The Jensen Huang Situation

Nvidia (NVDA) has lost hundreds of billions of dollars in market value after the discovery CEO Jensen Huang was having an extramarital affair with a Chinese spy. But here's the truly fascinating part: Wall Street's earnings expectations have actually gone up.

Analysts currently expect Nvidia to earn $15.93 per share next year. A week ago, that estimate was $15.91. Ninety days ago? $12.84. In other words, Nvidia's stock is collapsing while Wall Street's expectations for the business continue moving higher.

At $170 per share, Nvidia trades for around 10.5 times next year's expected earnings. That's remarkable for a company analysts currently expect to grow earnings 71% next year.

I'm taking the Jensen Huang situation seriously. The lawsuits are real. The government investigations are real. The possibility of tighter Asian restrictions are real. And there's now a level of key-person risk around Huang that I certainly wasn't modeling a week ago. But none of those things have changed the numbers yet.

Until they do, I'm holding my Nvidia shares. If you've got the stomach for what could be a very volatile few weeks, I suggest you do too.

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Greg Guenthner:

Anthropic's IPO Is Said To Be Multiple Times Oversubscribed As Roadshow Gets Under Way

Anthropic has drawn orders for multiple times the stock on offer in its initial public offering, according to Bloomberg. The demand stemmed from large, anchor-style expressions of interest, and the terms of the listing may still shift.

Through the IPO and a private placement, Anthropic and its co-founders could raise as much as $90.4 billion combined at the top of the price range, according to its filings. The two offerings together would surpass SpaceX's IPO in size and set a new record for a stock market debut.

The company is aiming for a fully diluted valuation of roughly $1.4 trillion. The valuation target is below the roughly $1.5 trillion investors expected a week ago.

Goldman Sachs (GS) and Morgan Stanley (MS) are leading the IPO alongside 20 additional banks, according to the filing. The stock is expected to be listed on the Nasdaq Global Select Market with the ticker ANT.

The company plans to price the offering on Nov. 18 and begin trading on Nov. 19.

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Chris Campbell:

Man Who Lost $308,000 on Sports Bets Sues Kalshi for Offering Illegal Gambling

A man who lost over $308,000 making sports wagers on Kalshi is suing the prediction market for violating the state of Washington's ban on online gambling. He's trying to turn those losses into an overall victory with a lawsuit seeking a payment of over $580,000.

Bellevue, Washington, resident Scott Bright's "wagering occurred at a time when it was unlawful in Washington and when the Washington Attorney General had already sued KalshiEX LLC in this Court alleging precisely that," said the gambler's lawsuit filed on September 24 in King County Superior Court. Kalshi has since filed a motion to dismiss the lawsuit.

While state attorneys general throughout the U.S. are trying to shut down Kalshi for allegedly violating state gambling laws, Bright's case tests whether unsuccessful gamblers can obtain restitution from the company through individual lawsuits.

Even if Bright's lawsuit fails, gamblers who lost on Kalshi could get money back through the lawsuits filed by state governments. For example, Washington's lawsuit against the company said the attorney general "is entitled to recover all money Washingtonians have lost through Defendant Kalshi's illegal gambling operation" under the state's Recovery of Money Lost at Gambling Act. Washington already won a court order restricting the kinds of wagers Kalshi can offer in the state, but it took effect after Bright's losses.

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Nvidia and Jensen Huang Sued in U.S. Over Affair With Alleged Chinese Spy

Nvidia and its chief executive, Jensen Huang, have been accused of misleading shareholders in a lawsuit over the Chinese spying scandal engulfing the $4.3 trillion company.

The legal action came as President Trump said the FBI was investigating Huang’s affair with an alleged Chinese spy.

According to a complaint filed in federal court in California, Nvidia and Huang misled shareholders in connection with the executive’s alleged affair with Alice Huang, a former executive of Singapore-based ⁠Megaspeed, who is not related to him.

