The U.S. Department of Defense has officially designated Palantir Technologies’ Maven AI system as a program of record, transforming the weapons-targeting platform from experimental technology into a permanent fixture of American military operations and significantly strengthening the company’s position as the Pentagon’s primary AI integrator. Market Reaction Palantir shares have declined 10.53% y...
The U.S. Department of Defense has officially designated Palantir Technologies’ Maven AI system as a program of record, transforming the weapons-targeting platform from experimental technology into a permanent fixture of American military operations and significantly strengthening the company’s position as the Pentagon’s primary AI integrator. Market Reaction Palantir shares have declined 10.53% year to date despite the strategic win, reflecting broader market volatility and suggesting that some of the defense AI narrative may already be priced into the stock’s valuation. The designation represents a structural shift in how the company’s government business will be funded and sustained, moving from ad-hoc contracts to dedicated budget line items with multi-year appropriations. Top Australian Brokers Pepperstone - multi-asset Australian broker - Read our review eToro - Social and copy trading platform - Read our review Get Ahead of the Market Smarter investing starts with better information. The Bull Premium gives you everything you need to grow your wealth and build your future. You will get: Early access to 18 Share Tips - delivered 3 days early A comprehensive weekly market outlook An exclusive complete investing course Sign up today and get your first week free US markets are weighing the long-term revenue visibility this program-of-record status provides against heightened concentration risk in defense spending and ongoing ethical debates around autonomous weapons systems. The stock’s recent weakness indicates that investors may be demanding continuous upside surprises beyond foundational wins like Maven, even as the company cements its role as critical defense infrastructure. Core Details of the Maven Designation According to a memo dated March 9 from Deputy Secretary of Defense Steve Feinberg to senior Pentagon leaders and combatant commanders, the Maven Smart System will be embedded across U.S. military operations with implementation targeted by the end of th...
She and McCullagh exchanged messages just before he posted the stream – he said he was about to "stream the night away" and she said she would try to "sneak a peek at it".
She and McCullagh exchanged messages just before he posted the stream – he said he was about to "stream the night away" and she said she would try to "sneak a peek at it".
A strategic partnership between Brazil’s state-run oil giant Petróleo Brasileiro S.A. - Petrobras PBR and Mexico’s Pemex has been proposed by Brazilian president Luiz Inacio Lula da Silva, aiming to jointly explore oil resources in the Gulf of Mexico, particularly in deepwater regions. The proposal reflects Brazil’s intent to expand its energy influence while leveraging Petrobras’ globally recogni...
A strategic partnership between Brazil’s state-run oil giant Petróleo Brasileiro S.A. - Petrobras PBR and Mexico’s Pemex has been proposed by Brazilian president Luiz Inacio Lula da Silva, aiming to jointly explore oil resources in the Gulf of Mexico, particularly in deepwater regions. The proposal reflects Brazil’s intent to expand its energy influence while leveraging Petrobras’ globally recognized expertise in offshore and deepwater drilling. Leveraging PBR’s Deepwater Expertise Petrobras is widely regarded as a leader in deepwater exploration, with decades of experience operating in technically challenging environments. Lula emphasized that Pemex could significantly benefit from this expertise, especially in exploring reserves at depths of up to 2,500 meters. This collaboration could help unlock untapped reserves in the Gulf, an area where both companies already have operational exposure but varying levels of technical capability. Pemex’s Production Challenges Pemex has been grappling with declining oil output, with production dropping to nearly half of its peak levels from two decades ago. Efforts to revive output have been hindered by limited access to private investment and technological constraints. Mexican president Claudia Sheinbaum has been seeking ways to reinvigorate the country’s oil sector, making this proposed partnership a potentially critical step toward stabilizing production. Expanding Regional Energy Cooperation Petrobras already operates in the Gulf of Mexico through joint ventures, while Pemex continues to pursue complex offshore developments such as the Lakach deepwater gas project. A formal collaboration could enhance operational efficiency and accelerate project timelines for both companies. The partnership also signals a broader trend of increased regional cooperation in Latin America’s energy sector. Strategic Oil Reserves Under Consideration Beyond exploration, Lula also proposed that Brazil consider establishing a strategic oil reserve ...
