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Yahoo
3 days ago
- Business
- Yahoo
Early Q2 Results Indicate an Improving Earnings Outlook
We get into the heart of the Q2 earnings season this week, with more than 400 companies on deck to report results, including 109 S&P 500 members. The reporting docket expands beyond the Finance core, which has dominated the results thus far, with a representative cross-section of all sectors reporting results this week, including Tesla TSLA and Alphabet GOOGL in the Mag 7 group. We are off to a very good start in the Q2 earnings season. It isn't simply companies beating estimates that were too low to begin with, a reflection of analysts sharply cutting estimates in the wake of the 'Liberation Day' tariff announcement. There is also favorable management commentary about current business trends that should help firm up earnings expectations for Q3 and beyond. It is admittedly early in the reporting cycle, with Q2 results from only about 12% of S&P 500 members out, and the sample of results is over-indexed to the Finance sector. But we remain confident that the trends established at this early stage will be validated by the one-fifth of S&P 500 members reporting results this week and through the remainder of the Q2 reporting cycle. Through Monday morning (July 21st), we have seen Q2 results from 62 S&P 500 members, or 12.4% of the index's total membership. Total earnings for these companies are up +9.3% from the same period last year on +5.8% higher revenues, with 82.3% beating EPS estimates and an equal proportion beating revenue estimates. The EPS and revenue beats percentages are tracking notably above the historical averages for this group of 62 index members, as the comparison charts below show. Image Source: Zacks Investment Research The comparison charts below show the Q2 earnings and revenue growth rates for these 62 index members relative to what we had seen from the group in other recent periods. Image Source: Zacks Investment Research By the end of this week, we will have seen Q2 results from more than a third of the index's total membership. Alphabet will report June-quarter results after the market's close on Wednesday (July 23rd), with the company expected to report $2.14 per share in earnings on $79.3 billion in revenues, representing year-over-year changes of +13.2% and +11.1%, respectively. Alphabet shares have struggled this year, with the stock down -2% this year vs. a +7.3% gain for the S&P 500 index and a +9.9% gain for the Zacks Tech sector. Alphabet's search dominance has been a perennial antitrust target, so those worries aren't necessarily new. However, the concern among market participants is the company's ability to secure its lucrative search franchise in the coming AI-dominated world. Search is undoubtedly a significant contributor to earnings, but we suspect that investors' concerns about the search business may be causing them to overlook gems like YouTube and Waymo, which are integral to the Alphabet story. Then there is cloud, where Alphabet remains a leader along with Amazon and Microsoft. This note focuses on the evolving aggregate earnings trends, but we can't help but flag Alphabet's discounted valuation, as the chart below illustrates. Image Source: Zacks Investment Research Tesla is also reporting the same day as Alphabet (July 23rd), with the company expected to come out with $0.40 per share in earnings on $22.5 billion in revenues, representing year-over-year changes of -23.1% and -11.9%, respectively. Tesla shares are down -18.4% this year, lagging the broader market's +7.3% gain. In addition to operational challenges in the EV market that have been weighing on Tesla's margins and deliveries lately, Tesla shares are also influenced by the market's collective view of Elon Musk. Expectations for Q2 & Beyond Looking at Q2 as a whole, combining the actual results that have come out with estimates for the still-to-come companies, total S&P 500 earnings are expected to be up +6% on +4.3% higher revenues. The chart below shows current Q2 earnings and revenue growth expectations in the context of the preceding 4 quarters and the coming four quarters. Image Source: Zacks Investment Research For the Mag 7, whose members start reporting results this week, total Q2 earnings are expected to be up +11.7% on +11.3% higher revenues, as the chart below shows. Image Source: Zacks Investment Research As you can see above, 2025 Q3 earnings for the S&P 500 index are currently expected to be up +4.5% from the same period last year on +4.5% higher revenues. Unlike what we had witnessed for Q2 during the first three weeks of the quarter, we are starting to see estimates modestly go up, as the chart below shows. Image Source: Zacks Investment Research The chart below shows the overall earnings picture on a calendar-year basis. Image Source: Zacks Investment Research In terms of S&P 500 index 'EPS', these growth rates approximate to $254.42 for 2025 and $287.60 for 2026. The chart below shows how these calendar year 2025 earnings growth expectations have evolved since the start of Q2. As you can see below, estimates fell sharply at the start of the quarter, which coincided with the tariff announcements, but have notably stabilized over the last four to six weeks. Image Source: Zacks Investment Research For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> Q2 Earnings Season Kicks Off Positively: A Closer Look Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
3 days ago
- Automotive
- Yahoo
Tesla Cooling Off, XPeng Heating Up: Which EV Stock Wins Your Vote?
