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ARK Bets on Cerebras AI Chips, Sells AMD Stake
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NVIDIA stock stalls as four headwinds temper AI hype
NVIDIA (NVDA) has underperformed this year, up about 12–14% vs. a roughly flat S&P 500, as analysts cite four headwinds: its massive $5+ trillion market cap potentially limiting upside; creeping doubt that the AI surge will sustain; decelerating growth (the ‘law of large numbers’); and peak worries about margins. Still, bulls note a potential catalyst from expanding CPU contributions, with CPU revenue seen rising to roughly 5% of total by 2028, and earnings growth projected to stay above 20% in 2028. A Raymond James note labeled the stock Strong Buy, arguing the valuation remains below the market despite solid growth — with Nvidia set to show more at its upcoming earnings.
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Dick's Sporting Goods Drops After Soft Q2 and Lowered Guidance
Dick's Sporting Goods (DKS) shares plunged after reporting weaker-than-expected second-quarter results and cutting its full-year sales and profit outlook. The company posted Q2 revenue of $5.59 billion and adjusted EPS of $3.53, missing estimates of about $5.64–$5.65 billion in sales and $3.76–$3.78 in EPS. Foot Locker weakness weighed on the print, and Dick's lowered full-year revenue guidance to $21.9–$22.2 billion with adjusted EPS around $11.50. Management signaled more cautious promotions in athletic footwear and apparel amid softer consumer demand, and the stock is down roughly 35% year-to-date.
AMD primed for a potential 40% lift as AI-driven demand accelerates
A Raymond James analyst upgrades AMD to Strong Buy with a $641 target, implying about 40% upside from current levels, citing AMD’s AI chips, Instinct MI450 GPUs and Helios data-center systems as catalysts amid strong data-center demand. AMD also posted a solid Q2 beat (non-GAAP EPS of $1.66, revenue $11.5 billion) and projects robust server CPU sales growth into 2027, with key deals including Microsoft Azure AI deployment and a large investment in Anthropic that could bolster AI deployments against Nvidia.
NVIDIA slides into earnings week after a seven-day stumble
NVIDIA (NVDA) stock is on a seven-session losing streak ahead of its pivotal earnings report, down about 7% over the stretch while the S&P 500 is roughly flat/slightly lower. The drop marks the longest slide since 2022, even though investors broadly expect strong quarterly results and see Nvidia as a core AI play with a reasonable valuation. Bulls like Art Hogan say to ignore the noise and recognize Nvidia’s central role in the AI revolution, suggesting the long-term upside remains compelling despite the near-term pullback.
Bessent's Bond Buyback Plan Could Sink Long-Term ETFs
Motley Fool argues that Scott Bessent's plan to double buybacks of long-term Treasuries has failed to calm markets, with 30-year yields at multi-year highs and long-duration bond ETFs like EDV and TLT potentially facing further declines; given the national debt and higher rates, a diversified approach such as the Vanguard Total Bond Market ETF (BND) may be a safer option than sticking to EDV or TLT.
America’s $40 trillion debt mountain threatens retirement amid rising borrowing costs
Public debt swelled to about $40.0 trillion by Aug. 18, driven largely by pandemic borrowing and persistent deficits from both Trump and Biden administrations. The government’s debt is projected to reach roughly 120% of GDP by 2036, with interest costs already among the largest expenses, and long-term Treasuries yielding around 5.3%, signaling higher borrowing costs for households and lenders. The piece notes Trump’s self-described “king of debt” label and emphasizes that the debt burden will affect consumers regardless of party. It also advises retirees to consider inflation-hedging strategies (e.g., gold), high-yield cash options, CDs, and professional financial guidance to stress-test retirement plans against higher rates and inflation.
Broadcom's AI Debt Backstops Push Credit Risk Higher
Bloomberg reports Broadcom's credit risk is rising as it backstops more than $60 billion in AI-chip financing, including guarantees for Anthropic. In August, Broadcom’s 5.15% bonds due 2031 rose about 14 basis points and its five-year CDS widened roughly 28 basis points, underscoring investor concerns that balance-sheet guarantees and other backstops create phantom leverage in the AI ecosystem. Analysts say the moves reflect Broadcom’s potential additional guarantees for chip-financing deals, following a prior $35 billion backstop with Apollo/Blackstone to lease AI chips to Anthropic.
Bear Markets Reward the Bold: Buy the Dip and Stay Invested
History shows the one winning move in bear markets is to keep buying during declines rather than panic-sell. By buying at lows (as seen in 2022 with Amazon and Nvidia), patient investors have captured substantial gains as markets recover, so the advised strategy is to stay invested and keep cash ready for opportunities.
Memory sector rattled as Samsung slides, Micron rides AI demand despite caution
Micron Technology slipped before the open as Samsung’s 9% plunge hit memory stocks, highlighting the cyclical, inventory-sensitive nature of the memory trade even as Micron’s AI-driven demand helped push its revenue higher (reported around $41.46 billion). The piece notes Micron’s valuation is stretched (trading well above its estimated fair value), suggesting upside may be capped by memory-cycle risk and competition from Asian rivals, even with continued AI server demand underpinning near-term momentum.
Goldman Partner Warns AI Could Dull the Next Generation of Bankers
A Goldman Sachs partner warns that AI could erode bankers’ ability to reason by outsourcing thinking to machines, threatening Wall Street’s apprenticeship model and junior training. Goldman is grappling with balancing automated tools like Marquee with human oversight to preserve tacit knowledge and ensure accurate, auditable outputs in high‑stakes finance.
US Debt Tops $40 Trillion: Could That Fuel the Next Stock Rally?
US debt has officially surpassed $40 trillion, about 124% of GDP, with deficits rising and interest payments growing; the piece argues that ongoing borrowing and monetary accommodation—such as lower rates or debt monetization—have been a major tailwind for equities, despite a lofty CAPE around 42, suggesting investors remain bullish but should pick stocks selectively.