Dow Jones futures were little changed Friday morning, as were S&P 500 and Nasdaq futures. Applied materials (HUGE), Reddit (RDDT) And Advanced microsystems (AMD)
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The stock market rally is hovering around record highs, with the Dow briefly surpassing 40,000 during the day on Thursday.
Microsoft will offer cloud computing customers the ability to use AI chips from Advanced microsystems (AMD) instead of Nvidia AI processors. AMD stock rose, attempting to regain a key level.
Nvidia (NVDA) remains in a buy range while Microsoft (MSFT) is just below an early entry.
Applied Materials edged lower despite a beat-and-raise report, trading around a buy point. Shares of Reddit have soared thanks to an alliance with Microsoft-backed OpenAI, signaling a possible buying opportunity.
Dow Jones Futures Today
Dow Jones futures fell slightly relative to fair value, as did S&P 500 futures. Nasdaq 100 futures rose.
The Dow Jones Industrial Average fell 0.1% on Thursday stock market trading. The S&P 500 index fell 0.2%. The Nasdaq composite index lost 0.3%.
The 10-year Treasury yield rose slightly to 4.39% after rising two basis points to 4.38% on Thursday.
Remember that pre-market action Dow Jones Futures and elsewhere does not necessarily translate into real exchanges during the next regular class sotck exchange session.
Earnings
Benefit of applied materials and forecasts beat views, but AMAT stock lost a fraction before the open. Shares fell 1.5% to 214.17 on Thursday, returning to their base. Applied Materials stock rose 3.7% on Wednesday to 214.91. flat base point of purchase.
Copart (CPRT) earnings were in line as CPRT stock edged lower in extended action. The salvage auto auction company fell 1.4% to 54.55 on Thursday, hitting resistance at the 50-day line. Copart stock has a flat base buy point of 58.58, according to Market increase.
Reddit-Open AI Partnership
Reddit (RDDT) took off Friday morning on a new partnership with OpenAI supported by Microsoft.
The social media site will give OpenAI access to Reddit’s Data API, allowing the artificial intelligence startup to learn from Reddit content in real time. The Reddit platform will benefit from AI-based features. OpenAI and Reddit will be advertising partners.
Reddit stock jumped 14% in premarket trading to over 64. The shares are working on a Basis of IPO with a buy point of 74.90. But investors could use Tuesday’s high at 64.50 as an early entry.
RDDT stock rallied at the start of the week, boosted by the recovery in meme stocks. Various subreddits have been a hub for meme stock investing. Stocks had fallen from Wednesday to Friday as meme stocks fell.
Microsoft-AMD AI chips
Microsoft’s Azure cloud computing service will provide a platform for customers wanting to use AMD’s Mi300X AI chips as an alternative to Nvidia’s H100 line, Reuters reported. Tech giant Dow will reportedly offer more information at its Build developer conference next week.
Nvidia’s AI chips dominate the industry but can be difficult to obtain due to high demand.
Microsoft will also unveil its in-house Cobalt 100 processors at the event. The Cobalt 100 processor uses designs from Arm holds (ARM).
AMD Stock
AMD stock rose more than 2% early Friday. Shares have jumped 7% so far this week, but fell back to their 50-day and 10-week lines on Thursday.
Nvidia stock fell slightly before the open. Shares are up 5% so far this week, above 922.20. cup with handle point of purchase. The AI ​​chip leader broke out Wednesday with a 3.6% gain.
Microsoft stock rose slightly in premarket trading. Shares fell 0.5% to 420.99 on Thursday but are up 1.5% this week. MSFT stock has a flat base buy point of 430.82, but a move above Thursday’s high of 425.42 would offer early entry.
Keep in mind that Nvidia’s results are due on May 22. These results and directions will certainly have a huge impact on NVDA, AMD, and many other AI games stocks, including Microsoft.
Please follow Ed Carson on the discussions at @edcarson1971 and X/Twitter on @IBD_ECarson for stock market updates and more.
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