Amazon's (NASDAQ: AMZN) earnings report on Thursday sent the stock lower, worsening an already difficult 2026 for the stock. Shares are now down more than 10% year to date. Investors were digesting the company's mind-boggling guidance for 2026 capital expenditures of about $200 billion. These aggressive investments will be driven, in large part, by the company's effort to support fast-growing demand for its cloud computing business, Amazon Web Services (AWS). But should the stock really be selling off bec ...

Just when you thought the circular dealmaking across the AI scene couldn't pick up any more traction, news breaks that e-commerce and hyperscaler Amazon (NASDAQ:AMZN) is chatting with OpenAI about a potential $10 billion investment and a deal to start using Amazon chips. ...

Group 1: OpenAI and Amazon Investment - OpenAI is reportedly in talks with Amazon to raise over $10 billion, which would value OpenAI at more than $500 billion and involve the use of Amazon's chips [3][37] - The investment aims to diversify Amazon's AI partnerships, especially as competitors like Anthropic pivot towards Google TPU for their workloads [7][30] Group 2: Oracle and Data Center Challenges - Oracle's Michigan data center project is facing funding challenges after talks with Blue Owl stalled, raising concerns about Oracle's role in the AI buildout [4][37] - Analysts suggest that Oracle's reliance on OpenAI for revenue growth could limit its ability to fund its data center expansion if OpenAI fails to meet its revenue targets [6][30] Group 3: Micron's Earnings and AI Impact - Micron is expected to report a 16% revenue increase, heavily tied to the demand for high bandwidth memory chips driven by AI applications [9][19] - Memory chip prices have surged, with DRAM prices increasing by 70% in the current quarter and projected to rise another 40% next quarter, impacting smartphone manufacturing costs [21][22] Group 4: Smartphone Market Forecast - The global smartphone market is projected to see a 2.1% decline in shipments next year, a significant shift from the 3% growth experienced this year, largely due to rising component costs and inflation [24][27] - Companies may face tough decisions on whether to absorb increased costs or pass them onto consumers, potentially leading to postponed upgrades [23][24] Group 5: Market Sentiment and AI Sector Dynamics - The AI sector is experiencing volatility, with concerns about capital expenditures and funding for projects like those involving Oracle and OpenAI [38][39] - The market is seeing a rotation in AI-related stocks, with a focus on diversification as companies navigate the complexities of the AI landscape [41][42]

Group 1 - OpenAI is in discussions with Amazon regarding a potential investment that could exceed $10 billion, along with the use of Amazon's chips for OpenAI's technology [1] - Whimo, a self-driving car company, is planning to raise $15 billion in 2026, with a valuation potentially reaching $110 billion, through funding from its parent company Alphabet and outside investors [2] - Spirit Airlines is in negotiations to merge with Frontier Airlines, with a deal possibly being announced by the end of the month, leading to a 4.7% increase in Frontier's shares [3] Group 2 - LAR, a homebuilder, has missed fourth-quarter profit estimates, with co-CEO citing ongoing pressure in the housing market due to affordability issues and declining consumer confidence, resulting in a 4.3% drop in the company's stock [4] - The Trump administration is reportedly working on an executive order aimed at expediting production processes for defense contractors, which may include restrictions on stock buybacks and dividend payments [3]

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