production capacity to 75 metric tons per year by 2026.
Developmental strides were made with SK On, as the company approaches the completion of factory acceptance testing for the solid-state pilot line designed for SK On's use. Site acceptance testing is expected later this year.
Total cash investment for the quarter was $28.7 million, including $2.4 million in capital expenditures related to the continuous electrolyte production pilot line.
The company ended the quarter with total liquidity of $300 million, including $2.2 million in contract receivables and $10.4 million in current liabilities.
Chris Pierce, Needham: Asked about 2025 revenue trajectory and timing for customer revenue from electrolytes. CFO Linda Heller stated that revenue this year is primarily driven by collaborative agreements, including SK On, with revenue from electrolyte sampling remaining at relatively smaller levels. CEO Van Scoter added that significant electrolyte revenue from customers is expected around 2027-2030.
Chris Pierce: Inquired about updates on the Department of Energy (DOE) grant. CFO Heller clarified that $1.5 million was received in Q1 under the grant and confirmed it is a grant, not a loan.
Link to Seeking Alpha News Article - May 06, 2025
[Newsletter Exclusive] Tempus AI raises revenue guidance to $1.25B for 2025, supported by new $200M AstraZeneca deal
CEO Eric Lefkofsky highlighted a record quarter for Tempus, with quarterly revenue increasing 75.4% year-over-year to $255.7 million.
Lefkofsky announced a three-year, $200 million data and modeling license agreement with AstraZeneca and Pathos to build the world’s largest foundation model in oncology. This agreement increased Tempus’ total remaining contract value to over $1 billion as of April 30, 2025.
Lefkofsky responded that discussions with other pharmaceutical partners had already begun, noting strong interest in similar foundational model development agreements.
Management raised the full-year 2025 revenue guidance to $1.25 billion, representing approximately 80% year-over-year growth.
Lefkofsky noted that Tempus is on track to be adjusted EBITDA positive by the end of the year, achieving a significant milestone for the company.
Link to Seeking Alpha News Article - May 06, 2025
[Newsletter Exclusive] Tesla's China-made EV sales drop 6% Y/Y in April as local rivals surge
The Texas-based carmaker sold 58,459 China-made Model 3 and Model Y vehicles in the month, according to data from the China Passenger Car Association. Deliveries also fell 25.8% from 78,828 units sold in the previous month.
Tesla’s China-made EV deliveries are now down for the seventh consecutive month when compared to last year. The performance also lags major Chinese rivals by a significant margin. Chinese rival BYD (OTCPK:BYDDF) (OTCPK:BYDDY) reported a 19.4% Y/Y jump in passenger vehicle sales to 372,615 vehicles last month.
Other local EV competitors, including NIO (NIO) and XPeng (XPEV) also reported higher sales on an annual basis.
Link to Seeking Alpha News Article - May 07, 2025
[Newsletter Exclusive] Cisco unveils Quantum chip, to open quantum lab
Cisco Systems (NASDAQ:CSCO) unveiled a quantum chip and will open a quantum lab.
Cisco said it is creating a quantum networking technology that will be the foundation for the quantum internet, making quantum computing practical years ahead of current timelines.
"Our approach could accelerate impactful quantum computing and networking applications from decades away to just 5-10 years," said Vijoy Pandey, senior vice president, Outshift by Cisco, in a blog post on Tuesday.
The company introduced the Cisco’s Quantum Network Entanglement Chip, a research prototype and breakthrough technology that enables quantum networks to scale and connect quantum processors for practical applications, according to the company.
The prototype chip was developed in collaboration with UC Santa Barbara.
Cisco said its entanglement chip stands out because — it works with existing infrastructure; functions at room temperature as a miniaturized Photonic Integrated Chip, or PIC, making it suitable for scalable system deployment today.
The chip is also energy efficient as it consumes less than 1mW of power; and has high performance as there are 1 million high-fidelity entanglement pairs per output channel, with a rate of up to 200 million entanglement pairs per second in chip, according to the company.
The company is opening the Cisco Quantum Labs — its dedicated research lab in Santa Monica, California, where quantum scientists and engineers are building quantum networking technologies.
Besides the entanglement chip, Cisco said it is using the lab to advance research prototypes of other critical components to complete its vision of the quantum networking stack, including entanglement distribution protocols, a distributed quantum computing compiler, Quantum Network Development Kit, or QNDK, and a Quantum Random Number Generator, or QRNG, using quantum vacuum noise.
