The latest Market Talks covering Technology, Media and Telecom. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
1416 ET - Bitcoin is down 0.5% to $63,403, with prices seen rangebound without anything to juice buyer interest or seller activity. "Sellers are tiring and buyers are absent," says analysts with Glassnode in a note. The firm says the median realized price for bitcoin is sitting at $63k, while short-term holder cost basis is at $68.7k--with bitcoin rangebound between those levels. The July CPI report did little to move bitcoin, says Glassnode. "A weak response to good news is itself a warning," says the firm. Ethereum is up 0.4% to $1,888, XRP falls 0.7% to $1.01, and solana is essentially flat at $75.98. (kirk.maltais@wsj.com)
1410 ET - Quantinuum's deal with Oracle is a vote of confidence for the quantum computing company's potential path toward commercialization, and contributed to a projection of revenue upside in 2027, Morgan Stanley analysts write in a note. Support from the U.S. government may serve as an additional tailwind, they write. But the central story is Quantinuum's path toward launching its next-generation quantum computers in 2027 and 2029, they write. "The quarter was encouraging, but it does not materially change the long term investment debate," the analysts write. Shares surge 24%. (elias.schisgall@wsj.com)
1322 ET - Quantinuum's deal to deploy its Helios quantum computer in an Oracle data center underscores a trend toward solutions that blend quantum computing with other technologies, Quantinuum CEO Raj Hazra tells CNBC. "Quantum computing is not going to be used in isolation," he says. The best use cases for quantum, he adds, are "only going to happen when you put quantum computing and high-performance computing and AI together." The integration at both the hardware and software levels gives customers and developers easy use of the quantum computer, and should "stoke usage, demand, and adoption of quantum computing," Hazra says. Quantinuum surges 23%. (elias.schisgall@wsj.com)
1301 ET - CoreWeave is arguing that its scale means new deployments are no longer overshadowed by its "ramp drag," Stifel analysts say in a note, adding that the 2Q print provides early evidence for this view. "The company energized its largest-ever tranche of capacity and still expanded margin sequentially, which is the opposite of the pattern in F4Q25 and F1Q26," the analysts say, adding that the company expects sequential margin expansion through the rest of the year. Still, they note, the 2Q was boosted by a confluence of tailwinds, including growth in the higher-margin services layer, more shorter-duration and higher-priced contracts, and prior-generation fleet economics. CoreWeave surges 20%.(elias.schisgall@wsj.com)
1220 ET [Dow Jones]--CoreWeave's closing of its new $2.6 billion delayed draw term loan facility should expand the company's addressable market, allowing it to address new customer groups who may not want the typical five-year contract, JPMorgan analysts write in a note. The facility will let CoreWeave use asset-backed financing for contracts with shorter terms, "expanding the opportunity for CoreWeave to address customer groups which are typically looking for shorter contracts, as well as participate in a premium pricing opportunity, which, in our view, is associated with shorter contracts while also diversifying the customer base," the analysts write. CoreWeave shares gain 19%. (elias.schisgall@wsj.com)
1203 ET [Dow Jones]--Super Micro Computer has several things going for it that could make its share more attractive going forward, Wedbush analyst Matt Bryson says. He has a neutral rating on the stock for now, as he would like to see the company emerge from the Justice Department case against it tied to Chinese GPU server shipments, with new controls to minimize the likelihood of future transgressions. But the company has growth expectations that look reasonable, the analyst says. Its guidance for gross margins to moderate back toward 10% looks like an achievable bar, he says. And the company's valuation has also moderated back toward levels typical of server vendors, the analyst says. Shares rise 15% to $36.33. (dean.seal@wsj.com)
Don't count out old tech, CoreWeave CEO Michael Intrator tells CNBC in an interview. The combination of Nvidia's chips and CUDA platform with CoreWeave's cloud and software means even old infrastructure can have an extended life at a premium price point, Intrator says, adding that a "vintage" 2020 architecture has been contracted through 2029. "Older generations of GPUs are going to have a longer useful life than anyone anticipated. They are going to contract for a longer term, and they are going to contract at a higher price," Intrator says. "We already are seeing that flow through our platform." The robust compute demand validates the company's business model, Intrator says. Shares are up 19%.(elias.schisgall@wsj.com)
Super Micro Computer saw a 25% to 35% delay in lower-margin xAI orders during its 4Q that caused it to miss revenue estimates and artificially inflated gross margin, Raymond James analysts say in a research note. The good news: that means that fiscal 1Q will see record revenue that should surge its total dollar profit even as gross margins come back to earth, the analysts say. Gross margins are still improving year over year, which implies that the company's product mix is boosting profitability, they say. It also suggests that smaller customers are becoming a bigger part of the mix and should yield more margin improvement over time, the analysts say. Shares rise 13% to $35.80. (dean.seal@wsj.com)
1151 ET - Super Micro Computer says new orders in its 4Q topped $60 billion, up from $39 billion as disclosed back in June. That means it got about $21 billion additional orders booked in the final weeks of the quarter, Raymond James analysts say in a research note. That acceleration is a stronger indicator of the company's forthcoming performance than the 4Q revenue miss, they say. It is also a sign that customers are largely unconcerned with the overhang from the Justice Department's case against the company in connection with export controls, the analysts say. Shares rise 14% to $35.96. (dean.seal@wsj.com)
1111 ET - Bitcoin could rise further after the July U.S. inflation data reduced market pricing for a September interest rate rise by the Fed, 21shares strategist Matt Mena says in a note. The data showed inflation eased to 3.4% last month, as expected. Money markets price a 40% chance of a 25 basis points rate rise in September, compared to 48% before the data. This could be the relief bitcoin needs to rise sustainably above $64,000 and push towards the $66,000 resistance level, Mena says. Historically, bitcoin has returned an average rise of 3.7% following an in-line inflation print over the past three years, he says. Bitcoin is down 0.4% to $63,448. (renae.dyer@wsj.com)
0938 ET - The odds of an interest rate hike coming in September are shrinking, with the CME's FedWatch now assessing at 64% chance of rates staying the same after the Federal Reserve's meeting next month. This is expected to be beneficial for assets like bitcoin, says Stephen Coltman of 21shares. "Today's number will only reinforce that trend of a weaker dollar, a steeper yield curve, and a rally in assets such as gold and bitcoin," says Coltman in a note. Bitcoin is up 0.5% following the July CPI report, which showed inflation growing 3.4% year-over-year, matching the WSJ consensus. Ethereum is up 1.4%, solana rises 0.6%, and Hyperliquid climbs 3.2%. (kirk.maltais@wsj.com)
0906 ET - A July CPI reading that matched expectations is providing support for major cryptocurrencies, with bitcoin up 0.6% to $64,051, ethereum gaining 1.5% to $1,909, XRP rising 0.2% to $1.02, and solana advancing 0.8% to $76.62. While the inflation news is supportive for cryptocurrencies, the major focus continues to be institutional funds flowing into ETFs, says Sandeep Pyapali of Mesta in a note. "The inflation trend is still worth watching, but the more durable trade is the one moving corporate dollar flows off legacy rails and onto instant settlement--that shift doesn't pause for a CPI print," says Pyapali.
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