Passport to Wall Street

Kalshi Suspends ‘Mention Markets’ as CFTC Reportedly Investigates Prediction Market Betting on Trump, Sports Commentators

Benzinga News — Fri, 14 Aug 2026 08:55:13 -0400

The Commodity Futures Trading Commission (CFTC) has reportedly launched an investigation into the "mention markets" on prediction market platforms.

In the wake of this probe, Kalshi has put a halt to all mention markets in its sports betting segment, NPR reported Thursday. The decision to suspend these markets comes as the CFTC's investigation is ongoing, with no definite timeline for their potential reinstatement, the report said.

Mention markets, which have recently surged in popularity, enable bettors to place bets on the specific words used by public figures, ranging from President Donald Trump to sports commentators.

Kalshi employees have debated the value of "mention markets," with co-founder Luana Lopes Lara reportedly supporting the concept as a way to attract users beyond sports betting and diversify as its sports prediction markets face more than two dozen lawsuits from states and tribes.

Kalshi and the CFTC did not immediately respond to Benzinga's request for comments.

Trump Speech Betting Scandal Fuels Market Scrutiny

The scrutiny on mention markets comes after White House, last month, stated that a teleprompter operator was allegedly betting on Trump speeches and lost his job. This incident highlighted the potential for insider trading and market manipulation in prediction markets.

Kalshi rival Polymarket offers similar "mention markets" on its overseas platform, which is not regulated by the CFTC, but does not offer them on its U.S. platform. Most prediction markets are "self-certified," allowing platforms to launch markets after filing paperwork with federal officials stating that they comply with rules governing financial derivatives known as swaps.

Earlier this week, the CFTC ordered Kalshi to continue operating as its legal battle with New York unfolds. New York is seeking a court order to block Kalshi from offering event contracts in the state and is seeking more than $36 billion in damages. "New York has no business regulating these interstate financial markets," CFTC Chairman Michael Selig said.

NVIDIA Says ‘Free AI’ Is Great For Chips — Jensen Huang’s Open-Source Bet Could Fuel GPU Demand

Benzinga News — Fri, 14 Aug 2026 08:55:07 -0400

NVIDIA Corp. (NVDA ) stock gained about half a percent during Friday's premarket session as traders lean into a slightly firmer risk tone ahead of the open. Nasdaq futures are up 0.23% while S&P 500 futures have gained 0.08%. NVIDIA is stepping deeper into open-source AI with a new lightweight model, software tools and industry partnerships, while CEO Jensen Huang argues that wider access to AI models can accelerate innovation and ultimately drive greater demand for computing hardware.

Launches Open-Source Nemotron Model

NVIDIA released Nemotron 3.5 Lightning, a lightweight AI model that can run on a single GPU in a PC. Companies can download, use and modify the model for free without seeking NVIDIA's permission or paying the company.

The launch marks NVIDIA's first open-source model since Huang joined other technology leaders in urging U.S. policymakers to avoid "premature restrictions" on open models, CNBC reported on Tuesday.

NVIDIA said CrowdStrike, CodeRabbit and Harvey have already tested and customized Nemotron 3.5 Lightning. The company designed the model particularly for AI agents that can perform tasks autonomously.

NVIDIA also introduced NeMo Switchyard, software that can select the least expensive and most suitable AI model for a particular task.

Huang Links Open AI Models to Hardware Demand

NVIDIA stands to benefit from broader adoption of open-source AI because developers still need GPUs to run those models. Lower-cost access to models could also encourage wider AI usage compared with proprietary alternatives from companies such as OpenAI and Anthropic.

"Free AI should be great for hardware," Huang told Axios. "Free AI should be great for chips." Huang has also argued that open models give companies greater control, encourage competition and reduce costs.

NVIDIA Pushes Back Against Restrictions on Open Models

Huang entered the policy debate after China's Moonshot AI introduced Kimi K3, intensifying concerns in Washington over national security and the use of distillation to develop smaller AI models.

NVIDIA joined other U.S. technology companies in asking policymakers not to impose premature restrictions on open-weight models, including those developed in China.

Days after Huang's public defense of open models, NVIDIA also launched an AI safety consortium with companies including Microsoft Corp. (MSFT ) to explore the use of open models and open-source software in cybersecurity.

Meta and NVIDIA Step Up U.S. Open-Source Competition

NVIDIA's move comes as Meta Platforms Inc. (META ) also increases its open-source AI efforts. Meta released Muse Glimmer and plans to open the weights for the more advanced Muse Spark 1.2 model.

The two companies now face competition not only from proprietary models developed by OpenAI and Anthropic but also from open offerings from Chinese AI developers including Moonshot AI, DeepSeek and Alibaba, CNBC reported on Wednesday.

Earnings And Analyst Outlook

NVIDIA is scheduled to report earnings Aug. 26. Analysts expect earnings of $2.07 per share, up from $1.04 a year earlier. Revenue is expected to reach $91.82 billion, compared with $46.74 billion in the year-ago period.

The stock trades at a price-to-earnings multiple of about 34.5. NVIDIA carries a Buy consensus rating with an average price forecast of $325.74. Recent analyst moves include:

Wells Fargo maintained an Overweight rating with a $315 price forecast on Aug. 11. KeyBanc raised its price forecast to $330 while maintaining an Overweight rating on July 14. China Renaissance initiated coverage with a Buy rating and $319 price forecast on June 5.

NVIDIA Benzinga Edge Rankings

NVIDIA scores strongly on Growth and Quality in the Benzinga Edge Rankings, but its valuation remains a weak spot.

Its Growth score stands at 99.19, while Quality is 97.83. Momentum is Neutral at 62.7. However, its Value score is just 6.01, reflecting the stock's premium valuation.

The rankings point to a company backed by strong growth and business quality. However, the low Value score could put more pressure on NVIDIA to deliver strong earnings and guidance.

Top ETF Exposure

The Franklin Focused Dynamic Growth ETF (FFOG ) has a 9.73% weighting in NVIDIA. The Xtrackers Net Zero Pathway Paris Aligned U.S. Equity ETF (USNZ ) also has a 9.73% weighting. The BNY Mellon Concentrated Growth ETF (BKCG ) has a 9.68% weighting.

NVIDIA's large weighting means sizable fund inflows or outflows could translate into corresponding buying or selling of its shares.

NVIDIA Price Action

NVDA Stock Price Activity: NVIDIA shares were up 0.16% at $225.67 during premarket trading on Friday, according to Benzinga Pro data.

AI Killing Software? Analyst Says ‘I Don’t See a Software Apocalypse’

Benzinga News — Fri, 14 Aug 2026 08:55:01 -0400

Hyperscalers and major technology companies such as Microsoft Corp. (MSFT ) and NVIDIA Corp. (NVDA ) are increasingly shaping the AI investment cycle, with Dan Ives, partner and senior managing director at Yorkville Ives, arguing that their heavy infrastructure spending is beginning to translate into revenue growth and easing some investor concerns about returns on massive capital expenditure.

AI Spending Starts to Translate Into Revenue

Ives told CNBC that demand remains "uniquely strong" across hyperscalers, AI cloud providers and NVIDIA, while enterprises are beginning to turn AI investments into commercial use cases.

He sees this shift as an important inflection point because investors increasingly want evidence that massive capital spending can generate sustainable revenue.

He pointed to Microsoft and NVIDIA among companies where continued double-digit capital expenditure growth could support broader technology-sector expansion.

Ives argued that enterprises first need to install and operate AI systems before they can develop and monetize more use cases, suggesting the enterprise adoption cycle remains at an early stage.

Ives continues to see strong semiconductor demand as AI infrastructure expands, but he acknowledged that high valuations can make stocks more sensitive to execution and growth expectations.

Software's AI Scare Is Overdone

He also pushed back against fears of a broad software collapse. Ives said recent weakness in names such as ServiceNow Inc. (NOW ) reflected valuation and market concentration rather than an "execution problem," adding, "I don't see a software apocalypse."

He expects AI use cases across enterprise software, cybersecurity and companies such as Palantir Technologies Inc. (PLTR ) to become clearer over the next six to 18 months.

More broadly, Ives estimates the industry is only "10 to 15% through the AI revolution," with technology investment increasingly spilling into areas such as energy and industrial infrastructure.

China Remains Important to the AI Opportunity

On China, Ives highlighted Apple Inc's (AAPL ) use of Alibaba Group Holding Limited (BABA ) technology as part of its effort to strengthen its AI strategy in the market.

He sees the partnership as important to Apple's China positioning and believes the market is starting to recognize the company's broader AI strategy.

Ives also expects consumer AI hardware to create another source of demand as companies bring more AI capabilities to devices.

Investors Want Returns From the AI Financing Arms Race

Ives said rising borrowing costs remain a consideration as hyperscalers and major technology companies increasingly combine cash flow, equity and debt to fund AI infrastructure.

However, he characterized debt financing as relatively small compared with the size of the AI opportunity and noted that major technology companies generate substantial free cash flow.

For investors, he said the key issue is whether companies can show that capital spending translates into monetization. Ives described AI investment as an "arms race," arguing that companies risk losing ground if they pull back while competitors continue building infrastructure.

Price Action: Microsoft shares were down 0.30% at $495.40 and NVIDIA shares were up 0.24% at $225.84 during premarket trading on Friday, according to Benzinga Pro data.

Unusual Machines Stock Shoots Higher after Trump's Action on Critical Drone Supply Chains

Benzinga News — Fri, 14 Aug 2026 08:53:53 -0400

Unusual Machines Inc. (UMAC ) stock is trading higher on Friday. The stock is trading closer to its 52-week high of $34.36 in reaction to the update related to the U.S. government announcing tariffs on drone and related component imports. The directive announced on Thursday focuses on bolstering the domestic drone industry and strengthening the U.S. supply chain.

Unusual Machines manufactures and sells drone components and drones, including Fat Shark, FPV (first-person view) ultra-low latency video goggles for drone pilots.

The company also retails small, acrobatic FPV drones and equipment directly to consumers through the curated Rotor Riot e-commerce store.

Tariff Implementation Specifics

The Proclamation dictates a 100% ad valorem tariff on specific categories of drones deemed highly sensitive to national security.

It includes drones exceeding a maximum takeoff weight of 25 kgs and those equipped with thermal imaging capabilities, alongside their docking stations and critical components.

Additionally, a 25% ad valorem tariff will be applied to smaller drones that do not possess these sensitive capabilities, as well as on various drone components.

A lower tariff rate of 15% is set for drones and components originating from the European Union, Japan, Liechtenstein, South Korea, Switzerland, and Taiwan.

Drones from the U.K. will incur a 10% tariff, under the condition that the majority of hardware, software, and technology originates from these nations and the U.S.

In early August, Unusual Machines reported a second-quarter loss of 16 cents per share, in line with estimates. Sales reached $16.722 million, surpassing the consensus of $9.195 million.

Technical Analysis

Unusual Machines stock is currently trading well above its key moving averages, indicating strong bullish momentum. The stock's price is significantly elevated, sitting 95.5% above the 200-day SMA, which suggests a powerful long-term uptrend.

The RSI is currently at 68.09, which is on the verge of overbought territory but still indicates neutral momentum.

MACD is above its signal line, indicating bullish momentum for Unusual Machines. This suggests that the current trend is strong, and traders may want to look for continuation patterns.

Traders should keep an eye on the resistance level at 34.50, as a breakout above this could signal further upward movement.

The 12-month performance of Unusual Machines shows a remarkable gain of 173.49%, underscoring the strength of the longer-term trend.

This impressive return highlights the stock's ability to maintain upward momentum, making it an attractive option for longer-term investors.

UMAC Price Action: Unusual Machines shares were up 19.64% at $32.59 during premarket trading on Friday. The stock is approaching its 52-week high of $34.36, according to Benzinga Pro data.

JD.com Says Profit Has Hit A ‘Definitive Turning Point’

Benzinga News — Fri, 14 Aug 2026 08:53:47 -0400

JD.com (JD ) focused on improving profitability in the second quarter even as revenue declined. Management described the period as an inflection point and expects JD Retail to return to revenue growth in the third quarter. JD stock was trading lower by more than 3% during Friday's premarket session. The decline comes despite modest gains in U.S. stock futures. Nasdaq futures are up 0.25%, while S&P 500 futures have gained 0.08%.

JD.com Earnings Beat Estimates, Revenue Falls

The company reported second-quarter 2026 adjusted net income of 93 cents per ADS, beating the 81-cent analyst estimate. Revenue fell 2.9% year over year to $51.05 billion, missing the $51.55 billion estimate.

The decline marked the company's first quarterly revenue contraction since its 2014 listing. Softer consumer spending and a tough year-earlier comparison weighed on results.

Non-GAAP net income attributable to ordinary shareholders rose about 21% to 8.9 billion yuan.

CFO Ian Shan said core growth drivers remained healthy. These included general merchandise and marketplace and marketing revenue. However, electronics and home appliances remained weak.

Retail Margins Expand As Q3 Growth Comes Into Focus

JD Retail's gross margin increased 1.3 percentage points to 18.5%. Its operating margin reached 4.6%, a record for a promotional season.

CEO Sandy Xu called the quarter "a definitive turning point for our profitability trajectory."

JD Food Delivery also narrowed its losses by more than 50% year over year. Improved operating efficiency and lower subsidy spending helped results.

JD Retail revenue declined 4.7% to 295 billion yuan. However, management said momentum improved in June.

"We expect this recovery trajectory to build further into Q3, making a pivot back to positive revenue growth for JD Retail," Shan said.

Management also reiterated its long-term target for a high-single-digit operating margin at JD Retail. Supply-chain efficiencies and a larger contribution from higher-margin commission and advertising revenue are expected to support that goal.

JD Expands AI And Delivery Automation

The company continues to expand its use of artificial intelligence and logistics automation. The technology spans forecasting, sourcing, customer service, search, advertising, warehousing and delivery.

Xu said JD.com launched its first round-the-clock autonomous delivery routes in Shenzhen during the second quarter.

The company also repurchased about $1 billion of shares during the first half of 2026.

ETFs With The Biggest JD Exposure

The Invesco Golden Dragon China ETF (PGJ ) has a 7.74% weighting in JD. The Robo Global Artificial Intelligence ETF (THNQ ) has 2.32% exposure, while the Distillate International Fundamental Stability and Value ETF (DSTX ) has a 1.48% weighting.

JD.com's presence in these funds means ETF inflows and outflows can lead to corresponding buying or selling of the shares.

JD.com Price Action

JD Stock Price Activity: JD.com shares fell 3.45% to $28.29 in Friday's premarket trading, according to Benzinga Pro data.

2,000 Robotaxis, Four New Cities: Pony AI, Uber Accelerate Europe’s Driverless Push

Benzinga News — Fri, 14 Aug 2026 08:53:28 -0400

Pony AI Inc. (PONY ) and Uber Technologies Inc. (UBER ) said Thursday they plan to deploy more than 2,000 Pony AI robotaxis across Europe as the companies expand their autonomous driving partnership. Pony AI, Uber Expand European Robotaxi Partnership

The expanded partnership builds on the companies' existing collaboration in Zagreb and will expand to four additional European cities. The companies also plan to deploy robotaxis in the Middle East.

Pony AI will provide Level 4 autonomous driving technology and operational expertise.

Uber will handle customer access through its platform, including booking, payments and customer service. Local fleet partners may manage day-to-day operations.

The model combines autonomous driving technology, a mobility platform and fleet operations, with vehicle funding and ownership varying by market.

Pony AI Builds On Existing Operations

Pony AI operates paid, fully driverless robotaxi services in China's four tier-one cities. The company said it has achieved city-wide breakeven unit economics in multiple markets.

The companies first announced their international partnership in May 2025.

In 2026, they teamed with Croatian mobility company Verne on a commercial robotaxi service in Zagreb, with Verne serving as fleet owner and operator.

Executives Target Commercial Scale

"This expanded agreement marks an important new phase in the partnership between Pony AI and Uber. It reflects our shared commitment to bringing safe, reliable Robotaxi services to more European cities," Pony AI founder and CEO Dr. James Peng said.

"The next chapter for autonomous mobility is about moving from individual launches to repeatable commercial scale," said Sarfraz Maredia, Uber's Global Head of Autonomous Mobility & Delivery.

Pony AI Stock Performance And Analyst Outlook

PONY stock traded slightly lower Friday in premarket trading. Investors are looking ahead to the autonomous driving company's earnings report next week. Nasdaq futures rose 0.23%, while S&P 500 futures gained 0.08%.

The company is set to report earnings Tuesday, August 18. The report could offer investors fresh insight into growth, fleet expansion and progress toward scalable robotaxi operations.

Wall Street expects a loss of 17 cents per share, compared with a loss of 13 cents a year earlier. Revenue is expected to rise to $35.18 million from $21.50 million.

PONY carries a Buy consensus rating with an average price forecast of $13.30. Recent analyst moves include:

HSBC initiated coverage with a Buy rating and a $16.60 price forecast on March 31. Barclays lowered its price forecast to $10 from $15 on March 30 while maintaining an Equal-Weight rating. Barclays initiated coverage with an Equal-Weight rating and a $15 price forecast on December 17, 2025.

Price Action: Uber Technologies shares were up 0.75% at $76.45 and Pony AI shares were down 0.24% at $8.31 during premarket trading on Friday, according to Benzinga Pro data.

MSFT Could Emerge as Big Tech's Free Cash Flow King in 2027 While GOOGL, META Stay Negative: Analyst

Benzinga News — Fri, 14 Aug 2026 08:53:20 -0400

Microsoft Corp. (MSFT ) could emerge as Big Tech's strongest free cash flow generator in 2027, while Google's parent, Alphabet Inc. (GOOG ) (GOOGL ), and Meta Platforms Inc. (META ) could remain free-cash-flow negative, according to third-party estimates highlighted by I/O Fund analyst Beth Kindig. What Kindig Highlighted

In an X post, Kindig said hyperscaler forecasts showed Microsoft remaining the "strongest cash flow generator," with free cash flow rising from $19.6 billion in the June quarter to an estimated $46.2 billion in 2027.

