00:00 Brooke
two significant headlines really testing this AI momentum that we’re getting overnight. Softbank selling its stake in Nvidia for 5.80 billion dollars. Now, it’s worth noting as you mentioned at the top, but the Softbank said this has nothing to do with necessarily Nvidia itself. It’s more of a financing measure. a CFO saying that this provides investment opportunities for its shareholders and also helps it maintain that financial strength. It’s worth noting that
00:30 Brooke
Softbank has that significant investment with its open AI. and also this is not the first time that Softbank has sold off its stakes within Nvidia. It did it back in 2019 before the company returned to small stakes within Nvidia in 2020 and just saw that tremendous growth for the stock since then. Also worth noting this Nvidia backed Coreweave results. I mean, overnight that stock now seeing some downward momentum down more than 8% of this pre-market
01:00 Brooke
trading after the company cut its annual sales forecast which seemed to have disappointed the street this morning. It now expects 2025 annual sales to come in the range of 5.05 billion to 5.15 billion. and that was down from a prior outlook of about 5.15 billion to 5.35 billion. And the CEO had said on the call that this was due to a affected by temporary delay related to a third-party uh data center developer who is behind
01:30 Brooke
schedule. And that seemed to what happened to have disappointed the street overnight. And so two key things happening this morning that’s really giving some test to that AI momentum that we saw yesterday.
01:42 Speaker B
Yeah, and speaking of that AI momentum that has sort of gone back and forth, Brooke, what are you seeing in terms of commentary around the recent action that we’ve been seeing?
01:54 Brooke
Yeah, we’ll think about this yesterday, the S&P 500 saw one of its largest gains in the last month. It was up about 1.5% at the close and also too you had Nvidia, you had Palantier, you had other names like Western Digital, Seagate Technologies. They were all up about 5% on Monday during the trading session and that really got the street excited. Like I said, largest gain that we saw for the S&P 500 in over a month. But now UBS out with some some key factors here that really need to keep this
02:24 Brooke
equity market rally going. The UBS strategist saying that like similar to what Chris had said, the Federal Reserve easing policy here, also robust corporate earnings and strong AI spending have really been the key market drivers here. Those three factors need to keep the keep going in order to see this momentum continue into year end.