Link to Seeking Alpha News Article - May 07, 2025
[Newsletter Exclusive] Uber falls after Q1 revenue falls short of expectations
Income from operations soared to $1.2 billion from $172 million a year ago. Free cash flow was up 66% to $2.25 billion.
Link to Seeking Alpha News Article - May 07, 2025
[Newsletter Exclusive] AMD impresses Wall Street, but China worries, AI concerns remain
“AMD numbers were very good,” Morgan Stanley analyst Joseph Moore wrote in a note to clients. “While the argument could be made that the client numbers are too good in an environment of fear around pull ins, the AI and traditional server matters more and they are doing well there.”
Moore added that he was “surprised” the stock gave back much of the gains. However, while artificial intelligence has not driven earnings, it has driven the multiple and a “lack of visibility” is still an issue, despite management optimism.
“Somewhat in contrast to current sentiment, we still believe that we are in a very strong investment phase for AI hardware, which should help, but in a very competitive market where NVIDIA and the ASIC vendors are all moving quickly we will need to see a very strong MI400 offering next year for AMD to cement that position,” Moore added. “AMD's position in all of its other markets remains strong, given Intel's disarray, but AI remains uncertain.”
Jefferies analyst Blayne Curtis had a similar take and noted that AI growth is “the primary metric” for the stock and without it, the back half of the year could be an issue.
“We understand that the China ban is a headwind, but that was supposed to be upside and now it's unclear just how much AI revenue will grow for the year,” Curtis wrote. “Client and Server revenue beat but unit share shifted back to INTC. Overall estimates move higher and that is likely viewed as a temporary positive vs. low expectations, but AI growth is the primary metric for the stock and on that front estimates move lower. Additionally, this might not be the last cut as the growth outlook for the year for AI requires a significant 2H25 ramp tied to launch of MI350 and we still don't hear of any real traction.”
Evercore ISI analyst Mark Lipacis was a bit more positive and reiterated his Outperform rating and $126 price target after the results and guidance.
“AMD’s suggestion that its [data center] GPU business (Instinct) grows by over 60% [quarter-over-quarter] to $1.6B and strong [double-digits] in 2025 is consistent with our AI channel checks that near-term hyperscalers are deploying Instinct for inferencing workloads due in part to supply shortage of accelerators as well as improvements in its ROCm software stack, and long-term hyperscalers want to make AMD a larger part of internal workloads.”
Wells Fargo analyst Aaron Rakers also reiterated his Overweight rating, as he said the company needed to get past the first-quarter results and guidance for the coming quarter — especially with the MI308X China ban — “in order to provide investors [with] a cleaner catalyst path into mid/2H25.”
Link to Seeking Alpha News Article - May 07, 2025
[Newsletter Exclusive] EVs will overtake gas-powered cars as market dynamics shift dramatically
Market share data for 2024 revealed a dramatic consumer shift away from traditional gas-powered vehicles, with ICE market share declining by approximately 5 percentage points annually since 2019.
While plug-in hybrid electric vehicles have recently experienced significant relative growth, battery electric vehicles have shown faster overall growth throughout the past decade, Akaash, research associate of Autonomous Technology and Robotics at Ark Investments said.
“Innovative competitors capitalizing on declining battery costs are positioned to introduce much less expensive BEVs (battery electric vehicles),” Akaash said, and added that the potential emergence of commoditized robotaxi fleets could further accelerate ICE vehicle decline.
Link to Seeking Alpha News Article - May 07, 2025
#OpenAI
OpenAI launches initiative to partner with governments under the Stargate project
OpenAI, the generative artificial intelligence startup backed by Microsoft (NASDAQ:MSFT), on Wednesday announced a new initiative called OpenAI for Countries within the Stargate project.
As part of the initiative, OpenAI would partner with countries, in coordination with the U.S. government, to develop their respective data center capacities.
OpenAI would also provide a customized ChatGPT aimed at improving healthcare and education, among others.
Link to Seeking Alpha News Article - May 07, 2025
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Trump not willing to lower tariffs on China for trade negotiations
U.S. President Donald Trump on Wednesday said he will not cut back on China tariffs, despite Chinese officials saying it would be necessary for substantive negotiations.