For years, Tesla TSLA has been the undisputed face of the electric vehicle (EV) revolution. From sleek car designs to bold bets on self-driving tech and artificial intelligence, Tesla transformed the auto industry. Today, it still stands tall with a staggering $1 trillion market cap and a relentless push into new frontiers like robotaxis. But, the hype and buzz around Tesla is not the same anymore. Growing competition, CEO Elon Musk's headline-grabbing controversies and mixed reactions to Tesla's long-awaited robotaxi reveal are testing investor patience. Meanwhile, XPeng, Inc. XPEV — a rising EV star from China — is making serious waves. Backed by a surge in China's new energy vehicle (NEV) sales and strong government support, XPeng is delivering rapid growth and rolling out its own AI-driven innovations. And while Tesla grapples with a potentially tougher U.S. regulatory environment, including the looming end of the $7,500 EV tax credit, XPeng's momentum is building fast. Year to date, XPeng stock has surged 55%, trouncing Tesla's performance. The question is whether investors should stay with the EV pioneer or bet on the fast-rising tech-savvy challenger? Image Source: Zacks Investment Research The Case for Tesla Tesla might still be the first name that pops into your mind when we talk about EVs, but cracks are starting to show. After years of strong growth, Tesla's deliveries are now heading in the wrong direction. In 2024, the company posted its first-ever annual drop in deliveries. That slump has continued into 2025, with sales falling 13% year over year in the first quarter and another 13.4% in the second quarter of 2025. Europe has been a particularly weak spot, but demand has cooled in other markets too. Tesla faces a real chance of delivering fewer vehicles in 2025 than it did in 2024. That would mark a second straight year of declining sales. Tesla hasn't released a new mass-market model in years. While competitors are flooding the market with fresh EVs at various price points, Tesla's lineup is starting to feel dated. Add in rising competition from both dedicated EV makers and traditional automakers, and Tesla's once-dominant market position is slipping. Musk's public image isn't helping either. His political posts and unpredictable behavior are turning off some potential buyers. Tesla's big swing to reignite excitement—the robotaxi—hasn't landed quite right either. The service launched in a limited test in Austin last month, but reports suggest it's still very much a work in progress. Technical hiccups and the need for human safety drivers make it clear that fully autonomous rides are still some distance away. Tesla's energy and charging businesses are bright spots, but they're not yet big enough to carry the company. For now, Tesla needs to prove it can revive its core auto business before its rivals pull too far ahead. The Case for XPeng XPeng may not have Tesla's size or global brand power, but it's quickly earning its place in the EV spotlight. The Chinese EV maker is scaling fast—and smart. It's not just selling more cars; it's building them around intelligence-driven features that appeal to the tech-savvy buyer. Take the new G7, for example—a sleek crossover that fits right between XPeng's G6 and G9 models. But it's not just about filling a lineup gap. The G7 is the first vehicle powered by XPeng's own Turing AI chip, which boasts triple the computing power of typical smart driving chips. That gives it a real edge in self-driving capability. Launched in China, the G7 undercuts Tesla's Model Y by nearly $9,500, and early sales suggest it's a serious competitor. XPeng's delivery numbers are turning heads too. In 2024, it delivered over 190,000 vehicles, up 34% year over year. That growth has exploded in 2025. In just the first quarter of 2025, XPeng delivered 94,008 vehicles—a massive 331% jump from the same period a year ago. The momentum continues. Last month, XPeng delivered 34,611 smart EVs, marking a whopping 224% increase year over year. With that, XPeng's deliveries surpassed the 30,000 mark for the eighth straight month. In the three months ending June 2025, it sold a record 103,181 cars, more than double its second-quarter 2024 levels. The company is innovating fast. From its AI-powered Hawkeye Vision System to its XOS 5.4 operating system, XPEV is all-in on full-stack smart driving. It's even dabbling in futuristic tech like flying cars and humanoid robots. XPeng may still be the underdog, but it is quickly becoming one of the most exciting EV players to watch. How Do Estimates Compare for XPEV & TSLA? The Zacks Consensus Estimate for XPeng's 2025 top and bottom line suggests year-over-year improvement of 102% and 67%, while the 2026 sales and earnings estimate implies a jump of 39% and 207%, respectively, from 2025 projected levels. See how estimates for XPEV have been revised in the past 90 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Tesla's 