New Nvidia AI chips overheating in servers, the Information reports
(Reuters) -Nvidia’s new Blackwell AI chips, which have already faced delays, have encountered problems with accompanying servers that overheat, causing some customers to worry they will not have enough time to get new data centers up and running, the Information reported on Sunday.
The Blackwell graphics processing units overheat when connected together in server racks designed to hold up to 72 chips, the report said, citing sources familiar with the issue.
The chipmaker has asked its suppliers to change the design of the racks several times to resolve overheating problems, according to Nvidia employees who have been working on the issue, as well as customers and suppliers with knowledge of the issue, the report said without naming the suppliers.
“Nvidia is working with leading cloud service providers as an integral part of our engineering team and process. The engineering iterations are normal and expected,” a company spokesperson said in a statement to Reuters.
In March, Nvidia unveiled Blackwell chips and had earlier said they would ship in the second quarter before encountering delays, potentially affecting customers such as Meta Platforms, Alphabet’s Google and Microsoft.
Nvidia’s Blackwell chip takes two squares of silicon the size of the company’s previous offering and binds them into a single component that is 30 times speedier at tasks like providing responses from chatbots.
(Reporting by Gursimran Kaur in Bengaluru; Editing by Bill Berkrot and Lisa Shumaker)
Barrack, Rodos & Bacine Notifies Shareholders of PACS Global, Inc. (PACS) of a Securities Class Action Lawsuit
PHILADELPHIA, Nov. 17, 2024 (GLOBE NEWSWIRE) — The law firm of Barrack, Rodos & Bacine announces that a class action lawsuit has been filed on behalf of investors who purchased stock in PACS Group, Inc. PACS, from April 11, 2024 through and including November 5, 2024 (the “Class Period”).
WHAT’S THIS ABOUT?
On November 4, 2024, Hindenburg Research published a research report about PACS alleging, among other things, that the company has been “systematically scamming taxpayers.” According to Hindenburg, PACS inflated its Medicare revenue by misusing COVID waivers from 2020 to 2023.
According to Hindenburg, a key element of PACS’ deception was inappropriately categorizing individuals who had simply tested positive for COVID–or, worse, merely been exposed to the virus–as qualifying for “skilled care,” in violation of both Medicare and Department of Justice guidelines. This scheme immediately drives up revenue by as much as 300% per day. These fraudulent categorizations were responsible for “100% of PACS’ operating income from 2020- 2023,” as per Hindenburg.
PACS shares fell as much as 30% after the release of the Hindenburg report, closing down about $13 per share on the day the report was issued, shearing off over two billion dollars in market capitalization.
Then, on November 6, 2024, the Company issued a statement announcing that it was delaying the release of quarterly financials and that the Audit Committee of the Board of Directors, with assistance from outside counsel, had commenced an investigation of the allegations included in the Hindenburg Report. On this news, the trading price of PACS stock again fell $11.45 per share, a drop of more than 38%.
The lawsuit alleges that by virtue of PACS’ failure to disclose materially adverse facts, or by making false and/or misleading statements in its SEC filings throughout the class period, PACS has violated the Securities Act of 1933 and the Securities Exchange Act of 1934.
WHAT CAN I DO?
If you purchased PACS’ stock during the Class Period–that is, at any time until the end of the class period, on November 5, 2024–and sustained a loss on your investment, you are encouraged to contact us about your rights in this matter and the possibility of leading this class action lawsuit. You may contact the firm by calling Linda Border or Mark Stein at 877-386-3304, or via email at investoralert@barrack.com, or by visiting the firm’s web site www.barrack.com.
Investors have until January 13, 2025, to submit a motion to be appointed as lead plaintiff. Your ability to participate in any recovery does not require that you serve as lead plaintiff or attempt to do so.