In an interview with Bloomberg TV , Upstage’s CEO Sung Kim said that the two companies had discussed the potential purchase during AMD CEO Lisa Su’s visit to Seoul, South Korea, last week. South Korean AI startup Upstage is in talks with AMD to purchase up to 10,000 MI355 accelerators. Following Su’s visit, Upstage had already announced it was expanding its partnership with the chip designer in an...
In an interview with Bloomberg TV , Upstage’s CEO Sung Kim said that the two companies had discussed the potential purchase during AMD CEO Lisa Su’s visit to Seoul, South Korea, last week. South Korean AI startup Upstage is in talks with AMD to purchase up to 10,000 MI355 accelerators. Following Su’s visit, Upstage had already announced it was expanding its partnership with the chip designer in an agreement that would see the startup deploy an unknown number of MI355 accelerators to support AI initiatives across Korea, including the development of a sovereign AI model as part of Korea's government-led Proprietary AI Foundation Model project. However, speaking with Bloomberg today (March 23), Kim expanded on some of the details of the partnership, stating: “We have a lot of Nvidia chips in Korea, but we want to diversify to other chips, including AMD’s. That’s why I asked Lisa Su to bring more than 10,000 chips to use in Korea.” He added that Su “kind of agreed” but that the two companies are now negotiating how they are going to deploy the chips in South Korea. Founded in 2020 by Kim, a former head of AI development at Naver, Upstage is focused on building domain-specific language models and document processing for the enterprise. To date, the company has raised $157 million in funding and counts SoftBank Ventures Asia and SK Networks among its investors. In October 2025, Upstage was one of a number of companies Naver said it would partner with for the deployment of some 60,000 Nvidia GPUs across South Korea.
Key Points Acorn Capital sold 225,000 shares of Terns Pharmaceuticals in the fourth quarter for an estimated $5.20 million. Meanwhile, the quarter-end value of the stake increased by $55.74 million, reflecting valuation changes including price movement. The post-transaction holding stood at 1,746,264 shares valued at $70.55 million. Terns Pharmaceuticals now accounts for 23.9% of the fund’s AUM, m...
Key Points Acorn Capital sold 225,000 shares of Terns Pharmaceuticals in the fourth quarter for an estimated $5.20 million. Meanwhile, the quarter-end value of the stake increased by $55.74 million, reflecting valuation changes including price movement. The post-transaction holding stood at 1,746,264 shares valued at $70.55 million. Terns Pharmaceuticals now accounts for 23.9% of the fund’s AUM, making it the largest single position in the portfolio. 10 stocks we like better than Terns Pharmaceuticals › On February 17, 2026, Acorn Capital Advisors reported selling 225,000 shares of Terns Pharmaceuticals (NASDAQ:TERN), an estimated $5.20 million trade based on quarterly average pricing. What happened According to a filing with the Securities and Exchange Commission dated February 17, 2026, Acorn Capital Advisors reduced its position in Terns Pharmaceuticals (NASDAQ:TERN) by 225,000 shares during the fourth quarter of 2025. The estimated value of the trade was approximately $5.20 million, calculated using the average closing price for the quarter. The quarter-end value of the remaining stake reflected market valuation changes. What else to know Acorn Capital Advisors’ Terns Pharmaceuticals holding now represents roughly 24% of its 13F AUM after the recent sale. Top holdings after the filing: NASDAQ:TERM: $70.55 million (23.9% of AUM) NASDAQ:CGON: $46.98 million (15.9% of AUM) NASDAQ:URGN: $33.92 million (11.5% of AUM) NASDAQ:TRVI: $26.85 million (9.1% of AUM) NASDAQ:PBYI: $24.58 million (8.3% of AUM) As of Monday, shares of Terns Pharmaceuticals were priced at $50.08, up a staggering 1,400% over the past year and significantly outperforming the S&P 500’s roughly 15% gain in the same period. Company overview Metric Value Price (as of Monday) $50.08 Market Capitalization $5.5 billion Net Income (TTM) ($94.44 million) Company snapshot Terns Pharmaceuticals develops clinical-stage small-molecule therapies targeting non-alcoholic steatohepatitis (NASH) and obesity, with le...
