Winner
There were more positives in Tuesday's quarterly earnings report from Charles Schwab. Specifically, the firm reduced short-term debt and increased the direction of future earnings. In general, this revived the hopes of analysts and investors.
The firm's third-quarter earnings report showed that concerns about clients moving short-term cash out of accounts that are a key source of profits for Schwab are receding. It is paying down the short-term debt it accumulated when it was forced to borrow funds to make up for the outflow of deposits. Schwab also reported strong growth in net new assets. And it slightly beat Wall Street estimates for earnings per share.
Defeated
Advanced Micro Devices has announced its new AI chip, the Instinct MI325X, and has seemingly lined up a direct challenge to Nvidia's dominant GPU for data centers. Unveiled at Computex 2024 in Taipei, this new AI processor is expected to threaten Nvidia's Blackwell chips, which could positively impact the competition and change AI chip pricing.