2025 top and bottom line suggests year-over-year decline of 3.7% and 27%. However, its 2026 sales and earnings estimate implies growth of 18% and 51%, respectively, from 2025 projected levels. See how estimates for TSLA have been revised in the past 90 days. Image Source: Zacks Investment Research Conclusion While Tesla still commands global attention, its momentum is clearly slowing. Falling deliveries, fierce competition, and a shaky start to its robotaxi ambitions have cast a shadow over its growth story. Tesla's downward EPS estimate revisions and its Zacks Rank #4 (Sell) reflect the challenges it is facing. XPeng, in contrast, is gaining speed—delivering record-breaking numbers, showcasing advanced tech, and riding strong tailwinds in China's booming EV market. With positive EPS estimate revisions and solid growth outlook, XPeng is quickly proving it's not just a rising star, but a serious player. XPeng, with a Zacks Rank #2 (Buy), is clearly the more attractive pick in today's EV landscape. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report XPeng Inc. Sponsored ADR (XPEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
The Week In AI: Cheap House Robots and Pricey Manhattan Projects
Last Friday, my colleague Ethan Feller and I had another awesome live event surveying all the latest happenings in AI. We do so every Friday in an X Space where we each have 6 unique AI topics that we present in a rapid-fire 60-minute run-through. We started this gig in May when the innovations, controversy, and drama were happening so fast, we didn't see how it could continue at that pace. Eight weeks later, it only shows signs of more acceleration and amazement. So here's a quick summary of just 6 of the major reveals, deals, and feels we covered last Friday July 11... 1) $9,000 Humanoid Robots from K-Scale Labs in Palo Alto K-Scale Labs launched pre-orders for its open-source humanoid, priced at $9K. The K-Bot stands 4′7″, weighs 77lbs, and integrates with K-Scale's open-source stack, covering various models and hardware designs. One of the founding engineers, working out of their shared house in Palo Alto, posted this on X: Robotics in the U.S. is broken -- proprietary, expensive, and slow. We're going to change that. We're building, learning, and shipping mass-production grade humanoid robots with the open-source communities. We're launching America's first open-source end-to-end humanoid robot starting at $8,999. Open-source hardware, Rust OS, Python SDK, RL training libraries. The future of robotics is autonomous, open-source, affordable, and made in America. (end of X post by @JingxiangMo) Getting a Jump on Optimus and Figure Even though we talked about these renegades in an early episode of The Week In AI, I was newly invigorated and inspired by their passionate 3-minute video that chronicled their journey and mission -- as they just released 100 new models for sale and raised $1 million dollars very quickly. Essentially, the K-Scale team, led by a former developer at Tesla TSLA and OpenAI named Benjamin Bolte, wants to beat both Tesla Optimus and Figure AI robots to the market with an open-source platform. I am humbled and awed by their vision and tenacity when they could easily try a smoother path with more investment funding to scale up instead of going direct with "models in progress." But then again, isn't that what the big LLM model companies are doing? Benjamin Bolte thinks we should all be able to train our humanoid robots to do a specific task -- mop the floor, wipe the counters, vacuum, load the dishwasher, or fold the laundry -- and that homeowners can share those trainings across the open-source "robo-sphere" to help everyone have a better experience with their bot. And because of this potential, many innovators and investors think we are soon approaching a "ChatGPT Moment" for robotics where the acceleration and adoption takes off exponentially. Famed VC investor Vinhod Khosla said recently "By the 2030s, almost everyone will have a humanoid robot at home. Robots won't be programmed -- they'll learn tasks by themselves. Humanoid robots will become common because they are cheaper to produce at scale." Obviously, open-source training "on-premise" (your home) makes it all more realistic. While there are concerns about the "edge device" application safety of a humanoid in your home, we've got a few years to figure that part out, since companies like K-Scale prefer right now to just sell to developers and companies willing to do the work and take the risks. For more on the robotics revolution, be sure to go here to see all the links, videos, and commentary... The Week In AI: $9,000 Humanoid Robots, Zuck the Poacher, Larry Page Builds Skynet Here's a hit list of the other 5 big topics in our weekly run-down... 2) Zuck the Poacher: Buying, Bribing, Stealing Talent from Everywhere On June 30 Meta Platforms META introduced its new "Superintelligence Lab," led by