Qualcomm Incorporated QCOM has been witnessing healthy traction in the automotive segment over the past few quarters. During the first quarter of 2026, the company reported a $1.1 billion in revenues from this segment, up 15% year over year. Its core product strategy involves providing a modular automotive platform that combines Digital Cockpit (infotainment), advanced driver assistance, connectiv...
Qualcomm Incorporated QCOM has been witnessing healthy traction in the automotive segment over the past few quarters. During the first quarter of 2026, the company reported a $1.1 billion in revenues from this segment, up 15% year over year. Its core product strategy involves providing a modular automotive platform that combines Digital Cockpit (infotainment), advanced driver assistance, connectivity that is 5G, telematics and AI compute capabilities inside the vehicle. The platforms that offer these are Snapdragon Cockpit Platform, Snapdragon Ride Flex Platform and Snapdragon Elite platforms. It boasts a worldwide client base that includes leading automakers and technology companies like Volkswagen Group, Toyota, Hyundai Mobis, Leapmotor, Li Auto and several other OEMs. Several technology trends and other factors are driving this adoption. Qualcomm’s full-stack solution reduces complexity for OEMs and streamlines the deployment process. This also locks customers into the ecosystem, making it harder for them to switch. In the connectivity part, Qualcomm dominates in 5G, WiFi and Bluetooth integration, V2X. Along with the connectivity dominance, its growth prowess in edge AI effectively supports features like voice assistants, driver monitoring and autonomous decision systems. These factors are major growth drivers. More than 75 million vehicles are already using Qualcomm Snapdragon Cockpit platforms. Management expects a staggering 35% year over year growth from Automotive in the second quarter of 2026. The growth is driven by growing design wins, new vehicle launches and expansion of ADAS + cockpit integration. How Are Competitors Faring? In the automotive segment, the company faces competition from the NVIDIA Corporation NVDA and Intel Corporation INTC. NVIDIA’s automotive sales in the recent quarter were $604 million, up 6% year over year backed by growing adoption of self-driving platforms. NVIDIA DRIVE solutions include a comprehensive stack of hardware and sof...
Generally, when you hear “water use” and “sustainability,” you expect those words to be followed by some bad news. Humanity’s enduring ability to ignore the math of declining water supplies is almost impressive. But there are cases where actions have successfully reversed our loss of water resources. A new paper in Science by Scott Jasechko of the University of California, Santa Barbara, examines ...
Generally, when you hear “water use” and “sustainability,” you expect those words to be followed by some bad news. Humanity’s enduring ability to ignore the math of declining water supplies is almost impressive. But there are cases where actions have successfully reversed our loss of water resources. A new paper in Science by Scott Jasechko of the University of California, Santa Barbara, examines documented cases of groundwater recovery around the world to identify which strategies have worked. Groundwater is invaluable for many reasons. For one, it’s (usually) cleaner than surface water. It’s also right under your feet and often close enough to the surface that it doesn’t take much energy to pump it up. And there’s loads of it down there, no matter the season. Because of this, humans use a lot of it for drinking water, agriculture, and every other use you can think of. Unfortunately, in many places, the rate of groundwater use has grown to exceed the rate at which precipitation soaks into the ground to replenish it. Read full article Comments
quantic69/iStock via Getty Images Ever since the Iran war started, the stock market seems to have been taken hostage by the price of oil. The surge in oil has been putting pressure on stocks in general, and some sectors like airlines and cruise lines have been hit even harder. The pressure has been mounting as the war continues into a second month. For the first time since the Liberation Day tarif...
