Happy Wednesday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟩 | US Stocks Rose on Wednesday. The S&P 500 and the Nasdaq Composite broke record highs, gaining 1% and 2%, respectively. This comes as Nvidia and other big name tech stocks rose higher. Plus, weak labor market data has fueled investors’ hope of a Fed rate cut later this year.

• 📈 | One Notable Gainer: Shares of Nvidia surged 5% after the company announced increased investments in Taiwan and plans to construct another supercomputer in the country following the launch of Taipei-1 last year.

• 📉 | One Notable Decliner: Alcohol seller Brown Forman saw its stock drop 6% after it reported a revenue decline as sales of its Jack Daniel’s Tennessee Whisky slumped.

• 😎 | Tomorrow's Trade: The Other Guys. Scroll down for more.

Plus, our partner will help you learn how to trade Cboe index options.

YESTERDAY’S POLL RESULTS

Do you think the Brazilian stock index Bovespa (IBOV) will finish 2024 higher or lower than it started?

🟩🟩🟩🟩🟩🟩 Higher

🟨🟨🟨🟨⬜️⬜️ Lower

MARKET MOVERS

GameStop, WalkMe, & Verint Systems

CIFR (+5%) Shares of Cipher Mining rose after it announced significant upgrades to its Bitcoin mining fleet for both 2024 and 2025 (YF)

GME (+19%) GameStop continued its rally after meme stock leader Keith Gill, also known as “Roaring Kitty,” revealed his $175 million position (YF)

WKME (+43%) Digital adoption platform Walkme saw shares surge after agreeing to be acquired by German software group SAP for $1.5 billion (MW)

ACHR (+6%) Electric vertical takeoff and landing maker Archer Aviation received an Operator Certificate from the FDA for commercial flights (InvestorPlace)

VRNT (+23%) Customer experience automation platform Verint Systems reported stronger-than-expected earnings and raised its full-year guidance (SA)

TOGETHER WITH CBOE

OVERHEARD ON THE STREET

CNN: AT&T’s second prolonged outage this year left customers irate, and experts criticized its response, believing AT&T risks losing customer loyalty.

AP: The Amazon Labor Union has agreed to affiliate with the Teamsters Union, a move that will inject new energy into the struggling organization.

WSJ: Estée Lauder is expected to keep longtime Chief Executive Officer Fabrizio Freda in the top job at the beauty giant despite its sagging performance.

CNBC: Boeing launched its first Starliner flight with astronauts today, beginning a crucial final flight test of the long-delayed spacecraft.

Reuters: The U.S. Federal Reserve will cut its key interest rate in September and once more this year, according to a majority of forecasters in a Reuters poll.

TOMORROW’S TRADE IDEA, TODAY

The Other Guys

Nvidia Isn’t the Only One

Nvidia (NVDA) is grabbing all the headlines with its recent strong earnings, stock split announcement, and fresh record high. But it isn’t the only stock benefitting from the AI craze. 

According to analysts, some other stocks are exposed to the AI boom and are still relatively cheap. Among them are two big-name tech companies: Meta (META) and Alphabet (GOOG).

Meta

According to Adam Coons of Winthrop Capital Management, Meta is currently sitting at an attractive valuation. The analyst expects its revenue to grow by 17% in 2024 and EPS to jump 35% over the same period. Should that occur, Meta would be trading at a multiple around 26 times 2024 earnings, well below its competitors. 

Meta is also trading below its competition according to a measurement used to determine how a company’s enterprise value relates to its earnings (EV/EBIT). Meta is trading at 19 times EV/EBIT, compared to Nvidia and Microsoft’s (MSFT) 25 and 28, respectively. 

According to Coons, Meta also stands out from the rest because of its large share in the digital ad space, user growth, and strong balance sheet.

Alphabet

Coons is bullish on Google because of its AI monetization strategy. According to the analyst, it can use the technology to improve advertiser results and boost its ad revenue. 

The company also aims to generate revenue from subscriptions to its generative AI tool, Gemini. Google plans to use Gemini to replace Google Assistant on its Android phones. 

Currently, Alphabet shares are trading around 22 times forward earnings. But according to Coons, the company has seen tremendous sales growth, driving an increase in both operating income and margins. Not to mention the fact that the stock now pays a dividend. 

If you’re worried you missed the boat on Nvidia, these stocks could provide a relatively cheap entry point into the AI frenzy, according to Coons.

TOGETHER WITH CBOE

ON OUR RADAR

Barron’s: Private payrolls rose by 152,000 jobs last month, which is less than the consensus estimate of 175,000 jobs.

NBC: According to new projections, the average cost of keeping an American home cool from June to September will hit $719, nearly 8% higher than last year.

ABC: Through a pioneering measure, Vermont has officially become the first state to charge big oil companies for climate change damage.

Fortune: Bumble founder Whitney Herd believes that your dating “AI concierge” will soon date hundreds of other people’s “concierges” for you.

NewsNation: In 11 states, childcare costs for two kids at a daycare center per year are now at least 25% higher than rent.