Core Viewpoint - A global shortage of memory chips is emerging, significantly impacting profits, corporate strategies, and prices across various sectors, including consumer electronics and automotive industries. This situation is expected to worsen as demand from AI data centers escalates [1][2]. Group 1: Industry Impact - Major corporations like Tesla and Apple have indicated that the shortage of DRAM will limit production capabilities, with Apple warning of compressed iPhone margins [2][8]. - The demand for memory chips is being driven primarily by AI data centers, with companies like Alphabet and OpenAI consuming a large share of production to support their applications [4][17]. - The price of DRAM has surged dramatically, with one type increasing by 75% from December to January, leading to daily price adjustments by retailers [5][12]. Group 2: Corporate Responses - Companies are adapting to the crisis; for instance, Tesla is considering building its own memory fabrication plant to mitigate supply issues [2][3]. - Sony is contemplating delaying the launch of its next PlayStation console to 2028 or 2029 due to the memory shortage, which disrupts its strategic planning [9]. - Chinese smartphone manufacturers are reducing shipment targets, with Oppo cutting its forecast by up to 20% for 2026 [10]. Group 3: Future Projections - Analysts predict that memory chip prices will continue to rise, with Bernstein's Mark Li stating that prices are going "parabolic," benefiting manufacturers like Samsung and Micron while hurting the broader electronics sector [7][22]. - The demand for high-bandwidth memory (HBM) is expected to increase by 70% year-over-year in 2026, further straining the supply of standard DRAM [19][21]. - The current supply-demand imbalance is projected to persist throughout the year, with significant implications for various industries, including automotive and telecommunications [22][23]. Group 4: Economic Implications - The rising costs of memory chips could lead to DRAM accounting for up to 30% of the bill of materials for low-end smartphones, tripling from 10% in early 2025 [25]. - Companies across the electronics sector are warning consumers to prepare for higher prices, particularly ahead of key midterm elections in the US, where inflation may become a critical issue [25][26].

Group 1 - NVIDIA Corporation remains the largest position for billionaire Christopher Rokos, while Alphabet Inc. ranks second with a 4.16% portfolio share, equivalent to $969.18 million [1] - Alphabet Inc. sold $20 billion in a seven-part senior unsecured offering, indicating a shift in balance-sheet strategy driven by AI-related capital intensity [2] - The issuance aligns with a broader trend where hyperscalers are increasing borrowing to finance processors and data centers, with the five largest hyperscalers having issued $121 billion in bonds last year and expected to spend about $500 billion on AI infrastructure in 2026 [3] Group 2 - Following a guidance announcement, Alphabet's capital expenditures are projected to nearly double from $91.45 billion in 2025 to between $175.00 billion and $185.00 billion in 2026, as the company scales its AI and cloud workloads [4] - Alphabet operates various segments including Google Services, Google Cloud, and Other Bets, generating revenue from digital advertising, cloud infrastructure, AI-powered enterprise services, and emerging technologies [5]

While NVIDIA Corporation (NASDAQ:NVDA) remains the billionaire’s largest position, Alphabet Inc. (NASDAQ:GOOGL) ranks 2nd on the list of Christopher Rokos’ top holdings with a 4.16% portfolio share ($969.18 million). We recently published a list of youngest hedge fund billionaires and their top stock picks. As reported by Reuters on February 9, 2026, Alphabet Inc. (NASDAQ:GOOGL) sold $20 billion in a seven-part senior unsecured offering, according to IFR data, tapping the U.S. high-grade bond market. Thi ...

Corporate Earnings - Treasury Wine Estates (TWE) reported a statutory net loss of AUD 649.4 million for the first half of fiscal 2026, primarily due to a non-cash writedown of its U.S. business and a settlement with a major distributor, but achieved an adjusted net income of AUD 128.5 million on revenue of AUD 1,297.7 million, with management optimistic about the second half of the year [2][8] - JB Hi-Fi Ltd (JBH) demonstrated resilience in the retail sector, reporting a net income of AUD 305.8 million on total sales of AUD 6,085.3 million, and declared an interim dividend of 210 AU cents per share [3][8] - Bendigo and Adelaide Bank Ltd (BEN) outperformed analyst expectations with an adjusted net income of AUD 256.4 million and revenue of AUD 1,021.1 million, supported by a net interest margin of 1.9% and a CET1 capital ratio of 11.4%, declaring a 30 AU cent interim dividend [4][8] Global Markets - Alphabet Inc. (GOOGL) successfully closed a $20 billion bond offering to fund its expansion into generative AI, including a landmark £1 billion "century bond" maturing in 2126, indicating long-term investor confidence [5][8] - Chinese authorities are tightening regulations on influencer marketing to mitigate speculative behavior in the stock market, with new rules prohibiting unlicensed financial advice and leading to the suspension of accounts spreading misinformation [6][8]

