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Editor’s Pick:
Nvidia to begin mass production of China-focused AI chip in the second quarter of 2024
Citing people familiar with the matter, Reuters reported that initial production volume of the H20 chip will be limited, with the company looking at primarily fulfilling orders for major customers.
Originally scheduled for launch last November, H20 is the most powerful of the three China-focused chips Nvidia (NVDA) developed to comply with U.S. export restrictions. The chipmaker is yet to announce the sale of any of the three chips.
Nvidia also took the wraps off its GeForce RTX 40 SUPER Series family of GPUs, available starting on Jan 17. The updated GPUs include the RTX 4080 Super, which will retail for $999, $200 less than the RTX 4080.
Link to Seeking Alpha News Article - Jan. 08, 2024
CCJ 0.00%↑ URNM 0.00%↑ URA 0.00%↑
Uranium producers jump as DoE seeks contract bids for domestic production
Uranium stocks surge in Tuesday's trading after the U.S. Department of Energy issued a request for proposals from enrichment service companies to establish a domestic supply of fuels using high assay low enriched uranium, that is enriched up to 20%, compared with traditional uranium fuel used in today's reactors of ~5%.
High assay low enriched uranium is not commercially available from U.S.-based suppliers, and currently is available only in commercial levels from Russia.
Centrus (LEU) is the only U.S. company with a license to produce HALEU and is supplying the DoE with a small amount of the fuel for demonstration purposes.
Link to Seeking Alpha News Article - Jan. 09, 2024
#BTC
SEC approves spot bitcoin ETFs
The U.S. Securities and Exchange Commission approved 11 spot bitcoin exchange-traded products on Wednesday after years of rejecting ETF applications.
The bitcoin (BTC-USD) ETFs that were approved are Grayscale Bitcoin Trust (OTC:GBTC), iShares Bitcoin Trust (IBIT), Valkyrie Bitcoin Fund (BRRR), Ark 21Shares Bitcoin Trust (ARKB), Invesco Galaxy Bitcoin ETF (BTCO), VanEck Bitcoin Trust (HODL), WisdomTree Bitcoin Trust (BTCW), Fidelity Wise Origin Bitcoin Trust (FBTC), Bitwise Bitcoin ETF (BITB) and Franklin Bitcoin ETF (EZBC), and Hashdex Bitcoin ETF (DEFI)
On Wednesday night, Bitcoin was trading just above $46,000.
Link to Seeking Alpha News Article - Jan. 10, 2024
OpenAI’s custom GPT Store is now open for business
OpenAI’s GPT Store, where users can share their custom chatbots launched Wednesday after a monthslong delay. The store brings more potential use cases to ChatGPT and expands OpenAI’s ecosystem beyond what the company builds for customers.
Since announcing the GPT Builder program in November, OpenAI said more than 3 million bots — called GPTs — have been created by users.
The platform lets people who’ve created their own chatbots publicly share their versions of ChatGPT. So far, only those who subscribe to OpenAI’s paid tiers can make and use custom GPTs.
OpenAI also announced it will start a revenue sharing program with GPT creators in the first quarter of the year.
The GPT Store will roll out to users of ChatGPT Plus and Enterprise users, along with subscribers to a new tier called Team.
ChatGPT Team is a paid version of ChatGPT targeted for smaller teams of around 150 people.
Link to The Verge News Article - Jan. 10, 2024
News, Facts, Analyst & Market Commentary - Short Reads
Lithium prices poised to continue lower, report says, but Janus sees bottom
Lithium prices are not expected to return to previous high levels reached in 2022 and early 2023 before 2025 due to rising supply, subdued Chinese demand and a lackluster U.S. electric vehicle market, Australia's government, which mined about half the world’s lithium in 2022 said in a recent analysis.
Lower spot lithium prices may make electric vehicles and batteries less expensive but they could also hurt project investment.
But Janus Henderson Investors sees lithium as one of its top commodity bets for 2024, believing the pullback in lithium prices appears close to a bottom.
Daniel Sullivan, the firm's head of global natural resources, thinks the lithium market may normalize in the early part of this year, creating conditions for a recovery.
Link to Seeking Alpha News Article - Jan. 06, 2024
United Airlines finds loose bolts in Boeing 737 Max 9 planes
United Airlines (NASDAQ:UAL) found loose bolts on multiple Boeing (NYSE:BA) 737 Max 9 planes during inspections, the carrier said Monday.