The I/O Fund graphic also showed Amazon.com Inc. (AMZN ) becoming "thinly positive" at $1.2 billion, while Alphabet and Meta were projected to remain "negative" at $18.4 billion and $16.2 billion, respectively.

These 2027 numbers, however, were sourced from MarketScreener rather than the companies' earnings guidance. I/O Fund's underlying analysis explicitly described the figures as 2027 estimates.

What The Earnings Calls Actually Said

Microsoft's latest quarter supports its position as the strongest cash generator of the group: the company reported $55.4 billion in operating cash flow and $35.8 billion in cash paid for property and equipment, resulting in $19.6 billion of free cash flow. CFO Amy Hood said Microsoft expects to "remain free cash flow positive in FY27," but did not provide a $46.2 billion forecast.

Alphabet likewise did not guide to negative $18.4 billion in 2027 FCF. Management said 2027 capital spending would increase "significantly" and that free cash flow would remain under pressure. Alphabet actually reported negative $5.855 billion in second-quarter free cash flow, not the negative $7.6 billion shown in the graphic.

Meta provided no specific 2027 capex outlook, while Amazon discussed significant near-term FCF headwinds but gave no numerical 2027 FCF target.

Estimates Are Already Moving

The projections are also fluid. MarketScreener's subsequently displayed estimates shifted to roughly $32.3 billion for Microsoft, negative $6.8 billion for Amazon, and negative $21.7 billion for Meta, while Alphabet remained near negative $18.4 billion.

The broader takeaway remains intact that surging AI infrastructure spending could put substantial pressure on hyperscaler cash flows, even as Microsoft currently stands apart from peers in its ability to remain strongly free-cash-flow positive.

Homeowners Could Lose Interest on Mortgage Escrow Money Under New Bank Rules — Now 10 States Are Fighting Back

Benzinga News — Fri, 14 Aug 2026 08:53:13 -0400

Ten state attorneys general are challenging federal banking rules that could allow some national banks and federal savings associations to decide whether homeowners receive interest on money held in mortgage escrow accounts.

The lawsuit was filed Tuesday, Aug. 11, in the U.S. District Court for the District of Oregon against the Office of the Comptroller of the Currency and Comptroller Jonathan Gould. The states argue that the OCC exceeded its authority by allowing federally regulated banks to bypass state requirements on escrow interest, CNBC reported Thursday.

Mortgage escrow accounts hold money collected from homeowners for expenses such as property taxes and homeowners insurance. Lenders generally collect these amounts with monthly mortgage payments and later use the funds to pay the bills on the homeowner's behalf.

About 80% of mortgage holders have an escrow account, according to Lereta, a company that provides real estate tax and flood data to mortgage servicers.

Homeowners typically make escrow payments monthly, while property taxes and insurance premiums are generally paid annually or semiannually. That can leave significant amounts sitting in escrow for extended periods, according to the report.

OCC Rules

The OCC issued the two rules in May, and they became effective June 18. One rule allows national banks and federal savings associations to determine escrow-account terms, including whether to pay interest or charge fees. The other says federal law preempts state laws governing those terms for OCC-regulated banks.

"The rules basically allow OCC-regulated banks not to pay interest on mortgage escrow accounts," Solomon Maman, a Chicago attorney specializing in financial services law, told CNBC.

Fourteen states and U.S. territories have laws requiring interest to be paid on escrow balances, according to the lawsuit. The requirements vary by state. Rhode Island requires escrow accounts to earn the same interest rate as a regular savings account, while Maryland requires annual interest based on the yield of one-year U.S. Treasuries.

The OCC did not immediately respond to Benzinga's request for comment.

Rising Escrow Costs

Escrow balances have also been rising. They increased 45% nationally over five years, while about 65% of escrow accounts were short in 2026, potentially increasing monthly mortgage payments by as much as $175, according to Cotality data.

State Challenge

The states argue that the OCC exceeded its authority by limiting state protections for borrowers.

"Both Congress and the courts have repeatedly acted to preserve states' central role in protecting consumers," the lawsuit said, according to the report.

The amount of interest homeowners receive depends on the state and how the average escrow balance and applicable interest rate are calculated. Depending on the lender and state, interest may be credited to the escrow account or paid directly to the homeowner.

For illustration, a 0.63% annual rate on a $5,000 balance would generate $31.50 in interest, while a 4% rate would generate $200. The average rate on traditional savings accounts is 0.63%, according to Bankrate, while a one-year Treasury yield is just below 4%.

Banks' Response

State-chartered banks are not directly affected by the OCC rules. However, some states have "wild card" provisions that could allow those banks to follow federal banking rules in certain circumstances.

Whether banks will immediately change their escrow practices remains uncertain.

"There are some conflicting court decisions" in different federal courts, Maman said, meaning banks' responses could depend on where they operate.

"Does that mean a national bank that has been doing it would immediately change it? They may or may not," he said.

Applied Materials Sees Another Record Year In 2027 As AI Demand Gives It ‘Unprecedented Visibility’

Benzinga News — Fri, 14 Aug 2026 08:53:05 -0400

Applied Materials, Inc. (AMAT ) stock fell in premarket trading Friday after the chip equipment maker reported third-quarter results after Thursday's market close. Applied Materials Posts Record Margins

Applied Materials reported third-quarter revenue of $9.12 billion, above analyst estimates of $8.99 billion. Adjusted earnings of $3.50 per share also topped estimates of $3.40.

Revenue rose 15% sequentially and 25% from a year earlier. Adjusted gross margin reached a record 50.4%, up 150 basis points year over year. That marked the company's 13th straight quarter of year-over-year gross margin expansion.

Adjusted operating margin also hit a record 34%, up 330 basis points from a year earlier.

The company generated more than $3 billion in operating cash flow and $2.3 billion in free cash flow. Applied Materials returned $860 million to shareholders through $420 million in dividends and $440 million in share repurchases.

The company had $12.8 billion remaining under its buyback authorization. It continues to target returning 80% to 100% of free cash flow to shareholders.

AI, DRAM Demand Fuel Semiconductor Growth

Semiconductor Systems revenue reached a record $7 billion, up 18% sequentially and 27% year over year. Growth was driven by capacity additions for gate-all-around and FinFET technologies.

DRAM revenue, including high-bandwidth memory packaging, jumped 52% from a year earlier to a record. The company also reported record revenue across several Materials Engineering businesses.

Semiconductor Systems adjusted gross margin rose 190 basis points year over year to 55.4%. Adjusted operating profit climbed 45% to a record $2.7 billion.

Applied Global Services revenue rose 22% to a record $1.8 billion, helped by subscription services and strong demand for transactional parts. Its gross margin increased 180 basis points to 35.6%, while operating margin rose 280 basis points to 30.1%.

China accounted for 26% of Semiconductor Systems and Applied Global Services revenue. Applied Materials expects growth in the region during 2026, supported by 28-nanometer foundry investment.

Meanwhile, the company launched six products during the quarter. The new systems target DRAM, high-bandwidth memory, advanced packaging and e-beam applications.

Applied Materials Forecast Tops Estimates

During the earnings call, Applied Materials said the rapid buildout of AI infrastructure is giving the company unusually strong visibility into future demand.

Management said some customer conversations now extend to 2030, while longer-term commitments and rolling eight-quarter forecasts have improved planning.

Based on what it called "unprecedented visibility" from customers, Applied Materials said it expects another strong record year in 2027.

Applied Materials expects fourth-quarter revenue of $10.25 billion, plus or minus $500 million. That compares with analyst estimates of $9.54 billion.

The company forecast adjusted earnings of $3.82 to $4.22 per share, compared with estimates of $3.69.

Applied Materials expects Semiconductor Systems revenue of $7.9 billion and Applied Global Services revenue of $1.84 billion.

Management expects AI infrastructure spending to support multiyear growth in leading-edge logic, DRAM and advanced packaging. Those three areas are expected to represent about 80% of wafer fab equipment growth in 2026 and 2027.

The company has nearly doubled its manufacturing footprint and aims to double quarterly systems output by 2028.

AMAT Price Action: Applied Materials shares were down 5.41% at $505.62 during premarket trading on Friday, according to Benzinga Pro data. The stock has surged 183.97% over the past 12 months.

JPMorgan Debanked Polymarket Over Regulatory Concerns, But Eyes Role in Potential IPO: Report

Benzinga News — Fri, 14 Aug 2026 08:52:56 -0400

JPMorgan Chase (JPM ) reportedly ended its banking relationship with Polymarket in late 2025 over regulatory concerns, highlighting the challenges prediction-market companies face as the industry rapidly expands in the U.S. Polymarket was asked by JPMorgan in October to seek a new banking partner amid regulatory concerns. The prediction market platform has since secured a new lender, whose identity has not been disclosed, according to a report by the Financial Times.

Despite ending its banking relationship with Polymarket, JPMorgan remains connected to the company, having invited CEO Shayne Coplan to speak at a private banking conference in February and eyeing an underwriting role if Polymarket goes public, the report stated.

Polymarket told the publication that it maintained a close, active relationship with JPMorgan, including across multiple entities, operational integrations and customer fund flows, adding, "Any suggestion otherwise fundamentally mischaracterises our relationship."

JPMorgan and Polymarket did not immediately respond to Benzinga's request for comments.

Debanking Debate Puts Banks Under Fire

"Debanking" has emerged as a major U.S. political issue after crypto businesses and investors alleged they were denied banking services. The government is investigating major banks, including JPMorgan and Bank of America (BAC ), over fair-access concerns, while President Donald Trump has sued JPMorgan and CEO Jamie Dimon, accusing them of politically motivated account closures.

JPMorgan initially denied the allegations, arguing the lawsuit lacked sufficient evidence. The bank later acknowledged that it closed accounts linked to Trump and his businesses following the Jan. 6, 2021 Capitol riot. A former JPMorgan executive confirmed that the bank notified Trump-associated entities in February 2021 that their private and commercial banking accounts would be closed.

Prediction Markets Face Banking Hurdles

JPMorgan's move underscores the challenges emerging companies face in securing banking services, while highlighting major banks' cautious stance toward the rapidly growing prediction-market industry.

The CFTC fined Polymarket $1.4 million in 2022 for operating an unregistered derivatives platform and ordered it to wind down noncompliant markets. Polymarket later returned to the U.S. through QCX LLC, which received CFTC designation as a designated contract market in July 2025.

Coinbase Global Inc. (COIN ) is facing scrutiny from New York City over its prediction market activities. Earlier this week, City Council Speaker Julie Menin launched an investigation into Coinbase, Polymarket, Kalshi and Gemini Titan, seeking information about their marketing practices.

US Full-Time Employment Falls for Fourth Straight Month, Market Commentator Says Labor Market Is 'Weak Beneath the Surface'

Benzinga News — Fri, 14 Aug 2026 08:52:15 -0400

Market commentator The Kobeissi Letter said the U.S. labor market is showing deeper weakness in full-time employment, pointing to a continued decline in the number of Americans working full time.

In a post on X on Thursday, The Kobeissi Letter said full-time employment fell by 106,000 in July to 133.55 million, the lowest level since December 2024. The decline marked the fourth consecutive monthly drop, bringing the total decline to 1.11 million. Since January 2025, full-time employment has fallen by 2.35 million.

Full-Time Jobs Fall

Full-time employment is now just 1.4% above pre-pandemic levels, according to the data cited by The Kobeissi Letter.

The full-time employment-to-total employment ratio also fell to 82.4%, which the market commentator said was the third-lowest level since March 2018.

"US labor market is weak beneath the surface," The Kobeissi Letter said.

The July labor-market data also showed the unemployment rate falling to 4.1% even as employers shed 23,000 jobs, while the labor force participation rate fell to 61.4%, its lowest level since February 2021.

The lower participation rate means some people who are neither working nor actively looking for work are excluded from the unemployment rate, potentially masking some weakness in the headline figure.

Economist Mark Zandi also said the July jobs report was weaker than it appeared, pointing to falling labor force participation alongside the decline in employment.

Labor Force Shrinks

The number of Americans outside the workforce reached a record 105.8 million in June, while the labor force participation rate fell to 61.5%.

Employers added 57,000 jobs in June, below expectations for a gain of 110,000.

Earlier analysis from economist Laura Ullrich pointed to a shrinking labor pool as a potential factor behind weaker job growth, with retirements and lower immigration reducing the number of workers available to employers.

Jobs Data Cools

The latest full-time employment figures add to a series of mixed signals from the U.S. labor market.

While full-time employment has declined for four consecutive months, some indicators have remained stronger. Weekly jobless claims fell to 187,000 in July, the lowest level since 1969, showing that weakness has not been uniform across the labor market.

Japan’s Holiday Travel Rush Descends Into Chaos as Record Rain Kills Four and Strands Around 7,000 People at Narita Airport

Benzinga News — Fri, 14 Aug 2026 08:51:54 -0400

Record rainfall turned Japan's busy Obon holiday travel rush into chaos on Friday, killing at least four people in Chiba Prefecture and leaving around 7,000 travelers stranded overnight at Tokyo's Narita International Airport after floods severed road and rail links.

Record Rain Swamps Chiba During Holiday Rush

More than 360 millimeters of rain fell in 24 hours in parts of Chiba, Reuters reported on Friday. The Japan Meteorological Agency recorded an unprecedented 11.5 centimeters in one hour in Chiba City and 9.7 centimeters in Sakura, while nearly 230,000 residents were advised to seek shelter.

"This case was an extremely unusual situation," Chiba Gov. Toshihito Kumagai said. "I have responded to many disasters in the past, but I have never experienced a case like this."

Officials confirmed four deaths, including people found in flooded vehicles, while another person remained missing. Japan's Ground Self-Defense Force deployed personnel and buses, including assistance for roughly 4,000 people stranded overnight at Soga Station.

Reuters said more than 22,000 households still lacked power Friday morning, while outages had peaked at about 68,000.

Narita Travelers Face Overnight Transport Chaos

At Narita, airport workers distributed blankets, water and snacks as passengers slept across terminal floors. Flights were expected to operate normally Friday, though Japan Airlines (JAPSY ) (JPNRF ) warned of possible delays. Rail service to Tokyo partially resumed while highway closures continued to snarl road access.

United Uses Narita As Key Asia Gateway

Narita, previously featured in roundups of top global airports, is not an officially designated corporate hub for any major U.S. airline. United Airlines Holdings Inc. (UAL ), however, uses NRT as a major international connecting point. United's formal hub list omits Narita, but the carrier operates transpacific service there and fifth-freedom routes to Cebu, Kaohsiung, Ulaanbaatar, and Pacific destinations.

Benzinga reached out to United Airlines for comment but has yet to hear back.

United has kept expanding that footprint. Its network material highlights Narita as a gateway to Tokyo and Asia, while earlier reports also noted a United 737 operating from Narita to Cebu following an emergency diversion in Japan last year.

United also coordinates transpacific service with joint-venture partner All Nippon Airways (ALNPY ). ANA says the partnership lets both carriers align fares and effectively broaden their networks across the Pacific.

"We are never going to forget this trip," one American traveler told NHK.

Goldman Sachs Courts Investors to Join Nvidia's $500 Billion AI Financing Initiative: Report

Benzinga News — Fri, 14 Aug 2026 08:51:47 -0400

Goldman Sachs (GS ) is reportedly in talks with potential investors to participate in Nvidia Corp.'s (NVDA ) AI infrastructure financing initiative, as the chipmaker works with Wall Street's biggest asset managers to mobilize more than $500 billion in third-party capital. Goldman can supply junior capital and private credit, and help place debt into private and public markets, Reuters reported, citing sources. Asset managers plan to retain a sizable share of the financing.

Goldman Sachs did not immediately respond to Benzinga's request for comment.

Nvidia CEO Jensen Huang unveiled the plan on Monday alongside Apollo Global Management Inc. (APO ), BlackRock Inc. (BLK ), Blackstone Inc. (BX ), Brookfield Asset Management (BAM ), Goldman Sachs and KKR & Co. Inc. (KKR ).

A Relationship Years in the Making

The relationship between Nvidia and Goldman runs deep. The bank has advised Nvidia on its $6.9 billion acquisition of Mellanox Technologies, a global maker of high-speed computer networking products, and was among the joint book-running managers on June's $25 billion bond sale.

This relationship extends to the top of both firms. Less than two years ago, Goldman CEO David Solomon interviewed Nvidia CEO Jensen Huang at a technology conference hosted by the bank.

In a CNBC interview on Monday, Solomon said Huang approached Goldman with the idea for the financing structure, and the bank welcomed the opportunity to discuss it.

Skepticism

Hedge fund manager Michael Burry earlier this week called the initiative a "Wall Street stunt," warning the private-credit structure recalls past cycles, "Meet the new Boss. Same as the old Boss."

FedWatch Advisors founder Ben Emons also flagged China's cheaper chips as a risk to GPU collateral values underpinning the debt.

Stock Comparison

StockMarket Cap | 52-Week Range | YTD

Nvidia$5.45 Trillion | $164.07-$236.54 | +19.30%
Goldman Sachs | $303.58 Billion | $705.55-$1,153.99 | +14.03%

According to Benzinga Pro data, GS closed at 1,042.63, up 0.52%, on Thursday, while NVDA closed at 225.30, up 0.54%.

