The S&P 500 earnings yield reached 5.03%, its highest level since late March 2026, a setup similar to the period before a major equity rally in April and May 2026. This increase, combined with a price-to-earnings ratio below 20, suggests potential positive momentum for the market. Key upcoming events include the Federal Open Market Committee meeting on July 29 and earnings reports from Microsoft and Amazon later that week. Investors should watch for distortions in earnings per share due to gains from Anthropic and other mark-ups from companies like Alphabet, particularly in segments like Waymo, YouTube, and SpaceX, distinguishing between operating and non-operating income.
S&P Global Ratings reports that the six largest hyperscalers, including Alphabet and Amazon, will spend over $1.3 trillion on AI infrastructure by 2027. These companies are expected to have negative free operating cash flow in 2026 and 2027, with rec...
Nvidia reported strong Q2 earnings with $96.2 billion in revenue and $2.46 earnings per share, surpassing expectations. The company's balance sheet shows significant growth, with its equity portfolio rising from under 5% to nearly 20% of assets, valu...
Nvidia reported quarterly revenue that more than doubled, driven by strong demand for its AI chips, and forecasted third-quarter revenue above Wall Street estimates. The company expects about 70% revenue growth by fiscal 2028 and announced expanding ...
Anthropic has secured a $45 billion, six-year deal to rent AI computing power from British startup Nscale, utilizing Nvidia's cutting-edge Vera Rubin chip system. This deal, starting in late 2027, adds to Anthropic's aggressive expansion of compute c...
Microsoft reported its biggest fiscal year ever with $331 billion in revenue, driven by a 41% jump in Azure revenue surpassing $100 billion. Despite strong fundamentals and a 31.7% EPS growth, shares remain nearly flat at $491.71 due to high capital ...