The Federal Aviation Administration had ordered the inspections after a metal door plug blew off an Alaska Airlines (NYSE:ALK) plane soon after takeoff on Friday.
"Since we began preliminary inspections on Saturday, we have found instances that appear to relate to installation issues in the door plug – for example, bolts that needed additional tightening," United's (UAL) statement said. "These findings will be remedied by our tech ops team to safely return the aircraft to service."
It's bad news for Boeing (BA) shareholders as the stock closed over 8% lower on Monday Aerospace supplier Spirit AeroSystems (NYSE:SPR), which manufactures and installs the door plugs in question, also tumbled and closed over 11% lower.
Link to Seeking Alpha News Article - Jan. 08, 2024
Apple unveils US Vision Pro launch date
Apple's (NASDAQ:AAPL) Vision Pro mixed reality headset will launch in the U.S. on February 2, the company announced on Monday.
“The era of spatial computing has arrived,” Tim Cook, Apple’s CEO, said in a statement. “Apple Vision Pro is the most advanced consumer electronics device ever created. Its revolutionary and magical user interface will redefine how we connect, create, and explore.”
Pre-orders for the device, which starts at $3,499 for 256GB worth of storage, will be available on January 19 at 8 a.m. ET, the company said.
Link to Seeking Alpha News Article - Jan. 08, 2024
[Newsletter Exclusive] Apple's year of artificial intelligence is here: Morgan Stanley
Apple's (NASDAQ:AAPL) opportunity in so-called "Edge AI" is getting Morgan Stanley excited.
Edge artificial intelligence is when AI computations are done on the device where the data is created, such as a smartphone or PC, compared to the cloud or offsite data center.
Apple is accelerating its generative AI efforts and large language model-enabled operating systems and iPhones are probably closer than expected, Morgan Stanley analysts led by Erik Woodring wrote. The analysts cited a recent increase for job posts in Deep Learning and Natural Language Processing roles.
Apple has developed a method to utilize NAND flash to power larger LLMs that, to-date, would not be possible to run on-device with current levels of dynamic random access memory, Morgan Stanley said.
Morgan Stanley previously suggested Apple could bring generative AI to Siri or the iPhone directly.
The investment bank reiterated an Overweight rating and $220 price target on the stock.
Link to Seeking Alpha News Article - Jan. 08, 2024
Rocket Lab gives details on $515M December contract; sets 2024 first mission launch window
The company would act as the prime contractor for the firm-fixed-price agreement, leading the design, development, production, testing, and operations of the satellites, including procurement and integration of the payload subsystems.
All 18 satellites will integrate subsystems and components built in-house by Rocket Lab, including solar panels, structures, star trackers, reaction wheels, radio, flight software, avionics, and launch dispensers.
In a separate release, Rocket Lab also announced that it has set the launch window for its first mission of 2024.
The "Four of a Kind" mission is scheduled to launch no earlier than January 18 between 19:15-20:00 NZT from Rocket Lab Launch Complex 1 in New Zealand.
The mission will deploy four Space Situational Awareness (SSA) satellites for Spire Global's customer NorthStar Earth & Space.
Link to Seeking Alpha News Article - Jan. 08, 2024
Rivian's used vehicle prices are holding up - why that may boost the stock
Needham kept Rivian Automotive (NASDAQ:RIVN) slotted as a Conviction List pick after seeing strong results from a R1T inventory survey and noting solid R1T and R1S demand trends. Of note, Rivian Automotive (RIVN) used prices were observed to continue to hold up better than peers in Needham's latest electric vehicle price tracker, with RIVN also citing strength in used vehicle prices as positive leverage when negotiating prices with suppliers ahead of R1 growth and R2 planning.
Link to Seeking Alpha News Article - Jan. 09, 2024
Tesla launches upgraded Model 3 in North America at unchanged prices
Tesla (NASDAQ:TSLA) unveiled the revamped edition of its Model 3 sedan in North America on Wednesday, but maintained the existing price points, as per information available on the company's website and a post on X.
Presently, the Model 3's rear-wheel-drive variant is priced at $38,990, while the long-range variant carries a cost of $45,990. Notably, Tesla (TSLA) has enhanced the range of its long-range variant to 341 miles, an improvement from the previous 333 miles.
The refreshed versions of both variants come with notable enhancements, such as a rear display for backseat passengers, the introduction of two new colors, "Stealth Grey and Ultra Red," and a fresh wheel design, as per Tesla's official website.
Tesla initially introduced the restyled Model 3 in China in September at an elevated price. The upgraded model became available for purchase in Europe a month later.