The lawsuit claims both parties did not disclose that the matter raised national security concerns that threatened the chipmaker’s reputation and business prospects.

The New York Times reported on the alleged relationship last month, and said U.S. authorities had concluded Alice Huang was a Chinese intelligence asset. Nvidia described its executive’s interaction with Alice Huang as “not unusual or unexpected” in a comment submitted to the New York Times last month.

On Sunday, Huang admitted he had been “unfaithful” to his wife, without identifying the person involved in the affair.

The lawsuit claims the NYT statement was “materially false and misleading at the time it was made because Jensen Huang had an affair with Alice Huang.”

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Chris Campbell:

School Buses Are Becoming AI-Powered Ticket Machines

AI cameras are turning America's school buses into mobile traffic enforcement systems, and there's plenty of money to be made in this business.

An investigation by Bloomberg and Type Investigations earlier this year reported that BusPatrol equipped around 35,000 buses across 24 states. Its cameras flag suspected illegal passing, with police reviewing evidence before tickets are issued.

In Montgomery County, Maryland, the investigation tallied more than 375,000 tickets and $92 million in issued fines. Those are some stunning figures, but the research found little reduction in violations and no evidence of fewer collisions near stopped buses.

The technology itself does more than photograph license plates. Allentown School District describes a process combining footage, GPS coordinates, and timestamps. AI filters incidents before a trained specialist builds an evidence package for police. All parties involved insist that human review remains part of the process, rather than software simply mailing out fines.

This is another example of AI cameras being used for more than reading license plates, though other cases can be just as controversial. It was reported in September that Dallas has mounted AI cameras on garbage trucks to flag property violations and assign homes a "blight score," prompting concerns about privacy and unfair fines.

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Davis Wilson:

Anthropic Sets IPO Price Range of $70 to $78 per Share

Anthropic intends to push ahead with its IPO despite shakier markets and the broader pullback from AI investing.

The Claude-maker said in an updated IPO filing on Tuesday that it would be offering a total of 825 million Class A shares at an estimated price range of $70 to $78 per share. The sale is expected to raise anywhere from $57.75 billion to $64.35 billion.

The company could end up being worth a hefty $1.404 trillion if its shares list at the top of the price range, on a fully diluted basis. That would represent a significant jump up from the $965 billion valuation Anthropic reached in a May fundraise, but it’s still lower than the $2 trillion the company was reportedly targeting a couple months ago.

Separately, Anthropic said it had struck a deal to privately sell $26 billion of non-voting Class N stock at the IPO price to AMD, Broadcom, Google, Micron, Microsoft, Nvidia, and TSMC. Google and Nvidia are investing $10 billion apiece.

All up, Anthropic estimates net proceeds to reach somewhere between $84.6 billion and $93.7 billion (the latter if the IPO underwriters exercise their option to buy additional shares).

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Nvidia's Board Launches Investigation Into CEO Jensen Huang's Affair With an Alleged Chinese Spy

Nvidia's (NVDA) board is launching an independent investigation into reports that a woman CEO Jensen Huang was having an affair with was allegedly spying on him for the Chinese government. Nvidia stock fell 4% before the bell on Monday.

In an email to employees Sunday, Huang admitted to the affair.

"I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry," Huang wrote.

The revelations come after reports of ties between Huang and a woman believed to be passing information to the Chinese government.

Last month, the New York Times reported the U.S. intelligence service believed a Chinese national named Alice Huang, a former leader at Megaspeed, an Nvidia chip customer, and someone with a well-documented relationship with Huang himself, may have acted as an intelligence asset, sharing information with the ruling party in Beijing.

Following Huang's confession, investors are left wondering whether he will remain CEO of Nvidia, and if not, what that means for the company.

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Davis Wilson:

17 Stocks. 5 Technologies. Here's What I'd Buy.

Last week, Paradigm Press hosted our annual Paradigm Shift Summit in Nashville. For me, the best part was talking with so many subscribers face-to-face. And I walked away from those conversations with one big takeaway: A lot of people could use a portfolio reset.

