Intel is set to price its first public share sale since 1971 at $95 per share, raising significantly more than its initial target. Meanwhile, Riot shares are surging in premarket trading after Anthropic reportedly struck a "non-billion-dollar" cloud deal, with sources indicating Anthropic is purchasing compute capacity from Riot's Texas campus due to high demand.
In other market news, SanDisk shares are down over 9% and Western Digital is down nearly 15% in premarket trading. Both companies beat on earnings, but their first-quarter revenue guidance missed analyst expectations, leading to market punishment for these "high flyers" that had seen year-to-date rallies of 470% and 200% respectively. Figma shares also fell 15% despite a beat and raise, due to increasing AI-related expenses pressuring free cash flow and margins.
SK Hynix was rocked by another flash crash, raising concerns about potential international volatility in chip names. There's also attention on $100 billion worth of SpaceX shares hitting the market, the first of several tranches to be released. This could potentially introduce volatility and impact the valuations of other high-growth companies considering IPOs.
Looking at the broader market, some analysts maintain an S&P 500 target of 8400 by year-end 2026, driven by expectations of $415 per share in earnings next year. However, there are ongoing discussions about overvaluation, with some tech companies like SpaceX still priced at 50 times trailing sales. The market is seen as punishing companies that don't deliver "perfect results," especially those with high capital expenditure plans without clear, immediate returns.
