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Below are AI-generated insights on moves in the information technology sector, powered by MarketReader technology.

Tuesday, August 6

VGT [+0.6%]
The Vanguard Information Technology ETF (VGT) has seen a price increase of 0.9% since Monday, driven by significant movements among its holdings. Notably, NVIDIA (NVDA) contributed positively with a return of 1.72%, while Microsoft (MSFT) also performed well, benefiting from an antitrust ruling against Google and facing legal disputes with Elon Musk. Palantir (PLTR) reported strong second-quarter results, exceeding revenue and earnings expectations, which led to a raised annual revenue forecast. Additionally, CrowdStrike (CRWD) received an "overweight" upgrade from Piper Sandler despite recent global outage issues, with minimal financial impact expected. Other contributors included Broadcom (AVGO) and CrowdStrike, both posting modest returns.

TSM | $151.74 | +2.8% | +109.3B

AAPL | $203.16 | -2.9% | -90.5B

NVDA | $103.44 | +2.8% | +71.6B

ADSK | +3.9% | +2.0B
Autodesk Inc's shares have risen significantly in premarket trading, following heightened attention from activist investor Starboard Value. Starboard issued a presentation outlining recommendations for Autodesk's board and management aimed at enhancing accountability, governance, and operational performance. This notable increase in share price reflects a positive reception to the proposed improvements and strategic recommendations from Starboard.

AAPL | -2.9% | -90.9B
Apple Inc. shares are down 1.4% in pre-market trading, reflecting broader market turmoil that has significantly impacted tech stocks amid recession fears and geopolitical tensions. The company's price movement is further influenced by a recent antitrust ruling against Google, which could threaten Apple's substantial revenue from search engine agreements. A federal judge's decision highlights that exclusive contracts, particularly the $20 billion annual payment from Google for default search status on iPhones, may restrict competition. This development poses risks to Apple's services revenue, increasingly crucial as iPhone sales slow. Additionally, Apple is strategically diversifying away from the challenging Chinese market, with a focus on growth in India and Southeast Asia, alongside investments in artificial intelligence aimed at enhancing user experiences.

PLTR | +7.8% | +4.5B
Palantir Technologies Inc. reported strong second-quarter results, with revenue of 678.13 million, exceeding the consensus estimate of 652.1 million and reflecting a year-over-year increase of 27%. U.S. commercial revenue surged by 55%, while government revenue rose by 23%. Adjusted earnings per share reached 0.09, surpassing expectations of 0.08. The company raised its full-year revenue guidance to between 2.742 billion and 2.75 billion, underscoring robust demand for its AI solutions, as noted by CEO Alex Karp during the earnings call. Additionally, Palantir experienced a notable 41% increase in customer count year-over-year, particularly in the U.S. commercial sector. Following these results, Palantir set its revenue guidance for Q3 FY2024 at 697.0 million to 701.0 million.

CRWD | +1.5% | +794.4M
CrowdStrike Holdings Inc has seen a price increase, aligning with a broader upward movement in its sector. Notably, Synopsys Inc has also experienced a price increase, reflecting similar market dynamics. Additionally, CrowdStrike received an upgrade to "overweight" from Piper Sandler, which has adjusted its price target down to $290 from $310. Despite a significant global outage affecting over 8 million computers attributed to CrowdStrike's software, Piper Sandler believes the impact will be short-lived and manageable. The firm emphasizes CrowdStrike's strong cash flow generation and existing insurance coverage, which mitigates concerns regarding potential financial liabilities.

MSFT | +1.3% | +39.1B
Microsoft Corp's stock has risen in tandem with its sector, reflecting a broader market movement. The company has integrated Marvell's new hardware security modules into its Azure platform, enhancing encryption and key management capabilities. The LiquidSecurity family of these modules will be updated to comply with the FIPS 140-3, Level-3 standard, which bolsters internal security and expands the range of security services for customers. This certification, achieved in June, demonstrates adherence to rigorous standards set by the National Institute of Standards and Technology. Additionally, revenue from cloud-based hardware security modules is expected to grow significantly, from under 15% currently to over 40% by 2028, highlighting strong demand in this area.

AVGO | +0.7% | +487.8M
Broadcom Inc. shares are trading lower amid a broader market sell-off linked to global economic concerns. The company is set to announce its third-quarter fiscal year 2024 financial results on September 5, 2024, with an estimated EPS of 1.20 and revenue of 12.955 billion. Options trading shows mixed sentiment, with 45% of traders bullish and 36% bearish, targeting a price band between 80.0 and 180.0. Analysts have a consensus target price of 1002, with notable targets of 240 from Rosenblatt and 200 from both Cantor Fitzgerald and Oppenheimer. The decline in Broadcom's shares reflects a larger trend influenced by fears of an economic slowdown and geopolitical tensions, leading to increased market volatility.

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