Apple Makes Major AI Strategy Shift in China, Develops Own LLM With Alibaba’s Support in Bid to Counter Huawei: Report

Benzinga News — Fri, 14 Aug 2026 08:51:39 -0400

Apple Inc. (AAPL ) has reportedly partnered with Alibaba Group Holding Ltd. (BABA ) to create an AI model specifically designed for the Chinese market. The AI model will fuel Apple's AI toolkit, Apple Intelligence, which is slated to debut in China in the coming months following an iOS update, Reuters reported on Friday. The rollout could coincide with new iPhone launches in September, according to previous reports.

Apple and Alibaba did not immediately respond to Benzinga's request for comments.

Apple Shifts Strategy

This is the first time that Apple is training its own China-specific AI model, rather than relying solely on local partners. This aims to bring generative AI features to Chinese iPhones, where ChatGPT and Claude are unavailable, according to the report.

This model will provide Apple with greater control over the AI experience in its most fiercely contested overseas market, where it has been losing traction to local competitors like Huawei.

Reuters also reported that earlier this month, Apple published, then deleted, a guide showing eligible Mac users in China how to connect Alibaba's Qwen AI with Siri and Writing Tools, potentially boosting its position in China's AI PC market.

Apple's strategy signifies a distinctive dual-track approach to AI implementation for a foreign company in China. This tactic could also aid Apple in circumventing the regulatory hurdles that have hindered many other U.S. tech firms in China. Moreover, it could position Apple as the first foreign company to receive Beijing's approval to offer a proprietary AI model in the country.

China Gives Approval After 2 Years

This development comes after Apple received Chinese regulatory approval for Apple Intelligence in July, ending a wait that began with the feature's launch in 2024. China's cyberspace regulator approved Apple's generative AI services, alongside AI offerings from Huawei, Xiaomi, Vivo and Oppo. Alibaba said its Qwen AI will be integrated into Apple Intelligence across iOS, iPadOS, macOS and visionOS for users in China.

China requires generative AI services to undergo registration and content compliance checks before public release. Apple Intelligence's brief appearance on Chinese iPhones in March had triggered greater regulatory scrutiny, though Apple has yet to announce an official launch date.

Meanwhile, in July, Alibaba also announced that Qwen3.8 Max-Preview, the most potent model in its Qwen family, is available through its Token Plan subscription service and its Qoder and QoderWork agentic platforms. The model, which boasts 2.4 trillion parameters, is considered comparable to leading frontier AI models, second only to Anthropic's Claude Fable 5.

AI Demand Is Booming. So Why Are CBRS and CSCO Sinking?

Benzinga News — Thu, 13 Aug 2026 12:40:30 -0400

Cerebras Systems Inc. (CBRS ) and Cisco Systems Inc. (CSCO ) were sinking Thursday despite both companies delivering fresh evidence that the AI infrastructure boom is alive and well. The problem may not be demand. It's what investors now expect companies to do with it.

Cerebras was down 13% and Cisco about 8% at the time of writing.

AI Demand Isn't The Problem

Cerebras posted record core revenue of $209.9 million, up 103% year over year, with core cloud and services revenue surging 287%. Remaining performance obligations reached $25.4 billion, and the company raised its full-year guidance.

Cisco also reported strong AI demand. It booked $4 billion of hyperscaler AI infrastructure orders in the fourth quarter, taking fiscal 2026 orders to $9.3 billion, and expects $7.5 billion of hyperscaler AI revenue in fiscal 2027. Revenue rose 18% to $17.25 billion, beating estimates.

Yet Wall Street sold both. So what was missing?

Wall Street Wants Acceleration, Not Just Growth

AI infrastructure winners are increasingly judged on their "rate of acceleration," Jake Behan, Direxion's head of capital markets, told Reuters. Cisco entered earnings with considerable optimism already priced in, he said, so strong results were treated as confirmation of the AI story rather than a new catalyst.

Cerebras guided third-quarter core revenue to $214 million to $216 million, implying just 2.4% sequential growth at the midpoint, despite revenue more than doubling from a year earlier. Core gross margin is also expected to fall to 38% to 40% before recovering in the fourth quarter.

For investors, triple-digit annual growth may not be enough when sequential growth is slowing.

The AI Trade's New Test

Prediction-market traders remain skeptical that the broader AI boom is about to break down. Polymarket puts the odds of a severe AI-industry downturn by year-end at 14%, down from 27% in late July, on roughly $2.9 million in trading volume.

Morgan Stanley analysts said "execution remains the key debate" for Cerebras given the scale and speed of the capacity build needed to support its growth.

Before the reports, investor Dan Ives called Cisco and CoreWeave "pieces of the puzzle" for the AI trade, arguing the story is shifting beyond capex toward monetization.

The reactions to Cisco and Cerebras show investors are looking for more than evidence of strong AI demand. They also want to see that demand translate into faster revenue growth and higher margins.

Why Nvidia May Stand in the Way of Wall Street's Plans to Turn AI Compute Into a Commodity

Benzinga News — Thu, 13 Aug 2026 12:40:25 -0400

CME Group Inc. (CME ) said Tuesday it will launch AI compute futures on Oct. 5, pending regulatory review, with contracts tracking monthly rental prices for NVIDIA Corp. (NVDA ) H100 and B200 chips. The exchange wants to turn compute into a "standardized tradable commodity," giving AI labs, hyperscalers and data center operators a way to hedge swings in computing costs.

The plan rests on two awkward questions. Is compute uniform enough to trade like a commodity? And can a real market form around a product dominated by one company?

Compute Isn't Oil

Compute is not naturally interchangeable. Chips age quickly, generations differ and the economics shift with power, networking and location.

Semafor business reporter Rohan Goswami, speaking Thursday on the Prof G Markets podcast, said exchanges have handled that problem before. Not all steel is identical either, yet hot-rolled steel trades as a single benchmark.

CME's answer is similar. Its initial contracts will benchmark specific chips, Nvidia's H100 and B200.

Kalshi already trades a range of GPU rental-price markets, including one on where Nvidia B200 compute ends the year. Those markets underpin its market-implied compute forward curves.

The Bigger Problem Is Nvidia

Standardization may be the easy part. Goswami said compute futures may never function like a conventional commodity market because Nvidia has enormous influence over the supply and pricing of the chips underlying the market.

"There's no other game in town except for Nvidia," he said, likening the setup to an oil market run entirely by Standard Oil.

Goswami argued Nvidia has little incentive to encourage greater price transparency or falling compute costs, since cheaper compute could reduce the value of its chips. He added he does not believe compute futures will ever become a "real market."

Wall Street Is Financializing the AI Buildout

The contracts fit a broader push to price, hedge and finance the AI boom. Nvidia said this week that Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR will establish financing platforms intended to mobilize more than $500 billion for AI infrastructure.

Goswami called the initiative a risk-spreading mechanism, one that spreads the financial risk while giving Wall Street greater exposure to the AI buildout.

The Oct. 5 launch will test whether a tradable price for Nvidia compute can mature into a genuine commodity market.

Cloudflare Prices $2.175B Zero-Interest Convertible Notes Due 2031

Benzinga News — Thu, 13 Aug 2026 12:40:18 -0400

Cloudflare, Inc. (NET ) shares are up on Thursday as the company disclosed the pricing of $2.175 billion aggregate principal amount of 0% convertible senior notes due 2031. The company's announcement regarding the convertible senior notes is a significant financial maneuver that could enhance its capital structure and provide additional resources for growth initiatives.

This move reflects Cloudflare's ongoing strategy to leverage financial instruments to support its expansion and operational goals.

Initial purchasers also have an option to buy up to an additional $325 million of notes within 13 days of issuance.

The offering is expected to settle on August 13, 2026, generating approximately $2.14 billion in net proceeds, assuming the option is not exercised.

The senior unsecured notes will bear no regular interest, will not accrete, and will mature on August 15, 2031, unless redeemed, repurchased, or converted earlier.

Cloudflare cannot redeem the notes before August 20, 2029, except under a cleanup provision. Thereafter, the company can redeem the notes for cash if its Class A shares trade at least 130% of the applicable conversion price for the required period. It can also redeem all remaining notes if the outstanding amount falls below $200 million.

NET Technical Analysis: Key Levels And Momentum

The stock is currently trading at $313.12, which is 11.1% above its 20-day simple moving average (SMA) of $282.07. The moving average convergence divergence (MACD) is above its signal line, indicating that downside pressure is easing and suggesting improving momentum in the stock's price action.

Key Resistance: $324.73 - This level represents the recent 52-week high, which could act as a psychological barrier for traders.
Key Support: $285.29 - This level aligns with the 20-day exponential moving average (EMA), which often serves as a short-term support level.

NET Earnings Preview And Analyst Price Targets

Cloudflare is slated to provide its next financial update on October 29, 2026 (estimated).

EPS Estimate: 28 cents (Up from 27 cents YoY)
Revenue Estimate: $737.87 million (Up from $562.03 million YoY)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $341.68. Recent analyst moves include:

Citigroup: Buy (Raises Target to $400.00) (Aug. 10)
Susquehanna: Neutral (Raises Target to $300.00) (Aug. 10)
Scotiabank: Sector Outperform (Raises Target to $390.00) (Aug. 7)

How Cloudflare Ranks On Momentum And Market Performance

Below is the Benzinga Edge scorecard for Cloudflare, Inc. Class A common stock, par value $0.001 per share, highlighting its strengths and weaknesses compared to the broader market:

Momentum: Bullish (Score: 94.7) - Stock is outperforming the broader market.

The Verdict: Cloudflare's Benzinga Edge signal reveals a strong momentum-driven story, reflecting its robust performance in the market. This positive momentum aligns with the company's strategic financial moves and growth potential.

NET Top ETF Holdings And Passive Flow Exposure

Amplify Cybersecurity ETF (HACK ): 5.23% Weight
Baillie Gifford Long Term Global Growth ETF (BGGG ): 5.68% Weight
Spear Alpha ETF (SPRX ): 9.87% Weight

Significance: Because NET carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

NET Stock Moves In Premarket Trading

NET Stock Price Activity: Cloudflare shares were up 0.53% at $313.12 during premarket trading on Thursday, according to Benzinga Pro data.

AMD’s 2027 Server Revenue Outlook Is Already 20% Bigger Than the Entire 2025 Market

Benzinga News — Thu, 13 Aug 2026 12:40:10 -0400

Advanced Micro Devices, Inc. (AMD ) stock edged lower in Thursday's premarket session as investors weighed the company's ambitious artificial intelligence and data center growth plans against a modestly positive futures backdrop. Nasdaq futures rose 0.09%, while S&P 500 futures gained 0.22%.

AMD used its Technology Leadership Forum 2026 to outline an acceleration in its data center strategy. Management pointed to AI inference and agentic computing as major growth drivers.

The company also detailed Helios customer commitments, its expanding server CPU roadmap, software improvements and efforts to secure additional supply.

Server And AI Growth Outlook Accelerates

AMD Corporate Vice President of Financial Strategy and Investor Relations Matt Ramsay said the company's server business grew more than 50% in the first quarter and more than 70% in the second quarter. Both cloud and enterprise revenue increased more than 70%.

AMD expects server revenue growth to exceed 80% in the second half of 2026. The company also provided an early outlook for at least 70% growth in 2027.

AMD expects its broader data center business, including AI, to grow well above 100% in 2027.

Ramsay said AMD's early 2027 server revenue outlook is roughly 20% larger than the entire server market was in 2025, underscoring the scale of the company's expected growth.

The company raised its estimate for the server CPU market to $220 billion by 2030 and continues to target more than 50% revenue share. Ramsay said agentic computing could account for roughly two-thirds of the market as AI spending increasingly shifts from training to inference.

Helios Anchors AMD's AI Expansion

AMD plans to begin shipping components for its Helios AI racks to manufacturing partners in September. Those components include MI450 accelerators, Venice CPUs and Pensando networking products.

Management expects a significant revenue ramp in the fourth quarter, followed by another increase in the first quarter.

Customer commitments provide AMD with visibility into that expansion. The company has secured 1-gigawatt commitments from OpenAI and Meta Platforms, Inc. (META ). Anthropic has committed to 1 gigawatt, with an ambition to reach 2 gigawatts.

AMD also expects deployments through Oracle Corporation (ORCL ) Cloud Infrastructure, Microsoft Corporation (MSFT ) Azure and other cloud providers.

Ramsay said customer demand remains strong, although deployment speeds will also depend on the availability of land, power, infrastructure and capital.

ZT Systems Supports Rack-Scale Push

AMD acquired ZT Systems to add system-level expertise as it expands beyond individual chips into complete rack-scale AI systems. Ramsay said ZT Systems has helped strengthen the Helios design and reduce execution risks.

AMD plans to begin the Helios ramp with a limited number of manufacturing partners before expanding more broadly.

Ramsay said AMD has moved beyond major design concerns. The focus has shifted to producing working racks at scale and helping customers quickly move production workloads onto the systems.

AMD Says ROCm Is Closing The Software Gap

AMD also highlighted progress with ROCm, its AI software platform, as it competes with NVIDIA Corporation's (NVDA ) CUDA ecosystem.

Ramsay said improvements over the past 18 months have reduced friction for large customers. He said the competitive gap has narrowed enough that software is no longer a central concern in discussions with leading AI companies.

AMD plans to launch ROCm AI alongside Helios and continue updating the platform with future accelerator generations.

Venice Expands AMD's CPU Roadmap

AMD is sampling its next-generation Venice server CPUs to customers and plans to use them in both Helios systems and its broader server portfolio.

Venice scales to 256 cores and 512 threads and targets workloads ranging from traditional cloud computing to AI infrastructure and agentic systems.

AMD plans to follow Venice with its Florence CPU family in 2028. Ravenna is also under development with customer involvement.

Ramsay said AMD's chiplet-based approach allows the company to develop different server configurations more quickly for a wider range of workloads.

AMD Targets x86 And Arm Rivals

AMD sees competition from both its traditional x86 rival and processors based on technology from Arm Holdings plc (ARM ).

Ramsay said AMD does not frame its strategy around the x86-versus-Arm debate. Instead, the company focuses on building the best processor for each workload.

He said AMD has increased its share of the x86 server market from 0.4% to the high-40% range. The company believes its experience in security, reliability and enterprise workloads will strengthen its position as agentic computing expands.

For agentic systems, Ramsay said customers are increasingly focused on metrics such as agents or computing threads per megawatt rather than the underlying instruction set.

Supply Remains The Key Constraint

AMD said demand is not its biggest near-term challenge. Instead, the company is focused on securing enough manufacturing and advanced packaging capacity to meet expected growth.

AMD continues to work with Taiwan Semiconductor Manufacturing Company Ltd. (TSM ), where it ranks among the largest customers. AMD has also announced a $10 billion investment in Taiwan's technology ecosystem, largely focused on back-end capacity.

The company is working with server manufacturers, cloud companies and other partners to secure sufficient memory supply.

Ramsay said AMD continues to pursue additional near-term capacity. Longer planning horizons should also give AMD and its suppliers greater flexibility to support expected growth in 2027 and 2028.

Price Action

AMD Price Action: Advanced Micro Devices shares were down 0.44% at $480.80 during premarket trading on Thursday, according to Benzinga Pro data.

Musk's Grok 4.6 Jumps to AI Frontier, Matches OpenAI at a Fraction of the Price

Benzinga News — Thu, 13 Aug 2026 12:39:51 -0400

Grok 4.6, released Wednesday by Elon Musk's SpaceX (SPCX ), scored 61 on the Artificial Analysis Intelligence Index, which matches OpenAI's GPT-5.6 Sol Max and trails only Anthropic's leading models, according to independent benchmarking firm Artificial Analysis.

Grok charges $2 per million input tokens and $6 per million output tokens. Sol Max costs $5 and $30. The leap could turn a model race Grok was losing on intelligence into a price war.

Grok Goes From Laggard to Frontier

Grok 4.6 gained five points over Grok 4.5 in little more than a month, and 23 points over Grok 4.3, according to Artificial Analysis. The firm said the release returns SpaceX's AI unit to the frontier, with particularly strong performance on agentic work rather than static reasoning.

Anthropic still leads the overall index. In June, Benzinga reported that for SpaceX bulls to be right, Grok needed to climb from laggard to leader.

Polymarket now gives xAI a 9% chance of having the best AI model by the end of the year, up from around 3% before the release of its latest version. The market resolves using Arena's leaderboard rather than the Artificial Analysis index.

Anthropic is in first with 67%. Google has fallen to fourth, behind xAI for the first time this year, with 6%.

Google Scrambles as the Frontier Moves

Grok's acceleration comes as one of its biggest rivals is discovering how hard it is simply to stay at the frontier. Reuters reported Wednesday that Alphabet (GOOGL ) (GOOGL ) co-founder Sergey Brin has been urging key AI staff to go all in on Gemini.

Gemini briefly reached the frontier last November but soon slipped behind. According to the report, Google delayed its next flagship model by two months after weak internal coding results, while compute shortages, internal disputes and bureaucracy have slowed progress.

Why SpaceX Investors Care

Morgan Stanley said this week that investors may be undervaluing SpaceX's AI business. The bank said further signs of Grok gaining traction through Cursor could help close that valuation gap, and put its bull case for SpaceX shares at $600.

Grok 4.6 is now available through Cursor and SpaceX's API.

Everyone Is Chasing Nvidia: BofA Securities Sees $210 Billion CPU Boom for These 3 Stocks

Benzinga News — Thu, 13 Aug 2026 12:39:35 -0400

NVIDIA Corp (NVDA ) has dominated the first leg of the AI chip boom. Now, BofA Securities sees a $210 billion opportunity in a different type of chip: CPUs. CPUs help coordinate and manage the work inside servers, while GPUs handle the heavy calculations behind AI models.

As AI evolves from answering questions to performing tasks autonomously, BofA Securities expects CPUs to take on a much bigger role in the coming years.

