Advanced Micro Devices (AMD) stock opened up by nearly 35% on Monday morning, following reports that OpenAI is acquiring a 10% stake in AMD. As part of the agreement, AMD will supply OpenAI with 6 gigawatts of AMD’s Instinct GPUs. The deal is scheduled to start with a 1-gigawatt rollout in 2026.OpenAI will receive warrants […]
The following discussion is courtesy of Paul Mortimer Lee, as provided by Albert Edwards of Societe Generale. Paul makes an interesting case that PCE prices, the Fed’s primary gauge of inflation, are likely to decline. Supporting his view is a relatively wide and growing gap between the prices witnessed by the non-financial corporate business sector, […]
Eli Lilly and other US-based drug makers have led the market over the last few days. The reason appears to be Pfizer’s agreement with President Trump to sell its drugs through Medicaid at cheaper prices. It’s not just Pfizer; Eli Lilly is reportedly in active discussions with the administration to participate in a similar deal. […]
In Monday’s Commentary, we alerted readers that the dollar could be setting up for a reversal higher. Furthermore, we noted that if such a turn comes to fruition, some investors may encounter surprises. To wit: As such, investors should examine their portfolios for risks that have developed with the reversal of the previously overbought dollar, to […]
In a bold and unusual pivot, a traditional Japanese manufacturer of Kimonos is transitioning to a cryptocurrency treasury company. Marusho Hotta, which has been manufacturing kimonos since 1861, will rebrand as the Bitcoin Japan Corporation. The transformation stems from a June acquisition by Bakkt Holdings (BKKT), which took a controlling stake in the company to […]
If Congress can’t come to a budget resolution in the next 24 hours, the government will shut down. Sound familiar? We have become numb to the prospect of a government shutdown because it occurs so frequently. Most often, continuing resolution bills are agreed upon before a shutdown, thus enabling the government to continue operating. In […]
There appears to be a frequently repeated myth on social media that foreigners are selling US Treasury bonds in large quantities. Often, the myth is supported by the belief that certain foreign governments, such as China, Japan, and Saudi Arabia, are rapidly selling down their US Treasury securities. Concerns about trade deficits, inflation, and geopolitical […]
Several articles and social media posts have recently discussed the irregular partnerships that Nvidia is forming with some of its clients. The gist of the story is that Nvidia is investing in its clients, who then use the funds to buy Nvidia chips. This is what CNBC stated in a headline on Wednesday. This is […]
Eli Lilly (LLY) and Novo Nordisk (NOVO) dominate the market for weight loss drugs. The monopoly has proven incredibly profitable for both companies. Consider that in the last quarter, LLY reported that $8.58 billion of its $15.56 billion in total revenue came from its two GLP-1 weight loss drugs Mounjaro and Zepbound. Even a greater percentage […]