Nvidia's Middle East Expansion

And, UPS offloads logistics provider.

June 24, 2024

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Today is Monday, June 24, 2024.

The Early Bird Index today is 74.38.

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Nvidia's Middle East Expansion

Through a new partnership announced Sunday, Nvidia (Nasdaq: NVDA) is expanding its artificial intelligence technology in the Middle East.

Details: Qatar-based telecommunications company Ooredoo Group became a Nvidia partner on Sunday and will use Nvidia’s advanced computing platform to spread AI in the region.

Background: The deal comes as the United States has slowed down the issuing of licenses of chipmakers for large-scale AI accelerator shipments to the Middle East, according to Bloomberg in late May. This is happening due to potential security implications.

Stock Price: Nvidia is up 162% this year due to the growing demand for AI technology. However, the stock has been slightly down during the last five days.

Early Bird’s Nest Egg Gains: About $50 billion of Nvidia’s $60 billion in revenue last year came from the U.S., China, and Taiwan. Expanding to the Middle East allows Nvidia to mitigate geopolitical risks, diversify its revenue, grow regional AI ecosystems, and gain access to AI talent.

Final Thoughts: Perhaps this new partnership will boost Nvidia’s stock, which was down during the last five days.

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Notables

Notable Earnings Today: Enerpac Tool Group (NYSE: EPAC), MoneyHero (Nasdaq: MNY), Beyond Air (Nasdaq: XAIR).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Contractor+ (Wefunder), Emet Surgical (StartEngine).

Notable Economic Events Today: N/A.

UPS Offloads Logistics Provider

UPS (NYSE: UPS) does deliver on Sundays, especially mega deals. On Sunday, UPS sold its Coyote Logistics business to the transportation company RXO (NYSE: RXO) for $1.025 billion.

Details: The transaction should close by the end of the year, but RXO will continue to serve UPS’s brokered transportation needs under a contract that ends in 2030.

Quote: “The decision to sell our Coyote Logistics business allows an even greater focus on our core business.” - UPS CEO Carol B. Tomé.

Background: The core business for UPS has been in a bad place lately. Declining revenue has been a problem this year due to decreased package volume. Labor costs are up. The CFO stepped down in May.

Stock Price: UPS is down 13% in 2024. RXO is down 12%.

Final Thoughts: Due to rough economics, 2024 has been tough for logistics and freight transportation companies. UPS rival FedEx (NYSE: FDX) reports earnings tomorrow.

Toncoin Jumps Amid Bearish Prediction

The price of Toncoin ticked up 1% on Sunday as other cryptocurrency prices fell.

Yes, But: Crypto analyst Ali Martinez predicted on Sunday that Toncoin will soon face a correction due to technical indicators.

Final Thoughts: Toncoin’s price has tripled in 2024. At some point, it will likely face correction.

Tech Giants Talking: Apple, Meta Have Discussed an AI Partnership (Wall Street Journal)

Dozens of Options: How do you put the right valuation on digital assets? (Cointelegraph)

Bad Times for Young Adults: Millennials had it bad financially, but Gen Z may have it worse (Washington Post)

Good for Bonds, Bad for Stocks: How Long Will High Rates Last? Bond Markets Say Maybe Forever (Bloomberg)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.