The Rundown - Nvidia Unveils New Chip, Unilever to Spin Off Ice Cream Unit

Episode Date: March 19, 2024

Stock market update for March 19, 2024. Get started with Public: ⁠⁠⁠Click Here⁠⁠⁠ The content of the podcast is for general and informational purposes only. All views presented in this show reflect the opinions of the guest and the host. You should not take a mention of any asset, be it cryptocurrency or a publicly traded security as a recommendation to buy, sell or hold that cryptocurrency or security. Guests and hosts are not affiliated with or endorsed by Public Holdings or its subsidiaries. You should make your own financial and investment decisions or consult respective professionals. Full disclosures are in the channel description. Learn more at Public.com/disclosures. Past performance is not a guarantee of future results. There is a possibility of loss with any investment. Historical or hypothetical performance results, if mentioned, are presented for illustrative purposes only. Do not infer or assume that any securities, sectors or markets described in the videos were or will be profitable. Any statements of future expectations and other forward-looking statements are strictly based on the current views, opinion, or assumptions of the person presenting them, and should not be taken as an indicator of performance nor should be relied upon as an investment advice.The content of the podcast is for general and informational purposes only. All views presented in this show reflect the opinions of the guest and the host. You should not take a mention of any asset, be it cryptocurrency or a publicly traded security as a recommendation to buy, sell or hold that cryptocurrency or security. Guests and hosts are not affiliated with or endorsed by Public Holdings or its subsidiaries. You should make your own financial and investment decisions or consult respective professionals. Full disclosures are in the channel description. Learn more at Public.com/disclosures. Past performance is not a guarantee of future results. There is a possibility of loss with any investment. Historical or hypothetical performance results, if mentioned, are presented for illustrative purposes only. Do not infer or assume that any securities, sectors or markets described in the videos were or will be profitable. Any statements of future expectations and other forward-looking statements are strictly based on the current views, opinion, or assumptions of the person presenting them, and should not be taken as an indicator of performance nor should be relied upon as an investment advice.

Public.com presents the rundown, your daily market update in five minutes. My name is Zadadmani, and today is Tuesday, March 19. In today's episode, we talk about all the AI news coming from Nvidia's AI developer conference and how investors are reacting to Nvidia's new AI chips. I'm not going to lie, it wasn't the reaction that I expected. We also dive into what is happening in crypto. There's a lot of red right now, and we talk about why that might be. And finally, we end the show talking about stocks making moves today,

like this AI stock that is down more than 10. percent after being added to the S&P 500. There's actually a reason for that. Stick around to learn why. All right, let's get into it. Well, guys, tech stocks carried the day on Monday. Tech stocks were up big, dragging the rest of the markets up with them. Every single stock in the Magnificent 7 was up, with Tesla leading the way, surprisingly.

And that helped push the Dow, S&P, and NASDAQ higher on Monday. So there seems to be pretty good vibes on Wall Street to start the week. Now everyone turns their attention to the Fed because the two-day Fed meeting kicks off today concluding with a Jerome Powell press conference on Wednesday at 2.30 p.m. Eastern. And as I mentioned in yesterday's show, the Fed is not expected to cut rates at this meeting. But the markets have already kind of priced that in. And it doesn't seem like investors care that much anymore about the Fed. Maybe I'm overreacting a bit.

Jerome Powell is probably listening to this right now and taking it as a challenge. So, yeah, we're probably going to get fireworks on Wednesday's press conference, aren't we? Make sure you guys tune in on Thursday to get a recap of the press conference. I'm kind of hoping for a boring one this time. I'm not going to lie. Don't want Jay Powell messing up the good vibes right now. Speaking of vibes that are not good, crypto has had a brutal 24 hours. Bitcoin, Ethereum, Solana, and many other cryptocurrencies solve their prices tank by more than 10%

wiping out more than $300 billion in market cap. Bitcoin crossed $73,000 last week, and now it's trading below $63,000. Now, look, crypto has been on an absolute heater over the last couple weeks. And the market just might be taking a bit of a breather right now. And just to zoom out a bit and have some perspective here, if I told you in January that Bitcoin was going to hit 63,000 by March 19th, you'd probably be pretty excited right now. So, you know, just some perspective for you this morning. But no, it is a lot more fun when numbers go up. All right, let's talk about a company who's seen their numbers go up a lot over the last few

months. I'm talking about Nvidia. Invita kicked off their GTC AI conference yesterday that some people call AI Woodstock. And Nvidia showed off some new gear. Now, usually this conference is for developers to talk nerdy technical stuff, right? But ever since Nvidia pretty much, became the most important company in the world over the last 12 months or so, and the stock price 5x in that same time, a lot more people seem to be interested in this conference. And Nvidia's shore seemed to put on a show. And the keynote address, CEO Jensen Huang, who by the way is really good at presentation, showed off Nvidia's next generation of AI chips that they're calling Blackwell. It's a pretty sick name. And these new chips are a big step up from their current chips.