That could create a massive new market for Advanced Micro Devices Inc. (AMD ), Intel Corp. (INTC ) and Arm Holdings plc (ARM ).

BofA Securities expects server CPU revenue to rise from $61.4 billion in 2026 to $210.6 billion by 2030.

That is close to five times the roughly $35 billion the server CPU market was worth in 2025.

Why AI Agents Could Change The CPU Market

The important distinction is between today's AI models and tomorrow's AI agents.

In a traditional server, the CPU is the main coordinator. It manages the operating system, applications, databases, storage and network connections.

AI servers work differently. GPUs perform most of the intensive AI calculations, but CPUs still coordinate the system.

They feed data to GPUs, manage connections and prepare workloads.

The next step is the agentic server.

AI agents can perform multi-step tasks without waiting for a human to give them every instruction. In this architecture, BofA Securities sees the CPU becoming an orchestration layer.

According to BofA Securities semiconductor analyst Vivek Arya, that could change the balance between CPUs and GPUs inside AI data centers.

The CPU Market Could Nearly Quadruple

BofA Securities has raised its 2030 server CPU market estimate to $210.6 billion, from about $170 billion previously.

That would represent a roughly 36% compound annual growth rate from 2026 through 2030.

The bank estimates CPUs could account for about 10% of the total data-center systems market by 2030, versus roughly 7% during the 2024-2025 training era.

Inside that $210 billion, the bank splits the market three ways.

Traditional cloud and on-premise CPUs account for about $30 billion. AI cluster and head-node CPUs, which supervise racks of accelerators, account for about $90 billion.

A third bucket worth about $90 billion did not meaningfully exist two years ago: standalone processors running AI agents.

The key is that CPUs are additive to GPUs, rather than replacing them. That's because agentic workloads layer new CPU-dense infrastructure alongside existing accelerator clusters instead of replacing them.

BofA Securities expects the CPU-to-GPU ratio to move from roughly 1:4 during the AI training era toward 1:2 for inference and eventually close to 1:1 as agentic AI expands.

In other words, the AI boom could require more CPUs precisely because it requires more GPUs.

Since the start of the year, the three major CPU producers have seen their stocks rally by triple digits.

Company2026 YTD %

Intel+173.6%
Arm Holdings+148.7%
Advanced Micro Devices+125.5%

ARM Could Be the Biggest Share Winner

The market-share forecast is where the story becomes particularly interesting.

BofA Securities expects Intel's share of overall server CPU revenue to fall from roughly 34% in 2026 to 22% in 2030.

Advanced Micro Devices is expected to remain relatively stable, moving from about 28% to 31%.

ARM is the major share winner. BofA Securities expects ARM-based CPUs to represent 47% of server CPU value by 2030, including roughly 38% from merchant products and 9% from custom designs.

The merchant opportunity includes new products such as Nvidia's Vera CPUs and Qualcomm solutions. The custom opportunity includes hyperscaler chips such as Amazon's Graviton, Google's Axion and Microsoft's Cobalt.

That does not mean ARM captures all the economics. Much of the value can accrue to companies licensing its architecture or building chips around it.

AMD, by contrast, sells the chip and keeps the margin.

Why AMD Still Matters

Despite ARM's share gains, BofA Securities names AMD its "top CPU pick."

"AMD remains our top CPU pick on its wide breadth of portfolio and dual leadership - highest‑frequency (compute/head node rack) and highest core/thread count (agentic AI)," Arya said.

The bank expects AMD to remain strong in high-end AI server workloads, helped by its core-count advantage.

Arya points to breadth of portfolio and a core-count lead at the top end, where agentic workloads live: AMD's Zen 6 Venice is specified at up to 256 cores, against 192 for Intel's Diamond Rapids and 88 for Nvidia's Vera.

The investment takeaway is simple: the AI infrastructure boom may be creating a second chip market alongside GPUs.

What Wall Street Says on AMD

According to Benzinga Analyst Ratings, AMD carries a consensus Buy rating and an average price target of $550.86, roughly 12% above a recent $493.38. The range runs from $248 to $730.

Most of the recent moves clustered around second-quarter earnings.

Date | FirmPrice | TargetAction | Rating

Aug. 6, 2026Argus Research$450 → $625MaintainsBuy

Aug. 6, 2026Rosenblatt$665 → $700MaintainsBuy

Aug. 5, 2026Wells Fargo$615 → $700MaintainsOverweight

Aug. 5, 2026Truist Securities$478 → $594MaintainsBuy

Aug. 5, 2026JP Morgan$385 → $550MaintainsNeutral

Aug. 5, 2026Morgan Stanley$410 → $465MaintainsEqual-Weight

Source: Benzinga Analyst Ratings

Consumers Are Cutting Back — But Birkenstock Says Demand Is Still Running Strong

Benzinga News — Thu, 13 Aug 2026 12:39:04 -0400

Birkenstock Holding plc (BIRK ) stock jumped Thursday after the footwear company reported better-than-expected fiscal third-quarter sales and raised its full-year revenue and adjusted EBITDA outlook. During the earnings conference call, Birkenstock said demand remained strong despite inflationary pressure on consumer wallets and increased markdown activity across the broader retail industry.

Earnings Snapshot

Birkenstock reported adjusted earnings of 86 cents per share, narrowly missing the analyst estimate of 87 cents. Sales of $836.49 million topped the consensus estimate of $822.83 million.

In euro terms, third-quarter revenue rose 13% year over year to 720 million euros and increased 15% on a constant-currency basis.

CEO Oliver Reichert said Birkenstock delivered a strong third quarter, underscoring the continued strength of the brand.

Adjusted net profit rose 15% to 134 million euros, while adjusted earnings per share increased 19% to 0.74 euros. Adjusted EBITDA climbed 11% to 242 million euros. However, the adjusted EBITDA margin narrowed 70 basis points to 33.7%.

Margins faced pressure from foreign exchange and U.S. tariffs. Adjusted gross margin fell 130 basis points to 59.2%, reflecting a 60-basis-point currency hit and a 70-basis-point impact from incremental U.S. tariffs. Improved capacity absorption partly offset those pressures.

DTC Growth Accelerates

Direct-to-consumer revenue increased 14%, or 16% at constant currency, outpacing business-to-business growth of 13%, or 15% at constant currency. Birkenstock added 13 company-owned stores during the quarter, bringing its global total to 124.

Growth remained broad across regions. Americas revenue increased 11%, EMEA sales rose 15% and APAC revenue jumped 18%. On a constant-currency basis, growth was 14%, 15% and 23%, respectively. Excluding Australia, APAC growth approached 30%.

Birkenstock invested about 26 million euros in capital expenditures during the quarter, primarily to expand production capacity and its global retail operations.

Operating cash flow totaled 246.5 million euros in the quarter, compared with 260.6 million euros a year earlier.

The company ended June with 694 million euros in cash and cash equivalents. Net leverage increased to 1.8 times from 1.5 times at the end of September following a 230 million-euro accelerated share repurchase.

Birkenstock Raises 2026 Outlook

In euro terms, the company raised its constant-currency revenue growth outlook to 15% and expects reported revenue at the high end of its previous 2.30 billion-euro to 2.35 billion-euro range.

Birkenstock also raised adjusted EBITDA guidance to at least 710 million euros, with an adjusted EBITDA margin of 30.2% to 30.5%.

The company maintained its adjusted gross margin outlook of 57% to 57.5% and adjusted earnings guidance of 1.90 euros to 2.05 euros per share.

It raised its expected tax rate to 30% to 31% from 26% to 28%, primarily because of non-deductible, non-cash expenses tied to refinancing and the accelerated share repurchase.

BIRK Price Action: Birkenstock Holding shares were trading up 16.88% at $42.94 at the time of publication on Thursday, according to Benzinga Pro data.

Ford to Move Some Lincoln Models From China Into US by the End of the Decade Amid Trump Tariffs: Report

Benzinga News — Thu, 13 Aug 2026 12:38:55 -0400

Ford Motor Co. (F ) is reportedly preparing to move production of some Lincoln models from China to the U.S. beginning in 2030, as high Trump tariffs and tighter restrictions on Chinese vehicle technology reshape the automaker's production strategy. Lincoln Nautilus Attracts More Than 50% Tariff

According to a report by Reuters on Wednesday, CEO Jim Farley confirmed in an interview with the news agency that the Lincoln Nautilus SUV imported from China attracted a 52.5% tariff and that Ford will begin shifting production of some Lincoln vehicles into the U.S. starting in 2030, the report said.

Ford did not immediately respond to Benzinga's request for comment.

"We made this decision as soon ⁠as the policy of the administration was set," Farley said in the report, while also touting the automaker's domestic production capabilities. "Ford's got an edge. Domestic manufacturing has an edge," U.S Commerce Secretary Howard Lutnick said, according to the report.

Rules surrounding Chinese technology in vehicles sold in the U.S. also prompted this shift in production strategy, according to the report.

According to an official statement by Ford on Wednesday, Farley said that "Ford builds in America because we believe in America, and we're betting on that belief again." The statement also said that "Lincoln will phase out the importation of vehicles from China for the U.S. market."

Jim Farley Backs USMCA Revision

Earlier, during Ford's second-quarter earnings call, Farley had backed a renewed U.S.-Mexico-Canada Agreement (USMCA), calling it a "critical" element in Ford's business model. Farley said that an "improved USMCA could be a great opportunity for the industry."

The automaker also recently named its sub-$30,000 EV pickup truck, calling it the Fathom electric pickup truck. "We named it Fathom because real depth comes from deeply understanding how you live," according to an official statement by the automaker.

Benzinga Edge Rankings show Ford scores satisfactorily on the Momentum metric, while also providing a favorable price trend in the Medium and Long term.

Price Action: Ford Motor shares were up 0.07% to $13.85 during premarket trading on Thursday.

Cisco Says AI Boom Is Forcing Companies to Upgrade Networks — ‘It’s Just Not Optional’

Benzinga News — Thu, 13 Aug 2026 12:38:36 -0400

Cisco Systems, Inc. (CSCO ) stock traded lower Thursday morning despite the company reporting better-than-expected fiscal fourth-quarter 2026 results and issuing guidance above Wall Street estimates. Revenue rose to $17.25 billion, topping the $16.82 billion analyst estimate. Adjusted earnings of $1.22 per share beat the $1.17 consensus estimate.

Management described the current environment as the early stages of a multi-year networking and AI infrastructure supercycle. The company cited accelerating AI adoption, hyperscaler investment, enterprise AI deployments, cybersecurity demand and high-performance networking.

During the earnings call, CEO Chuck Robbins said companies increasingly view AI readiness, cybersecurity and infrastructure upgrades as essential spending.

Customers are shifting money from other budgets into IT because falling behind could put their businesses at a competitive disadvantage.

Robbins said the spending is becoming similar to cybersecurity investments: "It's just not optional." Cisco said the trend is helping fuel what it calls a multiyear networking "super cycle."

Cisco Q4 Earnings Snapshot

Cisco's product revenue rose 24% year over year to $13.5 billion, while services revenue was flat at $3.8 billion.

Total remaining performance obligations, or RPO, increased 7% to $46.7 billion. Product RPO rose 9%, while annual recurring revenue reached $32.1 billion, up 3%.

Subscription revenue represented 48% of quarterly revenue. Software revenue increased 11% to $6.2 billion.

Adjusted gross margin was 66.3%, while adjusted operating margin was 35.9%.

Operating cash flow climbed 27% to $5.4 billion. Cisco ended the quarter with $15.9 billion in cash, cash equivalents and investments.

The company returned $3.2 billion to shareholders, including $1.7 billion in dividends and $1.5 billion in share repurchases. Cisco had $8.1 billion remaining under its stock repurchase authorization.

AI And Networking Orders Surge

Product orders jumped 35% year over year in the fourth quarter. Orders increased 44% in the Americas, 25% in EMEA and 19% in APJC.

Hyperscaler orders grew at a triple-digit rate, while service provider and cloud orders surged 95%. Enterprise orders rose 21%, and public-sector orders increased 30%.

Networking orders climbed 40%, marking the eighth consecutive quarter of double-digit growth. Networking revenue increased 28%.

Cisco secured $4 billion in hyperscaler AI infrastructure orders during the quarter. That brought fiscal 2026 orders to $9.3 billion, about 4.5 times the fiscal 2025 level.

Acacia generated more than $1 billion in orders. Cisco also shipped more than 850 400G and over 75 800G coherent pluggable optics.

The company added three hyperscaler design wins and expects several more AI design wins over the next six months across its Silicon One platforms and optics.

AI infrastructure orders from neo-cloud, sovereign-cloud and enterprise customers exceeded $400 million in the quarter and topped $1 billion for fiscal 2026.

Enterprise AI demand also strengthened. AI-tagged Nexus switch orders increased more than 85% sequentially, while data-center networking orders rose more than 35%. Wi-Fi 7 represented more than half of wireless orders.

Security And AI Adoption Gain Momentum

Security orders grew by double digits. More than 1,500 customers adopted Cisco's new security products during the quarter, bringing cumulative net-new customers to more than 6,400.

Firewall orders increased more than 30%. Splunk added more than 280 new logos during the quarter and surpassed 1,000 for fiscal 2026.

Collaboration recorded its strongest quarter in seven years, with video-device revenue rising 40%.

Cisco also resolved 145,000 customer support cases entirely through AI during fiscal 2026. Its Circuit AI assistant processed more than 75 million prompts in the fourth quarter.

Nearly 4,500 enterprises have signed up for Cisco Cloud Control since its June launch. Resilient Infrastructure Services powered by Cisco IQ now serve more than 8,600 customers.

Cisco Forecast Tops Wall Street Estimates

Cisco expects fiscal first-quarter revenue of $18 billion to $18.2 billion, well above the $16.8 billion analyst estimate. The company forecast adjusted earnings of $1.32 to $1.34 per share, compared with the $1.16 consensus estimate.

For fiscal 2027, Cisco expects revenue of $72.2 billion to $73.4 billion, versus the $68.69 billion estimate. Adjusted earnings are expected to range from $5.05 to $5.11 per share, above the $4.80 estimate.

Cisco expects hyperscaler AI infrastructure revenue to reach $7.5 billion in fiscal 2027, nearly doubling from $3.8 billion in fiscal 2026.

CSCO Price Action: Cisco Systems shares were down 5.72% at $116.80 during premarket trading on Thursday, according to Benzinga Pro data.

JD.com Breaks A 12-Year Streak: Revenue Falls For First Time Since 2014 Listing

Benzinga News — Thu, 13 Aug 2026 12:38:06 -0400

China's e-commerce giant JD.com, Inc. (JD ) reported mixed second-quarter 2026 results on Thursday, as earnings topped expectations but revenue fell short.

Earnings Snapshot

JD.com reported revenue of $51.05 billion, down 2.9% year over year and below the analyst consensus estimate of $51.55 billion.

The decline marked JD.com's first quarterly revenue contraction since its 2014 listing, as softer Chinese consumer spending and a difficult year-earlier comparison weighed on sales, Bloomberg reported Thursday.

The year-earlier period benefited from government-backed subsidies for cars, electronics and other big-ticket purchases. China's prolonged economic slowdown has since pressured online retailers, while retail sales recorded their first monthly decline since the pandemic in May.

Adjusted net income per ADS came in at 93 cents, beating the analyst estimate of 81 cents. Net income rose 15% to 7.1 billion yuan.

Net product revenue fell 5.4% year over year to $39.37 billion, while net service revenue increased 6.8% to $11.69 billion.

JD Retail revenue declined 4.7% to $43.53 billion. Logistics revenue jumped 24.3% to $9.45 billion, while New Businesses revenue fell 47.6% to $1.07 billion.

Margins Improve As Marketing Costs Fall

The company's marketing expenses fell 24.8% to $3.0 billion, accounting for 5.9% of revenue, down 170 basis points from a year earlier. The decline primarily reflected optimized promotional spending on new business initiatives.

Operating margin improved to 1.3% from negative 0.2% a year earlier. Adjusted operating margin rose to 1.6% from 0.3%.

JD Retail's operating margin increased to 4.6% from 4.5% in the prior-year quarter.

JD.com Pulls Back From Food-Delivery Battle

JD.com has scaled back aggressive spending on food delivery after Beijing warned internet companies against excessive price competition and regulators scrutinized major industry participants.

The company had invested heavily in instant delivery and aimed to capture a 30% market share this year, roughly double its level around February.

However, intense competition among JD.com, Alibaba Group Holding Limited (BABA ) and Meituan (MPNGY ) pressured industry profitability. The spending contributed to JD.com posting its first quarterly loss in nearly four years in the three months ended December.

CEO Sandy Xu warned of "near-term revenue headwinds" while pointing to narrower food-delivery losses and solid profitability at the core JD Retail business.

Overseas Expansion Offers Growth Route

JD.com is expanding outside mainland China as it seeks growth in potentially higher-margin markets.

The company launched its Joybuy retail platform and JoyExpress delivery service in Europe and partnered with brands in Hong Kong. Its proposed acquisition of Germany's Ceconomy faces an in-depth subsidy investigation by the European Commission.

On artificial intelligence, the company has yet to announce investments on the scale of some Chinese internet peers. The company has partnered with Tencent Holdings Limited (TCEHY ) and uses Tencent's Yuanbao chatbot to support agentic shopping services.

Cash Flow And Liquidity

Adjusted EBITDA totaled $1.17 billion, with margin improving to 2.3% from 0.8% a year earlier.

JD.com generated $5.56 billion in operating cash flow and $4.69 billion in free cash flow during the quarter.

As of June 30, JD.com held $34.6 billion in cash, cash equivalents, restricted cash and short-term investments.

JD.com Continues Share Buybacks

Under its share repurchase program authorized in August 2024, the company repurchased about 69.9 million Class A ordinary shares, equivalent to 34.9 million ADSs, for approximately $1.0 billion during the six months ended June 30.

