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

Friday, August 9

VGT [+0.1%]
The Vanguard Information Technology ETF (VGT) has decreased by 0.5% today, coinciding with a broader market decline, as reflected by the S&P 500 Index's drop of 0.37%. Significant contributors to VGT's performance include NVIDIA, which fell sharply amid news of its CEO selling shares and competition from a new AI chip in China. Apple is facing antitrust scrutiny related to its search engine practices, potentially impacting its business model. Advanced Micro Devices is grappling with a security vulnerability in its processors, prompting a price target adjustment. Other notable declines were observed in Intel and Texas Instruments, which also detracted from the ETF's overall performance.

TSM | $165.84 | +0.8% | +32.7B

AAPL | $214.25 | +0.4% | +14.0B

MSFT | $404.44 | +0.4% | +10.6B

U | +12.8% | +811.3M
Unity Software Inc announced the departure of CFO Luis Visoso, effective August 9, 2024, following a mutual separation agreement unrelated to financial disagreements. The company is currently seeking a permanent CFO. In its second-quarter results, Unity reported losses of $0.32 per share, surpassing the consensus estimate of $0.41, while revenues reached $449.259 million, exceeding expectations by 2.23%. Despite a year-over-year sales decline of approximately 16%, revenue from Create Solutions increased by 4%. Unity's outlook for third-quarter revenue is projected between $415 million and $420 million, which is below the prior estimate. Analysts have expressed concerns regarding anticipated lower revenue for FY2024 and highlighted a 15% year-over-year revenue decrease, alongside an expected dilution in the next quarter.

ONTO | +9.7% | +933.2M
Onto Innovation Inc. reported strong Q2 2024 results, with adjusted earnings per share of 1.32, surpassing the consensus estimate of 1.20 by 10%. Sales reached 242.33 million, exceeding expectations of 235.47 million and reflecting a year-over-year increase of 27.1% from 190.66 million. For Q3, the company anticipates revenue between 245 million and 255 million, above the consensus of 233.8 million, and expects adjusted EPS in the range of 1.25 to 1.35, compared to the consensus estimate of 1.21. Following this earnings report and positive guidance, Onto Innovation shares rose significantly in after-hours trading, climbing over 9%. Today, the stock is also experiencing unusually high market volume.

TSM | +0.8% | +32.7B
TSM is trading with an unusually high share of market volume today. Despite this price movement, TSM reported a significant increase in consolidated revenue for July 2024, reaching NT$256.95 billion, marking substantial year-over-year and month-over-month growth. From January to July 2024, total revenue also rose significantly. Nonetheless, the company faces production challenges tied to client Nvidia's advanced AI chips, which may affect shipment schedules for the year.

CYBR | +3.7% | +427.3M
CyberArk Software Ltd has experienced upward revisions in price targets from multiple analysts, coinciding with its recent performance. KeyBanc raised its target to 310 from 300, maintaining an Overweight rating. Needham reiterated a Buy rating with a 310 price target. Baird increased its target to 315 from 295 while keeping an Outperform rating. Susquehanna lifted its target to 320 from 310 with a Positive rating. Canaccord Genuity raised its price target to 310 from 280 with a Buy rating. DA Davidson similarly increased its target to 315 from 285, also maintaining a Buy rating. Additionally, Baird's social media commentary supports its outperform stance and updated target. CyberArk is currently outperforming its sector peers.

AMD | -1.6% | -3.6B
Advanced Micro Devices Inc (AMD) has experienced a decline, aligning with a broader market downturn, as reflected by the Nasdaq 100 Index's drop of 0.61%. This movement underscores AMD's strong correlation with market trends. Additionally, the company is under scrutiny due to a newly reported security vulnerability in its processors, termed the "sinkclose" flaw, which could allow unauthorized access to critical areas of computer systems. This flaw has reportedly been present in AMD's chips for decades, raising concerns about the security of its products. Furthermore, President Capital Management has revised its price target for AMD down to 170 from 177, with analyst expectations now ranging from 140 to 250.

MSFT | +0.4% | +10.6B
Microsoft Corporation has extended its partnership with Palantir Technologies to enhance AI and analytics capabilities for the U.S. Defense and Intelligence Community. This collaboration will integrate Palantir's suite, which includes Foundry, Gotham, Apollo, and AIP, into Microsoft Azure Government and its Secret and Top Secret clouds. Additionally, Palantir is set to be an early adopter of Azure’s OpenAI Service within these sensitive environments. This strategic alliance reflects a commitment to advancing AI applications in government sectors.

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