During a conference where he swore in the ambassador to the People's Republic of China, David Perdue, Trump simply answered “no” to a reporter’s question asking if he would be open to pulling back tariffs on China to get the Asian nation to the negotiating table.
The U.S. tariff rate on China currently stands at 145%, while China has retaliated with a 125% rate.
Link to Seeking Alpha News Article - May 07, 2025
[Newsletter Exclusive] Trump administration set to alter export curb controls, end AI Diffusion rule: report
The Trump administration is set to kill the so-called AI Diffusion rule as part of a broader plan to alter semiconductor trade restrictions, Bloomberg reported.
The repeal, which has not yet been finalized, would end the so-called AI Diffusion rule, the news outlet added, citing people familiar with the matter.
Link to Seeking Alpha News Article - May 07, 2025
Joby outlines pilot-on-board flight milestones and Dubai service launch plans
Manufacturing progress was noted with the fifth aircraft powered on from the pilot production line. Bevirt indicated that learnings from these operations will support Joby’s scaled manufacturing in Marina and Ohio.
The expanded Marina facility will double manufacturing capacity.
Executive Chairman Paul Sciarra elaborated on Joby’s three revenue models: direct sales, partnerships, and Joby-operated air taxi services.
Management reaffirmed plans to begin flight testing in Dubai mid-year and to commence TIA flights with the FAA within 12 months.
The first commercial passenger operations in Dubai are targeted for late 2025 or early 2026.
Link to Seeking Alpha News Article - May 07, 2025
Apple's Cue says iPhone maker exploring adding AI search as queries fall
Eddy Cue, Apple's (NASDAQ:AAPL) senior vice president of services, said on Tuesday that the company is exploring the option of adding artificial intelligence search options to its Safari web browser.
Cue, who made the comments at Google's (NASDAQ:GOOG) (NASDAQ:GOOGL) antitrust trial, added that Perplexity AI and Anthropic, maker of the Claude chatbot, could be options. Cue said that Apple has been “pretty impressed with what Perplexity has done so we've started some discussions.”
Searches in Apple's Safari browser fell for the first time in April, something that has “never happened in 20 years,” Cue added.
The long-time Apple exec also admitted that consumers “may not need an iPhone 10 years from now” due in part to artificial intelligence.
Link to Seeking Alpha News Article - May 07, 2025
[Newsletter Exclusive] Google rebounds after search giant issues rebuke to Apple exec's worries
Google (NASDAQ:GOOG) (NASDAQ:GOOGL) issued a rebuke to Apple (NASDAQ:AAPL) executive Eddy Cue's comments about a search decline and said overall queries continue to grow.
“We continue to see overall query growth in Search,” Google said. “That includes an increase in total queries coming from Apple’s devices and platforms. More generally, as we enhance Search with new features, people are seeing that Google Search is more useful for more of their queries — and they’re accessing it for new things and in new ways, whether from browsers or the Google app, using their voice or Google Lens. We’re excited to continue this innovation and look forward to sharing more at Google I/O.”
Link to Seeking Alpha News Article - May 08, 2025
[Newsletter Exclusive] CrowdStrike CEO after company layoffs: 'AI flattens our hiring curve'
Artificial intelligence "flattens our hiring curve," CrowdStrike (NASDAQ:CRWD) CEO George Kurtz told employees when announcing layoffs of about 5% of the cybersecurity firm's global workforce.
"We're operating in a market and technology inflection point, with AI reshaping every industry, accelerating threats, and evolving customer needs," Kurtz wrote in a letter to staff.
Link to Seeking Alpha News Article - May 08, 2025
[Newsletter Exclusive] AppLovin soars 15% after strong Q1 as analysts remain bullish
Jefferies kept its Buy rating and raised the price target to $530 from $460 on the shares of AppLovin — which operates a platform for advertisers to boost marketing and monetization of their content.
“Despite highly impressive 71% y/y ad rev [revenue] growth, we believe the fastest growth still lies ahead,” said analysts led by Brent Thill.
The analysts added that with likely less than 1,000 web-based advertisers, AppLovin only has 0.1% of the total addressable advertisers on its platform, with self-serve a potentially major growth unlock. The second quarter revenue guidance of about 4 to 5% quarter-over-quarter growth appears conservative and likely does not embed the benefit from self-serve tools rolling out.
“Based on our improved optimism, we are raising our [estimates] and PT to $530,” said Thill and his team.
Morgan Stanley maintained its Overweight rating and increased the price target to $420 from $350.
