Credit default swap (CDS) spreads are increasing for major tech companies including Oracle, Meta, Amazon, Microsoft, Alphabet, Nvidia, AMD, Intel, and Broadcom, reaching multi-month highs. This widening indicates growing caution in credit markets, contrasting with relatively stable equity markets. The divergence suggests that credit investors are pricing in risks not yet reflected in stock prices, possibly due to concerns about the sustainability of the current AI investment cycle. This signals potential rising default risks and market uncertainty ahead.
Oracle Corporation is initiated with a Strong Buy rating and a price target of $212 due to its exceptional cloud infrastructure growth, which posted 93% year-over-year growth. The company’s Cloud and Software segment momentum is expected to accelerat...
In July, the NASDAQ dropped more than 3%, driven by the worst monthly performance in semiconductors since 2008. Market stress increased due to leverage-driven sell-offs, including a sharp crash in Korea's Kospi and forced liquidations of highly lever...
US stock indices Nasdaq 100, Dow Jones 30, and S&P 500 are attempting to break higher but face resistance near key technical levels. The Nasdaq 100 is testing the 28,500 mark with resistance at its 50-day EMA, while the Dow Jones is challenging 52,50...
The buildout of AI infrastructure by major tech companies like Alphabet, Meta, and Microsoft is increasingly dependent on external financing, marking a shift from previous self-funding. BlackRock's recent data center bond priced at 7.53%, significant...
Seeking Alpha's "The Undercovered Dozen" is a weekly series spotlighting 12 lesser-covered stocks with market caps over $100 million that have limited recent coverage but significant interest. The series aims to provide fresh investment ideas and enc...
