Tech Stock Roundup: TD Synnex Exceeds Expectations; Cathie Wood Sells Palantir Shares

TD Synnex posted strong fourth-quarter results, and the stock surged despite margin challenges. SNX stock recorded the most significant increase last week among tech stocks.

Cathie Wood’s ARK Funds sold $16.9 million in Palantir shares after its 340% 2024 surge. Concerns around overvaluation led to a 10% dip in Palantir’s stock.

TD Synnex Double-Digit Jump

TD Synnex (SNX) reported impressive fiscal fourth-quarter results , with revenue reaching $15.8 billion, exceeding its outlook of $14.9-$15.7 billion and representing a 10% year-over-year increase.

The company achieved a net income of $195 million, with diluted EPS at $2.29 and non-GAAP diluted EPS at $3.09. Operating cash flow surged to $562 million, contributing to $1.2 billion for the fiscal year.

In addition, TD SYNNEX returned $750 million to shareholders in 2024 through $612 million in share repurchases and $138 million in dividends.

The company also announced a 10% increase in its quarterly dividend to $0.44 per share.

Regional performance was robust, with revenue in the Americas growing by 10.6%, Europe increasing by 5.5%, and Asia-Pacific and Japan experiencing significant growth at 31.7% year-over-year.

Despite these positive results, some challenges emerged . Non-GAAP net income declined by 7.8% year-over-year in Q4, and gross margins fell to 6.6% from 7.1%, reflecting pricing pressures and product mix shifts that impacted profitability.

SNX shares jumped by 16% across the week, gaining 9.9% on Friday only, soon after the publication of the results.

Cathie Wood Dumps Palantir Shares

Between Jan. 3 and 7, Cathie Wood’s ARK Funds sold 221,950 shares of Palantir Technologies , valued at approximately $16.9 million. This comes after Palantir experienced a remarkable surge in 2024, rising 340% and solidifying its position as one of the top-performing Nasdaq stocks of the year.

Despite the sale, Palantir’s stock ranks fifth-largest in the ARK Innovation Fund , accounting for 4.9% of the fund’s total holdings and having a market value of $315.3 million.

The company’s increasing role in AI-powered data analytics fueled last year’s rally.

However, the stock’s meteoric rise has sparked concerns among investors about its valuation, with many arguing that it might now be overpriced.

Wood has been gradually trimming her stake in Palantir over the past month, selling shares in multiple transactions throughout December.

Palantir’s stock has faced a recent downturn, losing about 10% in the past week and closing at $68.23.

Nvidia Dip May Continue

Last week proved challenging for Nvidia, as the company criticized upcoming U.S. chip export restrictions that the Biden Administration may announce this week.

NVDA stock lost 1.8% last week and decreased further during Monday’s pre-market trading, down by 3.9% to $131.90.

The new restrictions reportedly aim to limit U.S. AI chip sales to specific countries and companies, significantly capping the amount of computing power that can be exported.

U.S. allies are expected to retain full access to American-made chips, while stricter limitations will be imposed on most other nations. A key policy under consideration would restrict the total computing power allocated to any single country.

These measures would take effect shortly before the new administration assumes office if enacted. Nvidia has strongly opposed the proposed policies, signaling concerns about their impact on global AI development and the company’s business.

Amid this backdrop, the chip giant announced a collaboration with Hyundai Motor Group to advance artificial intelligence technologies for future mobility solutions.

The partnership focuses on accelerated computing, generative AI, and industrial digitalization.

Hyundai plans to integrate Nvidia’s solutions, including its AI Enterprise software, into strategic products like software-defined vehicles and robotics and broader business operations.