Alphabet re-ignited the stock market’s appetite for artificial intelligence and technology stocks. The advertising search giant posted Q1 results that included a small dividend and an aggressive stock buyback program.
Alphabet’s Gemini AI is the growth catalyst. After Microsoft (MSFT) led the AI race with its investment in ChatGPT in CoPilot, Alphabet is about to respond. This would require both firms to increase their purchases of Nvidia (NVDA) AI servers.
Chances are high that NVDA stock would trade above its 52-week high. When Super Computer Micro (SMCI) posts results on Tuesday, an earnings beat would lift Nvidia’s valuation.
Watch Drug Stocks
Over in the deep value segment, watch drug manufacturers today. Last week, Pfizer (PFE) traded at a fresh 52-week low of $25.20 intraday. Other than its 42-cent-a-share dividend, investors see no bullish catalysts for the firm. Its COVID-19 vaccine and the antiviral drug is the last cash flow generator that is no longer paying off for shareholders.
Pfizer’s Covid vaccine peers, BioNTech SE (BNTX) and Moderna (MRNA) are not faring well either.
Watch Bristol-Myers Squibb (BMY) today, too. Shares closed at a multi-year low after unexpectedly posting a $4.40 a share loss. Revenue grew by just 5%, to $11.9 billion, in its first quarter. Net selling prices are falling, on average. Demand for Opdivo, Yervoy, and Reblozyl failed to offset the pricing headwind.
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