quantic69/iStock via Getty Images Ever since the Iran war started, the stock market seems to have been taken hostage by the price of oil. The surge in oil has been putting pressure on stocks in general, and some sectors like airlines and cruise lines have been hit even harder. The pressure has been mounting as the war continues into a second month. For the first time since the Liberation Day tariffs in April 2025, the S&P 500 Index ( SPY ) is now trading below the 200-day moving average. While I have longer-term concerns about the stock market, I believe there are a number of indicators that suggest the market is due for a rebound and oil is poised to plunge. With this in mind, let's take a closer look at why this outcome could be possible: The Charts As shown below, the chart of the United States Oil Fund ( USO ) looks like a hockey stick, with the share price doubling from the $60 range in early 2026 to around $120. This ETF was designed to track the price of light sweet crude oil, making it an ideal way for investors to gain exposure to this sector. This chart shows that oil is extremely overbought, and it could be due for a major pullback. The 50-day moving average is around $85, and the 200-day moving average is even lower at about $76. I believe oil prices will plunge back to these key support levels fairly soon and potentially go even lower as 2026 progresses. StockCharts.com I see some similarities to the price action recently seen in oil and silver. As shown in the chart below, silver surged and nearly doubled in value (like oil) in just a couple of months, but it has plunged since February. A speculative fervor seems to have gripped silver, making it red-hot, as this chart also shows a hockey stick type of formation. Oil seems to be following the same path in terms of price action, and it might also soon see a plunge, just like silver. StockCharts.com Extreme Fear Levels Should Be Considered As shown below, the Fear & Greed Index is now around 15, which si...
(PRO Views are exclusive to PRO subscribers, giving them insight on the news of the day direct from a real investing pro. See the full discussion above.) Traders will be paying special attention to small caps this week, after the Russell 2000 fell into correction territory during last week's pullback, according to New York Stock Exchange insider Jay Woods. The small-cap index last week tipped into...
(PRO Views are exclusive to PRO subscribers, giving them insight on the news of the day direct from a real investing pro. See the full discussion above.) Traders will be paying special attention to small caps this week, after the Russell 2000 fell into correction territory during last week's pullback, according to New York Stock Exchange insider Jay Woods. The small-cap index last week tipped into correction territory, 10% off of its peak. That put it at a key inflection point, Woods said. The benchmark closed at 2,438.45 on Friday. The Shares Russell 2000 ETF (IWM) surged more than 2.7% on Monday, leading a broad market rally after President Donald Trump said the U.S. and Iran had "productive" talks over the weekend. Trump also told CNBC he is "very intent on making a deal" with Iran. "As we kick off Monday trading, it should get a nice bounce. Let's see we can hold those levels, because it was a major breakout," Woods said. "Let's see if it can stay above $242" on the IWM, Woods said. "I expect a relief rally to continue into Wednesday, Thursday, and as we get closer to the weekend traders should pause to see what the situation is, and then take some near-term profits on this relief rally." Woods, chief market strategist at Freedom Capital Markets, is also watching the following: Whether the S & P 500 can recover above its 200-day moving average or "if that old support becomes resistance." With Monday's surge, the S & P 500 traded around 6,620, a few points below the 200-day level of 6,625.09. Woods is also following the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) as it rallies back above the $117-$118 level. Whether Nvidia can pop back to the $185 to $190 level after closing around its 200-day moving average on Friday. (This weekly Monday video is exclusively for CNBC PRO subscribers.)
pingingz/iStock via Getty Images Key takeaways 1 Fund performance Invesco High Yield Municipal Fund Class A shares at net asset value (NAV) underperformed its style-specific index, the Custom Invesco High Yield Municipal Index. 2 Seeking attractive opportunities through collaborative management Invesco Municipal Bond team uses a collaborative management approach. Relying on our size and experience...