“APP delivered a strong beat as the core gaming ads outperformed and non-gaming continued to build momentum with an estimated ~$150mn contribution to 1Q,” said analysts led by Matthew Cost.
Link to Seeking Alpha News Article - May 08, 2025
Nvidia says it 'welcomes' Trump administration's new AI policy
Nvidia (NASDAQ:NVDA) said late on Wednesday that it “welcomes” the Trump administration's new policy on artificial intelligence, amid reports that it will end the so-called AI Diffusion rule.
On Thursday, Bernstein analyst Stacy Rasgon said he believes there will be more to come related to ending the policy. However, timing is still uncertain, “meaning there will probably continue to be some overhang until we get clarity,” Rasgon wrote in a note to clients.
“For now though, we’ll take even a temporary reprieve, though we remain mindful that the issue is probably not put to bed,” he added.
It was reported on Wednesday that the Trump administration will kill the so-called AI Diffusion rule as part of a broader plan to alter semiconductor trade restrictions. The repeal, which has not yet been finalized, would end the so-called AI Diffusion rule, Bloomberg reported, citing people familiar with the matter.
Link to Seeking Alpha News Article - May 08, 2025
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Trump says China wants to make a trade deal, is open to lowering tariffs if talks go well
U.S. President Donald Trump on Thursday said that China "very much" wanted to make a trade deal, and that he "could be" open to lowering the tariff rate on the Asian nation if upcoming talks in Switzerland go well.
When asked whether he would be open to lowering current tariffs on Chinese imports if the talks go well, Trump said, "well, it could be."
Link to Seeking Alpha News Article - May 08, 2025
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[Newsletter Exclusive] Apple working on chips for glasses, AI servers: report
Apple (NASDAQ:AAPL) is working on processors specifically geared towards wearable technology, such as smart glasses, as well as Macs and artificial intelligence servers, Bloomberg reported.
The processor for the smart glasses is based on the one used in the Apple Watch, due to its power efficiency, the news outlet added. It has been further customized to make it more efficient and allow it to control multiple cameras.
Mass production of the processor could start by the end of 2026 or 2027, with Taiwan Semiconductor (TSM) as the manufacturing partner.
The other chips that the Tim Cook-led company is working on include one that may be known as the M6 and M7 for Macs, and a more advanced one, known as Sotra, Bloomberg added.
The AI server chips could be used specifically for its in-house servers. It was reported late last year that Apple was working with Broadcom (AVGO) on the project.
Link to Seeking Alpha News Article - May 08, 2025
[Newsletter Exclusive] FDA to speed up AI rollout to accelerate drug reviews
The U.S. Food and Drug Administration (FDA) on Thursday announced an expedited plan to implement artificial intelligence (AI) across all FDA centers by June 30 in a bid to speed up the review process of new drugs.
The decision comes after the successful completion of an AI-assisted scientific review program as a pilot project for the FDA reviewers, the agency said.
Following its agency wide implementation, the FDA scientists and subject-matter experts will use generative AI models to conduct tedious, repetitive tasks that delay drug reviews with less time, the FDA added.
“The agency-wide deployment of these capabilities holds tremendous promise in accelerating the review time for new therapies,” FDA Commissioner Martin Makary noted.
Link to Seeking Alpha News Article - May 08, 2025
Rocket Lab partners with U.S. Air Force for Neutron launch
Rocket Lab (NASDAQ:RKLB) said on Thursday that it will launch its new medium-lift reusable rocket Neutron for the U.S. Air Force Research Laboratory for a Rocket Cargo mission that supports point-to-point cargo transportation. The mission is scheduled for a return-to-Earth Neutron launch no earlier than 2026.
The launch contract will see Neutron execute a Rocket Cargo survivability experiment under the AFRL Rocket Experimentation for Global Agile Logistics solicitation, an effort by the Department of Defense to create a rocket-based point-to-point transportation system to quickly and rapidly deliver cargo around the world with commercial launch providers.
Rocket Lab continues to target the first launch of Neutron in the second half of 2025, with a focus on scaling production and operational readiness.
Link to Seeking Alpha News Article - May 08, 2025
Link to Seeking Alpha News Article - May 08, 2025
D-Wave Quantum announces Advantage2 system general availability by Q2 2025
Baratz emphasized the company’s technical milestones, including the calibration of Advantage2 quantum processors with over 4,400 qubits, achieving doubled coherence time and increased energy scale. He also mentioned that the Advantage2 system will be generally available by the end of Q2 2025.
