#bank_of_america

Kevin Warsh's Proposed Inflation Measure Faces Criticism Over Potential Policy Implications Kevin Warsh, President Donald Trump’s nominee for Federal Reserve chair, has proposed a shift in how the central bank measures inflation, favoring a trimmed average gauge over the traditional core price index for personal consumption expenditures (core PCE). Warsh argued that this approach would better capture the underlying inflation rate by excluding extreme price shocks, such as those caused by geopolitical events or supply-driven spikes in commodities like beef. During his Senate confirmation hearing, he emphasized the need to focus on generalized price changes rather than one-off fluctuations. However, Bank of America economist Aditya Bhave warned that Warsh’s preferred method could lead to unintended consequences. Bhave’s analysis suggested that while the trimmed average gauge might currently show softer inflation—projecting a 12-month mean of 2.3% and median of 2.8% for February—this approach could inadvertently incorporate minor price spikes from energy and food sectors. These sectors are typically excluded from the core PCE, which has historically been the Fed’s preferred metric. Bhave noted that even if extreme outliers are trimmed, smaller shocks could still influence the inflation reading, potentially leading to a higher inflation rate than the core PCE suggests. The potential impact of this shift is highlighted by historical data. Bank of America’s trimmed-median inflation gauge, which excludes volatile items, was higher than the core PCE in 2019 and 2020. During those periods, a trimmed basket would have encouraged a more hawkish Fed stance, which could have led to tighter monetary policy.#federal_reserve #bank_of_america #kevin_warsh #aditya_bhave #core_pce

Bank of America Revamps AMD Stock Price Target Advanced Micro Devices (AMD) has seen its stock price surge 42% over the past month, significantly outperforming the S&P 500, which gained less than 6% during the same period. The sharp rise has sparked renewed interest from financial analysts, with Bank of America revising its price target for AMD shares. The bank’s analysts, led by Vivek Arya, have highlighted the growing importance of CPUs in AI data centers as a key driver of AMD’s growth prospects. The stock’s recent performance has been fueled by AMD’s expanding role in the AI infrastructure market. CPUs, which are central to AMD’s operations, are increasingly critical for sequential and latency-sensitive workloads in AI data centers. Arya and his team emphasized that CPUs are an integral part of the overall AI infrastructure, with the server CPU market expected to grow substantially. They estimate that CPUs will account for approximately 5% of the $1.4 trillion AI data center total addressable market (TAM), with a projected compound annual growth rate (CAGR) of 21% through 2030. This would push the TAM to over $70 billion by 2030, up from $28 billion in 2025. Bank of America’s analysts also noted that the server CPU market is becoming increasingly competitive, with AMD positioned as a leader in cloud server offerings. The bank highlighted AMD’s strong product pipeline, including its current-gen Turin CPUs and the upcoming Venice line, as key strengths. Additionally, AMD’s partnership with Meta has played a role in boosting investor confidence, leading Bank of America to reset its forecast for the stock. The bank’s research note reiterated a “buy” rating for AMD, raising the price target to $310 from $280.#bank_of_america #meta #ai_data_centers #advanced_micro_devices #vivek_arya

Apple Stock: Bank of America Remains Bullish Ahead of Earnings Bank of America has reinforced its positive outlook on Apple stock ahead of the company’s highly anticipated fiscal Q2 earnings report, highlighting the potential of the M5 chip family to drive long-term growth. The firm reiterated its Buy rating and maintained its $325 price target, which represents a 23.4% upside from Apple’s share price of $263.40 at the time of the analysis. This forecast comes as investors seek reasons to remain optimistic in a market marked by volatility, with Apple positioned as a standout due to its strong product cycle and expanding AI capabilities. The M5 chip family is central to Bank of America’s bullish case, as it significantly enhances on-device AI performance. The new chips offer over four times the GPU compute power of the M4 for AI tasks, with memory bandwidth increasing by 30% to 153GB/s. Higher-end versions, such as the M5 Pro and M5 Max, push these metrics even further, reaching 307GB/s and 614GB/s respectively. These improvements are expected to accelerate inference processes, reduce reliance on cloud computing, and lower associated costs, positioning Apple as a leader in edge AI. Bank of America analysts argue that the M5 chips represent a strategic shift for Apple, transforming its AI narrative into a broader technological advantage. Unlike previous iterations that relied heavily on dedicated neural engines, the M5 leverages Apple’s CPU, GPU, Media Engine, and memory system more directly, creating a more integrated and efficient approach to AI processing. This, combined with Apple’s resilient Services segment and the growing impact of Private Cloud Compute, strengthens the case for sustained growth.#apple #bank_of_america #m5_chip #earnings_report #private_cloud_compute