The repurchases represented about 2.5% of the company's outstanding ordinary shares as of Dec. 31, 2025.

JD Price Action: JD.com shares fell 3.42% to $30.53 in Thursday's premarket trading, according to Benzinga Pro data.

Producer Inflation Unchanged in July, Below Expectations

Benzinga News — Thu, 13 Aug 2026 12:37:37 -0400

The Producer Price Index (PPI) was unchanged in July, coming in below the 0.2% monthly rebound economists expected after June's upwardly revised 0.1% decline, the Bureau of Labor Statistics reported Thursday.

The annual producer inflation rate eased to 4.7%, down from 5.5%, and below the 4.9% consensus.

Core PPI, which strips out food and energy, rose 0.2% in the month against the 0.3% expected, with the annual core rate easing from 4.7% to 4.2%, in line with expectations.

The print lands a day after the July Consumer Price Index (CPI) rose just 0.1% month over month, pulling annual inflation down to 3.4% from 3.5%, with core CPI up 0.2% and its annual rate easing to 2.5%, an in-line report that showed the energy-driven inflation burst continuing to fade.

Where Did Producer Prices Fall And Rise In July?

Energy was the biggest source of relief.

Final-demand energy prices fell 3.1% in July after declining 2.8% in June. Gasoline prices dropped 5.7%, accounting for more than half of the decline in final-demand goods prices.

Food prices also fell, with final-demand food prices down 0.9%. Diesel fuel, jet fuel and residual fuel prices declined as well.

Not everything moved lower.

Prices for motor vehicles and equipment rose 0.3%, while electric power and grains also increased. On the services side, final-demand prices rose 0.2%, which was considerably slower than the 0.5% increase in June.

One notable exception was portfolio management, where prices jumped 6.5% in July.

Overall, final-demand goods prices fell 0.7%, while services rose only 0.2%. The result was a flat headline PPI reading for the month.

There was also an important divergence beneath the flat headline.

Prices for final demand less foods, energy and trade services - the gauge the Fed watches most closely for the inflation trend - rose 0.4% in July, compared with just 0.1% in June.

That suggests the disinflation story is not completely uniform.

Market Reactions

The market initially treated the report as another piece of good news for the Fed.

The 2-year Treasury yield fell to 4.163%, while the dollar slipped and gold moved higher.

U.S. equity futures also edged up, with the S&P 500, Nasdaq 100, Dow Jones and Russell 2000 all in positive territory.

On Wednesday, the SPDR S&P 500 ETF Trust (SPY ) closed at $772.49, just 0.3% below record highs.

The key number, however, remains the September Fed meeting.

Fed futures still imply a 38.4% probability of a 25-basis-point hike, against a 61.6% probability of no change.

That probability has fallen from 55% one week ago and 51.2% one month ago for a hike, according to the market data in the chart.

In other words, the market is already moving toward a Fed hold.

Today's PPI report gives that move another reason to continue.

Uber's Tokyo Robotaxi Plans Strengthen Its Japan Push

Benzinga News — Thu, 13 Aug 2026 12:36:53 -0400

Uber Technologies, Inc. (UBER ) shares traded higher in Thursday's premarket session after the company expanded its autonomous vehicle operations in Japan. Uber Partners With Hinomaru Kotsu For Tokyo Robotaxi Pilot

Uber Japan signed an operational partnership with Hinomaru Kotsu Co., Ltd. to manage fleet operations for a Tokyo robotaxi pilot scheduled to launch in late 2026.

Hinomaru Kotsu will oversee depot operations, vehicle cleaning, maintenance, inspections, charging and vehicle uptime. Uber will make the rides available through its ride-hailing app.

The pilot will use Nissan LEAF vehicles equipped with Wayve's AI Driver technology and builds on a March 12, 2026 memorandum of understanding among Uber, Wayve and Nissan Motor Co., Ltd. for a robotaxi partnership in Japan.

Safety And Regulatory Framework

Under the arrangement, Hinomaru Kotsu will act as the authorized taxi operator in accordance with Japanese passenger transport laws and licensing requirements. At the same time, Uber will provide its matching platform and operational support tools.

Experienced Hinomaru Kotsu drivers will initially remain behind the wheel as safety operators. Fully driverless operations could follow in the future, subject to regulatory approval.

"We are very happy to partner with Hinomaru Kotsu-a deeply trusted operator-to bring this pilot deployment to life in Tokyo," said Sarfraz Maredia, Uber's Global Head of Autonomous Mobility & Delivery.

UBER Technicals Signal Improving Momentum

The stock is currently trading at $75.47, which is about 5.3% above its 20-day simple moving average (SMA) of $71.77.

Despite this positive positioning, the 50-day SMA is at $72.08, indicating a bearish crossover as the 20-day SMA is below the 50-day SMA.

Momentum indicators show that the moving average convergence divergence (MACD) is above its signal line, suggesting that downside pressure is easing, which may support a potential upward trend.

The stock has faced a significant decline of 17.03% over the past 12 months, indicating a challenging year despite recent gains.

Key Resistance: $78.50 - a nearby level where rebounds can stall.
Key Support: $69.50 - a nearby level where buyers previously stepped in.

Wall Street Remains Bullish On Uber

The stock carries a Buy rating with an average price forecast of $103.95. Recent analyst moves include:

Roth Capital: Buy (Lowers Target to $100.00) (August 10)
Jefferies: Buy (Raises Target to $110.00) (August 10)
DA Davidson: Buy (Lowers Target to $100.00) (August 6)

UBER ETF Exposure: Funds With The Largest Allocations

Invesco Nasdaq Internet ETF (PNQI ): 4.62% Weight
Pacer US Cash Cows Growth ETF (BUL ): 5.31% Weight
Pathfinder Focused Opportunities ETF (PFOE ): 4.72% Weight

Significance: Because UBER carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

UBER Stock Price Activity: Uber Technologies shares were trading 0.45% higher at $75.70 during premarket trading on Thursday, according to Benzinga Pro data.

North American EV Sales Fall 27% in July as Discounts Shrink, Global Sales Grow 9% Led by Europe

Benzinga News — Thu, 13 Aug 2026 12:36:25 -0400

Electric vehicle sales in North America fell in July despite an uptick in global sales figures, as a lack of incentives and the President Donald Trump administration's pro-fossil-fuel policies continue to impact adoption.

US EV Sales Fell 18% Year-To-Date

According to data released by market research firm Benchmark Mineral Intelligence on Thursday, cited by Electrek, which also includes Plug-In Hybrid vehicles, North American EV sales in July came in at 140,000 units, representing a 27% year-on-year drop since July 2025. During the first seven months of the year, EV sales in North America came in at 900,000, which represents an 18% decline from the same period last year.

The decline could be attributed to a weakened incentive environment after Trump rescinded the $7,500 Federal EV credit last year at the end of September, which also took away the $4,000 credit on used EVs in the U.S. The President had earlier criticized EV drivers, saying that they "have a disease."

Europe Leads the Charge, Chinese Sales Fall

In Europe, sales made big gains as 450,000 units were sold during July, according to the data, representing a 33% YoY growth. During the first seven months of the year, sales grew to 3 million units in the region, which constituted a 28% growth from last year.

France, Germany and Britain posted double-digit growth in sales during July at 81%, 46% and 43%, respectively, the report said.

In China, which is the largest automotive market in the world, sales fell 5% in July compared to last year to 980,000 units. Year-to-date, sales fell 12% to 5.9 million units. Sales in the rest of the world surged 97% to 280,000 units during July, the report said.

Gavin Newsom's EV Push

Weak EV sales in the U.S. come as Gov. Gavin Newsom (D-CA) has touted the state's MyFirstEV program as a response to Chinese automakers' growing influence in the new energy market. Under the program, first-time EV buyers in California will be eligible for a $3,500 discount on new EVs and a $1,750 discount on used EVs.

Elon Musk-led Tesla Inc. (TSLA ) also confirmed it was participating in the program alongside Rivian Automotive Inc. (RIVN ) and Lucid Group Inc. (LCID ). However, Tesla reported that it had already exhausted allocated funds for the program within four days after its launch.

AI Memory Boom Is Causing ‘Chipflation’ — And Your Next iPhone Could Cost More

Benzinga News — Thu, 13 Aug 2026 12:36:04 -0400

The artificial intelligence boom is starting to create an unexpected bill for consumers: more expensive electronics.

Memory chips are becoming one of AI's biggest bottlenecks, as data centers absorb an increasing share of global supply.

J.P. Morgan Global Research estimates DRAM prices could rise more than 400% from the start of 2024 through the end of 2026.

The result is what the bank calls "chipflation" and it could eventually make devices such as the iPhone more expensive.

AI Is Taking Memory Away From Consumers

The problem starts with DRAM, the short-term working memory used by computers, smartphones and other electronics.

AI data centers need huge quantities of high-speed memory to process increasingly complex workloads.

Hyperscalers are responding by locking up supply through long-term agreements with memory manufacturers, sometimes lasting five years or longer.

That leaves less flexibility for memory producers to serve consumer electronics manufacturers. J.P. Morgan says new capacity is unlikely to close the gap quickly.

"The market tends to underestimate the elongated pace of supply addition and new capacity buildout," J.P. Morgan equity analyst Jay Kwon said.

Kwon said the memory shortage could persist for years as AI workloads continue expanding.

That matters because memory is not a niche component. It sits inside almost every modern computing device, meaning a supply shock can spread far beyond data centers.

Companies like Micron Technologies Inc. (MU ), SK Hynix Inc. (SKHY ) and Samsung Electronics Co. Ltd (SSNLF ) are among the few major players in the DRAM industry.

Consumers Are Already Absorbing 'Chipflation' Costs

J.P. Morgan says the consumer price index for software and accessories and the producer price index for storage devices have both risen 23% since the end of 2024. Import prices for computers, peripherals and parts have climbed 37%.

"Every 10% increase in hardware costs is estimated to raise core CPI and PCE inflation by around 0.1%," J.P. Morgan economist Abiel Reinhart said.

He estimated the memory-price shock could add 0.2%-0.4% to inflation.

Bank of America's economist Stephen Juneau sees the same mechanism.

In a recent note, Juneau highlighted that core goods prices rose 0.20% month over month in July, while IT commodities jumped 1.4%. Computers, software and accessories, and smartphones were among the categories affected by higher business-related AI demand.

In other words, AI is not yet simply a technology story. It is becoming a cost story.

That creates a second-order problem for consumers.

Even if smartphone makers initially absorb higher component costs, persistent memory inflation could eventually force higher retail prices.

The AI Boom Could Keep The Pressure On

This is where the story becomes more important for investors.

Bank of America expects AI to remain inflationary in the near term because of higher input costs and stronger consumer demand from the wealth effect.

The contradiction is striking: AI is supposed to make technology cheaper and more efficient over time. For now, however, building the AI infrastructure is making some hardware more expensive.

For consumers, that could mean the next iPhone arrives with a hidden AI surcharge.

For investors, the bigger question is how long memory remains scarce.

Oracle Weighs Another Round of Job Cuts This Month as AI Infrastructure Spending Drives Debt: Report

Benzinga News — Thu, 13 Aug 2026 12:35:46 -0400

Oracle Corp. (ORCL ) is reportedly planning another round of job cuts as it seeks to rein in costs amid its heavy spending on AI infrastructure and rising debt. The job reductions could reportedly reach double-digit percentages in some teams. The tech giant has asked managers to compile lists of potentially impacted employees to trim the payroll by the start of the second quarter on September 1, reported Business Insider on Wednesday, citing an internal document and other sources.

The move is a strategic step to alleviate the financial burden caused by the company's heavy investment in AI infrastructure, which has resulted in billions in debt.

Oracle did not immediately respond to Benzinga's request for comments.

AI Costs Drive Oracle Job Cuts

Oracle's job cuts come in the wake of its massive AI buildout costs. The company announced plans to raise $50 billion in debt and equity in January, and its free cash flow in the last fiscal year was a negative $23.7 billion. Capital expenditure also surged 162% to $55.7 billion for the period.

The company revealed in its annual filing that it slashed about 21,000 jobs, or 13% of its workforce, over the past year as it accelerated AI adoption and broader restructuring. Its workforce fell from 162,000 to 141,000 by May 2026. The company spent $1.8 billion on restructuring costs, including severance and exit expenses, up sharply from $374 million a year earlier.

Oracle is not alone in this predicament. Other tech giants have also been slashing their workforce to offset the enormous capital expenditure on AI infrastructure. For instance, Meta Platforms Inc. (META ) laid off 8,000 employees, roughly 10% of its workforce, in May, and Microsoft Corp. (MSFT ) offered voluntary buyouts to 7% of its U.S. employees in April.

Oracle Targets FY2029 Cash Flow

Despite the financial strain, Oracle remains optimistic about its position in the AI infrastructure market. BNP Paribas analyst Stefan Slowinski stated that Oracle is well positioned in a supplier-friendly AI infrastructure market, with attractive contract economics and a potential free-cash-flow inflection beginning in fiscal 2029.

Oracle plans to raise $40 billion in fiscal 2027, including $20 billion through an equity ATM program and another $20 billion through yet-to-be-determined debt, equity, or a combination. The analyst said Oracle's nearly $90 billion in financing across FY2026-FY2027 could fund its current investment cycle until the business becomes cash-generative and self-sustaining from FY2029 onward.

ORCL Price Action: On a year-to-date basis, the stock declined 21.68%, as per Benzinga Pro. On Wednesday, ORCL ended 5.36% higher at $153.28.

Airbnb CEO Brian Chesky Urges Silicon Valley to Build Consumer AI That Improves Lives

Benzinga News — Thu, 13 Aug 2026 12:35:29 -0400

Airbnb Inc. (ABNB ) CEO Brian Chesky says Silicon Valley needs to build more AI products for ordinary consumers if it wants to overcome growing skepticism toward the technology. Speaking with Yahoo Finance Executive Editor Brian Sozzi on the "Power Players with Brian Sozzi" podcast, Chesky argued that the industry's focus on enterprise customers has left consumers without enough tangible AI products that improve their daily lives.

AI Needs Everyday Uses

"I think part of it's a narrative issue that we're not talking about AI correctly," Chesky said. He added that Silicon Valley also needs products that regular people can use and that provide tangible benefits, such as affordable access to services that would otherwise be out of reach.

Chesky said founders appear more reluctant to build consumer-facing products than when he started Airbnb 18 years ago. He pointed to Y Combinator, where he serves on the board, saying 159 of the latest 175 companies were focused on enterprise rather than consumers.

"It's in Silicon Valley's interest for us to develop consumer applications that improve people's lives," Chesky said.

Chesky's push for more consumer-focused AI comes as Airbnb itself has been seeing measurable benefits from the technology. In an interview with CNBC, Chesky said Airbnb's AI implementation costs "pale in comparison" to the revenue and productivity gains the company is seeing. He also said 45% of guest interactions handled with AI were resolved without human assistance.

A June Pew Research Center report found that 40% of U.S. adults believed AI's impact on society over the next 20 years would be negative, compared with 16% who expected a positive impact.

Trust Remains a Hurdle

Consumer adoption is growing, but trust remains an issue. Only 18% of U.S. adults said they had used tools such as ChatGPT, Claude or Gemini for financial guidance over the past year, compared with 32% who used professional financial advisers and 73% who relied on internet research.

The gap is particularly visible among older Americans. About 26% of Gen Z and 25% of millennials had used AI for financial guidance, compared with 7% of baby boomers.

AI Moves Into Real Use

AI is increasingly being used beyond model development. DigitalOcean Holdings, Inc. (DOCN ) CEO Paddy Srinivasan said the company's AI inference services grew roughly 800% year over year, driven by AI agents and applications involving personal productivity, search, advertising technology, generative media and coding.

Gallup found that 65% of employees at organizations using AI reported personal productivity gains. Separately, its data showed job-market optimism in the U.S. and Canada had fallen 23 percentage points since 2019.

Chesky's argument comes down to making AI useful enough in everyday life that consumers experience its benefits directly, rather than relying on Silicon Valley's messaging to change their views.

Target’s Comeback Is Real, But Its Stock May Have Run Too Far: Analyst

Benzinga News — Wed, 12 Aug 2026 13:38:20 -0400

Target Corporation (TGT ) is showing encouraging signs that its turnaround is gaining traction, but Bank of America remains cautious heading into the retailer's fiscal second-quarter earnings report next week. Bank of America Securities analyst Christopher Nardone reiterated an Underperform rating on Target while raising the price forecast to $124 from $110. The new forecast remains about 19% below the stock's $152.29 price as of Aug. 12.

The analyst also raised earnings estimates after stronger consumer trends and improving sales under Target's new leadership. However, Nardone remains wary about the pace of earnings revisions and whether recent comparable-sales momentum can last.

Stronger Sales Lift Target Estimates

Bank of America increased its fiscal 2027 earnings estimate to $8.46 per share from $8.20. It raised its fiscal 2028 estimate to $8.84 from $8.53 and its fiscal 2029 estimate to $9.36 from $9.05. The firm also lifted its revenue forecasts for each of those years.

For the second quarter, Bank of America expects adjusted earnings of $2.34 per share, compared with the Visible Alpha consensus of $2.30. It forecasts net sales of $26.10 billion, roughly in line with consensus, and comparable sales growth of 2.5%, slightly above the 2.3% consensus estimate.

The analyst expects comparable sales to grow about 2% in the second half, roughly in line with Target's guidance. Resilient consumer spending helped drive the firm's improved outlook.

Margins Could Be A Bright Spot

Second-quarter margins could provide another positive catalyst. Bank of America forecasts gross margin expanding 90 basis points year over year to 29.9%, about 20 basis points better than consensus. Easier merchandise-margin comparisons and lower tariff pressure should help.

