Nvidia’s () $500 billion arrangement with six Wall Street firms to help its customers finance its GPU purchases is being wildly praised. This just shows how Wall Street wants to be associated with Nvidia, especially as the AI data center boom accelerates. Nvidia now accounts for approximately 14% of U.S. GDP and remains the AI leader.
Meanwhile, Super Micro Computer () surged in the wake of its stronger-than-expected revenue guidance. SMCI announced on Tuesday that its latest quarterly revenue surged 96.5% to $11.1 billion compared to $5.7 billion in the same quarter a year ago. The analyst community was expecting revenue of $11.2 billion and operating earnings of $1.59 per share, so Super Micro Computer posted a 0.9% revenue miss and a 6.9% earnings surprise. Looking forward, the company raised its quarterly revenue guidance to $14.5 billion to $15.5 billion, which is substantially higher than the analyst consensus estimate of $11.9 billion.
It appears that this stubborn inflation component has finally cooled. The Labor Department announced on Wednesday that the July Consumer Price Index () was perfectly in line with economists’ estimates: a 0.1% increase and a 0.2% increase in , excluding food and energy prices. In the past 12 months, the CPI increased 3.4%, and the core CPI rose 2.5%.
The best news is that shelter costs (owners’ equivalent rent) rose only 0.1% in July and 3.2% in the past 12 months. This is the second month in a row that shelter costs have only risen 0.1%. Treasury yields meandered lower after the CPI announcement and are helping to take further pressure off the Fed to raise key interest rates. Next up is the Producer Price Index (PPI) that will be announced on Thursday.