Flipkart Eyes $2-2.5 Bn Pre-IPO Round: Report Flipkart, the Indian e-commerce giant, is reportedly exploring a significant pre-IPO funding round ranging between $2 billion and $2.5 billion, according to recent reports. The company has engaged in discussions with multiple investment bankers, including Goldman Sachs, JP Morgan, Bank of America, and Citigroup in the United States, as well as Indian banks such as Axis Bank, JM Financial, and Kotak Mahindra Bank. These meetings aim to gauge investor interest and prepare for the upcoming public offering. While the valuation for the round remains undetermined, the pre-IPO funding could serve as a strategic move to allow existing investors to exit before the IPO, enhance Walmart’s paper gains, and provide insights into investor appetite for the public listing, which is expected within the next 12 to 18 months. The potential fundraising effort is part of Flipkart’s broader preparations for its IPO, which follows a recent reverse flip to India from Singapore. This move, completed last month, marks a critical step in the company’s journey toward going public. Flipkart’s leadership, including CEO Kalyan Krishnamurthy, has been actively engaging with global and domestic financial institutions to finalize the details of the round. Krishnamurthy met with bankers across the U.S., Singapore, and London, while also discussing the raise with U.S.-based investment management firm Capital Group. Other institutional investors have expressed interest in participating, though the final decision on the funding round will rest with Walmart, which holds an 80% stake in Flipkart. Walmart, which invested $16 billion to acquire Flipkart in 2018, may be cautious about diluting its stake ahead of the IPO.#flipkart #bank_of_america #jp_morgan #goldman_sachs #citigroup

Stocks Making the Biggest Moves Premarket: Nike, RH, Sandisk & More Nike’s shares fell 10% before the market opened after the company reported North American revenue of $5.03 billion, slightly below the $5.04 billion expected by analysts. However, Nike’s fiscal third-quarter earnings of 35 cents per share and $11.28 billion in revenue exceeded the projected 28 cents per share and $11.24 billion in revenue. The stock faced additional pressure from downgrades by JPMorgan, Bank of America, and Goldman Sachs. Dave & Buster’s Entertainment saw its shares rise 7% after management signaled optimism for 2026, citing anticipated increases in same-store sales, revenue, and adjusted earnings before interest, taxes, depreciation, and amortization. The company posted a fourth-quarter adjusted loss of 35 cents per share and revenue of $529.6 million, missing analyst expectations of a 39-cent profit and $555.9 million in revenue. PVH, the clothing company behind Tommy Hilfiger and Calvin Klein, added 1% following its fourth-quarter results. The company reported adjusted earnings of $3.82 per share and revenue of $2.51 billion, surpassing the $3.31 per share and $2.43 billion in revenue forecasted by analysts. RH, the home furnishings retailer, plunged 18% as its full-year revenue growth forecast of 4% to 8% fell short of the 8.8% expected by investors. The company’s fourth-quarter adjusted earnings came in at $1.53 per share, while revenue totaled $843 million. Analysts had anticipated earnings of $2.22 per share and revenue of $873 million. NCino’s shares surged 22% after the cloud-based software company beat first-quarter revenue expectations. The company guided for revenue of $154.5 million to $156.4 million, exceeding the FactSet consensus of $152.7 million.#nike #bank_of_america #jpmorgan #goldman_sachs #dave_and_buster_s_entertainment

Swiss National Bank Increases Stake in Rocket Lab Corporation The Swiss National Bank has significantly boosted its holdings in Rocket Lab Corporation, according to its latest 13F filing with the Securities and Exchange Commission. The institutional investor raised its stake in the rocket manufacturer’s stock by 67.7% during the third quarter, acquiring an additional 501,830 shares. This brings the bank’s total ownership to 1,243,630 shares, representing approximately 0.26% of the company’s equity and valued at around $59.6 million. Rocket Lab, a leading aerospace company, provides launch services, spacecraft, and space systems for commercial and government clients. Its primary launch vehicle is the Electron rocket, designed for deploying small satellites and rideshare payloads to low Earth orbit. The company also develops the Rutherford engine, known for its electric-pump-fed design and additive-manufactured components, which powers the Electron rocket and supports its propulsion systems. The stock’s recent performance has been mixed, with shares trading near $71.96 as of the latest report. The company has a market capitalization of $38.44 billion, a price-to-earnings ratio of -194.48, and a beta of 2.20. Analysts have issued a range of ratings, with a consensus of “Moderate Buy” and an average price target of $75.92. However, individual analysts have varied forecasts, including Bank of America raising its target to $120. Insider activity has also drawn attention. Over the past three months, insiders sold a total of 4,362,428 shares worth $281.06 million. Notably, CFO Adam C. Spice sold 1,365,665 shares for about $103.1 million, reducing his ownership stake by 50.11%.#securities_and_exchange_commission #bank_of_america #swiss_national_bank #rocket_lab_corporation #zacks_research

