Usman Salis
● According to a recent market commentary from KAZAMASS✦, we're seeing a "split" market right now—AI stocks are running hot while consumer-facing companies are running on fumes. This week gave us a perfect example of that divide.@kazamassss
● Intel ($INTC) jumped 8% in premarket trading after absolutely crushing Q3 expectations. The chipmaker posted $13.7 billion in revenue and laid out what actually looks like a realistic path back to profitability. After years of hearing about Intel's "turnaround," investors are finally starting to believe this time might be different. The catalyst? AI chips. Demand is real, and Intel's pivot toward that space seems to be working.
● The company's strategy revolves around restructuring its operations and going all-in on next-gen AI infrastructure. They're positioning themselves to compete directly with NVIDIA and AMD for the lucrative data center and generative AI market. But it's not all smooth sailing—analysts are still concerned about supply chain issues, tight capital budgets, and the brutal pricing wars that could eat into margins going forward.
● While Intel gave the tech sector something to cheer about, other parts of the market are telling a grimmer story. Alaska Air (ALK) got hammered after an IT meltdown grounded flights and forced them to slash their profit outlook. It's another reminder that airlines are still dealing with serious operational problems. Meanwhile, Target(TGT) announced they're cutting 1,800 corporate jobs as they try to navigate their 11th consecutive quarter of disappointing sales. Consumer spending just isn't cooperating.
● Now everyone's attention turns to tomorrow's CPI report. If inflation comes in hot, those hopes for Fed rate cuts are probably toast—and the market won't like that. But if we get a cooler reading, risk assets (especially AI stocks) could take off again.
Usman Salis
