Options Market Statistics: Palantir Stock Skyrockets and Options Surge with S&P 500 Inclusion of Major AI Players

Nvidia has led the AI stock boom since ChatGPT's launch, but its recent 18% decline raises questions about the rally's sustainability. Despite beating earnings expectations on August 28, the stock fell due to weaker-than-expected guidance, a denied DOJ subpoena report, and a weak employment report. Nvidia remains a high-growth company, with adjusted earnings per share expected to double again in the third quarter. Although its trailing P/E ratio is 49.5, it's comparable to peers like Apple and Microsoft. Analysts often underestimate its earnings potential. Looking forward, Nvidia's planned Blackwell platform ramp-up positions it for continued growth into 2025. The recent sell-off seems unjustified given the company's robust performance and strong AI momentum.

Apple unveiled the iPhone 16 and other new technology on Monday, aiming to entice customers to upgrade from older devices. Since the iPhone 12's 2020 launch, featuring 5G connectivity, Apple hasn't provided compelling reasons for upgrades, as phone cameras and screen resolutions have plateaued in perceptible improvements. Consequently, around 300 million iPhones haven't been upgraded in over four years, leading to sluggish iPhone sales, which account for half of Apple's revenue. Similarly, incremental updates to the Apple Watch and AirPods have failed to drive significant new sales. Apple hopes its latest announcements will spark a new major sales cycle.