Inflation report expected to show prices eased before Iran war The U.S. government is set to release its February Consumer Price Index (CPI) report, which is anticipated to indicate a slight slowdown in inflation ahead of the Iran war. Analysts predict that overall inflation will rise by 0.3% from January, with year-over-year inflation remaining at 2.4%. Core inflation, which excludes volatile food and energy costs, is expected to decline to 0.2% month-over-month, down from 0.3% in January. This data, however, was compiled before the U.S. and Israel launched a large-scale attack on Iran on February 28, which significantly disrupted global energy markets. The conflict has led to the near-complete shutdown of the Strait of Hormuz, a critical waterway through which over 20% of the world’s oil supply passes. As a result, U.S. crude oil prices have surged more than 20% since the initial strikes, while retail gas prices have climbed over 50 cents. The war has also intensified uncertainty about the long-term impact on inflation, with experts warning that prolonged disruptions could drive oil prices to unsustainable levels. Bank of America economists noted that the February CPI report should continue to reflect relatively contained inflation, but they emphasized that the evolving geopolitical risks pose a greater threat to price stability. A prolonged conflict could lead to sustained higher oil prices, which would exert upward pressure on both headline and core inflation. JPMorgan Chase’s chief U.S. economist, Michael Feroli, warned that while a moderate oil price spike might not severely harm the economy, a sharp and prolonged increase—particularly if oil prices exceed $100 per barrel—could create a significant drag on growth.#iran_war #strait_of_hormuz #bank_of_america #us_government #jpmorgan_chase

Tesla Robotaxis: 5 Numbers, Stats That Will Define the EV-Maker's Business Tesla’s focus on self-driving robotaxis has become central to its business strategy as the company’s traditional car sales decline. Analysts and investors are increasingly prioritizing the potential of autonomous vehicles over Tesla’s legacy automotive operations. Recent research from Bank of America highlights how the robotaxi business now accounts for more than half of Tesla’s total valuation, signaling a dramatic shift in market expectations. The company’s pivot to AI-driven mobility solutions has reshaped investor sentiment. While Tesla’s global car sales have dropped, Wall Street has turned its attention to the promise of robotaxis, which analysts believe could redefine the company’s financial future. Tesla’s stock has seen significant volatility in 2026, with a 13% decline year-to-date, but recent optimism has been fueled by new research from Bank of America. The firm raised its 12-month price target for Tesla shares to $475, implying a 13% upside from current levels. This forecast is heavily influenced by the growing confidence in Tesla’s autonomous vehicle ambitions. Bank of America’s analysis underscores the transformative role of robotaxis in Tesla’s valuation. The firm estimates that over 50% of Tesla’s total value is tied to its self-driving technology, a stark contrast to the 21% contribution from its core car business just a year ago. This shift reflects the market’s belief that Tesla’s long-term success hinges on its ability to dominate the autonomous vehicle sector. Industry experts are also projecting Tesla’s potential market share in the global robotaxi industry.#morgan_stanley #tesla #bank_of_america #ark_invest #wolfe_research

Bank of America Predicts Limited Impact on Japanese Stocks from US-Iran Conflict Bank of America (BofA) has stated that it does not anticipate a significant effect on Japanese stocks from ongoing military actions between the United States and Israel against Iran. However, the situation remains highly uncertain. The firm’s global commodity research team suggests a scenario similar to June 2025, where Iran’s new leadership adopts a pragmatic approach, limiting retaliatory measures. In this case, Brent crude oil prices could temporarily exceed $80 per barrel but would likely drop back to the $60-$70 range once the conflict subsides. If the Iranian government maintains a hardline stance, Brent crude could rise above $100 per barrel. BofA emphasized that the Middle East’s economy is relatively small and geographically distant from major global economies. Historically, regional tensions have only significantly impacted the global economy when oil prices spike. The increase in U.S. shale oil and gas production has made the global economy less sensitive to oil price fluctuations. Japan, which holds a 146-day oil stockpile as of December 2025, would likely experience minimal immediate effects even if Iran closes the Strait of Hormuz. The bank also noted that prolonged U.S. military involvement could make a hardline Iranian stance unsustainable. The Strait of Hormuz is Iran’s primary route for oil exports, and a prolonged blockade would severely harm its revenue and diplomatic relations. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.#japan #iran #united_states #strait_of_hormuz #bank_of_america