Link to Seeking Alpha News Article - Jan. 10, 2024
WMT 0.00%↑ GOOG 0.00%↑ GOOGL 0.00%↑
Walmart to bring drone deliveries to millions more in Texas
Walmart (NYSE:WMT) is set to make the largest drone delivery expansion by a U.S. retailer, with plans to cover up to 1.8M more households in Texas, the retail giant announced at the trade show CES 2024.
The expansion will include stores across more than 30 towns and municipalities in the Dallas Fort Worth metroplex, covering up to 75% of the region.
The deliveries will be powered by Walmart's (WMT) partners, drone startup Zipline and Alphabet's (GOOG) (GOOGL) unit Wing. Both partners are approved by the FAA to fly their drones beyond visual line of sight.
Link to Seeking Alpha News Article - Jan. 10, 2024
[Newsletter Exclusive] Intuitive stock jumps 9% in wake of preliminary sales report, outlook
Intuitive also said that it placed 415 da Vinci systems in Q4, 12% more than in the 2022 period. For 2023, placements increased 8% year-over-year to 1,370.
Link to Seeking Alpha News Article - Jan. 10, 2024
[Newsletter Exclusive] Novo Nordisk CEO sees Wegovy users sticking with drug: report
Reuters also noted that a recent study showed 40% of people who got a prescription for Wegovy in 2021 or 2022 were still taking it a year later, which is more than three times the adherence rate for older weight-loss medications.
Link to Seeking Alpha News Article - Jan. 10, 2024
Red Sea crisis: Shipping costs swell further; Houthis launch biggest attack yet
The average shipping costs for 40-foot containers have nearly doubled since the attacks began, according to Drewry's World Container Index that tracks freight rates on eight trade routes. The index reached $2,670 per 40-ft container as of Jan. 4, 88% more than the average 2019 (pre-pandemic) rates of $1,420.
The 10 largest containership operators are estimated to have diverted ~$200B in cargo from the Red Sea since early Dec. Philip Damas, head of Drewry Supply Chain Advisors, said 30% of current shipping capacity has likely been impacted by the attacks and precautionary diversions.
"The weeks leading to Chinese New Year on Feb. 10 are going to be very difficult for shipping," Damas warned.
Meanwhile, U.S. and U.K. naval forces shot down 21 drones and missiles fired by Houthis on Tuesday in the Southern Red Sea in their largest attack yet.
Link to Seeking Alpha News Article - Jan. 10, 2024
Netflix’s Ad Tier Now Has More Than 23 Million Monthly Active Users, Advertising Chief Says
Netflix is seeing strong growth of its advertising-based plan, having recently eclipsed 23 million global monthly active users, president of advertising Amy Reinhard said.
The new 23 million-plus figure comes after Netflix a little over two months ago said its ad-supported tier had over 15 million monthly active users worldwide. In an October letter to shareholders, Netflix said ad-tier subscriptions accounted for approximately 30% of all new signups in the 12 counties where it has launched the platform.
Oppenheimer raised their estimate for net additions for the fourth-quarter to 10M versus Wall Street estimates of 9M. They now expect 2024 revenue to be $40B, above the $38B consensus.
"Advertising has significant incremental margins," the analysts said.
Netflix Basic With Ads launched in the U.S. and 11 other countries in November 2022.
Link to Variety News Article - Jan. 10, 2024
Link to Seeking Alpha News Article - Jan. 12, 2024
$VWDRY $VWSYF
Vestas to build second Poland offshore wind factory to meet European demand
The new factory at the port city of Szczecin will produce Vestas' (OTCPK:VWDRY) (OTCPK:VWSYF) largest blades - 377 ft in length, taller than the Statue of Liberty - for the company's flagship V236-15.0MW offshore wind turbine, and is expected to start operations in 2026, creating more than 1,000 direct jobs.
The plant's location on a waterway that feeds into the Baltic Sea will give the company easy access to supply wind farms off the coast of Poland as well as the Baltic region and other European seas.
Earlier this week, Vestas (OTCPK:VWDRY) (OTCPK:VWSYF) said it secured a firm order from Pattern Energy to power a major portion of the SunZia Wind project in New Mexico.
The company said the order for 242 V163-4.5MW turbines is its largest deal to date in the U.S. market and the largest single onshore project globally.