pingingz/iStock via Getty Images Key takeaways 1 Fund performance Invesco High Yield Municipal Fund Class A shares at net asset value (NAV) underperformed its style-specific index, the Custom Invesco High Yield Municipal Index. 2 Seeking attractive opportunities through collaborative management Invesco Municipal Bond team uses a collaborative management approach. Relying on our size and experience, we seek to identify the best opportunities to achieve potentially better outcomes for shareholders. 3 Analysis focused on creditworthiness Our team uses a bottom-up fundamental credit process focused on creditworthiness of individual issuers with an overlay of macroeconomic factors to capitalize on market inefficiencies. Our process has been time tested over full market cycles. Manager perspective and outlook In the fourth quarter, investment grade, high yield and taxable municipals delivered positive returns of 1.42%, 1.11% and 1.05%, with annual returns of 4.25%, 2.46% and 7.89%, respectively. 1 Despite a lengthy federal government shutdown, long-duration municipal bonds performed well during the quarter, bolstering market strength. 1 New municipal issuance reached $143 billion for the quarter and a record $584 billion for the year, surpassing last year's record $509 billion. Shifting interest rate policies, higher costs and political uncertainty likely encouraged more issuers to come to market. 1 Net flows for municipal mutual funds and exchange-traded funds (ETFs) were strong, totaling approximately $17.5 billion for the quarter and $52.4 billion for the year. 2 The US Federal Reserve (Fed) cut the federal funds rate twice, by 0.25% in October and 0.25% in December. The Fed reiterated its commitment to balancing maximum employment and a 2% inflation target. 3 We believe state and local municipal budgets remain healthy. While credit rating upgrades have moderated, upgrades outpaced downgrades in 2025, demonstrating to us strong fundamentals. 4 Our experienced credit re...
wildpixel/iStock via Getty Images Insmed ( INSM ) said that phase 3b data testing Arikayce (amikacin liposome inhalation suspension) led to significant improvement in Respiratory Symptom Score and Culture Conversion Rates in patients with newly diagnosed Mycobacterium avium complex lung infection. In the trial, in the active treatment group, Arikayce was dosed once daily along with azithromycin 25...
wildpixel/iStock via Getty Images Insmed ( INSM ) said that phase 3b data testing Arikayce (amikacin liposome inhalation suspension) led to significant improvement in Respiratory Symptom Score and Culture Conversion Rates in patients with newly diagnosed Mycobacterium avium complex lung infection. In the trial, in the active treatment group, Arikayce was dosed once daily along with azithromycin 250 mg + ethambutol 15 mg/kg. The control group received azithromycin + ethambutol and a placebo. The change from baseline in respiratory symptom score at month 13, the primary endpoint, was 17.77 points in the active cohort compared to 14.66 points in the placebo cohort. Arikayce received accelerated approval in 2018 for refractory MAC lung infection. The phase 3b trial was conducted to fulfill US FDA post-marketing commitments. The company said it intends to file an sNDA for Arikayce in H2 to gain a label expansion and obtain traditional approval for the existing refractory indication in the U.S. More on Insmed Insmed Incorporated (INSM) Presents at Leerink Global Healthcare Conference 2026 Transcript Insmed Incorporated (INSM) Presents at TD Cowen 46th Annual Health Care Conference Transcript Insmed Incorporated 2025 Q4 - Results - Earnings Call Presentation Insmed outlines $1B-plus BRINSUPRI revenue target for 2026 while advancing pipeline and ARIKAYCE expansion Insmed misses Q4 earnings estimates
The S&P 500 Index ($SPX) (SPY) today is up +1.73%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +1.97%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +1.79%. June E-mini S&P futures (ESM26) are up +1.47%, and June E-mini Nasdaq futures (NQM26) are up +1.77%. Stocks are sharply higher today as crude oil prices plunged more than -7% after President Trump said strikes against Iranian energy in...
