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The companies team up for 10 gigawatts of custom AI accelerators. (0:15) Paramount ready to bid again for Warner. (0:54) Silver squeeze continues. (2:59)
This is an abridged transcript of the podcast:
Our top story so far, Broadcom (NASDAQ:AVGO) is jumping after it announced a deal with OpenAI (OPENAI) for 10 gigawatts of custom AI accelerators.
OpenAI will design the accelerators and systems, which will be developed and deployed in partnership with Broadcom.
OpenAI says by designing its own chips and systems, it can embed what it’s learned from developing frontier models and products directly into the hardware, unlocking new levels of capability and intelligence.
The racks will meet surging global demand for AI, with deployments across OpenAI’s facilities and partner data centers. The two companies will also co-develop systems that include accelerators and Ethernet solutions from Broadcom for scale-up and scale-out.
Among other active stocks, Warner Bros. Discovery (WBD) is higher on an L.A. Times report that Paramount Skydance (PSKY) is preparing a second bid. You heard on Wall Street Brunch that Paramount had a bid of $20 a share rejected. WBD shares are now trading around $18.
Beyond Meat (BYND) is plummeting as shareholder face a big dilution from an exchange offer for convertible debt. The company said nearly all of its convertible noteholders had agreed to a debt swap, exchanging more than $1.1 billion of 2027 notes for new notes and more than 300 million shares of common stock.
Rare earth stocks are hitting rarified air as traders bet on a boon for alternative mineral suppliers with China restricting imports. Albemarle (ALB) is one of the top S&P gainers, while MP Materials (MP) rose to an all-time high.
Australia is reportedly considering the introduction of mandated floor prices for critical minerals and funding for new rare earth projects as part of a resources deal with the U.S.
And Bloom Energy (BE) is rocketing higher after announcing a $5 billion strategic partnership with Brookfield Asset Management (BAM) to become the preferred onsite power provider for Brookfield’s global artificial intelligence factories.
The two companies are collaborating on the design and delivery of AI factories globally, including a site in Europe that will be announced before the end of the year.
Looking to the markets, stocks remain higher in choppy trading following the tariff-induced selloff on Friday. Conciliatory remarks from President Trump over the weekend helped bring in dip-buyers this morning.
But the major indexes trimmed gains after Treasury Secretary Scott Bessent said the U.S. has “aggressively pushed back” against China’s recent export restrictions and called them a “provocative move.”
Bessent tone was not quite and tough as Trump was on Friday, but hardly echoed the laid-back, don’t-worry-be-happy timbre of Trump’s post about China over the weekend.
Meanwhile, silver’s stunning short squeeze continues, with worries about lack of liquidity in London.
The price (XAGUSD:CUR) neared its record of $52.50 an ounce, set on a now-defunct contract on the Chicago Board of Trade exchange in 1980.
And in the Wall Street Research Corner, coffee connoisseurs may want to pay extra attention to Goldman Sachs’ list of frothy stocks.
Strategist David Kostin says isolated pockets of froth have continued to percolate within the equity market in recent weeks, adding that “baskets related to quantum computing, cryptocurrency, and drones have all surged by more than 50% in the past month.”
Many of these companies rank among the stocks with the highest recent share trading volume, and Goldman compiled a list of 30 Russell 3000 (IWV) stocks with the highest trading volumes.
The top five are Nvidia (NVDA), with more than 4 billion shares traded in the past month. It’s followed by Plug Power (PLUG), Intel (INTC), BigBear.ai (BBAI) and Rigetti Computing (RGTI).
Check out the list here.