However, selling, general and administrative expenses remain a wild card. Target's guidance includes about $1 billion of incremental SG&A spending and another $1 billion of incremental capital expenditures.

Nardone said those investments make sense for the long term. Still, they could limit upside if comparable-sales growth slows during the second half, particularly after Target's earnings multiple expanded sharply following its first-quarter report.

Turnaround Faces A Tougher Test

Target has stepped up partnerships and product launches to generate customer interest. Recent initiatives include collaborations with Pokémon, LoveShackFancy and Hollister, while Target Beauty Studio is set to roll out to more than 600 stores in August.

Still, Bank of America sees risks to the recovery. A slower turnaround in apparel and home could expose Target to heavier competition and promotional pressure. Competitive food and beverage pricing could also limit market-share gains.

The valuation adds another hurdle. Bank of America's base case points to only about 4% earnings growth in fiscal 2028 as Target cycles strong first-half sales trends and loses favorable margin comparisons. The firm's $124 price forecast is based on 14 times estimated fiscal 2027 earnings.

Bank of America said an upside scenario could involve a roughly 16-times earnings multiple and about $10 in fiscal 2028 earnings per share. Even so, the analyst believes the current risk-reward remains challenging after Target's strong recent run.

TGT Price Action: Target shares were up 0.90% at $153.65 at the time of publication on Wednesday. The stock is trading near its 52-week high of $154.88, according to Benzinga Pro data.

CoreWeave Says Data Center Moratoriums Won’t Stop AI Expansion: ‘They Are Going to Impact Where This Infrastructure Gets Built’

Benzinga News — Wed, 12 Aug 2026 13:38:13 -0400

CoreWeave Inc. (CRWV ) remains confident it can rapidly expand its AI infrastructure despite a growing wave of data center moratoriums, grid concerns and community opposition across the U.S.

CoreWeave Says Data Center Backlash Won't Derail 8 GW Goal

On Tuesday, during its second-quarter earnings call, Evercore ISI analyst Irvin Liu asked CoreWeave executives whether growing regulatory resistance could threaten the company's expansion plans.

Specifically, he questioned CoreWeave's ability to deploy more than 3 gigawatts of active power by the end of 2027 and exceed 8 GW by 2030.

CEO Mike Intrator said the company remains confident.

"Moratoriums, they are not going to impact the demand for this infrastructure. They are going to impact where this infrastructure gets built," Intrator said.

He said CoreWeave plans to work closely with local governments, utilities and policymakers, while ensuring communities benefit from data center development through grid investments, construction jobs, long-term employment and tax revenue.

CoreWeave Has Nearly 6 GW of Power In Sight

CFO Nitin Agrawal said CoreWeave currently has 4.2 GW of contracted power, along with roughly 1.5 GW of powered-land options and letters of intent, giving the company visibility into nearly 6 GW.

That puts CoreWeave "well on track" toward its more than 8 GW active-power goal by 2030, Agrawal said.

New York Data Center Moratorium Highlights the Challenge

The comments come after Gov. Kathy Hochul (D-N.Y.) imposed a statewide pause of up to one year on state environmental permits for new hyperscale data centers consuming 50 MW or more.

The move reflects growing concerns about electricity demand, grid infrastructure, water use and whether host communities receive enough economic benefits.

President Donald Trump and other critics have argued such restrictions could push investment, jobs and tax revenue to states more willing to accommodate AI infrastructure.

CoreWeave Q2 Revenue Tops Estimates

CoreWeave posted second-quarter revenue of $2.58 billion, narrowly topping analysts' $2.56 billion estimate, while its adjusted loss of $1.03 per share was better than the expected $1.22 loss.

Revenue surged 112.5% year over year and the company ended the quarter with a $104 billion revenue backlog, which CoreWeave attributed to "unprecedented demand" for its cloud services.

Price Action: CoreWeave closed at $90.32 on Tuesday, up 2.42%. The shares jumped 15.72% to $104.52 in after-hours trading, according to Benzinga Pro.

According to Benzinga Edge Stock Rankings, CoreWeave currently carries a bearish outlook across the short-, medium- and long-term time frames.

Josh Kushner, Bob Iger Take Their Shot at the Lakers in $12.5 Billion Deal

Benzinga News — Wed, 12 Aug 2026 13:38:08 -0400

Los Angeles Lakers are set to change hands in a $12.5 billion deal involving investors Josh Kushner and Bob Iger, a price tag that would reset the benchmark for pro sports franchise sales. The agreement still requires a vote from the NBA's board of governors, a step that can stretch across multiple weeks.

Multiple sources told ESPN the pair shifted from exploring a Las Vegas expansion opportunity to pursuing the Lakers with an assertive bid. The team is being bought from Mark Walter, who took control last year after acquiring the Buss family's stake at a valuation of around $10 billion.

"As lifelong NBA fans, we are deeply honored for the opportunity to become stewards of the Los Angeles Lakers, one of the most iconic sports franchises in the world," Kushner and Iger told ESPN in a joint statement. They added, "We have immense respect for the leadership and vision of Jerry and Jeanie Buss," and said they plan to keep investing in competitiveness while serving Los Angeles and the fan base.

Walter, who leads TWG Global, called the Lakers investment a personal highlight and said, "Owning the Los Angeles Lakers has been one of the great honors of my life - an extraordinary investment, but what I will carry with me is the community, the fans, and a city that treats this team as family." Walter said he believes "the best is still ahead" for the franchise under new ownership.

The NBA's next board meeting is scheduled for next month in New York, where the sale could come up for approval.

ESPN Research data lists the $12.5 billion figure above the prior Lakers transaction at $10 billion and other major deals such as the Seattle Seahawks at $9.6 billion.

On the basketball side, Luka Doncic addressed the ownership change in a post on X, writing, "Being a Laker means everything to me, and I'm excited to get back on the court and bring a championship to LA." He also wrote, "I look forward to meeting Josh and Bob so we can get to work building something special in LA together."

ESPN said Walter is selling only the Lakers in this deal, despite TWG's broader sports holdings that include the Los Angeles Dodgers and Chelsea. In July, federal prosecutors and the SEC were reportedly examining disclosures tied to insurers controlled by Walter, the Wall Street Journal reported.

Kushner runs Thrive Capital and is also a co-founder and vice chairman of Oscar Health. He holds a minority position in the Miami Heat, which would need to be sold to complete the Lakers purchase.

Thrive Capital also bought a small stake in the San Francisco Giants through a new holding company called Thrive Eternal.

Iger, who was replaced this year as Disney's CEO by Josh D'Amaro, also became the controlling owner of Angel City FC in 2024 alongside Willow Bay, according to the report.

Private Equity Buys Up Professional Sports

The deal comes as private equity and venture capital firms have become increasingly active in professional sports, including through investments and acquisitions of franchises in recent months.

Apollo Sports Capital is providing $2.6 billion in debt and equity financing to Yankee Global Enterprises, bringing the private-equity firm in as a new strategic backer of the New York Yankees' holding company.

In May, The Cleveland Browns sold 10% of the club at a valuation of more than $9 billion to private equity firm Arctos Partners.

In March, a consortium comprising Blackstone (BX ), Bolt Ventures, Aditya Birla Group, and The Times of India Group agreed to acquire the Royal Challengers Bengaluru (RCB) cricket franchise.

Ares Management Corp., Apollo Global Management (APO ) and Sixth Street Partners are reportedly having early-stage conversations regarding the National Basketball Association's (NBA) European expansion.

Quantinuum Strikes Oracle Deal as Quantum Cloud Race Heats Up: ‘Next Phase of Enterprise Computing’

Benzinga News — Wed, 12 Aug 2026 13:38:00 -0400

Quantinuum Inc. (QNT ) and Oracle Corp. (ORCL ) announced a multi-year partnership Tuesday that will bring the Helios quantum computer to Oracle Cloud Infrastructure (OCI), giving customers direct access to quantum hardware alongside Oracle's GPU and high-performance computing infrastructure. Enterprise Computing's Next Phase

The system will be deployed at a U.S.-based OCI data center to support hybrid quantum-AI workloads targeting drug discovery, materials science, financial modeling and large-scale optimization.

"We believe the next phase of enterprise computing will be shaped by bringing quantum, AI, and high-performance computing together," said the president and CEO of Quantinuum, Rajeeb Hazra.

Major cloud providers are moving to add quantum computing to their infrastructure as enterprise customers increasingly look to access quantum and classical compute through a single platform.

Last month, IBM CEO Arvind Krishna said the technology could begin making a measurable impact on its revenue and profit by 2028 or 2029.

Oracle Joins AWS and Microsoft in Quantum Cloud Race

The deal makes Oracle the latest hyperscaler to formally add quantum hardware access to its cloud platform, following Amazon.com, Inc.'s (AMZN ) Amazon Web Services and Microsoft Corp.'s (MSFT ) Azure, which already offer multi-vendor quantum access through Braket and Azure Quantum, respectively.

Quantinuum's hardware is already available through Azure Quantum, while Oracle's tie-up extends the company's cloud distribution.

Deal Comes Two Months After Quantinuum's IPO

In June, Quantinuum made its Nasdaq debut, when the company raised $1.68 billion in an upsized IPO priced at $60 a share, valuing it near $15.7 billion.

Oracle plans to preview its OCI quantum service in the coming months, the companies said, giving developers a path to move from simulation to execution on real quantum hardware.

Financial terms of the deal were not disclosed.

Price Action: Oracle fell 3.69% on Tuesday to close at $145.48 and recovered some of those losses in early pre-market hours on Wednesday to gain 1.85%.

Benzinga edge rankings show Oracle stock has a Momentum score in the 6th percentile and a Growth score in the 95th percentile.

Bank Of America Partners With Jio Financial In $1.9B India Deal

Benzinga News — Wed, 12 Aug 2026 13:37:43 -0400

Bank of America Corporation (BAC ) shares are trading higher on Wednesday as the company is entering a joint venture with Jio Financial Services Limited (JFSL) to acquire a 49.9% stake in Jio Credit. This move reflects Bank of America's strategy to expand its footprint in the Indian market.

Joins Jio Financial In India Joint Venture

Bank of America is set to invest 18,268 crore (around $1.9 billion) in Jio Credit through a preferential issue of equity shares and warrants.

The deal will give the firm an initial 26.5% stake, which could rise to 49.9% if the warrants are fully exercised, subject to regulatory and statutory approvals.

Under the transaction, JCL's board will have equal representation from JFSL and BofA. JCL's existing management will continue to oversee its strategy and operations.

The joint venture will combine JFSL's digital capabilities and deep understanding of the Indian market with BofA's global financial services expertise.

This strategic partnership is expected to bolster Bank of America's position in the rapidly growing Indian financial services market.

In addition, the venture will benefit from BofA's expertise in financial services, governance, risk management and technology.

BAC Technical Outlook: Momentum Above Key Moving Averages

The stock is currently trading at $64.64, which is 3.8% above its 20-day simple moving average (SMA) of $62.31. The 50-day SMA is at $59.16, indicating that the stock is also significantly outperforming this longer-term average by 9.3%.

The Relative Strength Index (RSI) stands at 73.90, suggesting that the stock is in overbought territory, indicating a potential for a pullback or consolidation in the near term.

Bank of America Outperforms Financials Sector

Over the past 30 days, the sector has seen a modest increase of 3.10%, while the Charlotte, North Carolina-based bank has gained 36.12% over the last year, indicating strong relative performance.

Bank of America is slated to provide its next financial update on October 14, 2026 (confirmed).

EPS Estimate: $1.19 (Up from $1.06)
Revenue Estimate: $31.25 billion (Up from $28.24 billion)
Valuation: P/E of 14.8x (Indicates value opportunity)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $65.53. Recent analyst moves include:

UBS: Buy (Raises Target to $70.00) (Aug. 3)
JP Morgan: Overweight (Raises Target to $68.00) (July 29)
Evercore ISI Group: Outperform (Raises Target to $67.00) (July 17)

How BAC Ranks On Momentum, Growth And Quality

Below is the Benzinga Edge scorecard for Bank of America, highlighting its strengths and weaknesses compared to the broader market:

Momentum: Bullish (Score: 83/100) - Stock is outperforming the broader market.
Quality: Neutral (Score: 58.8) - Balance sheet remains healthy.
Growth: Neutral (Score: 50.2) - Moderate growth indicators.

The Verdict: Bank of America's Benzinga Edge signal reveals a momentum-driven story, with strong performance metrics indicating resilience in the current market environment. The combination of bullish momentum and stable quality suggests a favorable outlook for investors.

BAC ETF Exposure: Top Funds Holding Bank Of America

State Street Financial Select Sector SPDR ETF (XLF ): 4.93% Weight
iShares US Financial Services ETF (IYG ): 5.46% Weight
VistaShares Target 15 Berkshire Select Income ETF (OMAH ): 4.85% Weight

Significance: Because BAC carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

BAC Stock Price Today: Latest Trading Activity

BAC Stock Price Activity: Bank of America shares were up 1.02% at $64.66 at the time of publication on Wednesday, according to Benzinga Pro data.

Google Gemini Hits 1 Billion Monthly Users, Closing the Gap With ChatGPT—Sundar Pichai Calls it ‘Fastest-Growing’ Product Ever

Benzinga News — Wed, 12 Aug 2026 13:37:37 -0400

Alphabet Inc.'s (GOOG ) (GOOGL ) Google's artificial intelligence assistant, Gemini, has achieved a significant milestone of 1 billion monthly active users, the company announced on Tuesday. According to Google's data, 63% of Gemini users prefer voice interaction to typing prompts. The company also noted that busy parents are 43% more likely to use voice commands for everyday tasks.

Google's report also highlighted that one in five interactions with Gemini involves screen sharing and live camera feeds. Over 100 million of Gemini's monthly active users are Apple Inc. (AAPL ) users, who reportedly use Gemini around two times more than users on other platforms. The report also brought attention to Gemini's image generation tool, which is increasingly popular among small businesses, generating around 150 million images daily.

CEO Sundar Pichai took to X to celebrate the milestone and stated that Google's Gemini app is the company's 14th product to reach this milestone and its fastest-growing ever.

He gave a shout-out to Josh Woodward, VP of Google Labs and Gemini, and thanked everyone who has been a part of this journey.

Google launched Gemini in 2024 and has expanded it across its browser, Android devices and Google Workspace. Its growing user base is intensifying competition with OpenAI's ChatGPT, which crossed the mark sometimes in June, becoming the first AI chatbot to reach the milestone.

Meanwhile, Anthropic's Claude reached 56 million global monthly active users in Q2 2026, marking a 640% year-over-year surge, according to Sensor Tower data cited by Reuters.

Notably, Google hit the 1 billion mark in less than a month after the company reported 950 million monthly users in its second quarter earnings report.

This milestone comes amid a backdrop of challenges and ambitious plans for Gemini. Earlier in July, there were reports of delays in the release of Gemini 3.5 Pro due to efforts to enhance the model's capabilities, particularly in coding. This delay raised concerns about Google losing ground in the competitive AI segment.

However, later in the month, Pichai hinted at ambitious plans for the next iteration, Gemini 4. Pichai's comments suggested that Google aims to compete at the frontier level of AI capabilities when Gemini 4 is released, signaling a proactive approach to staying ahead in the AI race.

Wendy's Traders Smell a Buyout Cooking — Nelson Peltz Preps a Bid

Benzinga News — Wed, 12 Aug 2026 13:37:30 -0400

Shares of Wendy's Co. (WEN ) jumped Wednesday after the Financial Times reported that activist investor Nelson Peltz is laying groundwork for a bid to take the fast-food chain private.

According to the report, Peltz's Trian Fund Management is assembling a consortium that could include BlueFive Capital and Flynn Group, one of Wendy's largest franchisees.

A formal bid could land within weeks, though the timeline may shift or an offer may never materialize.

The Background

Peltz has circled Wendy's before. He weighed a takeover in 2022 before walking away, and this February his firm called the stock "undervalued" in a regulatory filing that disclosed talks with financing sources and potential co-investors.

Trian and Peltz personally control a combined stake north of 24%, giving the activist unusual leverage over how any process unfolds. The position means a formal offer would trigger mandatory SEC disclosure and set off an independent director review.

Wendy's has struggled through a rough stretch. Shares traded near a six-year low earlier this year on weak guidance. Wendy's market cap stands at roughly $1.65 billion, as of Tuesday's close, a figure that makes a take-private deal financially feasible for a well-funded consortium.

Looking Ahead

Wendy's told the Financial Times it "would thoroughly review any proposal submitted by Trian consistent with its fiduciary duties".

The board has repeated similar language for months while insisting management is executing a turnaround plan focused on domestic operations and international growth. Once a formal bid arrives, independent directors face a choice: negotiate directly with Peltz's group or open a wider auction to test for competing offers.

Short sellers are watching closely too, with 43.30% of Wendy's float sold short, per Benzinga Pro, setting up conditions for a squeeze if a real offer materializes at a premium.

The trade is speculative for the moment. Buyout chatter has swirled around Wendy's since February without a signed deal, but traders are betting the smoke eventually turns into fire.

WEN Stock Price Activity: Wendy's shares were up 13.78% at $7.50 on Wednesday, according to Benzinga Pro data.

Poorer Americans Are Struggling to Make Ends Meet as Energy Costs Bite, Top Fed Official Warns She Could Back September Rate Hike

Benzinga News — Wed, 12 Aug 2026 13:37:20 -0400

Poorer and middle-income Americans are increasingly struggling to make ends meet as higher energy costs add to inflation pressures, while a top Federal Reserve official said she could support a September rate hike if economic data warrants it.