WHO WE ARE
Barrack, Rodos & Bacine has more than four decades of experience prosecuting securities law class actions, including cases involving accounting fraud and insider trading, and has achieved some of the largest recoveries in U.S. history of securities litigation. The firm’s largest recoveries on behalf of investors include $6.19 billion for WorldCom investors, $3.32 billion for Cendant investors, $1.05 billion for McKesson investors, and $970.5 million for AIG investors.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
2 No-Brainer Dividend Stocks to Buy Right Now for Less Than $200
Dividends are an important part of a diversified portfolio. They provide value for investors even when the stock market is down, and they’re a reliable source of passive income plus stock price appreciation. Dividend stocks trend toward large, stable companies, and they offer security to protect your portfolio.
However, there may be other benefits. There’s evidence that dividend stocks may even outperform other stocks over time, like the proverbial slow-moving tortoise versus the growth stock hares. Consider famed investor Warren Buffett’s holding company, Berkshire Hathaway, which is loaded with dividend stocks and has outperformed the S&P 500 over many decades.
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The market is rising, up 26% this year, and it has reached above-average valuations. Is that a setup for a fall? Can it keep climbing? No one knows, and that’s why it’s essential to own dividend stocks. Ally Financial (NYSE: ALLY) and Realty Income (NYSE: O) are two top choices.
Ally is a small, or maybe medium, fish in the sea of American banks, but it’s making a name for itself as it promotes its differentiated platform. It’s differentiated in several important ways that bode well for its future and its ability to capture market share. It may yet break into the top echelon of U.S. banks.
The first way it’s different is that it’s all online, and it’s the top all-digital bank in the U.S. It has an impressive number of consumer account customers at 3.3 million, and it has added retail deposit customers for 62 consecutive quarters, including 57,000 in the third quarter.
Part of how it’s been able to reach this point is that it already has a leading position as the top prime auto lender in the country. It started out as the financial segment of General Motors, and it already had a century-old, fully developed auto loan business when it was spun off in 2009. Auto loans remain its core business, and it continues to see healthy demand despite the tough interest rate environment. It had $9.4 billion in originations in the third quarter.
Ally stock has been under pressure, and it plunged in September after it disclosed that defaults have been worse than expected. Its recent update was that auto loan defaults are high at 2.24%, but it’s taken strong risk-management action to bring that down. Ally stock jumped after the election along with most bank stocks, but it’s still super cheap, trading at a forward 1-year price-to-earnings ratio of only 8 and a price-to-book value of 0.9. At this price, its dividend yields 3.2%, making this an excellent time to add this high-potential Buffett stock to your portfolio.
Does Billionaire Bill Gates Think Berkshire Hathaway Stock Is a Buy?
Bill Gates acquired his billions by co-founding Microsoft. But most of his money today is tied up in his charitable foundation, whose holdings are available for the public to see.
For years, the foundation has owned shares of Warren Buffett’s holding company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). But you might be surprised by how heavily invested the foundation is in this one iconic business.
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Bill Gates is no newcomer to the investing wisdom of Warren Buffett. The two have been close friends for decades. In 1995, they visited a McDonald’s together, and Gates recounted the experience years later with glee.
“Remember the laugh we had when we traveled together to Hong Kong and decided to get lunch at McDonald‘s,” he recalled with Buffett in 2017. “You offered to pay, dug into your pocket, and pulled out coupons! It reminded us how much you value a good deal.”
So you can say the respect that Gates has for Buffett runs very deep, built over decades and shared experiences. And as the quote tellingly reveals, it wasn’t lost on Gates how adamant Buffett is on scoring a good deal.
That might explain why the Bill & Melinda Gates Foundation has Berkshire as its second biggest holding, behind only Microsoft. As of the latest reporting period, the foundation owns 24.6 million shares of Berkshire worth around $10 billion, making up 21% of its total portfolio.
Last quarter, the foundation bought even more Berkshire stock, adding approximately 7.3 million shares. After that purchase, the Gates foundation now owns more than 1% of Berkshire’s total outstanding stock.
