Bitcoin-mining fund jumps 11% as AI-hosting stocks rebound
Riot Platforms led the mining stocks ahead of its report, chip funds bounced, and a tanker-freight fund was the steepest drop among ETFs.
Key takeaways
Bitcoin-mining stocks jumped on Tuesday, and CoinShares Bitcoin Mining ETF WGMI rose 11%, to $29.35. Bitcoin was up 1.6%, at $77,909, as of 4:47 p.m. Eastern. The jump was in the stocks, not the coin. Former bitcoin miners that now host artificial-intelligence data centers were bouncing after a rough session Monday, 24/7 Wall St. reported, and the fund's largest holding is one of them.
Chip funds bounced. Apple's warning on profit margins, a drop in Shopify and a slide in tanker freight were the costly moves.
The S&P 500 rose 0.36%, to 7,568.71. The Nasdaq Composite rose 0.83%. The Dow fell 0.38%. Nvidia, the index's largest stock, rose 2.3%, and Broadcom rose 3.1%. The gain was not broad. Invesco S&P 500 Equal Weight ETF RSP, which gives every company in the S&P 500 the same weight, fell 0.34%.
Bitcoin miners
Cipher Digital, the fund's largest holding, now hosts data centers for artificial intelligence. Hut 8, the fourth holding, is moving into that business, 24/7 Wall St. reported.
Roundhill Investments' Roundhill Neocloud ETF NCLD rose 9.8%. In its prospectus, Roundhill uses neocloud for companies that rent out clusters of specialized chips built for artificial intelligence. Nebius and CoreWeave, the mining fund's second- and third-largest holdings, sit in that fund, as do Hut 8 and Cipher Digital. Global X Blockchain ETF BKCH rose 8.5%.
WGMI's 11% led a six-fund climb
Riot Platforms rose 18.41% ahead of its quarterly report, just ahead of Cipher Digital, which rose 18.37%. Hut 8 rose 15.9%, CleanSpark rose 14% and MARA Holdings rose 11.4%.
Chip funds
iShares Semiconductor ETF SOXX rose 2.5%. VanEck Semiconductor ETF SMH rose 2.0%. State Street Technology Select Sector SPDR ETF XLK rose 1.3%.
Advanced Micro Devices rose 3.7%, to $483.90, before its results. After the close, AMD said third-quarter revenue was $13.4 billion, above the high end of its own forecast, and data-center revenue was $8.5 billion, up 97% from a year earlier. It expects about $17 billion of revenue this quarter, plus or minus 3%.
Apple, Shopify and freight
Apple fell 1.9%, to $331.90. On Monday night's call, chief financial officer Kevan Parekh told investors to expect a December-quarter gross margin of 45% to 46%, short of the 46.3% average estimate, and said the outlook "includes primarily the impact of higher memory costs, as well as some costs related to the ramp of Siri AI," CNBC reported. Siri is Apple's voice assistant.
Shopify fell 8.7%, to $142.57. Revenue of $3.74 billion came in just below estimates, the value of goods sold on its platform missed, and subscription profit missed, while adjusted earnings of 49 cents a share beat the 46-cent estimate, CNBC reported.
Bloom Energy, which makes fuel cells that generate electricity, rose 9.0%, to $214.01. Barclays raised its rating on the shares, citing stronger demand than it had expected, CNBC reported.
Amplify Breakwave Tanker Shipping ETF BWET fell 8.5%, to $835. It holds futures on the cost of moving crude by tanker, not the oil.
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