The software squeeze
At range highs, it is difficult to get greedy. Source: TME, LSEG Workspace
Nvidia will launch a PC “superchip” this year as the semiconductor giant goes head-to-head with Apple, Qualcomm, Intel and AMD for the first time.
Computer makers including Dell, Asus and HP will use what Nvidia claims is “the most efficient PC chip ever built”, paired with Microsoft’s Windows software, Nvidia chief executive Jensen Huang announced on Monday. The launch marks a major competitive shift in the consumer PC industry and a new business line for $5.1tn Nvidia. The company, best known for its dominance of semiconductors for AI infrastructure, is pushing beyond its traditional graphics cards into integrated chips that power the whole PC. Lenovo, Microsoft, Acer and Taiwan’s MSI will also use the product. Source: FT
Jevon-paradox Token usage (blue bars) is exploding higher. It started in January when Agentic AI went mainstream with Claude Cowork and Moltbook (OpenClaw).
AI users are creating agents and code, leading to exponential growth in AI usage. It's just starting. Source: a16z, Jim Bianco
44% of every dollar companies spend on AI goes directly to fixing bugs that the AI itself created.
A report from Entelligence AI across 2,444 companies shows that for every $1 spent on AI tokens, $0.44 goes to bug fixes, $0.27 to rewriting AI-generated code, and $0.11 disappears into review and merge delays. Companies spending $100,000 on AI tokens and only $18,000 worth is reaching production. The other $82,000 is overhead generated by the tool itself. Lightrun's 2026 report found that 43% of all AI-generated code still requires manual debugging in production even after passing every quality test. Not a single engineering leader surveyed said they were fully confident AI code would behave correctly once deployed. Wall Street is pricing AI as a productivity tool and the data says 82% of the spend never reaches the actual product. SOURCE: @Aiswarya_Sankar Sam Boboev
This market is all about tech. That goes for US as well as global markets.
Source: UBS, TME
Semi-conductors are going vertical. The SOX index is up 18% from the “momentum” washout lows just a few sessions ago.
The bounce off the 21-day moving average has been nearly perfect, although the current upside panic is starting to look increasingly extreme. SOX monthly RSI is now at 87, the highest level since the dot-com bubble. Source: TME
Wondering why memory chips stocks are exploding? A quarter of the BOM (Bill of Materials) of the hyperscalers is going to memory, up from 7%.
Good thing hyperscalers are printing cash... Source: zerohedge
GOOGLE JUST SHOWED HOW INSANE AI DEMAND HAS GOTTEN
Monthly tokens processed across Google surfaces: May 2024: 9.7T May 2025: ~480T May 2026: 3.2Q+ That is 7x Y/Y growth. Source: Wall St Engine