Alexandr Wang from Scale AI and Nat Friedman. Recall that in late June, Mark Zuckerberg announced a deal to acquire 49% of Scale AI for $14.3 billion. It was seen quickly as the first major 'acqui-hire' in the AI race. The new division includes 11 research hires from top AI labs, including OpenAI, Anthropic, and Google. Last Friday morning, I also did an interview with Bloomberg about Apple AAPL and the narrative that they are "falling behind" in AI and need to catch-up by proving that Apple Intelligence is real and robust. I offered the view that Apple is not behind just because Siri isn't performing LLM duties. Tim Cook & Co. will take their time to get that right because they are a "product perfect" company first. And they have their eyes on the prize of being the ultimate healthcare assistant, not an answer bot. But where Cook could improve his strategy is on recruiting top talent, especially after losing his COO Jeff Williams to retirement and rumors of other infighting that hamper innovation. That's why I told Bloomberg he needs to steal a page from Zuck's playbook. And a few hours later, we learned of Alphabet's GOOGL magnificent "rearguard" action... Google Goes Windsurfing in the AI War for Talent 3) "The Great Separation" -- Who Wins, And Who Gets Left Behind, in the AI Age by Coatue Mgmt Coutue is a cross-asset investment firm specializing in technology with nearly $100 billion AUM. Half is in public Wall Street equities like NVIDIA NVDA and Taiwan Semiconductor TSM and the other half is in Silicon Valley startups from Abacus AI, run by frequent Week In AI expert source Bindu Reddy, to YAHAHA, a metaverse 3D creation platform. I run through 10 slides from a great presentation they just gave with the guide of Jason Lemkin. Their research is deep and so I am not quick to question their assumptions or conclusions about what is coming with the AI Economy Transformation -- especially since I already agreed with most of their ideas years ago. This part of the X Space is worth your time alone and comes in around the 25-minute mark. Plus, the comments section of the X Space has the link to Jason's run-through of his top ten slides. 4) JOBS: Never a Shortage of Automation Doomerism As always for The Week In AI, I collect a handful of the latest studies and expert opinions on the fate of knowledge worker jobs as AI gets better at human numerical and language tasks. Emad Mostaque of Stability AI says AI agents will outperform humans on most digital tasks by 2026. But AGI won't be a "godmind." "It'll feel like your smartest coworker on Zoom or WhatsApp. We don't need polymaths. Just competent workers getting the job done. I want cooks, not chefs." In addition to a few other views on the employment outlook, I also look at a post by Amanda Goodall @thejobchick where she breaks down how IBM just replaced 8,000 HR staff by automating 94% of their tasks -- including terminations! 5) Medical Superintelligence Microsoft introduced MAI-DxO (Diagnostic Orchestrator), what the company is calling a "step towards medical superintelligence." The system solved 85.5% of 304 cases vs. just 20% by experienced physicians. It also delivered greater cost savings than human doctors. In the X Space, I share a good 6-post thread with Microsoft graphics by "Chubby" @kimmonismus on X... Microsoft's LLM is not only designed for multiple-choice questions, but also for real medical diagnoses in realistic scenarios – and outperforms even top models such as o3. Another great science post last week came from @Dr_Singularity about a 'Self-driven Biological Discovery through Automated Hypothesis Generation and Experimental Validation.' Dr. Singularity said "An autonomous scientific engine has arrived" and I couldn't agree more or be more excited by this! He introduces the research this way: A new study unveils a fully automated framework that combines: Large Language Models – to reason, hypothesize, and plan. Relational Learning – to connect complex biological knowledge. Robotic Labs – to run experiments in the real world. All of it working in a closed loop, with zero human input. AI now asks the questions, runs the tests, and learns from the results. We're entering a world where machines can do science faster than humans ever could. Biology is just the beginning. Welcome to the age of autonomous discovery. (end of Dr. Singularity's intro) Gives me chills about what is possible now with the physical sciences! 