Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.Good afternoon.Today is Monday, November 11th, and I'm your host, Kim Kahn.Our top story so far.
NVIDIA is in the spotlight as Piper Sandler named the stock its top large cap pick due to its dominant positioning in the AI accelerator market.Analyst Harsh Kumar said, our viewpoint is rooted in the belief that the overall total addressable market
for AI accelerators will continue to rise in 2025 by about $70 billion, and we see NVIDIA well positioned to capture most of that incremental TAM increase while ceding only a small bit to its merchant ship competitors.
In terms of other gainers, we only see Broadcom as making further incremental progress in the market," Kumar added.He has an overweight rating on NVIDIA and a $175 price target.
Kumar also said the CapEx trends at the big hyperscalers such as Amazon, Microsoft, and Meta continue to be favorable.
All else equal, we see at least sustained levels of CapEx through 2025, if not accelerated with a shift towards chips and servers, and spend away from buildings and other fixed property, he said.
We think this clearly benefits NVIDIA in the near to midterm future, and as such, we are taking our numbers up slightly for the January quarter and subsequent full year 2026 quarters.
In today's trading, stocks are mixed, with trading lighter than usual, the bond market is closed for Veterans Day.But the crypto momentum continues, with Bitcoin hitting another record high.
Among active stocks today, Monolithic Power Systems is plunging after Edgewater Research said its allocation to NVIDIA's Blackwell line of GPUs is at risk.
Performance issues with manpower's voltage regulator module slash power management IC appear likely to severely limit or eliminate manpower's allocation in Blackwell, with Renesas taking over the B200 and Infineon assuming GB200 allocation, as both are seen receiving rush orders in recent weeks, analysts said.
Shares of Humana are under pressure after Cigna confirmed it won't pursue a combination with the managed care insurer.
Cigna said, in light of recent and persistent speculation, the Cigna Group expects to communicate that the company is not pursuing a combination with Humana Inc.
The Cigna Group remains committed to its established M&A criteria and would only consider acquisitions that are strategically aligned, financially attractive, and have a high probability to close.
And Piper Sandler assumed coverage of Block with an overweight rating.
Analyst Arvind Ramnani said Block should benefit from a continued secular shift to electronic payments, as well as being on the forefront of innovation organized around its two business segments, which are centered around merchant sellers, Square, and consumers, Cash App.
In other news of note, in an effort to cut delivery times and help navigate drivers through obstacles, Amazon is developing smart glasses to direct its drivers through the last 100 yards.
Reuters says the glasses would guide delivery drivers with turn-by-turn navigation through an embedded screen and free drivers from having to use handheld navigation.
The effort to speed up delivery times, even just by seconds, underscores Amazon's aim to outperform Walmart as the retail giant takes its own initiatives than compete directly with Amazon's same-day delivery option.
Amazon currently delivers more than 66,000 packages per hour.Last year, it increased the number of same-day or next-day packages to Prime members by 65% to 7 billion, compared to 4.4 billion by Walmart.
Of those 4.4 billion, though, 20% were delivered under three hours. And in the Wall Street Research corner, Evacor ISI says the animal spirits in the market could drive the S&P 500 to $6,600 by the end of June 2025.
In addition, the Russell 2000 should continue to outperform large caps with a catch-up trade.
Julian Emanuel, chief equity derivatives and quant strategist, says moderating inflation and easing financial conditions coupled with tight credit spreads support the Russell 2000, which trades below its average premium to the S&P 500.
The Russell 2000 trades at a 19% premium to the S&P now, which is below its 32% average premium over the last 10 years. That's all for today's Wall Street Lunch.Look for links for stories in the show notes section.
Don't forget, these episodes will be up with transcriptions at SeekingAlpha.com slash WSB.And make sure you're getting the most out of your portfolio with quant, news, and analysis by heading to SeekingAlpha.com slash subscriptions.
Sign in
