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This week’s highlights:
Stocks pushed back toward record highs, despite rising bond yields and oil prices that may not head significantly lower any time soon. One big reason the stock market keeps pushing upward could be seen in yet another blowout quarter for Nvidia. Morningstar senior equity analyst Brian Colello has his take on the firm’s latest report and why he thinks Nvidia stock has even more room to run.
A huge earnings report from Nvidia in May 2023 helped kick off the artificial intelligence trade, which continues through to this day. We’ve pulled together charts that capture some of the remarkable market trends driven by the AI infrastructure buildout, ranging from astronomical growth in revenues to unicorn valuations flying to the moon.
On the topic of flying to the moon, this past week also saw the long-awaited IPO filing from Elon Musk’s SpaceX. We’ve got a trio of articles from our colleagues at PitchBook: a quick take on highlights from the filing, six charts on nuggets ranging from where the companies revenues come from (hint: not space travel) to how much investors stand to rake in, and a close look at what one analyst calls the “reckless” financials at xAI. Stay tuned in the coming weeks for more coverage of what investors need to know before taking the plunge on SpaceX stock.
With stocks at their heights and the market driven by the AI boom, where are the opportunities? Morningstar chief US strategist Dave Sekera thinks it’s time to take some profits on some of those hot growth stocks and reallocate to value. Find out more of what he recommends here.
Lastly, this week, we updated two regular features. The first is our monthly check for moat rating changes across the US stock coverage list for Morningstar analysts. This time around, we found three moat rating changes, two downgrades, and one upgrade. And with first-quarter earnings largely wrapped up, we screened for stocks that crushed both earnings and revenues and are deemed undervalued by Morningstar analysts. Seven stocks made the list, including two software stocks and a popular social network.
As always, be sure to visit our Markets page for our latest coverage and live stock market updates, along with our full weekly calendar of key upcoming data and events.