Sector Update: Financial Stocks Mixed Late Afternoon

October 6 — U.S. chipmaker Advanced Micro Devices (AMD.O) saw its shares rise 1.5% in pre-market trading, reaching $641.10. CEO Lisa Su stated that as AMD races to meet surging demand in the artificial intelligence sector, the company plans to significantly boost chip supply by 2027 (link). Su also noted that AMD is working closely with memory chip manufacturers to ensure sufficient supply; her remarks come ahead of her scheduled visit to South Korea later on Tuesday. At least two brokerage firms, including Citigroup, have raised their price targets for the stock, according to data compiled by LSEG. Out of 56 brokerages, 47 rate AMD as a “buy” or higher, and 9 rate it as “hold”; the median price target is $616, per LSEG data. As of yesterday’s close, the stock has gained over 100% year-to-date. (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several other languages. As automated translations may contain errors or lack necessary context, Reuters does not guarantee the accuracy of these texts and provides them solely for readers’ convenience. Reuters accepts no liability for any damages or losses arising from the use of automated translations.)

Profits of the New York securities industry are expected to surpass 90 billions USD, exceeding last year’s record of 65.1 billions USD, with bonuses potentially reaching all-time highs; underwriting income has increased by 68%, contributing 26.3 billions USD to state finances.

Citi (C.US) is shortening the time required for investment banking analysts to be promoted to associates in order to attract and retain top talent in a highly competitive job market.

Kraft Heinz launches “Kraft Mac & Cheese-Flavored Ramen.” “Our pace of innovation has not been fast enough,” said the North American President. CEO Steve Cahillane is working to revitalize the packaged food company. While Kraft Heinz shares are down this year, the company’s performance has outpaced its peers. Kraft Heinz is strongly supporting health trends such as high-protein and high-fiber lifestyles, investing heavily in marketing, and trying to make up for lost time in innovation, the company’s North American President told Reuters. Under CEO Steve Cahillane, who took over in January, the U.S. packaged food company has dropped plans to split its business in two and allocated $700 million this year for marketing and R&D to reverse years of declining market share. This year, the company launched the high-protein “PowerMac & Cheese” and added healthier variations to its portfolio, featuring lower sugar and salt with more protein and dietary fiber. Kraft Heinz is also venturing into new product categories: on Tuesday, it launched a cheese-flavored ramen in the U.S., aiming to meet American consumers’ rising demand for diverse flavors and convenience. “We are engaging more actively in different segments and disrupting certain categories,” Nico Amaya said in an interview, specifically mentioning the $2.7 billion ramen market, mostly led by small businesses. “Frankly, our pace of innovation has not been fast enough,” he added. “We have some excellent brands, but we haven’t invested in them in the past.” This year, marketing and R&D spending for brands like PowerMac increased by 35%, and Amaya stated Kraft Heinz will maintain this level of investment in the future. CEO Cahillane expects innovation projects to accelerate by 2027. Despite a roughly 10% decline in share price this year, Kraft Heinz’s performance has still outdone other U.S. packaged food companies like Conagra Brands, General Mills, and PepsiCo. Persistent inflation is pressuring household budgets, pushing consumers toward cheaper private-label alternatives; meanwhile, the rapid adoption of GLP-1 weight-loss drugs is forcing packaged food makers to adjust product formulations to satisfy demand for healthier foods. Kraft Heinz has already launched its cheese-flavored ramen in Canada. Amaya said the company also introduced smaller portion “PowerMac” cups and has reformulated more than 1,000 products, increasing protein and dietary fiber while reducing added sugar and fat. “The trend toward healthier products in many respects will be here for the long-term,” Amaya told Reuters. “And protein will become a vital part of everyone’s diet.” (Note: This Reuters report was automatically translated into several languages for convenience. Because automated translation may be inaccurate or lack proper context, Reuters does not guarantee the accuracy of automated translations and accepts no liability for any damages or losses that may result from their use.)