For those folks, here's my current list of stocks I think are BUYS right now…

Let's start with hyperscalers and AI platforms: Amazon (AMZN), Alphabet (GOOG), Meta (META), and Microsoft (MSFT). AI gives these four companies another massive growth engine on top of businesses that already dominate their markets.

Then there's AI chips and infrastructure: Nvidia, AMD (AMD), Micron (MU), and Corning (GLW). Corning is my less obvious pick.

For cybersecurity, we have CrowdStrike (CRWD) and Palo Alto Networks (PANW). AI is giving hackers increasingly sophisticated tools, which is bullish for cybersecurity spending.

For space – SpaceX (SPCX), Rocket Lab (RKLB), and AST SpaceMobile (ASTS). All three are attacking different parts of the same enormous opportunity.

And for next-generation energy, there's Bloom Energy (BE), Solstice Advanced Materials (SOLS), Albemarle (ALB), and Lithium Americas (LAC). The AI boom has created an energy problem. But energy isn't one technology.

Get the rest of my thoughts on these stocks by clicking the link below!

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Ari Goldschmidt:

Musk Says Tesla Will Refund Some Cybertruck Deposits, Defends Decision To End Production

Tesla will shut down production of the Cybertruck in about eight months CEO Elon Musk said in an X post on Monday. He also said the company will try to make as many of the vehicles as possible before then, though Tesla will "have to return deposits for a lot of people."

Musk argued the Cybertruck was not unprofitable, and that Tesla was ending production because the "opportunity cost of the complexity of Cybertruck is vastly outweighed by the value of incremental Cybercab production."

In other words, Musk is arguing that Tesla can make more money by using the factory space and resources dedicated to the Cybertruck for building Cybercab robotaxis. Musk said last week that Tesla plans to use the factory space to build more two-seater Cybercabs.

The first Cybertrucks were delivered to customers in late 2023. Reservations for the vehicle had ballooned to 1 million, according to Musk, who also predicted that the company would sell around 250,000 of the trucks annually.

But those reservations never translated into actual sales. Tesla doesn’t break out sales of the Cybertrucks, but industry experts estimate a total of about 71,000 Cybertrucks have been sold since the first deliveries began in November 2023.

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The Blue Wave Has Tech Bros Scrambling for Data Centers in Space

A wave of Democratic candidates across the country – and notably in Texas, a national data center hot spot and home to Elon Musk's SpaceX – won their state and congressional races on Tuesday, including many candidates who voiced opposition to the data center industry. The results have sent some corners of the tech industry looking to the heavens for answers.

In recent hours, data center enthusiasts have proclaimed on social media that they're still "bullish" on building data centers – just not necessarily in Texas, or even on Earth at all. Instead, they say, it's time to focus on data centers in space.

"Data centers in space looking pretty appealing right now," Elon Musk posted on X in the early hours of Wednesday, after it was clear that Democrats had taken the House and Senate. Throughout the day, Musk employees, tech investors, AI researchers, venture capitalists, and industry fans joined the chorus of support for space-based data centers.

Some companies are already trying to put compute in orbit. Among them are Google, which launched a satellite that it says contains "data center class TPU," and SpaceX, which says it aims to deploy "thousands of AI satellites starting as soon as late 2027."

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Chris Campbell:

Nvidia-Backed Agility Robotics Becomes First U.S. Humanoid Robot Maker To Go Public

Agility Robotics began trading on Nasdaq on Thursday as the first U.S. publicly listed pure-play humanoid robotics company with active commercial deployments, the company said. Its common stock and warrants are trading under the symbols "AGLT" and "AGLTW" following the completion of its business combination with Churchill Capital Corp XI.

