Nebius Sends AI Bulls Into Orbit, Cerebras Falls After Beat

Welcome to LazyListen. This is The Daily Rip for today. Markets found fresh energy Wednesday as cooler inflation data eased rate-hike fears, giving the Federal Reserve more room to pause.

July’s inflation report showed consumer prices rising just two and a half percent year over year—the slowest pace since early 2021. Core CPI edged up only slightly from June, signaling inflation isn’t reaccelerating. Along with last week’s weak jobs report, this softer data lets the Fed hold steady on rates rather than rushing into another hike.

Traders had been bracing for more tightening, so this “not worse” scenario is a win for risk assets. The key going forward will be whether upcoming jobs and inflation numbers stay in this sweet spot—cooling growth without tipping the economy into a downturn. I.

infrastructure sector, earnings sparked sharp moves after the bell. Cerebras, the chipmaker challenging Nvidia with wafer-scale processors, reported strong second-quarter results with revenue beating estimates and raised full-year guidance. S..

Yet despite solid numbers, Cerebras shares fell more than ten percent after hours. The stock had already run hard into earnings, and investors treated the beat as a classic sell-the-news event. I.

names trading at lofty valuations. Sentiment turned bearish as traders questioned whether the hype had already priced in all the upside. Cisco also reported after the bell, delivering better-than-expected fiscal fourth-quarter results.

I. I. orders up thirty-five percent and revenue guidance exceeding consensus.

Despite this, Cisco shares slipped about five percent after hours, pressured by margin concerns as gross margins fell from the prior quarter. Still, many see the dip as a buying opportunity given the robust guidance. I.

cloud infrastructure leaders made waves as well. Amsterdam-based Nebius Group exploded higher, jumping over thirty percent after reporting a blockbuster quarter. Revenue soared over fourfold year over year to nearly 600 million dollars, slightly beating estimates.

I. cloud revenue reached nearly all of that total. I.

cloud contracts averaging over a billion dollars each and raised its contracted power target to five gigawatts. However, Nebius is burning cash fast, with capital expenditures hitting nearly ten times its revenue—highlighting the massive cost of scaling GPU capacity. Investors now need to see strong prepayments, utilization, and pricing to confirm this is a strategic capacity build, not just an expensive Nvidia shopping spree.

Retail traders celebrated the breakout, eyeing technical resistance levels as potential next targets. I. cloud infrastructure player, also rallied nearly twenty percent after reporting strong demand that continues to outpace buildout.

The company posted multi-billion-dollar revenue and a backlog exceeding one hundred billion dollars, with healthy profit margins before depreciation. Despite a net loss, analysts raised price targets, buoyed by the massive backlog and growth potential. Capital expenditures remain hefty, underscoring the capital-intensive nature of this space.

I. infrastructure trade, with investors watching closely to see if the recent breakout can hold. I.

datacenter demand and growing quantum sensing commercialization. These results sparked debate about balancing rapid growth against heavy capacity investments needed to sustain it. In consumer news, Wendy’s surged nearly fifteen percent on activist investor Nelson Peltz’s Trian Fund assembling a consortium to take the burger chain private.

With over sixteen percent ownership and combined stakes exceeding twenty-four percent, the company said it would review any proposal. This sent Wendy’s stock sharply higher on heavy volume, fueling debate about whether a buyout premium could unlock value amid ongoing struggles with traffic and same-store sales declines. Bears point to recent sales and traffic drops, arguing any takeover would need to offer a rich premium to justify turnaround risk.

Bulls see potential for a deal north of nine dollars per share, which could force shorts to cover ahead of dividend dates. Looking ahead to tomorrow, watch a busy slate of earnings including Intuitive Machines, Lithium Americas, Paysafe, 22nd Century Group, and Ondas before the open. After the bell, keep an eye on Applied Materials, Workhorse Group, Jaguar Health, Co-Diagnostics, and Cineverse.

These reports could provide further clues on how tech, energy, and emerging sectors are navigating the current macro environment. To sum up: softer inflation data is easing Fed worries and setting a calmer macro stage. I.

infrastructure stocks are delivering strong results but facing valuation tests and hefty capital demands. Activist moves in consumer names like Wendy’s add intrigue around potential buyouts. The market is balancing growth optimism with margin and cash burn concerns, making for a dynamic and closely watched setup as we head into the second half of the year.

Thanks for listening. Catch you next time on LazyListen.