It’s a huge day for the AI story. 

Microsoft (MSFT) is going to invest billions for the next few years.

Advanced Micro Devices, Inc. (AMD) data center income is off the chain.

But the bigger story few are talking about is all the power needs of AI.

The nation’s largest electric grid operator, PJM Interconnection, held its annual auction and prices surged to $269.92 per megawatt-day from $28.92 a year ago.

Power Surge = Pricing Surge Megawatt-Day +833%

That news plus Vistra’s (VST) Comanche Peak nuclear power plant license extension to 2053 land that stock as the top gainer today.

NVDA Corporation (NVDA) is the top tech winner in part to reports Nancy Pelosi bought the stock and sold Microsoft (MSFT).

Perhaps the best development of the session is that everything is rocking.

Which isn’t usual these days around FOMC gatherings.

Meta Platforms (META)

The company’s shares were already slumping when it posted a big miss in October 2022, sending the share price back to 2016.

Meta’s Reality Labs division, which houses its VR headsets, lost over $9 billion in the first three quarters.

Morgan Stanley, Cowen, and KeyBanc downgraded Meta on Thursday, citing increased spending.

The stock was completely written off by the street, and then Zuckerberg matured, declaring 2023 to be the year of efficiency.  It worked.

The stock soared after five earnings releases in a row until April this year when the Street began to demand more than cost savings.

Date	Surprise	1-week	1-day
4/24/24	+$0.39	-11.4%	-10.9%
2/1/24	+$0.37	+19%	+20.2%
10/25/23	+$0.75	+4.1%	-3.7%
7/26/23	+$0.07	+4.9%	+4%
4/26/23	+$0.18	+13.1%	+13.8%
2/1/23	-$0.50	+19.7%	+23.1%
10/26/22	-$0.29	-30%	-24.3%

So, the stage is set for META to assuage increasing concerns about when AI investments begin to pay. 

Comments

so, with PJM Interconnection....that fact the prices soared from $28 to now over $260.00....what exactly does that mean?? David Moreno on 7/31/2024 12:46:42 PM

It means the supply/demand is tightening for power plants as the price increase more than 800% in a year. Karina Hernandez on 7/31/2024 2:16:22 PM

I did a straddle on NVDA yesterday at market close, and actually made a few hundred this morning. I'm happy. Mark A Peterson on 7/31/2024 2:09:31 PM

Very UNDERWHELMED by BA CEO. Could have gone for Joe Biden. He’s available! Jay on 7/31/2024 4:23:44 PM

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