📈 OpenAI's Profit Makeover

Semiconductor Supercycle launch, Meta’s new smart glasses, US Steel Nippon merger green light again, Lower standards at Boeing, OpenAI & Altman’s big payday

Author

Evelio Silvera
September 26, 2024

Good morning.

⚡ The Fast Five → Semiconductor Supercycle launch, Meta’s new smart glasses, US Steel Nippon merger green light again, Lower standards at Boeing, OpenAI & Altman’s big payday

And now…

⏱️ Your 5-minute briefing for Thursday, September 26, 2024:

MARKET BRIEF
Before the Open

As of market close 9/25/2024.

Pre-Market

  • Hewlett Packard Enterprise was among the best gainers on the S&P 500, up 5.1%.

  • General Motors shares fell 4.9%, while Ford Motor lost 4.1%, among the biggest drops on the S&P 500.

Fear & Greed

*UP 2 pts

Trends

  • S&P 500, Dow close lower as investors await insights on Fed rates, data

  • Fed's bumper rate cut revives 'reflation specter' in US bond market

  • Nasdaq 100 Futures Gain as Chip Stocks Jump

WHAT WE’RE WATCHING
Events

  • Today: Final Gross Domestic Product, 8:30AM

  • Why You Should Care: It's the broadest measure of economic activity and the primary gauge of the economy's health

Earnings Reports

  • Today: Costco, Accenture, Jabil, CarMax, Scholastic

  • Tomorrow: NeoVolta, HHG Capital, SPI Energy, Santech

MARKET BRIEF
Leading News

OpenAI's Game-Changing Move: Altman's Big Payday and What It Means for Tech Investors

Why it matters: This move could reshape the AI landscape and create massive investment opportunities in the tech sector.

The big picture: OpenAI, the AI powerhouse behind ChatGPT, is eyeing a major transformation. They're talking about:

  • Giving CEO Sam Altman a whopping 7% stake

  • Switching to a for-profit model

  • Potentially becoming a public benefit corporation

This comes as OpenAI's valuation skyrockets to $150 billion and they seek to raise another $6.5 billion.

Go deeper:

  • Follow the money: Altman's potential stake could be worth over $10 billion. That's some serious skin in the game!

  • Tech talent shuffle: CTO Mira Murati is out, signaling more shakeups in OpenAI's C-suite. Keep your eyes peeled for how this impacts innovation.

  • AI arms race heats up: This move could give OpenAI more firepower to compete with tech giants like Google (GOOGL) and Microsoft (MSFT).

What they're saying: OpenAI spokesperson: "The nonprofit is core to our mission and will continue to exist." But let's be real – this shift screams ‘we're here to dominate the AI market!’

The bottom line: OpenAI is gearing up for hypergrowth. This could be your ticket to ride the AI revolution. But remember, with great potential comes great volatility – so buckle up and do your DD!

Chip Stocks Blast Off as Micron Forecast Ignites Semiconductor Supercycle

Why it matters: The semiconductor industry is flexing its muscles, signaling a potential boom that could supercharge your tech portfolio.

The big picture: Chip stocks are on fire! Micron Technology (MU) just dropped a bombshell earnings forecast that's sending shockwaves through the industry. We're talking a major shift in the semiconductor landscape, with players like TSMC (TSM) and ASML (ASML) riding the wave to new heights.

This isn't just a flash in the pan – we're witnessing the birth of a new semiconductor supercycle. The AI revolution is hungry for chips, and these companies are stepping up to the plate.

Go deeper:

  • Memory chip bonanza: Micron's bullish outlook suggests a major turnaround in the memory market. DRAM and NAND flash prices could skyrocket, fattening profit margins.

  • AI appetite grows: The insatiable demand for AI chips is spilling over into adjacent markets. Expect a ripple effect across the entire semiconductor ecosystem.

  • Global players surge: Asian chip giants are joining the party. Keep your eyes on Samsung (005930.KS) and SK Hynix (000660.KS) as they ramp up production to meet demand.

What they're saying: "We believe we are at the start of a multi-year growth phase for our industry," - Micron CEO Sanjay Mehrotra

The bottom line: The chip sector is white-hot, and investors should consider riding this wave. But remember, semis are cyclical – so stay nimble and watch for signs of oversupply.

Headlines

  • Arbitration board gives green light to US Steel-Nippon Steel merger over union's objections (link)

  • Boeing staff report pressure to lower standards (link)

  • What's Going On With Walt Disney Stock (link)

  • What products would be disrupted by a port strike? (link)

  • X releases its first transparency report since Elon Musk's takeover (link)

  • "Sounds Like Corruption": FCC Fast-Tracks "Soros Shortcut" Purchase Of 200+ Radio Stations (link)

  • Meta’s Ray-Ban branded smart glasses are getting AI-powered reminders and translation features (link)

  • Inside the Fertility Tech Gold Rush (link)

CRYPTO
Fear & Greed

*DOWN 9 pts

Headlines

  • PayPal Business Account Holders Can Buy, Hold, Sell Crypto (link)

  • Bitcoin ETF Demand Grows Among U.S. Investors as China Considers Massive $142B Capital Injection (link)

  • Tokenized assets to exceed $20B over next year (link)

DAILY SHARE
On the Socials

*Hat-tip to netcapgirl