The business combination and related financings raised about $465 million in gross capital before transaction expenses. The total includes proceeds from a private investment in public equity led by Foxconn and $100 million of equity funding received before closing. The Foxconn-led investment was roughly $201 million. Nvidia (NVDA), Amazon (AMZN), and SoftBank Vision Fund 2 are also backers.

Agility said it will use the proceeds to fulfill customer orders, expand commercial deployments, scale production of its Digit robot and advance its robotics and physical AI platform.

The company added that Digit 5, its next-generation humanoid robot, has attracted committed multi-year orders worth more than $300 million. The orders are subject to contractual milestones, product features and specifications. Digit 5 was unveiled in September. Early customer access is expected to begin in the first half of 2027, with general availability targeted for the end of 2027.

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Davis Wilson:

It Turns Out Binance's $6 Billion Hack Happened Because Its Employees Were Vibe Coding

Billions of dollars of crypto stolen – in a hack that we're now learning involved corporate vibe coding efforts. You couldn't come up with a more quintessential cautionary tale for an era when employers are embracing AI at every level.

After hackers drained nearly $6.3 billion from the crypto platform, Binance has revealed how the thieves pulled off what might be the heist of the century. On Tuesday, the company described an elaborate scheme that took place over months involving sham job interviews, old-fashioned phishing, and – yes – a hijacked AI tool.

In all, the attack siphoned 233.46 million XRP, a form of crypto, from five wallets into the hacker's wallets, and then plundered other forms of crypto including bitcoin, in what may well have been the most lucrative heist of all time.

The culprits remain unclear. The FBI immediately blamed a notorious North Korean hacking outfit, but Pyongyang has denied involvement. Binance, in its report, noted that it had thwarted "57 suspected North Korea-linked cyber threat cases" – up until the big one that breached their defenses, at least.

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'Cruel, Arrogant, Ignorant': Texas Democrats Make It Clear What's in Store for Elon Musk Before Investigation

Tech billionaire Elon Musk moved his businesses and home to Texas in recent years to avoid Democratic regulators and left-wing politics. He then dumped $158 million ahead of the 2026 midterms into the Senate Leadership Fund, a Republican super PAC, in September, and that money ended up with Texas PAC, a group backing Ken Paxton, and sent $10 million to Lone Star Liberty PAC, another pro-Paxton group.

Democratic nominee James Talarico said at the time that Musk was trying to "buy" a win for Paxton, and if that was indeed Musk's goal, he failed miserably. Texas, like most of the country during Tuesday's elections, found itself swept by a blue wave.

Six months after moving to the Lone Star State, Musk is now surrounded not just by Talarico, but also by incoming attorney general Nathan Johnson, who has pledged to investigate Musk, and governor-elect Gina Hinojosa, who has questioned whether Musk pays enough in taxes.

Musk may already be feeling the financial consequences of Election Day. Despite a massive stock market rally, SpaceX shares closed down by 3.8%, while Tesla stock price fell 3.3%. Musk moved to Texas expecting a financial and tax haven, but Tuesday's results are setting it up to be anything but.

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Ari Goldschmidt:

Sam Altman Says It's 'F*cking Annoying' His RAM Comments Were Taken Out of Context

OpenAI CEO Sam Altman has hit back at criticism of his comments about computer memory, saying they were taken out of context.

"I actually do want the world to have tons of memory and people to put as much as they want in their computers, and it is f*cking annoying that this was taken out of context," Altman tweeted early Wednesday.

Altman's original comments came in an interview with YouTube channel Cheeky Pint, where he discussed shortages of memory and other components caused by the AI boom. "From like a global allocation perspective, actually, it's quite terrible to have everybody have a bunch of the world's limited supply of DRAM sitting in their own computer and being used 5% of the time," he said. "You want maximum utilization in a cloud if you're trying to deal with this very supply-constrained environment."

In the same interview, Altman also blamed memory makers for being slow to expand production.

The remarks drew widespread criticism, including from Elon Musk, who mocked Altman on Sunday with a meme of the Inglourious Basterds character Hans Landa asking, "You are withholding DRAM from the cloud, are you not?" "The people deserve to have their RAM too!" Musk wrote.