Link to Seeking Alpha News Article - Jan. 11, 2024
HTZ 0.00%↑ TSLA 0.00%↑ RIVN 0.00%↑ FSR 0.00%↑
Electric vehicle shocker: Tesla, Rivian and Fisker fall after Hertz hits the gas pedal
Electric vehicle stocks traded lower on Thursday after Hertz Global (HTZ) disclosed that it is selling off a third of its electric vehicle fleet to buy gasoline-powered cars with some of the proceeds. The auto rental giant pointed to lower demand for electric vehicles and elevated repair costs as reasons for it to make the EV reversal. With the remaining EVs available for rental, Hertz (HTZ) indicated that it would implement initiatives to improve its profitability by making more charging stations available, growing relationships with EV manufacturers, and making it easier for customers to acclimate to an EV rental.
Although the volume of Hertz EVs being sold is not overwhelming, the decision means that the original plan to buy 100K Teslas for its fleet is unlikely to happen soon. It has also added to growing demand worries in the electric vehicle sector, which have been amplified by pullbacks on some of the aggressive EV production targets.
Link to Seeking Alpha News Article - Jan. 11, 2024
Google to lay off hundreds in voice assistant, hardware and engineering teams
The tech giant would lay off hundreds at its Voice Assistant unit, while a few hundred roles are being eliminated in the hardware team responsible for Pixel, Nest and Fitbit, with the majority of staff in the augmented reality, or AR, team being laid off, according to a Reuters' report.
The Google spokesperson did not provide information on the number of roles being impacted. It was not clear how many people are part of the Google Assistant software and other teams.
The spokesperson noted that the company is supporting any impacted employees as they look for new roles at Google and beyond.
Last year in January, Alphabet said it plans to eliminate about 12,000 jobs. The company also made other smaller trims in 2023.
Link to Seeking Alpha News Article - Jan. 11, 2024
TMUS 0.00%↑ #SpaceX
SpaceX's Starlink beams first text messages via T-Mobile network
SpaceX (SPACE) last week launched six Starlink satellites earmarked for the direct-to-cell mobile phone service in partnership with T-Mobile (TMUS).
"On January 8, less than six days after launch, we sent and received our first text messages to and from unmodified cell phones on the ground to our new satellites in space," SpaceX (SPACE) said in a statement. "This validates that our link budget closes, and the system works!"
The company said it's "uniquely positioned to rapidly scale out the first direct-to-cell constellation in mere months." SpaceX (SPACE) plans to launch a constellation of satellites to enable text service this year, as well as voice, data, and IoT services in 2025.
SpaceX (SPACE) has expanded its Starlink internet service to over 5,000 satellites in orbit so far, with more than 2.3M customers worldwide.
Link to Seeking Alpha News Article - Jan. 11, 2024
CCJ 0.00%↑ URNM 0.00%↑ URA 0.00%↑
World's top uranium producer warns of supply shortages over next two years
Uranium-related stocks are surging Friday after the world's largest producer, Kazakhstan's Kazatomprom, responsible for more than 20% of global uranium output said its production this year will come in lower than expected because of shortages of sulfuric acid, which is essential to extract uranium from ore.
The latest news adds to a list of supply challenges that have helped spring spot uranium prices to 16-year highs, more than tripling since the start of 2021 to as high as $100/lb.
Uranium names jumped earlier this week after the U.S. said it is soliciting bids to boost domestic production of high-assay low-enriched uranium in an effort to bolster national energy security.
The U.K. also said this week it will invest up to £300M to raise production of HALEU, which is currently only commercially produced in Russia.
Link to Seeking Alpha News Article - Jan. 12, 2024
$GTBIF
HHS document shows recommendation to reschedule marijuana, State AGs urge DEA to reschedule drug
Marijuana should be rescheduled as a Schedule III drug as the plant does appear to have medical uses and is less dangerous than other drugs, according to a just made public HHS document.
Addressing a 252-page review, US Department of Health and Human Services (HHS) Assistant Secretary for Health Rachel Levine wrote that based on evaluations from FDA scientists, cannabis should become a Schedule III substance. It is currently listed as a Schedule I drug, meaning it has no recognized medical uses.
Additionally, A group of 12 Democratic state attorneys general sent a letter to the Drug Enforcement Administration (DEA) on Friday to reschedule cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA).
Link to Seeking Alpha News Article - Jan. 12, 2024
Link to Seeking Alpha News Article - Jan. 12, 2024
Barclays now expects first rate cut in March after soft PPI report
"With core PCE inflation looking to print at 1.9% in H2 2023 and projected to end 2024 at 2.4% y/y, we expect the FOMC to cut policy rates every other meeting starting in March," said the economists led by Marc Giannoni.
