Super Micro Computer Soars on Strong AI Demand

27 minutes ago

Super Micro Computer (SMCI) shares soared Monday as the server maker reported strong shipments of its central processing units (CPUs), driven by artificial intelligence (AI) demand.

The company said it recently deployed 100,000 CPUs with its liquid cooling technology to “some of the largest AI factories ever built.” Super Micro Computer also announced a new lineup of direct liquid cooling products for servers that it said could help AI firms cut their energy costs. 

CEO Charles Liang said the company’s liquid cooling solutions “are now cooling massive, state-of-the-art AI factories, reducing costs and improving performance.” Liang added that data center operators are coming to Super Micro Computer “to meet their technical and financial goals for both the construction of greenfield sites and the modernization of existing data centers.”

Super Micro Computer shares were up nearly 15% in recent trading and have gained about 67% in 2024. Shares of AI chipmaker Nvidia (NVDA), a partner of Super Micro Computer, also got a boost Monday, rising more than 3%.

–Bill McColl

Duckhorn Doubles on PE Takeover News

1 hr 28 min ago

Shares of The Duckhorn Portfolio (NAPA) doubled Monday after the Napa Valley winemaker agreed to be taken private by private-equity firm Butterfly for $1.95 billion. 

Duckhorn, whose brands include Decoy and Paraduxx, said the agreement gives investors $11.10 in cash for each share they own, which represents a 106% increase from its closing price on Friday.

The company also reported fourth-quarter adjusted earnings per share (EPS) of $0.14, with revenue up 7.3% year-over-year to $107.4 million. Both topped consensus estimates of analysts polled by Visible Alpha. 

The Duckhorn Portfolio shares hit an all-time low on Friday, and with today's huge gains they've moved into positive territory for the year.

–Bill McColl

Pfizer Rises on Report of Starboard Stake

2 hr 34 min ago

Shares of Pfizer (PFE) rose Monday following a report that activist investor Starboard Value has taken a roughly $1 billion stake in the struggling drugmaker.

According to The Wall Street Journal, Starboard has approached Ian Read, a former Pfizer chief executive, and ex-finance chief Frank D’Amelio to aid its plans to improve the company's performance.

The hedge fund sees Pfizer under current CEO Albert Bourla, who took over from Read in 2019, as lacking the M&A discipline of his predecessor, the report said.

Pfizer has spent billions of dollars on buying companies involved in producing cancer drugs, including biotech Seagen for $43 billion last year, since Bourla took over.

Shares of the company were up nearly 3% Monday morning and were among the big gainers in the S&P 500.

Pfizer's shares have almost halved since their pandemic peak in 2021 as demand for its COVID-19 vaccines slumped. They are little changed this year, versus a 21% jump in the S&P 500.

–Nisha Gopalan

Jefferies Downgrades Apple to Hold

2 hr 52 min ago

Apple (AAPL) shares lost ground in early trading Monday after Jefferies downgraded the stock, arguing that the anticipated sales of iPhones are too high.

The bank cut Apple's rating to "hold" from "buy," although it raised its price target to $212.92 from $205.00.

The analysts wrote in a note to clients that “smartphone hardware needs rework before being capable of serious AI, with likely timeline of 2026/27.”

They added that "high expectations for iPhone 16/17 are premature."

The analysts pointed out that their outlook for Apple’s fiscal 2024 fourth-quarter net sales is less than the Wall Street consensus, and that the tech firm’s 33 times full-year estimated adjusted price-to-earnings (P/E) ratio is near an all-time high. 

Apple shares were down 0.6% in recent trading. The stock has gained 17% in 2024.

–Bill McColl

SPDR Dow ETF Levels to Watch

3 hr 51 min ago

The SPDR Dow Jones Industrial Average ETF Trust (DIA) opened slightly lower Monday, in line with the Dow’s decline, after posting a record close Friday following a strong September jobs report that reinforced investor confidence in the strength of the economy.

The fund's price trades within an ascending channel, though lackluster volumes potentially indicate waning upward momentum.

Investors should monitor crucial support levels on the ETF's chart around $377, $350, and $325, while also watching a measured move price target above the ascending channel at $483.

Read the full technical analysis piece here.

–Timothy Smith

Major Indexes Poised to Open Lower Monday

5 hr 8 min ago

Futures tied to the Dow Jones Industrial Average were down 0.4%.

S&P 500 futures were also down 0.4%.

Nasdaq 100 futures were down 0.5%.

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