This chart says it all: US tech valuations have compressed from 40x to 20x Forward P/E in weeks.
Tech valuations are now LOWER than they were when ChatGPT was announced. As the Iran War drives markets lower, AI is only getting bigger. A buying opportunity? Source: Apollo, The Kobeissi Letter
BESSENT SUMMONED WALL STREET CEOS TO DISCUSS ANTHROPIC’S MYTHOS
Claude Mythos is Anthropic's newest and most powerful AI model, announced just this week. It is described as "by far the most powerful AI model" Anthropic has ever developed — a step above even the Opus tier models, representing an entirely new tier of capability. Anthropic has deemed the model too dangerous for broad public release due to its extraordinary cybersecurity capabilities. It is currently only available to a select group of partners. Claude Mythos is apparently so good that Bessent and J. Powell summoned the bulge bank CEOs in a meeting to make sure they’re aware of how good Claude Mythos really is. Execs summoned include include $C Jane Fraser, $MS Ted Pick, $BAC Brian Moynihan, $WFC Charlie Scharf, and $GS David Solomon. Jamie Dimon $JPM couldn’t make it. More specifically, the meeting was about Mythos’s offensive and defensive cyber capabilities. Source: Negligible Capital
Goldman Sachs: "We have seen one of the weakest periods of relative returns for technology over the past 50 years."
Source: Brian Sozzi @BrianSozzi, Goldman Sachs
🚨HAVE US TECH STOCKS PEAKED?
Tech, telecom, and healthcare stocks now make up 44% of global market cap, matching the 2000 Dot-Com bubble peak. Back then, this level marked a major turning point, followed by years of underperformance. Meanwhile, financials, energy, and materials have risen to 25%, mirroring the same early-cycle recovery pattern seen after the Dot-Com peak. Will industrials OUTPERFORM over the upcoming decade? Source: Global Markets Investor
China Dominates the Humanoid Robot Market
China’s Unitree Robotics stunned 1 billion viewers with fully autonomous kung-fu humanoid robots, available today for $16,000. Germany’s Chancellor visited Hangzhou, signaling the West is noticing. Unitree leads globally with 90% of shipments, 330+ models, and 140+ manufacturers, while Tesla’s Optimus remains in R&D and unavailable commercially. State support, aggressive pricing, and mass deployment mirror China’s EV strategy. The physical intelligence revolution is live in China, leaving Silicon Valley behind unless Tesla captures significant market share by 2027. Source: Shanaka Anslem Perera @shanaka86
Amazon Is Hiring Robots While Cutting Human Jobs
Source: Visual Capitalist
A tale of two tech markets semis versus software
Source. TME, Bloomberg / Kevin Gordon
Wondering why memory chips stocks are on fire? Just watch the chart below courtesy of Bloomberg.
Nvidia's chips consume more RAM witch each generation. Rubin requires as much memory as several powerful PCs.
