Capitalize on AMD shares following their massive multi-billion-dollar deal with Anthropic for MI450 chips starting in 2027, which cements their leadership in the AI infrastructure buildout. Buy NVIDIA (NVDA) on weakness because the proliferation of open-source Chinese AI models will drive even greater enterprise demand for their computing power and data centers. Accumulate Super Micro Computer (SMCI) following their preliminary guidance showing a record backlog of $60 billion and expected gross margin expansion up to 17%. Invest in Rocket Lab (RKLB) to capture near-term defense momentum after securing a $266 million U.S. Air Force launch contract to be completed by the end of 2028. Monitor Alphabet (GOOGL) closely during their upcoming earnings report, as their capital expenditure guidance will act as a major trading barometer for the entire semiconductor sector.

Advanced Micro Devices (AMD)

• Anthropic and AMD signed a major deal for tens of billions of dollars worth of AI servers, with Anthropic purchasing up to two gigawatts of AMD's next-generation MI450 chips starting in 2027. • AMD is investing $5 billion into Anthropic at a post-money valuation of $965 billion. • AMD is reportedly in talks to provide a financial backstop for Anthropic's future data center leases. • AMD will use Anthropic's Claude models to help improve its own chip technology. • The stock experienced a muted reaction (down roughly 2% initially, then fluctuating around flat to up ~1.5%) despite the major partnership news, which analysts attributed to the market potentially pricing it in or a broader semiconductor pullback.

Takeaways

• The $5 billion investment is viewed as relatively small compared to the potential tens of billions in revenue AMD stands to gain from chip and data center sales. • The partnership further solidifies AMD's position in the AI infrastructure and data center buildout alongside its existing relationships with OpenAI and Meta.

NVIDIA (NVDA)

• CEO Jensen provided important comments regarding Chinese AI models (like Kimi K3 and DeepSeek), stating that the market has misunderstood their impact and that open-source models actually drive more overall AI usage and data center buildouts. • Jensen stated that American companies should be allowed to use Chinese AI models because they can be downloaded, fine-tuned, and locally hosted without data security risks.

Takeaways

• Open-source AI model proliferation is viewed as a net positive for infrastructure providers like NVIDIA, as greater usage requires more computing power and data centers.

Super Micro Computer (SMCI)

• Reported preliminary guidance with a record backlog of $60 billion and guided for a doubling of gross margins from 8.7% to 17%. • The stock surged between 12% and 24% following the news, which also provided a sympathy boost to competitors like Dell and HPE.

Takeaways

• The ability to significantly expand margins points to strong pricing power and massive enterprise demand for AI server racks.

Alphabet / Google (GOOGL)

• Reddit reportedly reevaluated and considered canceling its $60 million data licensing contract with Google, leading to a temporary drop in Reddit's stock price. • Google faces high stakes for its upcoming earnings report, with particular investor focus on RPO (Remaining Performance Obligations), capital expenditures (CapEx), and cloud operating margins.

Takeaways

• Google's CapEx guidance will serve as a crucial barometer for the broader AI infrastructure and semiconductor sector.

Tesla (TSLA)

• Set to report earnings after the bell alongside Google, with investor focus heavily centered on future capital expenditure projections and artificial intelligence integration.

ServiceNow (NOW)

• Suffered downward pressure alongside other software stocks following cautious commentary from IBM and Pegasystems regarding enterprise IT budgets shifting away from workflow software toward cybersecurity due to the rise of advanced AI models ("Mythos").

Takeaways

• Investors in enterprise SaaS should monitor whether margin and software spending pressures remain isolated to specific players or signal a broader sector-wide trend.

Reddit (RDDT)

• Shares fell roughly 6% to 10% following signals that the company might alter or cancel its data-sharing agreement with Google, though analysts noted that user-generated content remains a highly valuable moat in the age of AI.

Takeaways

• High-value human-generated data holds strong pricing power, potentially opening doors for alternative licensing deals with other AI model providers if agreements with specific hyperscalers fall through.

Rocket Lab (RKLB)

• Secured a $266 million contract from the U.S. Air Force for launches out of Alaska, expected to be completed by the end of 2028, adding to its growing backlog of defense contracts.

General Electric Vernova (GEV)

• Missed earnings per share expectations (reporting $2.47 versus $3.10 expected), driven largely by an 11% year-over-year decline in wind revenue, causing the stock to slide about 6%.

Takeaways

• High-flying "picks and shovels" industrial plays face heightened vulnerability to pullbacks when any segment of their earnings misses expectations, despite raising overall financial guidance.