JENSEN ANNOUNCES NEW PRODUCTS, SOFTWARE IS BACK, MICRON HITS 1000 | MARKET OPEN

SUMMARY

Amit Kukreja hosts a comprehensive market open session covering Nvidia’s latest product announcements at Computex, the resurgence of software stocks, and the broader implications for semiconductors and macroeconomic trends. The episode features in-depth analysis of sector rotations, geopolitical developments, and a guest segment with semiconductor expert Jose Najarro.

MAIN POINTS

• Nvidia's keynote in Taiwan introduces new products, sparking significant pre-market moves in Microsoft and software stocks. [1:30]
• Micron receives multiple analyst upgrades and crosses the $1,000 mark, reflecting strong sector momentum. [5:01]
• US intercepts Iranian missiles targeting American forces in Kuwait, but markets show muted reaction to geopolitical tensions. [7:01]
• Jensen Huang emphasizes the enduring value of software in the AI era, highlighting CUDA X libraries and agentic AI. [10:01]
• Nvidia and Microsoft announce a new AI-focused laptop, aiming to compete directly with Apple's M-series devices. [13:00]
• CoreWeave and Nibbius are spotlighted as key Nvidia partners, with ARM and Dell also gaining from new collaborations. [18:00]
• Jensen introduces Vera CPUs designed for AI workloads, challenging AMD and Intel's dominance in the CPU market. [20:01]
• Intel leaks plans for a new AI GPU to compete with Nvidia and AMD, but its stock drops following Nvidia's announcements. [23:01]
• Fluence Energy surges after announcing a partnership with Nvidia, Siemens, and Dell for AI data center infrastructure. [25:00]
• Iran halts diplomatic exchanges with the US over Israeli actions in Lebanon, causing a brief dip in markets and a spike in oil prices. [27:00]
• Despite geopolitical headlines, major tech stocks like Nvidia, ARM, and Micron remain resilient, with traders eyeing dip-buying opportunities. [31:00]
• Saudi Arabia condemns Israeli actions in Lebanon, further escalating regional tensions and pushing oil prices higher. [35:01]
• Bank of America reports the largest tech inflow since October 2025, raising questions about market exuberance and potential short-term tops. [37:00]
• Apple and Meta plan new wearable devices, but skepticism remains about consumer adoption of AI wearables. [40:01]
• Traders begin pricing in a potential June rate hike as oil prices rise and geopolitical risks persist. [43:01]
• JP Morgan projects a fivefold increase in AI inference TAM by 2030, boosting stocks like Nibbius and Micron. [47:01]
• Photonics stocks take a breather after significant gains, while insider buying in Nokia hints at upcoming catalysts. [53:00]
• S&P 500 eligibility looms for several retail-favorite stocks, potentially driving further inflows. [56:00]
• Market rotation favors both software and semiconductors, with ServiceNow and Reddit rebounding from previous lows. [1:02:01]
• Zoom launches an AI teammate to automate workflows, reflecting the integration of AI across enterprise software. [1:05:01]
• Israel warns Beirut residents amid ongoing military actions, but markets largely shrug off the news. [1:09:01]
• Virgin Galactic surges due to confusion with SpaceX, while other space stocks like Rocket Lab decline. [1:12:03]
• Nibbius and CoreWeave continue their rally, with speculation about short squeezes and further upside. [1:21:00]
• Qualcomm's new data center chip fails to impress the market, highlighting Nvidia's dominance in the AI hardware space. [1:30:02]
• Speculation grows about Micron's potential stock split and the impact of retail participation on its valuation. [1:35:00]
• Guest Jose Najarro analyzes Nvidia’s CPU strategy, the scale of AI data center capex, and the future of agentic AI workloads. [1:47:00]
• Software companies are re-rated as essential to the AI stack, with ServiceNow, Adobe, and Salesforce benefiting from renewed investor interest. [2:10:01]
• Market breadth improves as both semiconductors and software stocks participate in the rally, despite ongoing macro risks. [2:18:00]
• The session concludes with reflections on market adaptability and optimism for continued sector participation in the bull market. [2:25:03]

DETAILED ANALYSIS

The trading session opened with a focus on Nvidia’s keynote at Computex in Taiwan, which introduced several new products and partnerships that reverberated across both the semiconductor and software sectors. Nvidia’s announcements, particularly the unveiling of the Vera CPU and a new AI-focused laptop in collaboration with Microsoft and MediaTek, were interpreted as direct challenges to competitors like AMD, Intel, and Apple. The Vera CPU is specifically designed for agentic AI workloads, offering lower latency and higher efficiency compared to traditional x86 architectures.

