AI Takes Center Stage: Nvidia Summit, Tesla Robotaxi, and AMD's AI Event Dominate Tech News

Wall Street Brunch: Tech Events Stealing The Show From Economy And Earnings

Nvidia's three-day summit is one of three AI events. (0:17) Moonshots at the robotaxi event? (1:49) Eyes on consumer inflation after jobs report changes rate-expectation landscape. (2:58) Will investors be more focused on the future or the recent past this week? Nvidia's (NASDAQ:NVDA) AI Summit and Tesla's (NASDAQ:TSLA) robotaxi event will have plenty for those betting on future tech. But third-quarter earnings season is also kicking off and Wall Street isn't going to sleep on the latest retail inflation figures. The Nvidia Summit runs from Monday to Wednesday in Washington and the chipmaker says the focus will be on AI to drive breakthroughs in healthcare, cybersecurity, manufacturing and more, with sessions on generative AI, remote sensing, cybersecurity, robotics and industrial digitalization. Bob Pette, Nvidia vice president of enterprise platforms, speaks Tuesday morning on how the company's computing platform enables advancements in sensor processing, autonomous systems and digital twins. CEO Jensen Huang said this past week that demand for Nvidia's new Blackwell GPUs is "insane." Looking to the stock, SA analyst Cash Flow Venue calls it one of their favorite growth picks in the modern economy, saying: "You have to judge the tree by the fruit it provides, and let me assure you - NVIDIA provides outstanding EBITDA margins translating into its cash flow generating potential." That's not all on the AI front, though. Advanced Micro Devices (AMD) will hold its Advancing AI 2024 event on Thursday to showcase the next-generation AMD Instinct accelerators and 5th Gen AMD EPYC server processors. The company said it will also discuss networking and AI PC updates and highlighting its AI solutions ecosystem. And Hewlett Packard Enterprise (HPE) will also host its AI Day event on Thursday. If that wasn't enough for Thursday, Tesla will host its high-profile robotaxi event with the title "We, Robot" at Warner Bros. Studios in Burbank, California. The event was originally scheduled for August 8 before Elon Musk said the company needed more time to make an important design change and to prepare to show off a few other things. The highlight of the event is likely to be the reveal of a Cybercab prototype, which is anticipated to be a two-door sedan with a front that is relatively similar to the Model 3 Influential Morgan Stanley Adam Jonas warned that the event could fail to live up to the high expectations of investors. Jonas said that other than demonstrating FSD v12.5 and offering rides in a Gen 1 Cybercab, hist team is not sure what else could be in store. Jonas said questions that could be addressed include whether investors will see data comparing the safety of Tesla's AV vehicle technology compared to human driving, and what are the specific critical enabling technologies to drive further improvement in FSD/cybercab autonomy. As far as moonshots, Jonas advised previously that Musk could introduce an electric plane concept, electric boat vision or a demonstration of an Optimus robot flipping burgers at a Tesla Diner Looking to the economy, the September consumer price index arrives (of course premarket Thursday) Headline CPI is expected to have risen by 0.2% and core CPI is seen edging up 0.1%. Wells Fargo economists say: "Inflation drivers are poised to swap in September, with a pickup in auto prices primed to lift goods inflation and shelter inflation likely to fall back from the pop in August." "We look for the 12-month change in headline CPI to remain around 2.0-2.5% over the next year, which should translate into the PCE deflator hovering right around the Fed's 2% target." Following the strong September jobs report on Friday, the odds have dramatically shifted on the size of Fed rate cuts. Fed funds futures now have quarter-point cut in November as a near certainty. As recently as last week odds of a 50 basis point cut were topping 70%. Traders are now pricing in just two 25 basis point cuts to see out the year, down for 100 basis points of cuts priced in right after Chairman Jay Powell's press conference. Eric Merlis, co-head of global markets at Citizens says: "It looks like we may be coming in for a soft landing after all." "While geopolitical events could still throw a monkey wrench into things, (Friday's) jobs numbers should ease concerns about the labor market (and) should give the Fed more flexibility as it looks to continue lowering rates and it should help counter arguments that the Fed acted too late." In the news this weekend, Rivian Automotive (RIVN) has sought a federal loan to support the construction of a new electric vehicle plant in Georgia after a strategic shift forced the company to pause the project amid a cash crunch. The plant is expected to be operational by Q3 2027, with full production anticipated to begin in 2028, Bloomberg News reported. "Financially supporting the project will help Rivian bring 400,000 electric vehicles (EVs) to market and into greater use, thereby reducing overall national emissions of air pollutants and human-caused GHGs," the DoE said. The loan amount wasn't disclosed and the DoE said it has yet to decide whether to grant the loan. And Wynn Resorts (WYNN) received the first commercial gaming operator's license issued by the United Arab Emirates as part of an ongoing multibillion-dollar project. Wynn is building a luxury resort at Wynn Al Marjan Island in Ras Al Khaimah at a cost of $3.9 billion. That's part of a joint venture between WYNN affiliates Marjan and RAK Hospitality Holding. Spanning almost 62 hectares on an island extending into the Arabian Gulf, Wynn Al Marjan is set to become the first integrated gaming resort in the Middle East and North Africa. Once open in 2027, the resort is expected to have 1,542 rooms and suites, including 22 private villas. For income investors, Micron (MU) goes ex-dividend on Monday, with a payout date of October 23. And in the Wall Street Research Corner, Goldman Sachs boosted its 12-month target for the S&P 500 (SP500) to 6,300 to 6,000 and upgraded its 2025 view on earnings expansion. A 6,300 target is 9.5% away from the close at 5,751.07 on Friday. Goldman lifted its 2025 S&P 500 per-share earnings forecast to $268, representing +11% year/year growth. It previously projected 6% growth to $256. Strategist David Kostin also introduced a 2026 EPS forecast of $288 (+7%). Kostin says: "The primary driver of the upward revision to our 2025 EPS estimate is greater margin expansion. We expect sales will grow by 5%, roughly in line with nominal GDP growth (vs. 4% previously)." Goldman's Portfolio Strategy Research desk now expects 78 basis points of net margin expansion in 2025, compared with 24 bp previously as the "macro backdrop remains conducive to modest margin expansion, with prices charged outpacing input cost growth."

