Market Update: S&P 500 Reaches All-Time High; Airline Stocks Increase After Delta Earnings; Bitcoin Hits Record

AMD Rises Following HSBC Upgrade on AI Chip Performance

The latest AI chips from Advanced Micro Devices (AMD) have performance comparable to those from Nvidia (NVDA), according to HSBC analysts. On Thursday, HSBC upgraded AMD's rating from "hold" to "buy" and increased their price target to $200, citing the competitiveness of AMD's new chip series with Nvidia’s Blackwell GPUs. AMD introduced its Instinct MI350 Series GPUs last month, stating the chips provide four times the computing power of the previous generation. AMD shares increased by more than 4% in recent trading, leading gains in the Nasdaq 100.

"With the recent launch of the MI350 series, we were pleasantly surprised with the performance upgrades which imply that the MI350 series can compete with Nvidia latest-gen HGX B200 AI GPU," HSBC analysts wrote. "Owing to the performance enhancements, the pricing premium is much higher than expected earlier which could help drive upside to earnings in 2025 and 2026."

HSBC analysts, led by Frank Lee, also noted potential further gains for AMD when it launches its MI400 series next year, which may compete with Nvidia’s upcoming Vera Rubin platform, expected in the second half of 2026. AMD introduced the MI400 last month at an event hosted by CEO Lisa Su and OpenAI CEO Sam Altman, with OpenAI as a customer for the new chips.

WK Kellogg Shares Increase After Ferrero Acquisition Announcement

Shares of WK Kellogg (KLG) rose 30% on Thursday after the company announced an agreement to be acquired by The Ferrero Group for $23 per share in cash, totaling about $3.1 billion. WK Kellogg shares had increased overnight following reports that a deal could be finalized soon. The stock was recently trading at $22.85, the highest level in over a year. Prior to Thursday, the stock had been slightly negative for 2025.

"We believe this proposed transaction maximizes value for our shareowners and enables WK Kellogg Co to write the next chapter of our company's storied legacy," CEO Gary Pilnick said, adding that joining Ferrero would provide the company with more resources and flexibility to grow its brands.

The transaction is expected to close in the second half of 2025. After completion, WK Kellogg will become a privately held subsidiary of Ferrero, which employs over 14,000 people in North America. Ferrero’s product portfolio includes Nutella, Tic Tac, and Butterfinger.

"Over recent years, Ferrero has expanded its presence in North America, bringing together our well-known brands from around the world with local jewels rooted in the U.S.," said Ferrero Group Executive Chairman Giovanni Ferrero. "Today's news is a key milestone in that journey, giving us confidence in the opportunities ahead."

WK Kellogg was formed in 2023 when Kellogg separated its cereal and snack businesses, with the snack business becoming Kellanova (K).

Tesla Plans Robotaxi Expansion and Grok Chatbot Integration

Tesla (TSLA) is expected to expand its robotaxi service in the coming weeks and months, and plans to integrate Grok, a chatbot developed by another Elon Musk-owned company, into its vehicles, likely by next week. Musk made these statements on X, the social media platform he owns, in response to user discussions about Grok and Tesla’s robotaxi service, which launched last month. Musk stated that the robotaxi service area around Austin will expand this weekend, and that Tesla is awaiting regulatory approval to expand to California’s Bay Area, which could occur in the next two months.

The robotaxi launch has encountered some reported issues, such as vehicles stopping in intersections and briefly driving on the wrong side of the road. The addition of Grok to Tesla vehicles follows recent controversy involving the chatbot, which generated antisemitic posts. The company removed the posts and temporarily took Grok offline. Subsequently, X CEO Linda Yaccarino announced her departure, and xAI released Grok 4, the latest version of the chatbot.

Also, Tesla stated in a regulatory filing that its annual shareholder meeting will be held on Nov. 6. This follows pressure from shareholders and officials regarding compliance with Texas law on annual meeting timing. Tesla shares increased nearly 3% in recent trading but remain down about 25% since the start of the year. Some analysts have suggested that Tesla’s board consider Musk’s involvement in politics.

MP Materials Shares Increase After Department of Defense Agreement

Shares of MP Materials (MP) rose over 50% in early trading Thursday after the company announced a multibillion-dollar agreement with the Department of Defense (DoD). The DoD will become MP Materials’ largest shareholder at 15% following an initial $400 million purchase of a new class of preferred stock convertible to common stock, and a warrant to purchase additional shares.

MP Materials will use the government investment, along with a $1 billion funding line from JPMorgan Chase (JPM) and Goldman Sachs (GS), to fund construction of a second domestic magnet manufacturing facility at a location yet to be determined. The company also entered a 10-year agreement with the DoD, establishing the government as a long-term customer for MP’s rare earths at a price floor of $110 per kilogram.

The Trump administration has identified reducing dependence on other countries, such as China, for rare earths as a priority and national security concern. MP Materials and USA Rare Earth (USAR) shares have increased this year in response to this policy. MP Materials shares were up 56% recently, reaching their highest level in over three years. USA Rare Earth shares were up about 15% in morning trading.

Delta Air Lines Leads Airline Stocks After Earnings Report

Delta Air Lines (DAL) was the top-performing stock in the S&P 500 early Thursday after reporting second-quarter results that exceeded analyst expectations and reinstating its full-year outlook. Delta reported adjusted earnings per share of $2.10 on revenue of $16.65 billion, which was approximately flat year-over-year. Analysts had projected $2.08 in earnings per share and $16.41 billion in revenue.

Last quarter, Delta anticipated revenue to be between a 2% decrease and a 2% increase, with adjusted EPS between $1.70 and $2.30. For the third quarter, Delta expects revenue to be flat or up to 4% higher, with adjusted EPS between $1.25 and $1.75. Analysts expect revenue to be roughly flat at $15.69 billion and adjusted EPS of $1.36. Delta also reinstated its full-year projections, expecting adjusted EPS of $5.25 to $6.25, with the midpoint above analysts’ consensus of $5.31. Last quarter, the company stated it would update its outlook once uncertainty diminished.

"As we look to the second half of our centennial year, we remain focused on executing our strategic priorities and managing the levers within our control to deliver strong earnings and cash flow," Delta CEO Ed Bastian said, noting that restoring full-year guidance reflects confidence in the business.

Delta shares increased about 13% recently but remain down about 6% since the start of the year. Shares of United Airlines (UAL) and American Airlines (AAL) also increased sharply in morning trading.

Microsoft Reaches New Highs; Key Levels to Monitor

Microsoft (MSFT) shares reached a record high on Wednesday as the company’s market capitalization approached $4 trillion. The stock closed at approximately $503, placing its market cap at $3.74 trillion, second only to Nvidia (NVDA), which briefly surpassed $4 trillion on Wednesday. Oppenheimer set a $600 price target for Microsoft, citing growth prospects in AI revenue. Wedbush analyst Dan Ives indicated that Microsoft could reach a $4 trillion market cap this summer. The stock has risen 46% from its early-April low and is nearly 20% higher year-to-date as of Wednesday’s close.

After reaching a low near the 200-week moving average in early April, Microsoft shares have increased in 12 of the past 14 weeks. The relative strength index indicates strong price momentum but has recently entered overbought territory, which has previously coincided with periods of consolidation. Trading volume has decreased during the stock’s recent rise, suggesting some institutional investors may be waiting for the next earnings report before making further investments. Important support levels for Microsoft are near $468 and $425.