Yesterday was all about the OpenAi missed targets story. OpenAi ecosystem has underperformed the Google AI ecosystem (-45%) aggressively since the end of January.
Source: RBC, Bloomberg
Almost half of the semiconductor index names are showing Bubble Risk Indicator levels above 0.8, and two thirds above 0.7, according to Bank of America.
Source: Markets & Mayhem
I know that comparing market cap with country GDP does not make too much economic sense.
Source: shirish @shiri_shh on X
Chegg $CHGG is now down 99% from its peak because AI has killed its business entirely.
Chegg was a $14.7 billion edtech company that charged students $20 a month for homework answers from a database of 79 million solutions built over a decade. Then ChatGPT launched in November 2022. Five months later Chegg's CEO admitted it was destroying their business. The stock dropped 48% in a single day. Revenue dropped 49% by Q4 2025. Subscribers collapsed from 5 million to under 3 million. The company fired 67% of its staff in two rounds last year and shut down all US and Canada offices. AI does the same thing instantly for free and explains the concept behind it. It went From $14.7 billion marketcap to $114 million in 39 months. The first company to be officially killed by AI. Source: Bull Theory
S&P 500 $SPX now trading at the very top of its 8-year trend line
Source: Barchart
Goldman: We estimate that AI investment will drive roughly 40% of S&P 500 EPS growth this year, and just a few Tech stocks have driven the majority of recent index EPS revisions.
Our EPS forecasts this year and next are close to the top-down strategist consensus. Risks to our forecasts are two-sided, but AI skews those risks to the upside. Source: Neil Sethi
These are the S&P 500’s top 10 performers based on year-to-date (YTD) performance:
1. 🇺🇸 Sandisk Corporation (SNDK): 317% 2. 🇺🇸 Lumentum Holdings (LITE): 139% 3. 🇺🇸 Western Digital (WDC): 134% 4. 🇺🇸 Intel Corporation (INTC): 124% 5. 🇺🇸 Ciena Corporation (CIEN): 123% 6. 🇺🇸 Teradyne (TER): 116% 7. 🇺🇸 Seagate Technology (STX): 113% 8. 🇺🇸 Coherent Inc. (COHR): 101% 9. 🇺🇸 Vertiv Holdings (VRT): 100% 10. 🇺🇸 Comfort Systems USA (FIX): 85% Source: Stocks World
42% of the S&P 500 companies report earnings this week
Source: zerohedge, BofA
