Wall Street Brunch: AI Trade Comeback

Market Overview - Wall Street experienced a solid rebound, with the Nasdaq rising by 2.6%, the S&P 500 increasing by 1.5%, and the Dow adding 0.4% [3] - Nine of the eleven S&P sectors finished higher, with Communication Services leading the gains [3] - The VIX index slid toward 20, easing fears of an imminent AI bubble burst, contributing to bullish market sentiment [3] Company-Specific Developments - Tesla's stock rallied after Elon Musk emphasized the company's advancements in AI chip design [3] - Novo Nordisk's stock declined after the company reported that its pill version of the weight-loss drug Ozempic did not slow Alzheimer's progression in two large studies [3] - Credo Technology and Broadcom saw stock price increases as semiconductor and AI-linked companies surged [3] Notable Investor Activity - Michael Burry, known for his "Big Short" investment strategy, launched a Substack newsletter titled "Cassandra Unchained," which aims to provide market analysis and projections [3] - Burry's newsletter is expected to offer insights into market trends and bubble-spotting through a historical perspective [3] Industry Financing Projections - HSBC estimates that OpenAI may require $207 billion in new financing by 2030, driven by projected compute capacity and rental costs [4] - Analysts highlighted the importance of flexibility for OpenAI in adjusting commitments based on demand, revenue, and access to capital [4]