The tech trade is back, driven by A.I. craze and prospect of a less aggressive Fed
Summary
Many of the biggest companies in the industry, including Meta, Alphabet, Amazon and Microsoft, were eliminating thousands of jobs following a dismal 2022 for revenue growth and stock prices. But the companys sales forecast for the current quarter was roughly 50% higher than Wall Street estimates, and CEO Jensen Huang said Nvidia is seeing "surging demand" for its data center products. Nvidia said cloud vendors and internet companies are buying up GPU chips and using the processors to train and deploy generative AI applications like ChatGPT. "At this point in the cycle, I think its really important to not fight consensus," said Brent Bracelin, an analyst at Piper Sandler who covers cloud and software companies, in a Friday interview on CNBCs "Squawk on the Street." Republican negotiator Rep. Garret Graves of Louisiana told reporters Friday afternoon in the Capitol that, "We continue to have major issues that we have not bridged the gap on."