Semiconductors are powering the market

Welcome to FRY-nancial FRY-day! Let’s see what’s cooking in the financial world of AI. 🍳

*None of what we offer is investment advice. Our aim is to report to you the latest happenings and teach you how to use the newest AI finance tools.*

🤯 MYSTERY AI LINK 🤯

(The mystery link can lead to ANYTHING AI-related: tools, memes, articles, videos, and more…)

🔨 AI TOOLS OF THE DAY

🏡 Homescore: Your AI sidekick for smarter homebuying. → check it out

📈 Rafa: Optimize your investment portfolio. → check it out

💵 Windfall: An AI-powered app to help users monitor finances. → check it out

HEWLETT PACKARD ENTERPRISE HITS RECORD HIGH, THANKS TO AI 🖥️

There’s nothing better than French fries and record highs! 🍟

What happened? Hewlett Packard Enterprise Co. (HPE) shares surged by 16% to a record high following a stellar fiscal second-quarter performance, driven predominantly by AI.

What were the results? In the past quarter, HPE reported a revenue increase of 3.3% to $7.2 billion, surpassing Wall Street’s expectation of a 2% decline to $6.82 billion. This surge was driven by robust sales in their server segment, particularly those designed for AI applications. AI server sales doubled from the first quarter for their fiscal year, exceeding $900 million, fueled by increased demand and improved semiconductor availability from industry leaders like Nvidia. Woo Jin Ho, an analyst at Bloomberg Intelligence, noted, “The AI server ramp-up is finally materializing.”

What does this mean? Despite early growth this year, HPE’s year-to-date increase of 3.7% lags behind competitors like Dell and Super Micro Computer Inc. However, HPE has received orders for AI systems worth $3.1 billion that are yet to be filled and holds an optimistic revenue outlook, which signal strong future growth potential.

THIS WEEK’S DIAMOND IN THE ROUGH 💎

AI is massively moving the market, and it’s not just driving big players. Sneaky players are also being propelled by AI in big ways. 🦾

This week’s diamond: This week’s diamond in the rough is Taiwan Semiconductor Manufacturing (TSMC).

How is AI helping TSMC? When people think about what is powering the rapid growth of AI, they are often drawn to big semiconductor producers like Nvidia and AMD. However, TSMC manufactures the chips that go into critical infrastructure, like GPUs that power AI models. Because Taiwan Semiconductor is a foundry, it creates chips for companies that compete against each other, like Nvidia and AMD. By being neutral in the AI arms race, TSMC is in a great position, as it will be a winner regardless of whose software or AI model is the best. As long as people need to power AI models, TSMC will continue winning. Management remains bullish on their role in the AI space, as they expect business associated with building AI-related chips to grow at a 50% compounded annual growth rate for the next five years.

HOW ARE THE MAGNIFICENT 7 DOING? 📈

AI-POWERED FINANCIAL ANALYSES 📊

My broker and I are working on a retirement plan. Unfortunately, it’s for him. 😅

What’s up? FinanceGPT is the new AI-powered financial analyst for any company.

How to use the tool:

1. Create an account at FinanceGPT.

2. Verify your email.

3. Select what type of analysis you want (Options include: Balance Sheet Analysis, Cash Flow Analysis, Liquidity Analysis, Profit and Loss Analysis, Valuation Analysis, and Credit Analysis).

4. Provide a text prompt, fill in the numbers, or upload your relevant financial statement and press “Generate.”

5. After a few seconds, review your AI-generated financial analysis, and ask a Financial Chatbot to interpret the analysis for you!

6. Share access to your financial analysis with others via email.

7. Give feedback for the model to continually improve your customized reports.

FRY-AI FANATIC OF THE WEEK 🍟

Congrats to our subscriber, Brant! 🎉

Brant gave us a Fresh and Crispy review and wrote, “I love FryAI because it always introduces me to new, exciting tools that I am able to incorporate into my everyday life!”

(Leave a comment for us in any newsletter, and you could be featured next week!)

YESTERDAY’S POLL RESULTS 📊

Featured comments:

“Let’s be honest, some of the fun of sports is yelling at each other and not being taken personally. I want to yell at umpires.” (No ⛹️‍♂️)

“Both are necessary. AI for objective calls (balls in or out, offside) and humans for subjective calls (fouls).” (Yes 🤖)

HAS AI REACHED SINGULARITY? CHECK OUT THE FRY METER BELOW: