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ABW Stock Exchange: All Things Investing

Remember, as long as you can trade the next day, that's what matters.
Are you doing shares or options?
Earlier in the premarket, I saw that TSLA was down over 70 pts a share... it's -55 now, maybe the day will lead to a continued recovery?

NOT investment advice
 
DOS_patos said:
What kinda chips?
Click to expand...
From Reuters

Nov 8 (Reuters) - Advanced Micro Devices Inc AMD.O on Monday said it has won Meta Platforms Inc FB.O as a data center chip customer, sending AMD shares up more than 11%as it cemented some of its gains against Intel Corp INTC.O.

It also announced a range of new chips aimed at taking on larger rivals such as Nvidia Corp NVDA.O in supercomputing markets, as well as smaller competitors, including Ampere Computing in the cloud computing market.

After years of trailing the much larger Intel in the market for x86 processor chips, AMD has steadily gained market share since 2017, when a comeback plan spearheaded by Chief Executive Lisa Su put the company on a course to its present position of having faster chips than Intel's.

AMD now has nearly a quarter of the market for x86 chips, according to Mercury Research.

After securing Meta, the company formerly known as Facebook, as a customer, AMD has deals in place with many of Intel's largest customers. It also has deals with Alphabet Inc's GOOGL.O Google Cloud, Amazon.com's AMZN.O Amazon Web Services and Microsoft Corp's MSFT.O Azure.

Christopher Rolland, a semiconductor analyst at Susquehanna International Group, said in a note to investors that AMD appeared to be winning a part of Meta's increased spending as it ramps up plans to build virtual online worlds.

"Investors are now trying to identify the big hardware beneficiaries of this capex, and today’s announcement could suggest AMD is winning a healthy portion," Rolland wrote.

AMD on Monday also announced plans to take on rivals beyond Intel. The company announced a chip called the MI200, which is an "accelerator" designed to speed up certain tasks like machine learning and artificial intelligence.

The new AMD chip is designed to take on Nvidia's A100 chip, which, along with other chips designed to speed up artificial intelligence, has helped make Nvidia the most valuable U.S.-listed semiconductor company.

AMD said that Oak Ridge National Laboratory in Tennessee will use the new chip in its "Frontier" supercomputing system.

AMD also took aim at smaller rivals. The company announced a new central processor called "Bergamo" that will ship in the first half of 2023. The chip will have 128 computing cores, which are useful for cloud computing companies that rent out their chips on a core-by-core basis to outside customers.

Ampere Computing, a startup founded by former Intel executives, is pursuing a similar high-core-count strategy and this year signed up Oracle Corp's ORCL.N cloud service as a customer.
 
www.marketwatch.com

Meme stocks like GameStop, AMC pose risks to financial stability, Fed says

Stock-market volatility resulting from a surge in first-time investors who congregate on social media could pose a risk to the U.S. financial system, the...
www.marketwatch.com www.marketwatch.com

Economic Report
Meme stocks like GameStop, AMC pose risks to financial stability, Fed says


Last Updated: Nov. 8, 2021 at 4:40 p.m. ETFirst Published: Nov. 8, 2021 at 4:27 p.m. ET

By Chris Matthews

Social media ‘echo chamber’ can help fuel volatility, report says

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U.S. Federal Reserve Governor Lael Brainard, chair of the Federal Reserve’s Committee on Financial Stability. AFP VIA GETTY IMAGES

Stock-market volatility resulting from a surge in first-time investors who congregate on social media could pose a risk to the U.S. financial system, the Federal Reserve said in its biannual financial stability report released Monday.

The report noted that new trading platforms that offer zero-commission trading, fractional shares and flashy and engaging graphics have helped recruit a generation of young traders to the stock market, and the size of this new demographic makes it important for regulators to monitor.

“Social media can contribute to an echo chamber in which retail investors find themselves communicating most frequently with others with similar interests and views, thereby enforcing their views, even if these views are speculative or biased,” the report said.

The Fed reported that so far, wild swings in the prices of popular meme stocks, including GameStop Corp. GME, +2.53% and AMC Entertainment Holdings Inc. AMC, +8.06% have had a “limited” impact on financial stability so far, it is an area of the market that should be “monitored” because new, younger equity investors tend to have higher debt levels and often invest in options, two factors that could amplify losses in a downturn.

“Episodes of hightened risk appetite may continue to evolve with the interaction between social media and retailer investors may be difficult to predict,” the report warned. “A potentially destabilizing outcome could emerge if elevated risk appetite among retail investors retreats rapidly to more moderate levels.”

The Fed suggested that financial institutions calibrate for the potential increased volatility that the meme stock phenomenon could endanger and that “more frequent episodes of higher volatility may require further steps to ensure the resilience of the system.”

Other vulnerabilities to the financial system outlined in the report include high valuations for stocks and real estate, which remain elevated relative to corporate earnings and rents. The Fed noted, however, that “despite rising housing valuations, little evidence exists of deteriorating credit standards or highly leveraged investment activity in the housing market.”

On the positive side, businesses and households have seen their debt relative to income decline in recent months, as federal stimulus and a rapid recovery from the COVID-19 recession has helped bolster balance sheets.

The Fed also pointed to instability in the Chinese real estate market as a potential threat to global financial stability, given the growing importance of Chinese growth to the world’s economy.

The report noted that business and local government debt is large and growing, and that a regulatory crackdown on the real estate sector “has the potential to stress some highly indebted corporations,” as exemplified by the recent drama surrounding China Evergrande Group. 6666, 1.58%

“Stresses could…propagate to the Chinese financial system through spillovers to financial firms, a sudden correction of real estate prices or a reduction in investor risk appetite,” the report said. “Given the size of China’s economy and financial system, as well as its extensive trade linkages with the rest of the world, financial stresses in China could strain global financial markets.”
 
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