Company Insights - Walmart is expected to report fiscal Q4 EPS of $0.73 on revenue of $188.54 billion, with same-store sales forecasted to rise about 4.2% [3] - Walmart has recently joined the $1 trillion market-cap club, indicating strong market performance [3] - Grassroots Trading rates Walmart as a Strong Sell, citing extreme valuation and limited margin of safety if multiples revert [4] Economic Indicators - Economists anticipate Q4 GDP growth to be around 2.8%, with Wells Fargo suggesting it could be closer to 1.6% when accounting for the impact of a government shutdown [5][6] - The core PCE price index, which is the Fed's preferred inflation gauge, is forecasted to increase to 3% year over year [7] Market Events - The Supreme Court is expected to rule on President Trump's tariffs soon, with prediction markets indicating a 27% chance of ruling in favor of the tariffs [8][9] - Nvidia's CEO will not attend the India AI Impact Summit due to unforeseen circumstances, but the company remains committed to the event [9][10] Dividend Information - Chevron, ConocoPhillips, Hasbro, and Microsoft are set to go ex-dividend this week, with payout dates in March [10][11] Research Developments - Goldman Sachs has launched a software pair-trade basket, going long on companies perceived as insulated from AI disruption and short on those seen as vulnerable [11][12][13]

Core Insights - Amazon and Alphabet announced significant increases in their AI-related capital expenditures for 2026, with Alphabet planning to spend between $175 billion and $185 billion, while Amazon aims for approximately $200 billion [1][2]. Group 1: Investment Plans - Both companies are heavily investing to meet the rising demand for computing power from AI developers, including their own projects [2]. - The substantial capital expenditures will likely lead to a decline in free cash flow for both companies, potentially approaching $0 or becoming negative in 2026 [4]. Group 2: Financial Health - Alphabet may avoid negative free cash flow in 2026, having generated $165 billion in operating cash flow in 2025, with growth expected as its cloud business scales [5]. - Alphabet ended the year with $127 billion in cash equivalents and marketable securities, but plans to raise $32 billion in debt for data center expansion, adding to its existing long-term debt of $36 billion [6]. - Amazon is expected to experience negative free cash flow, with its operating cash flow of $140 billion not growing as rapidly as Alphabet's, making it unlikely to achieve the necessary growth to cover its $200 billion capital expenditures [7].

Key TakeawaysUS military forces boarded a sanctioned oil tanker in the Indian Ocean, marking a significant escalation in President Donald Trump’s energy blockade against illicit oil shipments.California gasoline prices are projected to hit $8.00 per gallon by late 2026 as the state resorts to shipping fuel via the Bahamas to bypass the Jones Act and compensate for shrinking refinery capacity.Hungarian opposition leader Peter Magyar has entered the final stretch of his campaign for the April 12 election, wit ...

Core Insights - In 2025, Netflix reported $45 billion in revenue, a 16% increase year over year, with 325 million subscribers across over 190 countries, highlighting its role in pioneering video entertainment [1] - YouTube, however, is emerging as a dominant player in the industry, surpassing Netflix in revenue and engagement metrics [4][7] Company Performance - YouTube generated over $60 billion in revenue in 2025, with approximately $40 billion from ads and the remainder from subscriptions, making it 33% larger than Netflix in terms of sales [4] - YouTube Music Premium is experiencing strong growth, competing directly with Spotify and Apple Music, while NFL Sunday Ticket is also contributing to subscription growth [5] Market Position - YouTube has maintained its position as the No. 1 streaming platform in the U.S. for nearly three years, capturing 12.7% of TV viewing time compared to Netflix's 9% [7] - The platform benefits from a powerful network effect, increasing its value as it grows, which enhances engagement and monetization opportunities for content creators [8]

The stock market turmoil unleashed by the artificial-intelligence industry reflects two fears that are increasingly at odds. One is that AI is poised to disrupt entire segments of the economy so dramatically that investors are dumping the stocks of any company seen at the slightest risk of being displaced by the technology. The other is a deep skepticism that the hundreds of billions of dollars that tech giants like Amazon.com Inc., Meta Platforms Inc., Microsoft Corp. and Alphabet Inc. are pouring into AI ...

While there were many preceding events that led to the rise of artificial intelligence (AI), the launch of OpenAI's ChatGPT in November 2022 seemed to really trigger the start of what some are calling the fourth industrial revolution. ChatGPT took the internet by storm, and consumers were floored by the chatbot's capabilities, including its human-like conversational skills and its ability to generate content and images. ChatGPT caught on like wildfire and quickly became the fastest-growing consumer app of ...