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- 🗞️ AMD Surges Over 20%
🗞️ AMD Surges Over 20%
Big moves decoded: VZ, SBUX, and more!
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Market Performance
S&P 500: 6,740.28 ⬆️ 0.36%
Nasdaq: 22,780.51 ⬆️ 0.71%
Dow Jones: 46,758.28 ⬇️ 0.14%
AMD’s Billion-Dollar AI Play
AMD (AMD) stock exploded nearly 24% on Monday after OpenAI announced a multibillion-dollar partnership that could give Sam Altman's company a 10% stake in the chipmaker.
The deal includes deployment of 6 gigawatts of AMD's Instinct graphics processing units over multiple years, starting with a 1-gigawatt rollout in the second half of 2026.
This partnership comes as OpenAI's President revealed the company can't launch many revenue-generating ChatGPT features due to compute power constraints.
That's a stunning admission from the AI leader, and it explains why they're betting billions on AMD.
The arrangement includes warrants for up to 160 million AMD shares, with vesting tied to deployment milestones and AMD's stock price.
If fully exercised, OpenAI would own approximately 10% of AMD.
What makes this significant? OpenAI has committed roughly $1 trillion in infrastructure spending over the past two weeks, combining this AMD deal with its recent $100 billion agreement with Nvidia.
AMD stock currently has a Ziggma Stock Score of 84, ranking in the top half percentile in terms of profitability, financial health, and growth.
Our Takeaway
This circular AI economy, where the same companies are simultaneously customers, suppliers, and equity partners, creates unprecedented interdependencies.
While it accelerates innovation, it also concentrates systemic risk. If one link weakens, the entire chain could be put under strain.
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Market Overview 📈
The S&P 500 and Nasdaq hit record highs on Monday, driven by optimism around merger and acquisition activity following two central banking and tech deals.
The broad market index gained 0.36% while the tech-heavy Nasdaq advanced 0.71%, though the Dow slipped 0.14% on weakness in Sherwin-Williams and Home Depot.
The Russell 2000 closed at a record high after crossing 2,500 for the first time, settling up 0.4% at 2,486.36.
Investors continue to look past concerns about the U.S. government shutdown, now in its second week, despite lawmakers' failure to reach a funding deal.
The shutdown has delayed key economic data releases, including the September jobs report, which was originally scheduled for release on Friday.
"There is clearly an optimistic view of growth in the long term," said Brian Mulberry of Zacks Investment Management, noting expectations for a more business-friendly regulatory environment and rates potentially 1.25% lower by next year, making deal returns faster and more attractive.
Bitcoin rallied to a fresh record high above $126,000 as uncertainty around the government shutdown drove investors toward alternative assets.
Stock Moves Deciphered 📈
📞 Verizon Communications (VZ)
Verizon appointed former PayPal CEO Dan Schulman as its new chief executive, effective immediately, replacing Hans Vestberg, who had led the company since 2018.
The leadership change signals a strategic shift toward increased customer focus and financial growth. Shares of the telecom giant initially dipped nearly 5%.
☕️ Starbucks (SBUX)
Starbucks shares dropped 5% following late September North American store closures and layoffs as part of its "Project Bloom" turnaround initiative.
The restructuring reflects mounting pressure on the coffee giant to streamline operations and improve profitability amid changing consumer behavior and increased competition.
🏧 Comerica (CMA)
Fifth Third Bancorp announced a $10.9 billion all-stock deal to acquire regional bank Comerica, creating the ninth-largest U.S. bank with approximately $288 billion in assets.
The transaction is expected to close in the first quarter of 2026. Bank of America called it a "low risk transaction" that adds scale without sacrificing return on tangible common equity or growth potential.
Comerica shares rallied 13.7% while Fifth Third dropped 4% as investors digested the strategic implications.
Headlines You Can't Miss 👀
💰 Tom Lee's Granny Shots ETF (GRNY) surpassed $3 billion in assets under management in less than a year, up 27.8% YTD versus the S&P 500's 14.6%.
🪙 Bitcoin hit a new record high of $126,243.60, trading nearly 3% higher as the government shutdown enters its second week.
⚠️ Paul Tudor Jones warned conditions are set for a "blow off" rally reminiscent of 1999 dotcom bubble before bull market tops out.
🏦 Bank of America urged caution as gold approaches $4,000 per ounce, warning of "uptrend exhaustion" and potential consolidation in the fourth quarter.
🌍 JPMorgan upgraded Eurozone stocks to overweight, citing German stimulus catalysts and improved risk-reward profile after months of consolidation.
💼 Treasury Secretary Scott Bessent to remain as IRS commissioner with a new deputy to be announced, marking an unprecedented dual role.
📉 Goldman raises Amazon target to $275, citing underappreciated cloud and advertising growth opportunities, implying 23% upside potential.
Trending Stocks 📊
🤖 Nvidia (NVDA)
Nvidia shares declined approximately 1% following AMD's major partnership announcement with OpenAI, despite Goldman Sachs raising its price target to $210.
The modest pullback reflects investor concerns about increased competition in the AI chip market, though analysts remain optimistic about Nvidia's dominant position across multiple verticals.
🛩️ Boeing (BA)
Boeing shares ticked up nearly 1% after Bloomberg reported the airplane maker plans to accelerate 737 Max production, potentially reaching 42-jet monthly output as soon as October.
The production ramp signals Boeing's confidence in demand recovery and supply chain stabilization after years of challenges.
⛏️ Critical Metals (CRTM)
Critical Metals surged more than 90% after Reuters reported discussions about the Trump administration taking an equity stake in the company's Greenland rare earths project.
However, a senior Trump official clarified "there is absolutely nothing close with this company at this time," suggesting the rally may be premature.
What’s Next?
Key earnings and macro news 👇
🛍️ Amazon (AMZN): The second day of Amazon's "Prime Big Deal Days" sales event. This will be a key indicator of consumer health and will have a significant impact on the entire retail sector.
🧑💻 U.S. Government Shutdown: The ongoing federal government shutdown, now in its sixth day, is creating market uncertainty and delaying the release of key economic data.
🏦 Federal Reserve Speakers: Several Fed officials are scheduled to speak, including Atlanta Fed President Raphael Bostic. Their comments on inflation and monetary policy will be closely watched.
🌎 Global Political Instability: Political turmoil in Japan, with a new dovish leader, and a deepening political crisis in France, is creating ripples across global currency and bond markets.
📊 International Economic Data: A slew of economic data from Europe and Asia, including German industrial orders and UK house prices, will provide a snapshot of the global economy's health.
₿ Commodity and Currency Markets: Gold and Bitcoin are near record highs as investors seek safe havens. The U.S. dollar remains strong despite the shutdown, while the yen and euro are under pressure.
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