The S&P 500 Index ($SPX) (SPY) today is up +1.73%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +1.97%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +1.79%. June E-mini S&P futures (ESM26) are up +1.47%, and June E-mini Nasdaq futures (NQM26) are up +1.77%. Stocks are sharply higher today as crude oil prices plunged more than -7% after President Trump said strikes against Iranian energy infrastructure and power plants would be postponed for five days following the start of talks with Iran to end the war. Mr. Trump said the US held productive talks on a comprehensive resolution of hostilities in the Middle East and that the discussion would continue throughout the week. However, stocks fell back from their best levels after Iran’s semi-official Fars news agency said, “There is no direct or indirect communication with Trump.” Join 200K+ Subscribers: Global bond yields fell from their highs today and turned lower on news of a possible end to the war in Iran. Bond yields had risen on concerns that soaring energy prices from the Iran war would stoke inflation. The 10-year T-note yield fell from an 8-month high today at 4.44% and is down -1 bp to 4.27%. Also, the 10-year German Bund yield fell from a 14.75-year high of 3.08%, and the 10-year UK Gilt yield fell from a 17.75-year high of 5.12%. Stock index futures initially fell sharply in overnight trading after President Trump gave Iran until Monday evening to reopen the Strait of Hormuz. President Trump on Saturday issued a 48-hour ultimatum for Iran to "fully open" the Strait of Hormuz or the US will obliterate Iran’s various power stations. The ultimatum, which expires at 7:44 p.m. Eastern time on Monday, was met with harsh rhetoric from Iran, with one senior Iranian official saying that if such an attack were to occur, the headquarters and assets of financial entities that buy US Treasury bonds are "legitimate targets" for attack. Iran also said that it would mine the “entire Persian Gulf” and block all access...
neiu20001 Kroger ( KR ) was one of the leading decliners in the S&P 500 Index on Monday as investors latched on to President Trump saying constructive talks have been held with Iran and he would pause strikes on power plants and other energy infrastructure for five days. The grocery stock has rallied more than 8% since the Iran-Israel-U.S. conflict began, mainly because Kroger ( KR ) is considered...
neiu20001 Kroger ( KR ) was one of the leading decliners in the S&P 500 Index on Monday as investors latched on to President Trump saying constructive talks have been held with Iran and he would pause strikes on power plants and other energy infrastructure for five days. The grocery stock has rallied more than 8% since the Iran-Israel-U.S. conflict began, mainly because Kroger ( KR ) is considered a defensive stock by investors. The consumer staples stalwart operates in the grocery segment, where demand remains relatively steady in recessions as people must continue buying food, household items, and prescriptions. Its scale of roughly 2,700 predominantly grocery-led stores, diversified banners, and ancillary businesses like fuel centers and pharmacies is seen as helping to smooth earnings, while steady dividends and buybacks reinforce its appeal to long‑term, risk‑averse investors. With its FQ4 earnings report released on March 5, the grocery store operator said identical-store sales excluding fuel increased 2.4% for the quarter to come in slightly behind the expectation of analysts for a rise of 2.5%. Total revenue was up 1.3% year over year to $34.7B but missed the consensus expectation by $300M. An improvement in gross margin was primarily attributable to sourcing improvements, lower supply chain costs, better fuel margins, decreased depreciation, and lower shrink, partially offset by price investments and the mix effect from growth in pharmacy sales, which has lower margins. Shares of Kroger ( KR ) were down 1.0% in early afternoon action. More on Kroger Kroger: Limited Growth Drivers, Downgraded To Hold Kroger: Strong E-Commerce Growth, But Fairly Valued After Rally (Downgrade) The Kroger Co. (KR) Q4 2026 Earnings Call Transcript SA analyst upgrades/downgrades: PEP, KR, JBLU, NIO Kroger slips after cautious profit guidance; grocery peers on watch
An oil supertanker hauling two-million barrels of Iraq’s crude got through the Strait of Hormuz, the first vessel observed moving Baghdad’s barrels through the the vital waterway since it all but closed to commercial shipping because of the Iran war. The Omega Trader , managed by Japan’s Mitsui OSK Lines Ltd, signaled over the past few days that it reached Mumbai, tanker tracking data compiled by ...