The PCE estimate is based on the soft Producer Price Index data that came out on Friday. Previously, Barclays had expected the FOMC to start cutting in June.
The rate cut projection is largely "a recalibration of the nominal policy rate in light of lower inflation, and it is predicated on a continued moderation in inflation measures."
While the Fed prefers to use the PCE index to measure inflation, other indicators aren't as optimistic. For example, the median CPI from the Cleveland Fed, sticky price inflation from the Atlanta Fed, and the Dallas Fed trimmed mean PCE are relatively elevated, the Barclays note said.
Link to Seeking Alpha News Article - Jan. 12, 2024
Opinion Pieces - Facts & Opinions - Long Reads
Top 2 Stocks For 2024 To Buy Before The Market Realizes It
FSLR is assigned a best-in-class "A" growth grade and a "B-" valuation grade, suggesting a clear bifurcation for a growth stock. The market's pessimism has created a fantastic opportunity for investors keen to exploit this bifurcation, as FSLR has outperformed the SPX significantly since my update in mid-December. I believe the opportunity remains relatively early, as solar stocks could return with a vengeance in 2024 as the market re-rates the industry after a bruising 2023.
PFE bottomed out in December, as I anticipated. Its price action this week suggests selling pressure has remained controllable despite the broad market downdraft. As a result, I believe the market should eventually come to the realization that Pfizer is still a highly profitable wide-moat pharma company (assigned a best-in-class "A+" profitability grade).
Link to Seeking Alpha Opinion Piece - Jan. 07, 2024
NET Power: Impressive Compounding Potential For Very Patient Investors
NET Power owns a complete package of immensely valuable IP, and they are well on the way to commercializing it. NET Power's technology offers a transformative new approach to power generation that doesn't release carbon into the atmosphere. If they can successfully commercialize it as expected, the stock would become an amazing compounder, potentially generating annual returns of over 20% for the next 20 years. But if, for technological, economic, or organizational reasons, this commercialization fails, NET Power's shares could become worthless.
Link to Seeking Alpha Opinion Piece - Jan. 07, 2024
Hardware Enabler Of The AI Revolution: Mini Deep Dive On Super Micro Computer
All of these companies buying these critically important AI chips will need customized racks (and other components) to keep those chips at the right temperature and operating at peak efficiency, which means better performance and less energy consumption, i.e., lower operating costs. SMCI is one of the companies that make this kind of hardware with their proprietary cooling technology.
In strategic partnership with leading chip manufacturers like Nvidia (H100) and AMD (MI300), Super Micro allows big tech companies to integrate cutting-edge processing power into their data centers, which is crucial for the computationally intensive tasks that AI applications demand.
Besides its strong ties with Nvidia and AMD, is its approach to providing customizable solutions and ongoing advancements in server technology, such as liquid cooling, which not only enhances the performance of AI systems by enabling higher operating speeds without overheating but also contributes to energy efficiency, an increasing concern in data center operations. These set SMCI apart from the crowded competition and provide a solid foundation for sustained growth.
Link to Seeking Alpha Opinion Piece - Dec. 11, 2023 (Read a recent article and was reminded of this one from Jonah)
YouTube:
Compound & Friends - The AI Revolution - Here’s What’s Coming in 2024:
On this week’s Compound & Friends, Dan Ives from Wedbush Securities shares his perspective on big tech for 2024. - Full Video (01:29 Hours).
Alphabet Got Woke and let Microsoft Take AI Lead - Clip
"On Some Names, Retail Is Actually Smarter Than Institutions" - Dan Ives - Clip - I also wrote a whole article on this titled: “The Power of Retail Investors”.
CNBC: Bitcoin could hit 150,000 in the next 12 months and half a million in 5 years: Fundstrat's Tom Lee
Tom Lee, Fundstrat Global Advisors managing partner, joins 'Squawk Box' to temper expectations in H1. He discusses the state of SEC's bitcoin ETF decision, latest market trends, the Fed's rate path decision, 2024 outlook, recession risk, and more.
Link to Link to CNBC YouTube Clip (06:41 Mins) - Jan 10, 2024
CNBC: A warning sign from payrolls:
While the Street took the December jobs as a sign of strength, there's a warning sign about the job market under the hood: consistent downward revisions. CNBC's senior economics reporter Steve Liesman reports.
Link to Link to CNBC YouTube Clip (04:16 Mins) - Jan 11, 2024
Disclosure: We own positions in some/all of the tickers mentioned in this article.