Bill Gates is clearly a fan of Berkshire. And you should be, too. Right now, there are two major reasons why you should take a closer look at Berkshire as an investment.
There are two reasons why I think the Gates foundation loaded up on 7.3 million additional Berkshire shares last quarter. If you find yourself in agreement, it may be time to add more of the company to your own portfolio.
First, markets are undoubtedly expensive. No one can predict the short-term direction of the market, but the S&P 500 trading for over 30 times earnings certainly has many expert investors worried, Buffett included.
Berkshire currently has a record cash pile, and Buffett doesn’t seem too overly concerned about putting it to work. By purchasing shares in Berkshire, you’re not only buying a great business with great managers, but you’re also improving your ability to make money if markets fall.
1 Stock to Buy, 1 Stock to Sell This Week: Nvidia, Target
• Fed speakers and Nvidia earnings will be in focus this week.
• Nvidia is a buy with another huge beat-and-raise quarter on deck.
• Target is a sell amid declining sales, downbeat outlook expected.
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U.S. stocks finished lower on Friday, with the S&P 500 and Nasdaq notching their biggest one-day losses in two weeks, as a post-election rally ran out of steam and investors worried over the path of interest rates.
For the week, the S&P 500 fell 2.1%, while the tech-heavy Nasdaq Composite declined 3.1%. The blue-chip Dow Jones Industrial Average lost 1.2% during the period.
Source: Investing.com
The week ahead is expected to be an eventful one as investors continue to assess the outlook for the economy, inflation, interest rates and corporate earnings.
On the economic calendar, flash PMI readings on manufacturing and the services sector will grab attention on Friday, along with updates on the housing market.
That will be accompanied by a heavy slate of Fed speakers, with the likes of district governors Jeffrey Schmid, Lisa Cook, Michelle Bowman, and Beth Hammack all set to make public appearances.
Source: Investing.com
Expectations for a 25-basis point rate cut at the Fed’s December meeting stood at 63% on Sunday morning, according to the Investing.com Fed Monitor Tool.
Elsewhere, in corporate earnings, Nvidia (NASDAQ:NVDA)’s results will be the key update of the week as the Q3 reporting season quiets down. Other notable names lined up to report earnings include Walmart (NYSE:WMT), Target (NYSE:TGT), TJX Companies (NYSE:TJX), Ross Stores (NASDAQ:ROST), Lowe’s (NYSE:LOW), Palo Alto Networks (NASDAQ:PANW), and Snowflake (NYSE:SNOW).
Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see fresh downside. Remember though, my timeframe is just for the week ahead, Monday, November 18 – Friday, November 22.
Nvidia is poised for significant gains this week, as the tech giant prepares to deliver another beat-and-raise quarterly earnings report amid surging demand for its AI chips.
The Santa Clara-based company is set to release its Q3 earnings after the market closes on Wednesday at 4:20PM ET, with expectations running high for another record-breaking performance. A call with CEO Jensen Huang is set for 5:00PM ET.
Market participants expect a sizable swing in NVDA shares following the print, as per the options market, with a possible implied move of 9.8% in either direction.
If You Bought 1 Share of Eli Lilly in 1984, Here's How Many Shares You Would Own Now
The drugmaker Ely Lilly (NYSE: LLY) has had a very successful run over the long run. Shares currently trade around $818 and are up 20,030% over the past 40 years. The stock has also performed well this year, rising roughly 36% (as of Nov. 14), ahead of the broader market.
Given that Eli Lilly has been public for roughly seven decades, it’s no surprise that it has conducted a few stock splits. When a company does a split, the amount of a shareholder’s equity doesn’t change but the number of shares does. Companies typically perform stock splits to make their shares more appealing to the general public.
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If you bought one share of Eli Lilly 40 years ago in 1984, here’s how many shares you would have today.