Elon Musk, AI and start of earnings season will jolt markets

Elon Musk attracts a lot of attention. The CEO of Tesla (TSLA) has emerged as a hyperactive entrepreneur with a reputation built on the success of the electric car company he built, Space X and other ventures. This week, Musk and Tesla will be a center of attention. On Thursday, Musk and Tesla will unveil the plans for the new Robotaxi at the Warner Bros. studio in Los Angeles. Don't miss the move: Subscribe to TheStreet's free daily newsletter It is a key event for Musk and the company which has had its struggles. The shares fell 44% between the end of 2023 and April 22 on worries about sales stagnating. Since April 22, the shares are up 76% and actually up 0.64% for 2024. The Tesla event is just one of a busy week of corporate events, investor meetings, economic reports and the unofficial start for the third-quarter earnings season. Jobs report cheers investors Stocks ended the past week with small gains, thanks mostly to investors cheering a very bullish jobs report from the Labor Department on Friday. The S&P 500 ended the week up 0.2%. The Nasdaq Composite Index added 0.1%, and the Dow Jones Industrials found its way to a 0.1%. Related: Goldman Sachs strategist lays out surprising view on stocks Three issues seemed to weigh on stocks: Tesla's event is important, especially for Tesla Tesla shares, despite their huge gain since April -- including a 22% gain in September -- nonetheless ended the week down about 4%. The September gains reflected more confidence Tesla had regained its mojo ahead of the Robocar presentation . Elon Musk has been pushing for the Robotaxi idea for months, arguing the idea would revolutionize transportation, particularly in urban areas. It would boost Musk's contention that Tesla is an artificial intelligence company. Many analysts shakes their heads at the idea, saying Tesla is a car company. More Tesla: Its Robotaxi (and cars and Cybertrucks, for that matter) are really the physical manifestation of a vast network that grabs data from every Tesla vehicle and uses it to provide information to drivers on the safest and most efficient routes to a destinations. The risk Musk faces this week is that he proves unable to convince customers, Tesla fans and investors the vehicle will work, although Waymo's taxi seems to work in San Francisco. Many details are unclear, such as: Tesla is not pioneering robotaxies. Waymo, owned by Google-parent Alphabet (GOOGL) , has been offering service in San Francisco, Los Angeles and Phoenix, Ariz. There have been glitches and accidents. In May 2023, a Waymo vehicle in autonomous mode in San Francisco killed a dog, according to a Guardian report. AMD has a big day on Thursday, too Semiconductor maker Advanced Micro Devices AMD is holding its Advancing AI event to showcase products such as its AMD Instinct accelerators and EPYC server processors. Barrons noted the presentation will also provide networking and updates on its AI personal computer push. AMD shares are up about 16% in 2024 (compared with the Nasdaq's 20.8% gain) but is waging a scrappy fight to get recognition and customers. Earnings season takes off this week If it seems like the second-quarter earnings season is taking forever, the third-quarter reports will start to come out in a big way. Beverage-and-snack giant Pepsico (PEP) reports its results Tuesday morning. The street estimate is $2.30 a share, down from $2.35 a year ago. Things get more exciting Thursday when India-based software giant Infosys (INFY) and Delta Air Lines (DAL) and Domino's Pizza (DPZ) report. Related: Student loan forgiveness to give millions of Americans a stimulus payment Friday is the big day when a host of financial giants report, including JP Morgan Chase (JPM) , Wells Fargo (WFC) , insurer Progressive Corp. (PGR) , money manager BlackRock (BLK) and Bank of New York Mellon BNY come out with results. Pay attention to the discussions the companies offer on how they view the U.S. economy. Friday's jobs report, showing non-farm payrolls growing by 254,000 in September, was much more bullish than expected. The revisions in the October jobs report will tell us more. The economic reports and Fed talks The week ahead offers a few economic reports that can easily move markets: Consumer Price Index for September, due Thursday. Along with core CPI. The consensus estimate is that the index will be up 2.3% from a year ago. That's close enough to keep the Fed happy. Producer Price Index for September, due Friday. This gauge of inflationary pressures faced by businesses is also projected to show tamer inflation. Consumer sentiment. The University of Michigan, preliminary October consumer sentiment index, due Friday. This helps gauge if consumers are confident about the coming months. Fed speakers. All week. Everyone except Fed Chair Jerome Powell will speak somewhere next week. The remarks of Fed governors are posted on the Federal Reserve website. Presidents of the 12 Federal Reserve banks post their texts on their banks' websites. Neel Kashkari, president of the Minneapolis Federal Reserve Bank, caused stocks to fall sharply last spring when he suggested may have to be boosted because of sticky inflation. Fed minutes. Due Wednesday and can be found here. This is a summary of September meeting that resulted in the Fed's rate cut decision. The description of the discussion is always toward the end of minutes. Related: The 10 best investing books, according to our stock market pros