This strategic move positions Nvidia to capture a significant share of the rapidly expanding AI inference and agentic computing markets, which are expected to see exponential growth over the coming years.

Microsoft, previously seen as lacking a hardware catalyst, benefited from the partnership with Nvidia, with its stock rallying on the prospect of becoming a broader chip play. The new laptop, integrating Nvidia’s RTX technology and Microsoft’s operating system, is positioned to compete with Apple’s M-series devices, although widespread consumer adoption is not expected until the product is fully available in the market. The partnership also signals a shift in how AI workloads will be distributed between cloud, enterprise, and edge devices, with large language models and agentic AI becoming central to future computing paradigms.

CoreWeave and Nibbius, two of Nvidia’s key partners in the AI cloud space, were highlighted as major beneficiaries of the new hardware and software ecosystem. Both companies experienced significant pre-market gains, reflecting investor enthusiasm for their roles in deploying Nvidia’s Vera Rubin architecture and supporting large-scale AI token generation. ARM and Dell were also named as critical collaborators, with ARM’s valuation continuing to rise despite concerns about its aggressive multiples.

The market’s willingness to overlook valuation in favor of growth potential underscores the current appetite for AI infrastructure plays.

Intel attempted to counter Nvidia’s momentum by leaking news of its upcoming Crescent Island AI GPU, targeting the inference market with a lower-cost, air-cooled architecture. However, the announcement did little to stem the decline in Intel’s stock, as investors remained skeptical about its ability to match Nvidia’s performance and ecosystem advantages. Similarly, Qualcomm’s introduction of the Dragonfly data center chip failed to generate excitement, with early reviews questioning its competitiveness in a market dominated by Nvidia’s integrated solutions.

The session also covered the resurgence of software stocks, with names like Palantir, Adobe, ServiceNow, DataDog, Snowflake, Oracle, Reddit, Shopify, and Zeta all experiencing strong gains. This rotation into software was framed as a “SAS summer,” marking a reversal from the sector’s previous underperformance. Jensen Huang’s remarks at GTC reinforced the view that software remains vital in the AI era, as agentic AI and token orchestration require robust application layers and libraries.

The market’s recognition of this dynamic led to a broadening of participation, with both hardware and software names rallying in tandem.

Geopolitical developments, including US-Iran tensions and Israeli military actions in Lebanon, briefly impacted market sentiment, causing a spike in oil prices and a short-lived dip in equities. However, the broader market quickly recovered, with traders viewing these events as potential dip-buying opportunities rather than catalysts for sustained volatility. The resilience of major tech stocks like Nvidia, ARM, and Micron, even in the face of negative headlines, highlighted the underlying strength of the current bull market.

Macro indicators pointed to continued exuberance, with Bank of America reporting the largest weekly tech inflow since October 2025. While this raised concerns about a potential short-term top, the overall sentiment remained bullish, supported by robust earnings growth and sector rotation. The S&P 500 is set to announce new candidates, including several retail-favorite stocks, which could drive further inflows and broaden market participation.

The session featured an in-depth guest segment with semiconductor analyst Jose Najarro, who provided context on Nvidia’s CPU strategy, the scale of upcoming AI data center capital expenditures, and the implications for both hardware and software players. Najarro emphasized that the AI infrastructure market is large enough to accommodate multiple winners, but Nvidia’s ecosystem integration and focus on agentic workloads give it a distinct advantage. He also discussed the challenges of measuring AI’s economic impact, noting that much of the value creation is not easily captured by traditional financial metrics.

Software companies are being re-rated as essential components of the AI stack, with ServiceNow, Adobe, Salesforce, and others benefiting from renewed investor interest. The integration of AI into enterprise workflows, as demonstrated by Zoom’s new AI teammate and the proliferation of agentic applications, is driving a shift in how productivity and value are measured. The discussion highlighted that while human interaction with software may decrease, the underlying platforms will see increased usage by AI agents, sustaining and potentially accelerating revenue growth.

The market also saw speculative activity in space and quantum stocks, with Virgin Galactic surging due to confusion with SpaceX’s upcoming IPO, while Rocket Lab and other space names declined. Commodity markets experienced volatility, with oil prices spiking on geopolitical risks and silver and copper failing to keep pace with AI-driven equities. The session concluded with reflections on market adaptability, the importance of buying into strength during sector reratings, and optimism for continued broad participation as long as earnings growth remains robust.

LINKS

• Amit Kukreja's official Twitter account for market updates and commentary.
• Amit's Deep Dives Substack newsletter for in-depth analysis and stock research.
• Registration link for the Singapore meetup event.

KEYWORDS