The current chips right now that pretty much power the AI industry are the H-100 chips. Companies use these chips to train their AI models. While the Blackwell chips are called B-200 and G-B-200 are faster and more energy efficient than the H-100 chips. Jensen called them super chips. I mean, you add super in front of anything and I'm in. And these chips will allow companies to train AI models faster and with more energy efficiency. Now I watched Jensen's keynote address and I'll be honest with you, I didn't understand

75% of what he was saying because it was pretty technical stuff. But essentially what it seems to me is it Nvidia has created a better, more energy-efficient shovel in this AI gold rush. And everyone in the world wants to get a hand on this shovel. So I thought it was pretty impressive stuff, but the market doesn't seem to be as impressed right now. Invidia stock is actually down more than 1% in pre-market trading. Maybe the keynote didn't live up to the hype, or maybe it was full of too much technical

detail for casual investors to understand what was happening. I don't know. But just keep an eye on Nvidia stock throughout the day. I got a quick update for you guys on the Fisker story. We talked about them last week, potentially filing for Ben. bankruptcy, while the EV maker has announced a pause in production for six weeks. And in that time, they're going to continue discussions with large automakers for a partnership to keep their business running. They also raised $150 million in financing on Monday through a debt sale. According to the Wall Street Journal,

Fisker is negotiating with automakers that could include joint manufacturing or an investment in Fisker. So no official filing for bankruptcy yet. Fisker is doing whatever they can to stay in business here. Investors don't seem to have a lot of hope right now. I mean, Fisker stock is trading at 15 cents right now. out. Oh, boy. This might be it for them. Let's talk about some stocks making moves today. Unilever stock is up more than 2% in pre-market trading because they announced that they're spinning off their ice cream division. This is crazy because Unilever has been in the ice cream business for over a century. And they are an ice cream juggernaut, all right? They've produced five of the top 10 global brands in terms of sales. We're talking Klondike. We're talking Popsicle. They bought Ben and Jerry's back in

2000s. So Unilever is like the LeBron of ice cream. But the division has been Unilever's weakest link, though, and sales only grew by 2.3% last year. I'm going to help pump those numbers up myself. I love ice cream. So investors are liking the fact that the ice cream division will be spun off into its own company. And a company not doing so hot today? Super micro, yes, SMCI, which is turned into a bit of a meme stock this year. The stock is down more than 10% in pre-market trading after they announced it plans to sell 2 million shares to raise over $2 billion. Now, investors don't like when companies sell shares because it dilutes their current holdings. By the way, SMCI was to the S&P 500 on Monday, and the stock has not seen a pop like maybe some had expected.

All right, let's wrap up the show with a fun fact. We've talked a lot about TikTok over the last week or so because it might potentially get banned in the U.S. Still no word on if the app will get banned, but one thing is definitely true. Americans are addicted to TikTok. Did you guys know that TikTok users in the U.S. are spending an average of 97 minutes a day on TikTok, according to an analysis from Aptopia?

That is more screen time than YouTube, then Facebook, then Instagram. or Snapchat. We are hooked to TikTok and advertisers are piling in. TikTok raked in more than $6.6 billion in U.S. digital ad revenue last year, according to e-marketer. I mean, I knew that TikTok was popular, but I was shocked to find out that the average time spent on the app is 97 minutes a day. Personally, for me, I spend the most amount of time on YouTube, but I'm curious for you guys, what platform do you guys spend the most time on? We're going to make that the Spotify poll today. So if you're listening to this episode on Spotify, tap this episode and vote in today's poll. I'm really curious to know what the numbers are going to be for this one.

All right, guys, that's all I got for you guys today. Thank you guys so much for listening. This is the part of the show where I try to shill for five-star ratings on Spotify and Apple Podcast. So if you enjoy the show, please drop us a five-star rating. Wherever you listen to this podcast, it really helps the show. We crossed over 300 five-star ratings on Spotify yesterday. So thank you guys again for all the support. And thank you guys again for listen to today's show.

We'll see you guys back here tomorrow. This is the rundown, your real-time resource for news events and trends in the markets. presented in this show reflect the opinions of the guests. You should not take any mention of a publicly traded security as recommendation to buy, sell, or hold that security. Rundown guests are not financial advisors and are not affiliated with public holdings or its subsidiaries. You should make your own financial and investment decisions or consult. Respective professionals. Learn more at public.com disclosures. In partnership with Zaid Admani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.