In the past 40 years, Eli Lilly has done four stock splits. The stock splits occurred on the following dates:
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Jan. 29, 1986 (2 for 1)
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April 28, 1989 (2 for 1)
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Dec. 20, 1995 (2 for 1)
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Oct. 15, 1997 (2 for 1)
In a two-for-one split, investors receive two shares for every one share they own. So, after the first stock split in 1986, any investors with one share would have two shares. Then they would have four shares after the second stock split, eight shares after the third, and 16 shares after the most recent split in 1997.
Lilly currently trades at over 61 times forward earnings, certainly not cheap but also not as high as the stock traded earlier this year. It is always going to be a crucial company for the U.S. economy and population, so long-term investors can continue to hold the stock. But like a lot of other stocks in today’s highly valued market, it could be susceptible to pullbacks.
Before you buy stock in Eli Lilly, consider this:
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Trump’s Scoreboard Is S&P 500, and It’s Wall Street’s Best Hope
(Bloomberg) — If Wall Street learned one thing during Donald Trump’s first term as president, it’s that the stock market is a way he keeps score. At various points he took credit for equities rallies, urged Americans to buy the dip, and even considered firing Federal Reserve Chairman Jerome Powell, who he blamed for a selloff.
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Now he’s preparing for another stint in the White House, and the market is once again a key focus. The problem is he’s also bringing a series of economic policy proposals that many strategists say raise the risk of increasing inflation and slowing growth.
So for investors who’ve enjoyed the S&P 500 Index’s more than 50% jump since the start of 2023, the best hope for keeping the market rolling into 2025 and beyond may be Trump’s fear of doing anything to damage a rally.
“Trump considers the stock market performance as an important part of his scorecard,” said Eric Sterner, chief investment officer at Apollon Wealth Management. “He regularly started his speeches as president in his first term with the question, ‘How’s your 401K doing?’ when the markets were riding high. So he clearly does not want to create any policies that threaten the current bull market.”
The S&P 500 Index took off after Trump’s win on Nov. 5, putting up its best post-Election Day session ever. A whopping $56 billion flowed into US equity funds in the week through Nov. 13, the most since March, according to strategists at Bank of America Corp. using data from EPFR Global. And the S&P 500, technology-heavy Nasdaq 100 Index and Dow Jones Industrial Average have all hit multiple records since Election Day, despite last week’s pullback.
What makes the reaction notable is Trump’s campaign promises weren’t what you’d normally consider investor-friendly. They include: hefty tariffs that will potentially strain relations with key trade partners like China; mass deportations of low-wage undocumented workers; tax cuts targeted at corporations and wealthy Americans, which are expected to increase the national debt and widen the budget deficit; and a general protectionist approach aimed at bringing manufacturing back to America, where costs are higher than they are overseas.
None of these risks is a secret, they’ve all been widely discussed in investing circles. So where’s the enthusiasm coming from? Simple. Wall Street doesn’t believe Trump will tolerate a declining stock market, even if it’s caused by one of his own proposals.
New Nvidia AI chips face issue with overheating servers, The Information reports
(Reuters) -Nvidia’s new Blackwell AI chips, which have already faced delays, have encountered problems with accompanying servers that overheat, causing some customers to worry they will not have enough time to get new data centers up and running, the Information reported on Sunday.
The Blackwell graphics processing units overheat when connected together in the customized server racks the company has designed, the report said, citing sources familiar with the issue.
The AI chipmaker has asked its suppliers to change the design of the racks several times to resolve overheating problems, according to Nvidia employees who have been working on the issue, as well as customers and suppliers with knowledge of it, the report said without naming the suppliers.
Nvidia did not immediately respond to a request for comment outside regular business hours.
Nvidia unveiled Blackwell chips in March and had earlier said they would ship in the second quarter before encountering delays, potentially affecting customers such as Meta Platforms, Alphabet’s Google and Microsoft.
Nvidia’s Blackwell chip takes two squares of silicon the size of the company’s previous offering and binds them into a single component that is 30 times speedier at tasks like providing responses from chatbots.
(Reporting by Gursimran Kaur in Bengaluru; Editing by Bill Berkrot)