Boston Fed President Susan Collins said businesses and households in the U.S. Northeast are being squeezed by inflation, which has remained above the Fed's 2% target for more than five years, according to a Financial Times report published Tuesday. In the interview, Collins said she was increasingly hearing from lower- and moderate-income households struggling to make ends meet.

"I hear about prices in every conversation, in some version," Collins said, referring to her talks with businesses. She added that among lower- and moderate-income households, she is increasingly hearing about challenges "making ends meet," while energy prices are particularly difficult in the region.

New England relies more heavily on heating oil during winter and also uses oil as a backup fuel for electricity generation, leaving the region especially exposed to higher crude prices.

Collins Signals September Hike

Collins supported keeping rates unchanged in July, saying policy was "mildly restrictive." But she said she could support higher rates as soon as September if the data called for it.

"I do see the possibility that economic conditions in the coming months will require tighter policy, and I would be prepared to raise rates in that context," Collins said.

The comments came ahead of the July inflation report, scheduled for release Wednesday, which could help shape the Fed's September decision. Inflation rose from 2.4% in February to 4.2% in May before easing to 3.5% in June.

June's cooler-than-expected inflation reading had reduced expectations for a near-term rate hike. Headline CPI fell 0.4% month over month in June, bringing annual inflation down to 3.5%, while core CPI was around 2.6%.

Households Face Pressure

The U.S. economy has also shown a widening divide between higher-income households and lower- and middle-income consumers. Higher-income Americans have remained more resilient, while middle-income households have been stretching each dollar and lower-income consumers have faced greater financial pressure.

Rising delinquencies in auto loans, credit cards and mortgages have also pointed to growing pressure on household finances.

More Americans have also been relying on credit to cover basic expenses. More than one-quarter of working-age adults who used credit cards to buy groceries either could not pay their balance in full or missed the minimum payment. Lower-income households had higher rates of missed credit card and buy now, pay later payments.

Labor Market Complicates Outlook

The rate outlook is also complicated by signs of a weaker labor market. A July jobs report showed 23,000 jobs were lost, while average job growth over the previous three months fell to 20,000, down from 73,000 in the first quarter.

Collins cautioned against reading too much into the latest payroll figures, saying private-sector hiring remained positive and the unemployment rate was relatively stable.

"With very volatile monthly labour job numbers and labour supply that is . . . growing more slowly," Collins said, policymakers should not be surprised by periods of negative job growth or unexpectedly strong hiring.

Still, she said inflation remained the bigger risk.

"There's much to watch there, but inflation is too high," Collins said.

Dan Ives Says CoreWeave, Cisco Earnings ‘Pieces of the Puzzle’ for AI Trade: ‘Get the Popcorn Out’

Benzinga News — Wed, 12 Aug 2026 13:37:04 -0400

CoreWeave Inc (CRWV ) stock is trading higher Wednesday after the company beat Street estimates and shared a strong backlog. The stock is one of two highlighted by tech investor Dan Ives this week that could show the momentum trade in AI is still in its early innings. Dan Ives has moved on from being an analyst at Wedbush, but he's just as bullish on the AI sector in his new role leading Yorkville Ives.

With stock market indexes at record highs, Ives was recently asked if the momentum trade of AI will continue.

"It's third inning, you could argue maybe even second inning in [the] AI revolution," Ives told CNBC earlier this week.

Ives said the AI trade is no longer just about Capex spending, but also about monetization.

The tech investor named both CoreWeave and Cisco Systems (CSCO ) as earnings to watch this week as "pieces of the puzzle" for the momentum.

"It continues to be 'get the popcorn out.'"

Ives said those earnings could show momentum ahead of the highly anticipated quarterly results from NVIDIA Corporation (NVDA ) later this month.

CoreWeave Results, Cisco on Deck

CoreWeave reported quarterly revenue up 112.5% year-over-year on Tuesday. The company reported a revenue backlog of $104 billion, with "unprecedented demand" for CoreWeave Cloud cited.

That backlog total doesn't include more than $25 billion that was added early in the current quarter.

"Customer demand is accelerating, as enterprise adoption broadens and we continue to deepen our technology platform," CoreWeave CEO Michael Intrator said.

After CoreWeave comes Cisco, with fourth-quarter results coming Wednesday after market close.

The company has beaten analyst estimates for revenue in four straight quarters and in eight of the past 10 quarters overall. Analysts expect the company to report a new quarterly record revenue total of $16.82 billion.

The company has also beaten analyst estimates for earnings per share in four straight quarters and in eight of the past 10 quarters overall.

Cisco stock jumped over 13% after the last quarterly results.

A strong double-beat from Cisco and guidance could see shares trade higher.

Momentum from CoreWeave and Cisco could carry forward the AI momentum trade heading into Nvidia earnings, as predicted by Ives.

Nvidia will report second-quarter financials on Aug. 26.

Delta Probes Unauthorized Wi-Fi Network on Flight Carrying DEF CON Passengers: Report

Benzinga News — Wed, 12 Aug 2026 13:36:55 -0400

An unauthorized Wi-Fi network was reportedly activated on a Delta Air Lines Inc. (DAL ) flight bound for Atlanta from Las Vegas on Monday, prompting a probe into the incident.

Delta Disabled Wi-fi for 30 Minutes

According to a report by Bloomberg on Tuesday, the airline said it was investigating an unauthorized Wi-Fi network detected aboard Flight 591, which is a Boeing Co. (BA ) 757 jet, when the cabin crew discovered a fake network onboard.

Delta did not immediately respond to Benzinga's request for comment.

Pilots informed air traffic control, noting concerns that the network was created to scam passengers, and briefly disabled the aircraft's Wi-Fi for roughly 30 minutes as a precaution, the report said.

The flight carried 199 passengers and six crew members, according to a report by Atlanta First News. The passengers also included attendees returning from DEF CON, a major cybersecurity conference in Las Vegas.

"Safety of flight was never in question and no aircraft operating systems were affected," a Delta spokesperson cited in the Bloomberg report said.

Cybersecurity reports have described the incident as a possible "evil twin" attack, in which an unauthorized access point mimics a legitimate Wi-Fi network to potentially trick users into connecting.

United Airlines' Failed Delta Merger

United Airlines Holdings Inc. (UAL ) had reportedly approached Delta about a potential merger between the two airlines before its failed talks with American Airlines Group Inc. (AAL ). The United-Delta merger would have combined two of the world's largest airlines had it gone through.

Notably, Sen. Elizabeth Warren (D-Mass.) had accused both United and Delta of benefiting through favorable policies like a change in flight cancellation compensation rules from the President Donald Trump administration after the airlines contributed $1 million to Trump's inauguration fund.

Price Action: DAL was up 0.09% to $90.49 during pre-market trading on Wednesday.

Intel’s $20 Billion Capital Raise Is a Bullish Tell for Its Foundry Business, Analyst Says

Benzinga News — Wed, 12 Aug 2026 13:36:39 -0400

Intel Corp. (INTC ) received a bullish endorsement from Bank of America after its roughly $20 billion equity offering, with the firm viewing the capital raise as a sign of growing confidence in Intel's foundry turnaround. Bank of America analyst Vivek Arya reiterated a Buy rating on Intel but lowered the price forecast to $145 from $160. The new forecast implies about 48% upside from the stock's Aug. 11 closing price of $97.71.

The firm cited modest earnings dilution from the offering and a recent re-rating in artificial intelligence computing peers for the lower forecast.

Capital Raise Signals Foundry Confidence

The analyst views Intel's capital raise as a net positive rather than a defensive move to shore up its balance sheet.

The offering could dilute earnings per share by about 4% to 5% because of the higher share count. However, the analyst said the deal signals increasing management confidence in both internal demand and external foundry customer engagement.

The analyst also pointed to Intel's higher capital spending and progress on its 14A manufacturing process. Additional external customer wins involving 18A-P, 14A and advanced packaging could drive further spending.

Bank of America expects longer-term foundry scale and improved operating efficiency to outweigh the near-term earnings dilution.

Intel Could Target $380 Billion Foundry Market

The analyst sees a substantial long-term opportunity for Intel's manufacturing business.

Bank of America estimates Intel could eventually capture about 8% to 10% of a roughly $380 billion wafer foundry market by 2030. It could also address about 25% to 30% of an estimated $20 billion market for advanced 2.5D and 3D packaging.

The firm sees Intel generating earnings power of more than $6 per share by 2030. Its model calls for Intel Foundry revenue to rise from about $1.1 billion in 2026 to nearly $40 billion in 2030.

Potential foundry opportunities include Apple silicon wafers, MediaTek packaging, Terafab and ARM-based server processors, though Bank of America said it has not incorporated specific potential deals into its base-case foundry model.

Server Business Adds To Bull Case

Intel's server processor business is another key part of the analyst's bullish view.

Intel server average selling prices rose 43% year over year to a record of roughly $1,200 in the second quarter, according to Mercury data cited by Bank of America. The firm sees potential for double-digit unit and average selling price growth through 2030 as the server market expands.

Bank of America projects Intel's server CPU sales could reach about $45 billion by 2030, representing roughly 20% of an estimated $220 billion addressable market.

The firm lowered its 2026, 2027 and 2028 earnings estimates by 2%, 4% and 3%, respectively, to account for the higher share count. It now expects adjusted earnings of $1.47 per share in 2026, $2.01 in 2027 and $2.92 in 2028.

Key risks include execution and yields on Intel's 18A and 14A processes, the pace of securing major external foundry customers and further market-share losses to CPU rivals.

INTC Price Action: Intel shares were up 3.18% at $100.81 at the time of publication on Wednesday, according to Benzinga Pro data.

Madison Square Garden Entertainment Tops $1 Billion In Annual Revenue

Benzinga News — Wed, 12 Aug 2026 13:36:13 -0400

Madison Square Garden Entertainment Corp. (MSGE ) stock rose Wednesday after the live entertainment company reported better-than-expected fiscal fourth-quarter results. Madison Square Garden Entertainment reported a loss of 21 cents per share, narrower than the 49-cent loss expected by analysts. Revenue came in at $196.32 million, topping the $166.62 million estimate.

Fourth-quarter revenue rose 27% year over year from $154.14 million, driven by stronger entertainment, arena leasing and food and beverage sales.

Concerts Drive Revenue Growth

Entertainment offerings generated $152.7 million in revenue, up 29% from a year earlier. Concert revenue increased by $22.7 million, helped by more concerts at Madison Square Garden Arena and higher revenue per concert. That growth was partly offset by fewer concerts at the company's theaters.

Arena license fees and other leasing revenue increased 27% to $11.5 million. Food, beverage and merchandise revenue rose 22% to $32.2 million. Higher concert activity at The Garden and stronger per-game food and beverage revenue at New York Knicks and New York Rangers games helped drive the increase.

The company posted an operating loss of $8.6 million, improving from a $25.8 million loss a year earlier. Adjusted operating income reached $18.6 million, compared with an adjusted operating loss of $1.3 million in the year-ago quarter.

Net loss narrowed to $10 million from $27.2 million. The loss per share improved to 21 cents from 57 cents a year earlier.

Fiscal 2026 Revenue Tops $1 Billion

For fiscal 2026, revenue increased 13% to $1.06 billion. Operating income rose 16% to $141.5 million, while adjusted operating income increased 18% to $262.2 million.

The company welcomed about 6.4 million guests across nearly 960 events during the year. It also sold more than 1.2 million tickets across 215 paid performances of the Christmas Spectacular, which generated record revenue.

Operating cash flow climbed to $351.4 million for fiscal 2026 from $115.3 million a year earlier. Madison Square Garden Entertainment ended June with $294.2 million in cash, cash equivalents and restricted cash.

Executive Chairman and CEO James L. Dolan said demand for the company's live entertainment offerings remained strong. He said Madison Square Garden Entertainment expects "solid growth" in adjusted operating income in fiscal 2027.

Madison Square Garden Price Action

MSGE Price Action: Madison Square Garden shares were up 5.54% at $83.77 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

Chili’s Parent Wants a Bigger Slice of Fast Food’s Digital Business — CEO Calls Takeout the ‘Next Big Frontier’

Benzinga News — Wed, 12 Aug 2026 13:35:56 -0400

Brinker International, Inc. (EAT ) stock jumped Wednesday after the Chili's parent reported mixed fiscal fourth-quarter results but issued a stronger-than-expected fiscal 2027 outlook. The rally was likely magnified by elevated short interest, with 18% of the public float sold short, signaling substantial bearish positioning that may have fueled a squeeze.

Brinker reported adjusted earnings of $3.07 per share, narrowly missing the $3.09 analyst estimate. Total revenue rose to $1.536 billion from $1.462 billion a year earlier, edging past the $1.534 billion estimate.

GAAP net income rose to $131.1 million, or $2.99 per diluted share, from $107 million, or $2.30 per share, a year earlier. Adjusted earnings increased 23% from $2.49 per share.

Chili's Extends Same-Store Sales Growth

Brinker CEO Kevin Hochman said Chili's ended fiscal 2026 with five straight years of same-store sales growth, producing a 71% cumulative increase over that period.

Hochman said Chili's is benefiting from strong brand relevance, compelling value, simpler operations and major restaurant investments. He said those factors have strengthened the brand's competitive position and support sustainable, profitable growth.

Company comparable restaurant sales increased 5% during the quarter. Chili's comparable sales rose 5.6%, while Maggiano's comparable sales fell 2.5%.

Chili's growth reflected a 4.3% benefit from pricing and a 1.5% increase in traffic, partly offset by a 0.2% negative mix impact. Management said sales and traffic accelerated further in July.

The company said its Big Crispy chicken sandwich has exceeded expectations. Chili's was selling about 55 sandwiches per restaurant per day by the end of the quarter, up from 20 before the launch.

During the earnings call, Hochman called takeout Chili's "next big frontier," pointing to a sizable opportunity to capture more fast-food transactions.

Takeout already accounts for 25% of Chili's business, but Hochman said the company has "not even scratched the surface" of the opportunity.

Brinker plans to improve its app, streamline pickup and boost order accuracy as it looks to make Chili's a stronger digital and take-home meal competitor.

Operating Profit And Margins Improve

Brinker's operating income rose to $167 million from $142.7 million a year earlier. Operating margin expanded to 10.9% from 9.8%, while adjusted restaurant operating margin rose to 18% from 17.8%.

Higher sales leverage helped offset pressure from food and beverage costs, advertising and insurance.

Food and beverage costs increased 80 basis points during the quarter as commodity inflation reached 4.4%, mainly due to higher beef costs and a temporary spike in tomato prices. Wage inflation was about 3.1%, though labor costs were favorable by 90 basis points year over year.

Adjusted EBITDA increased to $227.6 million from $212.4 million a year earlier.

Brinker International Guides Above Estimates

For fiscal 2027, Brinker expects adjusted earnings of $12.60 to $13.40 per share, above the $12.52 analyst estimate.

The company forecast revenue of $6.15 billion to $6.27 billion, compared with the $6.145 billion estimate. The outlook includes a 53rd operating week, which Brinker expects to add about 2% to revenue and 70 cents to adjusted earnings per share.

Management said the outlook assumes mid-single-digit same-store sales growth and positive traffic at Chili's for most of the fiscal year. It also expects low-single-digit commodity and wage inflation.

Brinker expects restaurant-level margin to expand 20 to 40 basis points on a 52-week basis. Including the extra week, improvement could reach about 50 basis points.

Cash Flow Supports Buybacks And Restaurant Investment

Brinker generated $789.4 million in operating cash flow in fiscal 2026 and spent $231.9 million on property and equipment, implying about $557.5 million in free cash flow.

The company ended the fiscal year with $110 million in cash and cash equivalents.

Brinker repurchased about $400 million of common stock during fiscal 2026. Its board also increased the amount authorized under the existing share repurchase program to $750 million.

For fiscal 2027, Brinker plans capital expenditures of $265 million to $285 million as it steps up investment in Chili's restaurant remodels. The company expects to complete 60 to 80 Chili's reimages during the year.

Brinker International Price Action

EAT Price Action: Brinker International shares were up 8.58% at $240.37 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

Super Micro's Guidance Signals a Sharp Acceleration, Easing Fears It's Losing Ground to Rivals

Benzinga News — Wed, 12 Aug 2026 13:35:38 -0400

Shares of Super Micro Computer Inc (SMCI ) rallied in early trading on Wednesday, after the company reported its fiscal fourth-quarter results.

Here are the key analyst takeaways:

Wedbush analyst Matt Bryson maintained a Neutral rating, while raising the price target from $34 to $40.
Rosenblatt Securities analyst Sajal Dogra reiterated a Buy rating, while lifting the price target from $45 to $51.
Needham analyst Quinn Bolton reaffirmed a Buy rating and price target of $46.

Wedbush: Super Micro Computer reported surprisingly strong gross margins of 17.6%, more than double the guided 8.2%-8.4%, Bryson said in a note. This drove earnings to $1.70 per share, significantly higher than the outlook of 65-79 cents per share, despite revenues of $11.1 billion coming near the low end of the guidance range, he added.

Management indicated that the revenue shortfall was due to issues with customer readiness rather than demand, the analyst stated. "FQ1 guidance suggests that while the margin upside largely dissipates, the dip is softened by stronger sales expectations," he further wrote.

Rosenblatt Securities: Super Micro Computer's strong beat-and-raise quarter should eliminate concerns around the company's market share loss, Dogra said. Management guided revenue to $14.5 billion-$15.5 billion for the fiscal first quarter, implying 35% sequential growth at the midpoint and around 27% above prior consensus of $11.8 billion, he stated.

The company's fiscal 2027 revenue guidance came in almost 30% higher than Street expectations, the analyst added. "SMCI is moving from an $11B quarter to a $15B quarterly run-rate in one quarter," he further wrote.

