AMD shares experienced a significant jump following a positive upgrade from HSBC analysts, who cited the impressive performance of AMD's latest AI chips. In a note released on Thursday, the analysts raised their rating on AMD from “hold” to “buy,” and they doubled their price target to $200. They noted that AMD’s new series of chips can effectively compete with Nvidia’s Blackwell GPUs.
Last month, AMD introduced its Instinct MI350 Series GPUs, which the company claims offer four times the computing power compared to its previous generation. Following this announcement, AMD shares rose more than 4% in recent trading, positioning themselves among the top gainers on the Nasdaq 100. According to HSBC analysts, the performance enhancements of the MI350 series are notably impressive, suggesting that these chips can compete with Nvidia's latest-gen HGX B200 AI GPU.
The analysts, led by Frank Lee, highlighted that the pricing premium for AMD’s new chips is significantly higher than initially anticipated, which could lead to improved earnings for the company in 2025 and 2026. Additionally, they pointed out that there is potential for further upside in AMD shares with the upcoming launch of the MI400 series next year. This new series is expected to rival Nvidia’s next-generation Vera Rubin platform, set to debut in the second half of 2026. AMD unveiled the MI400 series during an event last month, co-hosted by CEO Lisa Su and Sam Altman, the CEO of OpenAI, who will be a customer for the next-gen chips.
In cryptocurrency news, Bitcoin (BTCUSD) reached an all-time high on Thursday, surpassing $112,000 for the first time since late May. This surge can be attributed to a growing number of companies integrating Bitcoin into their corporate treasuries and lawmakers advancing pro-crypto legislation. On Wednesday, Bitcoin's price crossed above the top trendline of a descending channel, signaling a potential bullish continuation.
The relative strength index (RSI) confirms the bullish momentum, remaining below overbought levels and providing adequate room for Bitcoin to enter price discovery mode. However, it’s important to note that trading volume on Coinbase (COIN), the largest U.S.-based crypto exchange, has been decreasing. This suggests that larger market participants, such as institutional investors, may be accumulating Bitcoin through spot Bitcoin exchange-traded funds (ETFs) instead of traditional exchanges.
Technical analysis indicates an upside target for Bitcoin at $146,400, with key support levels to watch around $107,000 and $100,000. Bitcoin was recently trading at $112,900.
Shares of WK Kellogg (KLG) surged by 30% on Thursday after the iconic cereal maker announced its acquisition by Italian sweets company The Ferrero Group for $23 per share in cash, totaling approximately $3.1 billion. The stock price had soared overnight following reports from The Wall Street Journal that the deal could be finalized within the week.
As of recent trading, shares were priced at $22.85—an impressive level not seen in over a year. This acquisition comes amid changing consumer attitudes towards diet and rising prices affecting cereal sales. WK Kellogg CEO Gary Pilnick stated that the transaction maximizes shareholder value and will provide the company with greater resources to grow its well-known brands in a dynamic market.
The deal is expected to close in the second half of 2025, at which point WK Kellogg will operate as a privately held subsidiary of Ferrero, which boasts a diverse portfolio including Nutella, Tic Tac, and Butterfinger. Ferrero Group Executive Chairman Giovanni Ferrero noted that this acquisition marks a significant milestone in expanding their presence in North America.
Tesla (TSLA) is set to expand its robotaxi service in the near future, alongside the anticipated integration of Grok, a chatbot developed by xAI, another company owned by Elon Musk. Musk made these announcements via posts on X, the social media platform he owns, indicating that the operational area for robotaxis around Austin will increase this weekend, with plans to expand into California’s Bay Area pending regulatory approval.
The launch of the robotaxi service has gone relatively smoothly, although there have been some minor issues reported, such as vehicles stopping unexpectedly in intersections. The introduction of Grok to Tesla vehicles comes at a sensitive time, following controversy over antisemitic posts generated by the chatbot. Despite this, Tesla shares rose nearly 3% in recent trading.
Shares of MP Materials (MP) skyrocketed by over 50% in early trading on Thursday following the announcement of a multibillion-dollar agreement with the Department of Defense (DoD). The DoD is set to become MP Materials' largest shareholder, acquiring a 15% stake through an initial $400 million investment in preferred stock, which can be converted to common stock.
MP Materials plans to utilize this government investment, along with a $1 billion funding line from major banks like JPMorgan Chase and Goldman Sachs, to construct its second domestic magnet manufacturing facility. The company has also secured a 10-year deal with the DoD, establishing a minimum price floor of $110 per kilogram for its rare earth materials, which are vital for various commercial and military applications.
The Trump administration has emphasized the importance of reducing dependency on foreign nations like China for rare earths, considering it a national security priority. MP Materials shares were recently up 56%, reaching their highest level in over three years.
Delta Air Lines (DAL) emerged as the top-performing stock in the S&P 500 early Thursday after reporting better-than-expected second-quarter earnings and reinstating its full-year outlook. Delta posted adjusted earnings per share of $2.10 on revenue of approximately $16.65 billion, surpassing analysts' expectations.
The airline's revised guidance indicates a projected revenue increase of up to 4% in the third quarter, with adjusted earnings per share expected between $1.25 and $1.75. Analysts had estimated revenue to be relatively flat at $15.69 billion, with adjusted EPS of $1.36.
Delta’s CEO Ed Bastian expressed confidence in the company’s performance, emphasizing a focus on strategic objectives and strong cash flow. Delta shares rose around 13% in recent trading, although they remain down about 6% since the beginning of the year.
Microsoft (MSFT) shares reached a record high on Wednesday, closing at approximately $503 and pushing the company’s market capitalization closer to $4 trillion. Investment bank Oppenheimer has set a $600 price target for Microsoft, attributing the potential growth to the company’s revenue prospects from AI.
Analyst Dan Ives from Wedbush predicts that Microsoft will reach the $4 trillion mark by this summer. The stock has increased by 46% since early April and is nearly 20% higher year-to-date. However, while the relative strength index indicates bullish momentum, it has recently entered overbought territory, which might signal a consolidation phase.
Investors should monitor crucial support levels on Microsoft’s chart, particularly around $468 and $425, as they navigate the stock’s performance in this bullish market environment.