Nvidia's AI summit, Tesla's robotaxi, Amazon Prime Day, inflation: What to watch in the markets this week

Last week closed on a positive note, with two key developments easing concerns about the economy. A strong jobs report helped calm fears of a weakening labor market, while the resolution of the dockworkers' strike alleviated worries about supply chain disruptions. In addition, oil prices, which had surged early in the week due to Middle East tensions, saw a welcome pullback by the weekend. This week promises to be action-packed, with plenty on the horizon. With this wave of optimism, let's dive into what the coming week has in store. NVIDIA's AI Summit kicks off Monday, running from Oct. 7-9 in Washington, D.C. The three-day event will bring together industry leaders to explore how AI can tackle some of society's biggest challenges. With a focus on healthcare, cybersecurity, manufacturing, and more, the summit will highlight AI's potential to drive innovation across key sectors. Amazon's (AMZN) highly anticipated two-day Prime Day sale event kicks off Tuesday, offering a valuable glimpse into consumer behavior and e-commerce trends. The sale will provide key insights into what products shoppers are prioritizing, as well as into the broader state of consumer demand. This event is expected to highlight popular categories and pricing strategies and could serve as a bellwether for the coming holiday shopping season. Amazon's recruitment strategy is partly driven by expectations that e-commerce spending will surpass overall holiday sales in the fourth quarter. The company's Prime Day event earlier this year generated over $14.2 billion in online sales, marking one of the biggest e-commerce events of the year. Tesla (TSLA) CEO Elon Musk will finally unveil the highly anticipated Robotaxi on Thursday at Warner Bros. Studios (WBD) in Los Angeles, California. Dubbed "We, Robot," the event will show the first look at the prototype and the booking platform for owners and riders. There will be also an update to the company's Full Self-Driving (FSD) technology, which powers the robotaxis, along with a production timeline and the service launch date. PepsiCo (PEP) is set to report its earnings ahead of the closing bell Tuesday. Then, Thursday, Delta Air Lines (DAL), Infosys (INFY), and Domino's Pizza (DPZ) are scheduled to release their earnings before the market opens. The week will close with major banks taking center stage Friday, as JPMorgan Chase (JPM), Wells Fargo (WFC), BlackRock (BLK), and the BNY Mellon (BK) lead off the quarterly earnings season for the financial sector. The Consumer Credit report for September is set to be released Monday. Midweek (on Wednesday), investors will keep an eye on the Wholesale Inventories data for August, along with the minutes from the Federal Reserve's September FOMC meeting, which could provide insights into the central bank's next moves. Thursday will bring a trio of key data releases, including initial jobless claims, the consumer price index (CPI), and core CPI, offering a detailed look at inflation and labor market trends. Finally, on Friday, the producer price index (PPI) and core PPI will be released alongside preliminary consumer sentiment data for October, rounding out the week with a comprehensive view of inflationary pressures and consumer outlooks.