Advanced Micro Devices (AMD) shares fall after the chipmaker reported third quarter results, with its fourth quarter outlook failing to impress investors. The AMD sell-off fueled a pullback in Nvidia stock as the weaker-than-anticipated guidance fuels some concerns about artificial intelligence (AI) chip demand. Harvest Portfolio Management CIO and Wall Street Beats partner Paul Meeks tells Morning Brief Hosts Seana Smith and Brad Smith to break down the results and what it means for the company and the AI space. Meeks says, “I have a third of my portfolio in Nvidia. It's been a rock star. I don't think what AMD said yesterday is going to put Nvidia in peril, and with the big move that Nvidia has already seen [and] the fact that it's only down 1% today on AMD's sins, I actually think is a pretty good sign.” He adds, “The problem [with AMD] is not an AI accelerator chip pure play. It's got a CPU business, too, and that business right now kind of sucks. And so the way I look at it, even though AMD will be a viable number two to Nvidia in the AI chip market, and even though the stock trades at a discount to Nvidia, I just go with the pure play. I just buy more Nvidia on this news and continue to avoid AMD, which has been a good trade for me.” To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Naomi Buchanan.
Saudi startup airline Riyadh Air has ordered 60 Airbus aircraft, the European aerospace manufacturer said Wednesday. Riyadh Air plans to begin passenger flights next summer and has placed an order for 60 A321neo planes, the largest among Airbus’ best-selling A320neo family, the company said in a statement. The creation of Riyadh Air by the Saudi sovereign wealth fund is part of a broader Saudi strategy to diversify its oil-based economy and boost tourism.
Ukraine and Russia are in preliminary talks to stop bombing each other’s energy infrastructure.