An oil supertanker hauling two-million barrels of Iraq’s crude got through the Strait of Hormuz, the first vessel observed moving Baghdad’s barrels through the the vital waterway since it all but closed to commercial shipping because of the Iran war. The Omega Trader , managed by Japan’s Mitsui OSK Lines Ltd, signaled over the past few days that it reached Mumbai, tanker tracking data compiled by Bloomberg show. Its prior signal before reaching the Indian port city had been from inside the Persian Gulf more than ten days ago. The war in Iran, now in its fourth week, has halted the vast majority of traffic in the waterway which accounts for about a fifth of the world’s oil and liquefied natural gas, driving up energy costs. While only a few tankers have gone through since the conflict began, the transits help to alleviate what the International Energy Agency describes as the biggest supply disruption in the history of the oil market. Many of the ships that have managed to get through Hormuz have discharged in India. The nation’s government has engaged with Iranian officials to seek passage for vessels due to haul energy to the country, and one liquefied petroleum gas vessel was guided through Hormuz by the Iranian navy. The ship’s technical manager is Mitsui OSK, according to data on the Equasis maritime database. The company didn’t respond to a request for comment outside of normal business hours. Other oil tankers have also made a break from the Persian Gulf in recent days. The Al Ruwais loaded naphtha from the UAE in early March and is now heading to Asia , while the Abu Dhabi-III is expected to arrive in India’s Vadinar port on Monday after also loading fuel at Ruwais. Given that a lot of ships go through with their signals off, it’s possible that other tankers will pop up having already left the Persian Gulf.
JHVEPhoto/iStock Editorial via Getty Images Since my last Buy rating , Amazon.com Inc. ( AMZN) stock has gone nowhere. Even though the war has been pressuring U.S. equities, Amazon has been relatively resilient to the selloff. In fact, OpenAI’s ( OPENAI ) Pentagon partnership through AWS and last week's Amazon’s 1 million-GPU agreement with Nvidia ( NVDA ) (one of the largest on record) have broug...
JHVEPhoto/iStock Editorial via Getty Images Since my last Buy rating , Amazon.com Inc. ( AMZN) stock has gone nowhere. Even though the war has been pressuring U.S. equities, Amazon has been relatively resilient to the selloff. In fact, OpenAI’s ( OPENAI ) Pentagon partnership through AWS and last week's Amazon’s 1 million-GPU agreement with Nvidia ( NVDA ) (one of the largest on record) have brought this stock back to my attention. One of the negative headlines that made me sweat was the Anthropic news at the end of February, when the Pentagon declared its models as a supply chain risk. Given the long term partnership between Anthropic and AWS in national security contracts with the U.S., I was wondering if this would affect the utilization rate of its custom (and general-purpose) GPUs. After the OpenAI deal, I think this risk has decreased, although it is something worth monitoring in the next earnings release. The last thing one wants to hear during the call is supply catching up with demand. Given the consolidation around the low $200s, I think the CapEx scare is now mainly priced in, as long as the AWS segment shows sequential growth in the next few quarters. Therefore, I am not worried about the 1 million GPU deal with Nvidia. In fact, I think this proves a point: the AI spending cycle is far from over, despite the negative headlines from the Middle East. Overall, I remain constructive on Amazon and reiterate my Buy rating. CapEx Plans Are Getting Real Last week, two headlines brought my attention back to this stock. The first one came from OpenAI, which signed a deal with U.S. defense and government agencies to sell access to its models through AWS. As you may know, OpenAI revised its agreement with Microsoft last year to allow collaboration with other cloud providers for national security use cases. Here is the excerpt from the October announcement (emphasis added): OpenAI can now provide API access to US government national security customers, regardless of ...