6) Manhattan Projects for a High-Tech Industrial Renaissance One big theme I've been tracking lately are the vocal calls by experts for bigger scale industrial projects to support AI and robotics industries. Marc Andreessen and Eric Schmidt are two voices I really respect here. A few weeks ago I profiled the proposal of Jan Sramek of California Forever to build an "American Shenzhen" high-tech R&D city northeast of the Bay Area. Jan wrote in a post... "America cannot compete with China without building America's Shenzhen – a place to build drones, ships, robots, and everything else cutting edge. Where? On @CAForever's 100 square miles in Solano, 60 miles north of SF/Silicon Valley, where we invent that stuff." Then last week I shared a video clip from a great X AI follow @vitrupo quoting General Matter CEO Scott Nolan, who basically says... "AI demand could match the entire U.S. power grid by 2030. Without urgent expansion of nuclear reactors and fuel, we don't just risk brownouts and skyrocketing energy costs. We risk not getting AI at all." This is why I just bought Rolls-Royce RYCEY shares as they are getting more contracts to build small modular reactors (SMR) in the UK and Europe. So when my colleague Ethan Feller brought a paper to our X Space by Epoch AI titled How big could an 'AI Manhattan Project' get? I was very excited. A man who's wasting no time planning for such projects is Softbank's Masayoshi Son who announced in late June his idea for a $1 trillion "American Shenzhen" in Arizona in conjunction with TSMC. Ethan also covered the latest project of the other Google founder Larry Page, who has launched a startup called Dynatomics, focused on using AI to revolutionize product manufacturing. All this suddenly made me think last week..."AI isn't electricity -- it's gunpowder" in terms of its revolutionary impact on power and wealth. Be sure to check out The Week In AI X Space for all the links. I love making a curated menu of topics every week where you are guaranteed to find something delicious! Kevin Cook is a Senior Stock Strategist for Zacks Investment Research where he runs the TAZR Trader portfolio with several AI holdings mentioned here, including NVDA, TSM, AMD and others. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rolls-Royce Holdings PLC (RYCEY) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
08-07-2025
- Business
- Yahoo
Tesla and Apple don't belong in the ‘Magnificent Seven' anymore. These two hot tech stocks should replace them.
If you're invested in the so-called Magnificent Seven stocks, here's what you can do to boost your portfolio's performance: Kick out Tesla TSLA and Apple AAPL. Keep the other five: Nvidia NVDA; Microsoft MSFT; AMZN; Alphabet GOOGL GOOG and Meta Platforms META. Goldman Sachs lifts its S&P 500 forecasts. Strategists say these three investment moves are crucial. 'I'm single': At 70, I have $500,000 in stocks and $220,000 in savings. How do I invest my $130,000 windfall? 'Today is my 61st birthday': I have my ex-spouse's Social Security benefits. Should I retire at 65 and travel? I'm 85 with 2 kids and $4 million. My daughter wants a larger share of my estate than my son to compensate for unequal treatment by her father. 'She's in a shaky marriage that could soon end': Will my daughter's husband get my IRA when I die? Then, to replace Tesla and Apple, bring in Oracle ORCL and Broadcom AVGO. A Magnificent Seven upgrade? That's the recommendation of Vimal Patel, a manager of the Columbia Seligman Global Technology Fund SHGTX. Patel is worth listening to, because his fund beats its rivals by six percentage points annualized over the past five years, according to Morningstar Direct. Plus, Patel's background gives him a lot of tech investing credibility. He has an advanced degree in electrical engineering and worked in the tech industry before turning to fund management. It helps that Patel and his team are based at ground zero for cutting-edge tech developments — in Menlo Park, Calif. Let's look at Patel's logic for selling two of the Magnificent Seven, and why he's choosing these particular two replacements. Then we'll review the other five stocks. Tesla: This electric vehicle maker has been a fantastic stock to own, but it might be time to step to the sidelines, Patel says. Unlike many tech funds, his fund doesn't own Tesla shares. One reason is the competition Tesla faces in the electric-vehicle industry, from both traditional automakers as well as pressure in the Chinese market from domestic producers. As a result, Patel expects Tesla to see decelerating sales growth and downward pricing pressure that erodes profit margins. 'It's just a pricing war out there,' he says. What about the prospects for Tesla's robotaxis and its Optimus humanoid robots? Patel says it remains to be seen how well Tesla can do against Waymo and if it can succeed with robots. 'We don't buy hopes and dreams,' Patel says. Apple: Apple benefits from a loyal fan base locked in to its walled-garden ecosystem of hardware, software and services. But Apple customers are suffering from iPhone upgrade exhaustion. 'We have been waiting for an iPhone growth cycle, and we have not seen it,' Patel says. He adds that Apple's artificial intelligence offering has been underwhelming. A third problem for Apple is geopolitical risk. While the company has moved some of its supply chain to India, it still sources many products from China. That leaves Apple vulnerable to the U.S.