Listen on the go! A daily podcast of Wall Street Breakfast will be available by 8:00 a.m. on Seeking Alpha, iTunes, Spotify.Getty Images Good morning! Here is the latest in trending:Saudi visit: President Trump approves an F-35 sale, as well as a major non-NATO ally status. MBS also raised his investment commitment to $1T, while Elon Musk visited for a gala dinner.Real estate: Home values have declined for more than half of U.S. households in the past year, according to Zillow (Z), but it's not a crash.Sel ...

This is The Takeaway from today's Morning Brief, which you can sign up to receive in your inbox every morning along with: What we're watching What we're reading Economic data releases and earnings The scene at the AI party right now is a confusing one. At the same moment the industry's loudest cheerleaders are insisting that the night is still young, some of the more influential partygoers are heading for the exits or have already left. Take Nvidia (NVDA), which operates as a financial and cultural s ...

Fine, but it’s easy to forget that it took more than eight years for Amazon’s stock price to return to its March 1999 pre-crash level. And then there’s Cisco Systems Inc., whose journey was even more arduous: Its post-dot-com crash recovery was finally completed on Monday. BloombergThe leading AI chipmaker is expected to post 57% year-on-year revenue growth. Forecasts point to fiscal 2026 revenue hitting a staggering $208 billion. The ramp-up of production for its next-generation of hardware is said to be ...

Group 1: AI Market Dynamics - The S&P 500 has experienced a decline over the past four days, with major investors like Peter Thiel selling stakes in companies such as Nvidia, indicating concerns about the AI bubble [1] - Historical context is provided by comparing the current situation to the internet bubble of 2000, where the S&P fell 49% over 31 months, yet the underlying technology continued to evolve and impact the world [2] - AI is positioned as the next transformative technology, expected to surpass the internet in its impact, necessitating that business leaders focus on preparing for significant changes rather than reacting to market fluctuations [3] Group 2: Future of AI and Business - Companies are encouraged to consider when they will allow AI to autonomously manage financial transactions, with CFOs expressing cautious optimism about this capability within certain limits [3] - The concept of Artificial General Intelligence (AGI) is introduced, with experts predicting its arrival between the late 2020s and early 2030s, presenting unique challenges for organizational management [4] - The emergence of one-person billion-dollar companies is anticipated, with industry leaders betting on the timeline for such developments, highlighting the competitive landscape shaped by AI [5] Group 3: Market Reactions and Earnings - Wall Street is awaiting Nvidia's earnings report, which is expected to provide insights into the economic fundamentals of the AI sector amidst fears of an AI bubble [7] - The performance of AI-focused companies is critical, as their yearly gains are concentrated among a select few, raising concerns about sustainability if AI revenue does not align with spending [7]

The back-of-the-envelope math is harsh: AI capex coming from tech companies listed in the S&P 500 is $400 billion or more per year, going forward. The biggest AI company—OpenAI, the maker of ChatGPT—has disclosed revenues of just $13 billion for 2025. Altman recently said revenues were “well more” than that , hinting they may hit $100 billion in 2027. But that’s still nowhere near the level of capex it’s committing to.On one level, that’s normal: Most industries feature a collection of companies that do bus ...

Bitcoin, crypto market wavers as Japan's bond yield hits ATH ahead of Nvidia earnings, FOMC minutes release and Nonfarm payroll jobs data — Source: CoinGape Crypto market braces for Yen carry trades unwind as Japan's long-term bond yield hits new high. Bitcoin, Ethereum, XRP and other altcoins pare gains ahead of Nvidia earnings, FOMC minutes, NFP jobs data. Bull-Bear Structure Index signals continued dominance of bearish factors. Bitcoin, Ethereum, XRP and other altcoins pare gains as the crypto ...

(Reuters) -Elon Musk’s artificial-intelligence startup xAI (XAAI.PVT) is in advanced talks to raise $15 billion in fresh ​equity at a valuation of $230 billion, the Wall Street ‌Journal reported on Tuesday. The fundraising terms were outlined to investors by Musk’s wealth manager, ‌Jared Birchall, on Tuesday night, the report said. It was not clear whether the valuation figure Birchall shared was pre- or post-money, the paper added. Reuters could not immediately verify the report. Jared ⁠Birchall could n ...