The company reported Q1 2025 revenue of $15 million, representing a significant increase from the same period in the previous year, primarily due to the first Advantage system sale.
Gross profit was $13.9 million, with a gross margin of 92.5%. Net loss for the quarter was $5.4 million, or $0.02 per share, marking the lowest quarterly loss since the company became public.
Link to Seeking Alpha News Article - May 08, 2025
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[Newsletter Exclusive] Apple urges Appeals Court to pause judge's order on reforming App Store
On Wednesday, Apple filed an appeal with the Ninth Circuit US Court of Appeals, looking to pause the part of last week’s ruling that stops it from charging commissions on transactions related to outside the App Store and from controlling the language and app design that developers use to drive their customers to their own websites to make payments.
“Without a stay, these extraordinary intrusions into Apple’s business will cause grave irreparable harm. Depriving Apple of control over core features of the App Store is, standing alone, sufficient to warrant a stay,” Apple said in its filing.
Link to Seeking Alpha News Article - May 08, 2025
Nvidia to downgrade H20 chips for China after U.S. export restrictions - report
Nvidia (NASDAQ:NVDA) is set to release a downgraded version of its H20 artificial intelligence (AI) chip for the Chinese market within the next two months in response to tightened U.S. export restrictions that have blocked its sale, Reuters reported, citing sources familiar with the matter.
This move aims at maintaining the chipmaker's (NASDAQ:NVDA) presence in one of its biggest markets while complying with evolving U.S. regulations designed to limit China's access to advanced semiconductor technologies.
Nvidia (NVDA) has worked on new technical specifications for the revised chip—including substantial reductions in performance, most notably a significant decrease in memory capacity and possibly other adjustments, according to the report.
China amounted to about 13% of Nvidia's total sales for the fiscal year ended January 2025.
Link to Seeking Alpha News Article - May 09, 2025
[Newsletter Exclusive] Aurora innovation outlines plans for commercialization and scaling autonomous trucking in 2025
CEO Chris Urmson announced that Aurora has commenced driverless commercial operations, with trucks making regular deliveries for Uber Freight and Hirschbach between Dallas and Houston. Over 4,000 driverless miles have already been completed.
CFO David Maday reported first-quarter operating expenses, including stock-based compensation, at $211 million. Excluding stock-based compensation, expenses were $177 million. Pilot revenue was $871,000, a 22% increase quarter-over-quarter.
Management reiterated that they aim to raise $650 million to $850 million in additional capital to support operations until achieving positive free cash flow, targeted in 2028.
Aurora reported a first-quarter cash use of $142 million, with capital expenditures totaling $8 million. Quarterly cash use is projected to average $175 million to $185 million for the remainder of 2025.
The company ended the quarter with $1.2 billion in cash and short-term investments, extending its operational runway into Q4 2026.
Aurora will begin recognizing driverless revenue in Q2 2025, marking a shift in its revenue model.
Link to Seeking Alpha News Article - May 09, 2025
[Newsletter Exclusive] Kokai adoption, high programmatic ad market share drives Trade Desk's results
The company said it gained momentum in business through their AI-powered platform, Kokai, which has been adopted by two-thirds of its clients and is eyeing full adoption by the end of the year.
"Amid increased macro volatility to start the year, 2025 is shaping up as an important time for marketers. Leading marketers are looking for ways to embrace the open internet, where their consumers are spending most of their time, to drive business differentiation and growth. Kokai is giving them more power than ever to accomplish that," CEO Jeff Green said in a statement.
Kokai helped deliver a 24% reduction in cost per conversion and a 20% lower cost per acquisition, the company said during its earnings call.
Link to Seeking Alpha News Article - May 09, 2025
Charts & Technicals:
AMD in charts: Data Center revenue rises 57% Y/Y
Link to Seeking Alpha News Article - May 06, 2025
Uber in charts: Delivery revenue up 17.5% Y/Y in Q1 and gross bookings +15%
Link to Seeking Alpha News Article - May 07, 2025
Shopify in charts: Q1 sees a sequential seasonal dip in segment revenues and Y/Y growth across all metrics
Link to Seeking Alpha News Article - May 08, 2025
2025
Disclosure: We own positions in some/all of the tickers mentioned in this article.
