وَلَا تَلْبِسُوا۟ ٱلْحَقَّ بِٱلْبَـٰطِلِ وَتَكْتُمُوا۟ ٱلْحَقَّ وَأَنتُمْ تَعْلَمُونَ
And do not mix the truth with falsehood or conceal the truth while you know [it]. (Qur’an, 2:42)
Market Snapshot
▼ S&P 500 -0.64%
▲ SPUS +0.32%
▼ MSCI World Islamic +0.65%
*Market data for last week ending Friday
Last Week’s Review
European Central Bank Interest Rate Decision: The ECB cut its key interest rate by 25 basis points to 3%, citing improved inflation trends and the need to support growth. President Christine Lagarde reaffirmed the commitment to a 2% inflation target over the medium term.
Broadcom (AVGO) Earnings: Broadcom exceeded expectations, reporting a 51% YoY revenue increase to $14.05 billion, with AI-related revenue tripling to $12.2 billion for the fiscal year. The stock surged 14% post-earnings.
This Week’s Outlook
Micron Technology (MU) Earnings (December 18): Micron will release its fiscal Q1 results on December 18, with analysts expecting an 84% increase in revenue year-over-year. Major hedge funds have been notably active, with Citadel, Point72, and Millenium adding almost 5 million shares combined. Investors will watch Micron’s AI-related memory product sales for insights into the semiconductor market.
Nike (NKE) Earnings (December 19): Nike is set to report fiscal Q2 earnings, with revenue projected at $12.18 billion, down 9% YoY. The stock has dropped 30% this year amid weaker demand and competition. New CEO Elliott Hill faces pressure to stabilize performance, and guidance on recovery efforts will be key for investors.
Federal Reserve Interest Rate Decision (December 18): The Fed is expected to cut rates by 25 basis points, lowering the target range to 4.25%-4.50%. With inflation at 2.7% in November, this would mark the fourth rate cut in 2024. Markets will focus on future guidance as economic growth moderates.
Curated Reads
SoftBank’s $100 Billion Bet on U.S. AI and Jobs
SoftBank CEO Masayoshi Son announced a $100 billion U.S. investment during a visit to President-elect Donald Trump’s Mar-a-Lago residence. Focused on artificial intelligence and related infrastructure, the initiative aims to create 100,000 jobs over four years, doubling a similar pledge made after Trump’s first election in 2016. Funding will come from SoftBank’s Vision Fund, recent investments like OpenAI, and capital projects tied to chipmaker Arm Holdings. [Read]
Big Oil’s AI Play: Powering Data Centers with Natural Gas
Exxon Mobil and Chevron are stepping into the AI revolution, offering natural gas as a reliable energy solution for data centers. Exxon plans to build a natural gas plant equipped with carbon capture technology to reduce emissions by 90%. With AI’s immense energy demands outpacing renewable options, Big Oil sees decarbonized gas as a faster alternative to nuclear power, which remains years from commercialization. Exxon estimates AI data centers could drive up to 20% of its carbon capture market by 2050. [Read]
Chart of the Week
This week, there is no “Chart of the Week” as we don’t see any new opportunities that align with our investment philosophy. Our focus is on delivering the best research, and when there’s nothing worth highlighting, we’re comfortable stepping back.
All our previous picks remain on track, with no significant changes to report. We’ll provide updates if and when conditions shift, maintaining our commitment to high-quality analysis.
Your Questions
No new questions this week.
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