-China trade war. 'Of all the Mag 7, they are the most exposed,' Patel says. 'They are not in a good position to navigate the tariff situation.' Patel's fund held Apple shares as of March 31, but the portfolio was underweighted in the stock relative to the fund's benchmark. Here's why Patel would add Oracle and Broadcom to the Magnificent Seven — replacing Tesla and Apple. Oracle: Oracle has long been an essential database software supplier, posting fairly steady mid-single-digit revenue growth. That's changing in a big way as the company ramps up its Oracle Cloud Infrastructure (OCI) business. This is a cloud computing platform that competes seriously with Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform (GCP). 'They are becoming the next hyperscaler,' Patel says about Oracle. They are starting to show their chops.' Oracle's overall cloud revenue — from infrastructure and apps — advanced 27% in the most recent quarter to $6.7 billion, supporting 11% overall sales growth to $15.9 billion. 'We hit double-digit revenue growth, and it's only going up from here even as the company gets bigger,' Oracle CEO Safra Catz reported on the company's latest earnings call. Cloud revenue will grow 40% in the next 12 months, she predicts. 'Oracle is well on its way to being not only the world's largest cloud application company, but also one of the world's largest cloud infrastructure companies.' Oracle is also a play on artificial intelligence (AI). Oracle offers companies a way to let AI large language models (LLMs) loose on their private data stored in Oracle databases, with an offering called Oracle 23 AI. 'We are the key enabler for enterprises to use their own data and AI models. No one else is doing that,' said Oracle co-founder and chief technology officer Lawrence Ellison during the company's most recent earnings call. 'This is why our database business is going to grow dramatically.' All in, this should produce 16% revenue growth over the next year, to $67 billion, compared to 9% growth in the trailing 12 months. Broadcom: Hyperscalers including Alphabet and Microsoft pay up for Nvidia's versatile 'merchant silicon' chips in part because they are highly programmable. That's also what contributes to the rich price tags and heavy power consumption. To help bring down costs, hyperscalers also design their own task-specific chips, or application-specific integrated circuits (ASICs). They are less programmable, but that brings down costs and power consumption. These chips also help hyperscalers offer customized services that distinguish them from competitors. Alphabet, for example, deploys custom silicon called Tensor Processing Units (TPUs) for use in AI training and inference. Broadcom plays a big role here because it helps hyperscalers design these custom chips. Says Patel: 'Instead of spending a ton of money on Nvidia chips, hyperscalers create their own chips made by Broadcom. This reduces costs and power requirements dramatically.' Broadcom's AI chip revenue grew 46% to $4.4 billion in the most recent quarter supporting total sales growth of 20% to $15 billion. The company forecasts 60% year-over-year AI chip sales growth to $5.1 billion, in the next quarter. Broadcom also offers networking chips used in switching and routing to companies such as Cisco Systems CSCO and Arista Networks ANET, and wireless chips used in smartphones. Broadcom was the top position in Patel's fund at the end of the first quarter. As for the rest of the Magnificent Seven, here are some quick takeaways from Patel: Read: Forget the 'Magnificent Seven' — these 7 cheap tech and AI stocks are better buys right now More: This outlook shows why investors should maintain exposure to the 'Magnificent Seven' I'm saving 100% on Amazon Prime Day — and you can too My wife and I are in our late 60s. Do I sell stocks to pay our $30,000 credit-card debt — or do it gradually over 3 years? 'I do all the yard work, cooking and cleaning': I live with my daughter and her lazy boyfriend. She wants me to buy her house. Do I say yes? Treasury rout grows as tariffs and supply test demand after tax and spending bill I put my $500K inheritance into a joint account with my husband. Can I leave half of it to my son from a previous marriage?
Ya Libnan
30-06-2025
- Automotive
- Ya Libnan
Tesla makes history by delivering first ‘fully autonomous' vehicle to Customer in Texas
Tesla made history by completing the first fully autonomous, driverless delivery of its Model Y auto from Giga Austin to a customer's doorstep. Electric vehicle (EV) maker Tesla TSLA achieved a bold feat on June 27 by delivering a 'fully autonomous' vehicle to a customer from Gigafactory Texas. CEO Elon Musk was enthralled by the accomplishment and shared the news on X but also faced criticism. To silence his critics, Musk later posted a video of the vehicle's 30-minute drive from the end of Giga Texas' production line to the customer's home.