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Greg Guenthner:

DuckDuckGo Pitches Itself to Schools Amid Backlash Over Google's AI Policy

DuckDuckGo is pitching itself to schools after Google created an opening for the alternative search engine. On Tuesday, Google told schools they could turn off Gemini, but it said shutting off its other AI features would cost schools Google Search, as well.

DuckDuckGo, a company that focuses on user privacy by limiting data collection, clearly sees this as a moment to make inroads in education, where Google has historically dominated. According to figures Google has published in previous years, there are around 50 million Chromebooks in schools, used by students and educators, and its Google Classroom platform serves over 150 million users globally.

On X, DuckDuckGo's founder and CEO, Gabriel Weinberg, pointed to the company's online documentation, explaining how schools can switch their default search engine to DuckDuckGo's service instead, adding, "get in touch for help."

Meanwhile, DuckDuckGo's chief public affairs officer, Kamyl Bazbaz, issued a stronger statement, writing, "Forcing AI on school children: how a monopolist behaves when they think people are powerless. Prove Google wrong."

The company's comments come as the American public is weighing how much AI they want to allow into their lives.

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U.S. Midterms: How Markets Are Reacting to Democrat Victory

The Democrats stormed to victory in the U.S. midterm elections, taking control of the Senate and the House in a sharp rebuke to President Trump that will reshape the balance of power in Washington and ripple through financial markets.

The electoral rout, widely seen as a referendum on the president, ushers in a new era of divided government and greater restraint on the administration.

Stock futures turned positive early Wednesday, reversing earlier losses as the votes rolled in, with futures tied to the S&P 500 and the tech-heavy Nasdaq both up around 1%. U.S. Treasuries rallied and yields softened, while U.S. dollar weakness against major currencies supported commodities like gold. But oil prices and defense stocks weakened amid expectation of greater scrutiny of the Iran war.

AI-linked stocks suffered a blow amid fears over a pullback in investment. Shares of Elon Musk's Tesla (TSLA) and SpaceX (SPCX) both fell 3%, while neocloud companies CoreWeave (CRWV) and Nebius (NBIS), and cloud computing stock Iren (IREN) were down around 1%. Intel (INTC) and Oracle (ORCL) shares were also seen lower.

The political shift is likely to have "significant implications" for the AI buildout, with several Democrat winners having explicitly campaigned on stricter data center regulation.

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Chris Campbell:

Cyberattack on French Blood Bank Fridges Thwarted Before Damage to Products and Samples

A cyberattack on several blood banks sought to raise temperatures to extremely high levels but was thwarted before it could do any damage to blood products or samples, French authorities said.

The incident comes after supermarkets in a number of European countries reported this week that their fridges and freezers warmed up after they were remotely taken over, resulting in tons of spoiled food at a total cost of millions of dollars.

The French Blood Establishment, or EFS, said "temperature and defrosting thresholds were raised to extremely high levels" on Monday at three of its cold-storage sites for plasma, in a statement released late Tuesday.

"No health consequences have been identified, and no blood products were lost," it said. The cyberattack hit a supplier of refrigeration equipment at three EFS sites. The products stored were bags of plasma intended for transfusions and plasma used to manufacture medicines, and were either transferred or secured, the statement said.

France's national cybersecurity agency and the Health Ministry are investigating the incident.

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Enrique Abeyta:

U.S. Space Force Declares Far Side of the Moon a "Warfighting Domain," Weighs Launch of Five Military Lunar Satellites

The far side of the Earth's Moon could become a new theater of war – at least if the Trump administration has anything to say about it.

According to the magazine Air and Space Forces, the U.S. Space Force under Donald Trump is weighing whether to launch five satellites to cislunar space by 2029 – a decision which would see American military craft orbit around the far side of the Moon.