Needham: Super Micro Computer missed revenue expectations, while delivering an earnings beat on stronger gross margins, Bolton said. He highlighted:

Revenue in the enterprise channel represented 50% of fourth-quarter sales versus 28% in the prior quarter, with AI solutions representing 60%.
Fiscal 2027 revenue guidance was raised to $68.5 billion at the midpoint, well above Street expectations of $54.4 billion.
Management reiterated their $60 billion backlog figure.
Backlog suggests that AI solutions will revert to 80%.

SMCI Stock Price Activity: Super Micro Computer shares were up 12.91% at $35.68 on Wednesday, according to Benzinga Pro data.

Americans’ Credit Card Debt Climbs to $1.26 Trillion as K-Shaped Economy Widens Consumer Divide

Benzinga News — Wed, 12 Aug 2026 13:35:20 -0400

Americans' credit card balances climbed to $1.26 trillion in the second quarter, nearing last year's record high as household finances remain divided.

The Federal Reserve Bank of New York released its quarterly household debt report Tuesday, showing credit card balances increased by $21 billion, or 1.7%, from the previous quarter. The total is now close to last year's all-time high of $1.28 trillion.

Delinquencies Remain Elevated

The percentage of credit card balances in late-stage delinquency, or more than 90 days past due, stood at 12.8% in the first quarter, up from 7.6% in the third quarter of 2022, according to New York Fed researchers.

"This is a lagging indicator and reflects past charge-off debts that are sticking around on credit reports," the researchers said during a Tuesday press call.

New credit card delinquencies have held steady, although they "remain at elevated levels, a trend we'll continue to monitor." About 6.97% of balances transitioned into delinquency over the past year.

About 175 million Americans hold credit cards, and roughly 60% carry revolving debt rather than paying their balances in full each month.

Credit card delinquencies had climbed to 13.1% in the first quarter, the highest level since 2010.

K-Shaped Economy Shows Up In Debt

The New York Fed researchers connected the credit card data to the broader divide between households.

"To us it reflects this K-shaped economy," the researchers said, according to a CNBC report. "There are a lot of households that live paycheck to paycheck."

The latest figures come as Treasury Secretary Scott Bessent has argued that the K-shaped economy is over, saying lower-income workers are beginning to regain ground. Bessent pointed to faster wage growth among lower-paid workers as evidence that the divide is narrowing.

Earlier research from the Urban Institute found that more than one-quarter of working-age adults who used credit cards to buy groceries either could not pay their balance in full or missed the minimum payment. About one in 10 adults used buy now, pay later loans for groceries, while roughly 20% said they had used long-term savings, including emergency funds, to pay for groceries.

Grocery prices have climbed 32% over the past five years, according to the Urban Institute research.

Borrowing Helps Cover Essentials

The pressure has also appeared in broader household borrowing.

"The rise in credit card debt, HELOC debt and other debts, which include personal loans, clearly show that people are looking for ways to extend their budget in the face of stubborn inflation," Matt Schulz, chief credit analyst at LendingTree, said.

A separate Achieve survey found that 55% of consumers carry credit card balances to cover essential expenses. Among 2,000 consumers surveyed in June, 56% of borrowers said it would take six months or longer to pay off all their credit card debt.

"Short-term debts often start off as a temporary stop-gap solution to household budget gaps," Brad Stroh, Achieve's co-founder and co-CEO, said. "With elevated costs of living and compounding interest charges, these debts can quickly create sustained pressure on household balance sheets and budgets."

Starlink Will Help Spain’s Flag Carrier Livestream the Total Solar Eclipse With Scientists as Airlines Charge Up to $1,200 For Special Seats

Benzinga News — Wed, 12 Aug 2026 13:34:47 -0400

Elon Musk-led Space Exploration Technologies Corp. (SPCX ) satellite internet service Starlink will help a group of scientists aboard Spain's flag carrier airline Iberia livestream Wednesday's Solar Eclipse.

Starlink Streaming, Dedicated Eclipse Flights

According to a report by Aerospace Global News, Iberia will fly IB1473 out of Madrid on Wednesday using an Airbus SE (EADSF ) (EADSY ) A321XLR aircraft. The passenger list includes scientists from the Shelios Project led by astronomer Miquel Serra-Ricart, the report said.

The airline also intends to stream the eclipse on its social channels using Starlink connectivity, which it is rolling out across more of its fleet after it announced the first flight to feature the service in June, promising 500 megabits per second speeds. The flight number nods to 1473, the birth year of astronomer Nicolaus Copernicus.

Belgium's Brussels Airlines also confirmed flights tied to the solar eclipse as a paid experience with 100 seats and extra window access.

The flight is sold out, with ticket prices set at €299 (about $345) for a program lasting about four hours, including around two hours airborne.

It will be flying an Airbus A320 aircraft from Brussels in coordination with Urania Public Observatory, the University of Antwerp and Vrije Universiteit Brussel, the report said.

Notably, Alaska Air Group Inc. (ALK ) was earlier promoting its non-stop service between Seattle and Reykjavík in Iceland as a way for passengers to enjoy the solar eclipse on August 12, expected to be seen from Europe and North Atlantic regions.

Charter Flights

Demand is also being seen from charter operators, as Belgian observatory Urania, in collaboration with European private jet operator ASL Group, arranged a Wednesday departure from Liège Airport using an Embraer ERJ135 jet. Capacity for that flight was capped at 30 passengers, with bookings priced at €799 (approximately $922) per person.

From the U.K., Air Charter Service marketed a same-day Wednesday charter from London Stansted priced at £899 (about $1215) per person, the report said.

NASA is also conducting its own airborne effort using a WB-57 high-altitude research aircraft that can follow the Moon's shadow to extend observation time.

Starlink on Flights

Starlink has made deals with several airlines to offer its services on board flights, with CEO Elon Musk saying that the service would also be making its way to American Airlines Group, Inc. (AAL ) after it had secured deals with companies like United Airlines Holdings Inc. (UAL ) and Southwest Airlines Co. (LUV ), among others.

However, in-flight Wi-Fi turned into a problem recently for Delta Air Lines Inc. (DAL ) after hackers allegedly set up a fake wi-fi network on board an Atlanta-bound flight.

Alphabet Is Poised to Be an AI Winner, Analyst Says

Benzinga News — Tue, 11 Aug 2026 11:29:17 -0400

Alphabet Inc. (GOOG ) (GOOGL ) stock traded lower by almost 2% on Tuesday as mega-cap technology stocks weakened. The Nasdaq fell 0.13%, while the S&P 500 slipped 0.08%. Alphabet is underperforming the broader Communication Services sector. The sector gained 0.18% on Tuesday, even as Alphabet shares fell.

Market breadth remained slightly positive. Six of the 11 major sectors traded higher, with an advance-decline ratio of 1.2.

However, investors favored more defensive and cyclical areas of the market. Energy led with a 1.23% gain, while Industrials rose 0.65%.

BNP Paribas Keeps Outperform Rating

Wall Street remains bullish on Alphabet's longer-term prospects, particularly as artificial intelligence drives demand across its advertising and cloud businesses.

BNP Paribas analyst Nick Jones said Alphabet remains well positioned to benefit from AI demand, supported by healthy advertising trends, rising Cloud demand and its vertically integrated technology stack.

"We continue to view Alphabet as well positioned to be an AI winner," the analyst said.

Jones maintained an Outperform rating on Alphabet and set a $420 price forecast, based on a 30-times 2027 estimated price-to-earnings multiple.

The analyst said Alphabet's current 2027 estimated P/E of about 23 times underestimates the company's strength across infrastructure, models, distribution, consumer adoption, enterprise use and digital advertising.

AI And Cloud Demand Support Investment

He said Alphabet's AI and Cloud demand continues to support elevated investment and a broader strategy. Alphabet reiterated plans for a significant increase in fiscal 2027 capital spending, while depreciation may become uneven as new data-center capacity comes online.

Jones said Alphabet expects some TPU sales this year, with most of those sales coming in 2027. The analyst said TPUs can open a new market and expand Alphabet's total addressable market.

Advertising Trends Remain Healthy

He said underlying advertising trends remain strong and continue to benefit from AI.

Alphabet said AI is improving targeting, relevance and measurement, while also helping small and medium-sized businesses optimize creative.

In Search, AI allows users to ask more complex questions, giving Alphabet's ad systems more opportunities to understand intent and tailor ads over time.

Margins Face Depreciation Pressure

Jones said several one-time items affected second-quarter margins, including a $1.5 billion legal fine in Google Services general and administrative expenses and a digital-services tax reversal benefit.

The analyst said rising depreciation from new capacity coming online will pressure margins, even as Cloud backlog, enterprise AI adoption and advertising demand strengthen Alphabet's longer-term outlook.

The stock carries a Buy rating with an average price forecast of $418.60. Recent analyst moves include:

JPMorgan has an Overweight rating and recently lowered its price forecast to $420. TD Cowen maintained a Buy rating and a $475 price forecast. Oppenheimer lowered its price forecast to $400 while maintaining an Outperform rating.

Top ETF Exposure

State Street Communication Services Select Sector SPDR ETF (XLC ): 8.89% Weight
Motley Fool 100 Index ETF (TMFC ): 8.64% Weight
Principal Focused Blue Chip ETF (BCHP ): 9.35% Weight

Significance: Because GOOG carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price Action

GOOG Stock Price Activity: Alphabet shares were down 1.69% at $349.82 at the time of publication on Tuesday, according to Benzinga Pro data.

Rocket Lab's Neutron Timeline Wobbles, Overshadowing Record Revenue

Benzinga News — Tue, 11 Aug 2026 11:29:11 -0400

Rocket Lab Corp. (RKLB ) shares slipped in early trading Tuesday after the company signaled a narrowing window for the first flight of its Neutron rocket. Stage 1 tank production still aligns with delivering Neutron to the launchpad in the fourth quarter of 2026, but Rocket Lab stopped short of reaffirming a first flight before year-end.

Neutron is Rocket Lab's partially reusable, medium-lift rocket, designed to carry roughly 13 tons to low Earth orbit - about 43 times Electron's capacity. It's built for satellite-constellation deployment, national-security missions and eventual exploration of the Moon and Mars, and it's meant to compete with SpaceX (SPCX ) Falcon 9 in the medium-lift launch market.

Neutron Timeline Slips Into Question

Rocket Lab CEO Peter Beck addressed the timeline directly on the earnings call.

"Production currently lines up with the target delivery of Neutron to the pad in Q4 2026. While the window for an end-year launch is narrowing, the work we're doing now is about risk trading, balancing the timing of our first launch against how quickly and seamlessly we can scale at tenth launch," he said.

The timeline risk overshadowed a record quarter. Second-quarter GAAP net loss narrowed to eight cents per share, while revenue jumped 62% year-over-year to a record $234.1 million, beating the consensus estimate. GAAP gross profit came in at $84.6 million, with non-GAAP gross margin at 41.5%.

Backlog told a similar story, climbing to a record $2.36 billion, up 137% year-over-year.

"Q2 2026 saw our backlog grow to $2.36 billion - another record - which, combined with new deals in the period since, equates to more than $1 billion in new contracts across launch and space systems already entered into in Q3," Beck said.

New launch contracts across Electron, HASTE and Neutron totaled more than $437 million during Q2 and the period since, lifting the total launch backlog past 90 missions.

Looking Ahead

Looking ahead, Rocket Lab guided third-quarter revenue between $250 million and $265 million, above the roughly $236 million Street estimate. Management also flagged a tighter non-GAAP gross margin of 35% to 37% and an adjusted EBITDA loss of $17 million to $23 million.

Cash burn remains a watch item. Free cash flow was negative $110.1 million in the quarter. Management expects elevated negative free cash flow to persist, with positive cash flow unlikely until 18 to 24 months after Neutron's first successful test flight.

RKLB Stock Price Activity: Rocket Lab stock was down 3.85% at $76.95 at the time of publication Tuesday, according to data from Benzinga Pro.

Micron Says Customers Are Scrambling for Memory Even at ‘Very High’ Prices

Benzinga News — Tue, 11 Aug 2026 11:28:57 -0400

Micron Technology, Inc. (MU ) stock gained over a percent during Tuesday's premarket session as risk appetite stays steady into the open. Nasdaq futures are up less than half a percent while S&P 500 futures have gained 0.02%. The company executives said at the KeyBanc Capital Markets Technology Leadership Forum 2026 on Aug. 10 that AI is reshaping memory demand, tightening supply and making long-term customer agreements a bigger part of the company's growth strategy.

AI Demand Drives Memory Growth

Sumit Sadana, Micron's executive vice president and chief business officer, said AI has created a different demand cycle for memory, with customer demand rising faster than industry supply.

Micron now expects calendar 2027 to be even tighter than 2026 as AI drives growing demand for DRAM capacity and memory bandwidth.

Sadana said customers remain eager to secure more memory even as prices remain at "very high" levels, with tight supply limiting their ability to meet unit, volume and revenue opportunities. The shortage is most acute in data centers, where Micron often can meet no more than half of customer demand.

"Our customers are telling us that despite the fact that the prices are at very high levels, that they are eager to get more supply because they are not able to meet their own business case requirements," he said.

Sadana said memory has become a strategic asset as AI systems require greater capacity and bandwidth to improve performance. Micron still has no clear line of sight to when supply will catch up with demand, he said.

Margins And Revenue Remain Strong

Sadana said Micron's business remains on a "terrific trajectory," with exceptionally strong financial performance. He highlighted an 81% operating margin in the latest quarter and described gross margins as extraordinarily robust.

He said Micron is moderating price increases to balance long-term customer demand with return on investment, while still expecting revenue and profit growth from better product mix, higher shipments and future pricing opportunities.

Manufacturing Investments Support Supply Expansion

Sadana said Micron is investing heavily in manufacturing and supply-chain capacity to support long-term demand. The company raised its U.S. investment commitment from $200 billion to $250 billion and committed $500 million to GlobalWafers as part of broader supply-chain investments totaling $3 billion.

He said Micron is the only company investing in front-end memory fab manufacturing in the U.S., with projects in Idaho, New York and Virginia, along with global investments in Japan, Taiwan, Singapore and India.

Customer Deals Deepen Partnerships

Sadana said Micron's Strategic Customer Agreements are transforming the company's business model. The agreements are expected to cover about half of revenue, include binding take-or-pay terms and run mostly through calendar 2030.

He said Micron had announced 16 agreements at earnings and signed more afterward. These deals include cash and cash-like commitments, pricing structures that support strong gross margins and deeper collaboration on product roadmaps and R&D.

Outlook Points To Tight Supply

Sadana expects AI adoption, agentic AI, physical AI and robotics to drive more memory demand over the next several years. He said robots could eventually require hundreds of gigabytes of DRAM and terabytes of SSD storage per unit, creating another major growth opportunity later this decade and into the early 2030s.

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $1537.50. Recent analyst moves include:

Citigroup: Buy (Lowers Forecast to $1150.00) (Aug. 7)
Keybanc: Overweight (Raises Forecast to $1750.00) (July 14)
Cantor Fitzgerald: Overweight (Raises Forecast to $2000.00) (June 29)

Top ETF Exposure

Invesco PHLX Semiconductor ETF (SOXQ ): 8.91% Weight
State Street SPDR NYSE Technology ETF (XNTK ): 8.75% Weight
Invesco AI and Next Gen Software ETF (IGPT ): 8.71% Weight

Significance: Because MU carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price Action

MU Stock Price Activity: Micron Technology shares were up 1.09% at $869.07 during premarket trading on Tuesday, according to Benzinga Pro data.

Meta's Open-Source AI Bet Could Be A Problem For OpenAI, Anthropic

Benzinga News — Tue, 11 Aug 2026 11:28:50 -0400

Meta Platforms Inc. (META ) is betting that powerful AI should become abundant and inexpensive - a vision that could put pressure on the enormous valuations of OpenAI and Anthropic. In a 6,500-word manifesto published Monday, Mark Zuckerberg argued that AI should be broadly accessible rather than controlled by a small group of companies or governments. Meta also released an open-weight model and plans to make a more powerful version available to developers.

The implications go beyond Meta's AI strategy. If increasingly capable models become widely available, investors may have to rethink how much scarcity - and therefore how much value - is embedded in the leading AI labs.

Meta Wants AI to Become Abundant

Meta doesn't necessarily need to beat OpenAI or Anthropic by selling a better model.

Its open-weight strategy could instead help make capable AI cheaper and easier for developers to access, putting pressure on the premium that closed AI providers can charge.

That doesn't mean OpenAI or Anthropic suddenly lose their edge. Businesses may still pay more for the strongest models if they deliver meaningful advantages in reasoning, coding, reliability, security and AI agents.

But the performance gap matters enormously.

If frontier models remain dramatically better, premium AI could become a massive software business. If open models rapidly close that gap, investors could start treating the underlying intelligence layer more like a commodity.

Meta Doesn't Need to Sell AI to Win

This is where Meta has an unusual advantage.

Meta already has billions of users and a massive advertising business. It can potentially monetize cheaper, more capable AI through greater engagement, better recommendations, AI assistants, messaging and devices - without needing AI-model revenue alone to justify its investment.

Zuckerberg's vision centers on personalized AI agents that can help people create, learn and accomplish tasks. Meta is already moving in that direction with its Muse models and Meta AI products.

For OpenAI and Anthropic, the challenge is different: They have to prove that being at the frontier remains valuable enough to support premium pricing and enormous valuations. Anthropic is valued at $965 billion following its latest funding round, while OpenAI reached an $852 billion private valuation earlier this year.

Meta's open-AI push could become more than a philosophical disagreement.

It could force investors to answer a much bigger question before the next wave of AI IPOs: Will AI intelligence remain scarce and expensive - or will it become abundant, with the real value moving to the products and platforms built on top of it?

If the latter wins, Meta may have one of the better business models for an AI world where intelligence gets cheaper.