Core Viewpoint - The ongoing discussion among experts suggests that the artificial intelligence (AI) sector may be experiencing a bubble, with notable figures like Sam Altman and Mark Zuckerberg expressing concerns about overexcitement among investors [1][2]. Group 1: Expert Opinions on AI Bubble - Sam Altman, CEO of OpenAI, believes that the current excitement around AI indicates a bubble, similar to the internet bubble [1]. - Mark Zuckerberg acknowledges the possibility of an AI bubble, drawing parallels to past infrastructure buildouts that led to bubbles [1]. - Former Intel CEO Pat Gelsinger confirms the existence of an AI bubble and predicts it will persist for several years [2]. Group 2: Company Perspectives - Sundar Pichai, CEO of Alphabet, states that while the excitement for AI is rational, there are elements of irrationality, and no company will be immune if the AI bubble bursts [3][4]. - Pichai emphasizes the transformative potential of AI, comparing it to the internet's impact on society [4]. - Marc Cieslak notes that Google's diverse business model and substantial revenue provide some insulation from the bubble concerns, although companies like OpenAI are not immune [5]. Group 3: AI Technology Challenges - Pichai addresses the issue of AI hallucinations, acknowledging that current AI technology is prone to errors despite efforts to ensure accuracy [6].

Market Overview - The U.S. stock market experienced a decline, with the S&P 500 falling by 0.8%, the Dow Jones Industrial Average dropping by 498 points (1.1%), and the Nasdaq composite decreasing by 1.2% [1][11] - Nvidia was a significant contributor to the market's decline, with its stock price dropping by 2.8%, resulting in a month-to-date loss exceeding 10%, which is classified as a correction [2][4] Nvidia's Impact - Nvidia's substantial market capitalization makes it a key influencer on Wall Street, often affecting the S&P 500's direction [3] - The company's stock price has more than doubled in four of the last five years, indicating its rapid growth and the potential for volatility [5] Investor Sentiment - A recent survey by Bank of America Global Research revealed that 45% of global fund managers identified an AI bubble as the top risk for the market, surpassing concerns about the bond market, inflation, and trade wars [6] - Investors are increasingly concerned about overinvestment in AI technologies, with fears that the anticipated returns may not materialize as expected [7] Other Market Influences - Bitcoin's price fluctuated, briefly falling below $90,000 before recovering to around $93,000, reflecting volatility in the cryptocurrency market [8] - Home Depot's stock fell by 6% after reporting weaker-than-expected summer profits, attributing the decline to a lack of storms and consumer uncertainty in the housing market [9] Upcoming Earnings Reports - Nvidia's upcoming profit report is critical, as it could either stabilize its stock price or exacerbate its decline [10]

Market Overview - US stocks retreated amid concerns about an AI bubble and the broader US economy, with significant earnings reports and jobs data on the horizon [1][3] - The Dow Jones Industrial Average fell approximately 1.1%, or nearly 500 points, while the Nasdaq Composite and S&P 500 declined by nearly 1.2% and roughly 0.8%, respectively [2] Company-Specific Insights - Nvidia's third-quarter results are anticipated, as investors reassess the sustainability of the AI-driven market rally; Nvidia's shares fell around 2.7% on Tuesday, contributing to a broader decline in Big Tech stocks [4] - Amazon and Microsoft also experienced declines of approximately 4.3% and 2.7%, respectively, reflecting the overall market sentiment [4] Economic Indicators - The upcoming September jobs report is crucial for shaping expectations regarding the Federal Reserve's policy moves, especially following the delay in official data releases due to the US shutdown [5] - ADP data indicated a slowdown in job losses in the private sector, while earnings reports from major retailers like Home Depot, Walmart, and Target are expected to provide insights into consumer strength ahead of the holiday season [6]