A Traffic Jam, of Sorts…… AI chips are getting very good at crunching data. Moving it around is another matter. As thousands of increasingly powerful chips get packed into data centers, the connections between them have to keep up. Bernstein calls the growing mismatch the “bandwidth wall.” And Wall Street thinks it could be very good news for a less glamorous corner of the AI boom: optical networking. Coherent, Lumentum and Ciena all jumped roughly 7%–11% after Bernstein singled out networking companies as potential “structural winners.” A nice day. Though hardly the beginning of the story. The...

Opening The Books… Anthropic is only a few years old. In that short time, Claude has turned it into one of the biggest names in AI, with revenue jumping 12× in 2025 alone. Now the company is preparing for one of the largest IPOs in history, seeking a valuation near $2 trillion. That number will get plenty of attention. But an IPO does something else, too. It opens the books. And Anthropic’s reveal quite a bit. The filing shows a business growing at extraordinary speed, but also one increasingly tied to the same handful of tech giants helping fund it, power it and sell its products. Then...

Burry Being Burry…… “Fundamentally, I am moving timelines up.” That’s Michael Burry talking about the AI bubble. And apparently, something he found over the weekend changed his mind about when it could burst. By Monday, he had covered every common-stock short in his portfolio. But he wasn’t backing away from the bet. He was adding leverage to it. Burry replaced nearly all of those shorts with put options, saying his latest research convinced him the AI bubble could burst “sooner than later.” That’s a fairly meaningful portfolio change from someone who was already positioned...

Quite Dramatic… You have to give Wall Street credit: it knows how to name things… A market can go up and it’s a bull. Go down and it’s a bear. Stocks that seem unstoppable become momentum trades. Ones that collapse become falling knives. And when two innocent-looking lines on a chart cross in the wrong direction? Naturally, we call it a “death cross.” Dramatic name but rather simple idea. And right now, one is getting close to appearing in dollar-yen. Normally, that’s not something you’d cheer for. This time, Washington might. Because the currency move behind it —...

“By far the cheapest place to put AI will be space in 36 months or less.” ~ Elon Musk. Musk has spent much of his career trying to get things off Earth. Even his mother told Yahoo Finance that Elon “really would like to live in the city of Mars.” But some of the ideas that once sounded almost as distant are starting to move a little closer. Musk has plans for AI infrastructure in orbit. He’s talked about eventually using the Moon to help build it. There is some logic behind the sci-fi. → AI data centers need enormous amounts of power, while space offers something Earth can’t: near-constant...

$980 million has a nice ring to it… Redwire RDW ( ▲ 2.57% ) had some news Thursday. The space and defense company was selected for a new U.S. Space Force program covering the development, testing and maintenance of advanced space and ground systems. And it came with a rather large number attached: → $980 million. For context, Redwire generated $117.1 million in revenue last quarter and ended Q2 with $542.1 million in contracted backlog. So a $980 million Space Force program is going to stand out. But how much of it will actually go to Redwire? That’s a very different question. And to answer...

He Stopped Watching.…? You open Netflix looking for something to watch. Ten minutes pass. Then twenty. A few trailers. A few additions to My List. Somehow, nothing makes it onto the screen. Steve Cahill noticed his own version of that problem. The Wells Fargo analyst had been a longtime Netflix subscriber, but recently found himself watching less of it. Was it just him? Cahill dug into Netflix’s upcoming content slate and the studio turnaround investors had been waiting for. What he found only added to his concern. Let’s see.⇩ SPONSOR BREAK presented by Brownstone* Trump Takes on Foreign...

That’s a Lot of Orders… Jim Cramer was talking about the AI boom when he singled out one company for the sheer amount of business coming its way. “There’s almost nobody that has more orders than Hock Tan, other than Jensen Huang.” Jensen Huang needs little introduction. But Hock Tan? He runs Broadcom AVGO ( ▲ 0.69% ).And if Cramer’s comparison sounds generous, Broadcom’s latest numbers make it a little easier to understand. → The company’s AI semiconductor revenue reached $16.7 billion, up 221% from a year ago and 54% in a single quarter. Then there’s the order book.↓ → Broadcom says it...

400 Million Shares and 38 Years Later… Coca-Cola KO ( ▼ 0.43% ) has been around for 140 years. Which makes its latest numbers rather impressive. → Last quarter, organic sales grew 6%.→ Case volumes rose 5%.→ And the stock has been trading near record highs. Not bad for a company whose flagship product was invented in 1886. But perhaps the more remarkable number is 400 million Coca-Cola shares Berkshire Hathaway still owns. Warren Buffett started buying Coke in 1988, and over the decades since, Berkshire has watched the stock climb, fall more than 50%, recover, and eventually become one of...

The Usual Suspects? → Canada wants in.→  Germany wants in.→ The company behind Lidl and Kaufland has already committed hundreds of millions. And Nvidia? It was there before most of them. The company bringing this rather unusual group together is Cohere, a Toronto-based AI firm. Cohere is reportedly in talks to raise as much as $3 billion at a $20 billion valuation — nearly 3x the roughly $7 billion valuation it reached last year. That’s a lot of money chasing a company with a fraction of the name recognition of AI’s biggest players. Which raises a pretty obvious question: What exactly does...

All In The Family? Jim Cramer was asked about Tesla this week. His answer: “My only solution to it is that SpaceX has to buy it, period, end of story.” Then he added: “But maybe they will.” That would normally be easy enough to file under Cramer being Cramer. Except he isn’t the only one thinking about it. This week, another argument surfaced for eventually putting Elon Musk’s two biggest companies under the same roof — with SpaceX buying Tesla. And there is at least some logic behind the thought. Tesla is increasingly betting its future on AI, robotaxis and humanoid robots. SpaceX now...

Burry Isn’t Buying It… AI’s biggest names spent the past week talking about: Slowing down. Dario Amodei wants frontier labs to give safety work more time to catch up.Sam Altman agrees that increasingly capable AI needs stronger safeguards.Elon Musk has backed the broader concern. Michael Burry? → He thinks they’re selling something. His argument, essentially: If you tell the world your technology is almost too powerful to control, you’re also telling investors it’s extraordinarily valuable. Then there’s the timing. OpenAI and Anthropic are both moving toward eventual...