My top 10 things to watch Monday, June 24
- Wall Street was little changed Monday, the same way Friday left off. The whimper to end last week hid the hot and then cold AI trade, which briefly vaulted Club name Nvidia into the most valuable U.S. company. The Dow, which was recently in a slump, has been quietly catching up to S&P 500 and Nasdaq near record territory. The week ahead includes our Monthly Meeting for members on Thursday and the Fed’s favorite inflation gauge on Friday.
- Club holding Broadcom and TikTok parent ByteDance have been in talks about the development of an artificial intelligence processor that uses the 5-nanometer manufacturing process, Reuters and Bloomberg News separately reported. The custom chip would comply with U.S. export restrictions on AI technology, the news outlets reported. No, it’s not to compete with leading AI chipmaker Nvidia.
- Bank of America upped its price target on Broadcom to $2,150 a share from $2,000, which implies almost 30% upside from Friday’s close. Analysts said Broadcom is transforming into a growth stock from so-called value status, with its AI chip business and recently acquired VMWare driving the change.
- Melius Research raised earnings estimates and its price target on Club name Apple to $260 a share from $227, saying the company is entering an unprecedented iPhone era. JPMorgan argued Apple’s decision to delay the launch of AI features in Europe due to regulatory concerns won’t have a major impact on the iPhone upgrade cycle. The firm reiterated its buy-equivalent rating on the stock.
- Boeing shares ticked lower after Reuters reported that U.S. prosecutors recommended the Justice Department criminally charge Boeing for violating a settlement tied to fatal 737 Max crashes in 2018 and 2019. If history matters, shareholders will pay, not the CEO or the board.
- Citigroup downgraded ResMed, which makes products to treat sleep apnea, to a hold-equivalent rating from buy. The call comes after Club holding Eli Lilly late Friday presented additional data showing its fast-growing GLP-1 drug tirzepatide is a promising treatment for obstructive sleep apnea. Shares of ResMed tumbled Monday morning.
- Multiple price-target cuts for Walgreens Boots Alliance ahead of the struggling pharmacy chain’s fiscal third-quarter earnings report Thursday. Barclays went to $15 a share from $21, while UBS went to $17 from $22. Walgreens CEO Tim Wentworth, who took over last year, continues to have his hands full with this turnaround opportunity.
- Morgan Stanley analysts see Uber and Lyft being among the winners in the autonomous vehicle landscape, despite a lot of questions ahead of Tesla‘s robotaxi event in August. Analysts also like Club holding Alphabet‘s positioning with its Waymo unit. Still, analysts caution that it’s a long road ahead for self-driving cars overall.
- Barclays raised its price target on regional bank First Horizon to $19 a share from $18, which implies nearly 30% upside from the stock’s close Friday. I had its CEO, Bryan Jordan, on “Mad Money” not too long ago, and the firm is doing quite well.
- Citigroup bumped its price target on Micron shares to $175 each from $150, which implies about 25% upside from Friday’s close. The memory chipmaker, which reports earnings Wednesday night, deserves to trade at a premium valuation due to its growing AI business, analysts argued. The firm kept its top-pick designation Micron. The stock has more than doubled over the past year.
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