Two big topics, IPOs and Inflation. Our Core Inflation remains elevated so what do we do? I still think we end up seeing rates come down. It is what the Trump administration wants and frankly I think a lot of data is lagging and we need to see lower rates to stimulate everything from housing to business investment.
Now, the topic du jour. The big IPO. I weighed in a bit last night. But here is a little more to digest. Is today's CoreWeave IPO going to give the AI trade a boost? Well, Yes and no.
At a high level, AI is getting a boost from the excitement that comes from an IPO like CoreWeave.
With the company being backed by the likes of NVIDIA, Microsoft, OpenAI, and IBM (among others) is certainly a positive for the company.
However, the last week has brough a number of questions about the CoreWeave IPO. And those questions will be answered by the investor interest today and we saw indications of some of the concerns after the target price was lowered to $40 and the capital raise went from $3 Billion to $1.5 Billion. (I outlined this in detail last night - below)
I'm incredibly optimistic long term about AI. The Capex spend is sturdy (for now) and the potential of productivity and efficiency gains are palpable. Having said that, timing isn't playing in favor of any names in the market and some of the uncertainties in the macro and about CoreWeave are likely going to damper the moment.
But...AI will be fine. Tech will remain critical and deflationary and as we go through a massive sea change in our political system, it will power the next wave of growth.
Great to join Fox Business this morning to discuss inflation, markets, and Coreweave's IPO.
#Tech #Inflation #Coreweave