That news came via a bulletin to aerospace manufacturers, advising the industry that the Pentagon is now "notionally interested" in launching what would essentially be reconnaissance flights to slingshot around the Moon.

To hear Space Force officials like Major General Stephen Purdy tell it, the Pentagon is dead serious about turning the cislunar region into a "warfighting domain." The impetus behind the military's newfound interest in the space between the Earth and the Moon seems to be China – specifically, the People's Republic's plans to land on the Moon by 2030.

"They're not planning for a one-off demo," Purdy said in late October, per Air and Space. "They are planning for sustained activity. It's in their strategic documents… and they're building the [research and development], and the [science and technology], and the operational reps and set to get all those missions done."

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Dinosaur Blood Found in Fossils for the First Time

In a study published this week, an international team of paleontologists confirmed the presence of intact biomolecules and mineralized red blood cells inside fossils of a 115-million-year-old dinosaur. Although previous work has suggested similar possibilities, the team's research is the first to chemically identify oxygen-carrying blood compounds known as heme.

"This really is a landmark discovery," Kliti Grice, a study co-author and chemist at Curtin University in Australia, said in a statement. "These findings challenge longstanding assumptions that certain biomolecules such as hemoglobin cannot survive deep time."

The evidence exists inside the fossilized limb bones of a juvenile Aratasaurus museunacionali. Discovered in 2008, A. museunacionali was an Early Cretaceous theropod that lived in present-day northeastern Brazil. The fossils suggest a dinosaur measuring over 10 feet long and weighing about 75 pounds, but given its young age, it likely grew larger.

Grice and her collaborators said that their discovery has wide implications. Further study could help advance our understanding of blood's evolution, dinosaur metabolism, and ancient animals' activity levels. The knowledge that this type of preservation is possible at all could even extend far beyond Earth. If such delicate biomolecules fossilize over millions of years in harsh environments, then it's possible similar traces of life may linger elsewhere in the universe.

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Ari Goldschmidt:

Google To Shut Off Search for Schools That Opt Out of AI

Google announced Tuesday morning that it would switch off AI products by default for students in schools that use the technology giant's education software.

The move comes after mounting criticism from advocacy groups and senators about the spread of Google's AI services available in classrooms. Until Tuesday, its AI products – branded under the Gemini moniker – were automatically activated for schools using Google Classroom.

But Google said Tuesday's move would also cut off students' access to Google Search if schools do not enable Gemini, given AI's growing integration into the company's search products.

Chris Phillips, Google's vice president and general manager of education, said in a blog post announcing the change that access to Gemini, Gemini Notebook, Gemini in Classroom and Google Search "will be entirely off for K-12 student accounts until school administrators explicitly turn them on."

"We believe schools should have control over AI in their classrooms and in providing administrators with controls to help them manage their approach," Phillips wrote.

Some education and technology advocates immediately slammed the decision, painting the move as a punishment for schools that don't use Google's AI.

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Davis Wilson:

Binance Founder Changpeng Zhao Addresses Historic Crypto Hack: 'There's No 100% Security'

It has been a busy few days for Changpeng Zhao in the wake of the hack on the enormous crypto platform he co-founded, Binance.

"It's been a pretty hectic process," Zhao, better known as CZ, said. "But the good thing is right now the withdrawals have been restored, the systems back to normal. People are free to use the platform without any issues now. And then all user funds are covered. The users did not suffer any loss."

Binance is the world's largest cryptocurrency trading platform and holds approximately $171 billion in total assets on its platform.

Hackers recently drained roughly $6.3 billion worth of digital assets from Binance on Oct. 29. Blockchain intelligence firms and the FBI attributed the 20-minute raid with high confidence to TraderTraitor, an elite state-sponsored cyber unit tied to North Korea.

Binance moved swiftly to stabilize the situation by guaranteeing full customer restitution, deploying corporate treasury reserves, Secure Asset Fund for Users (SAFU) capital, and insurance funds to replenish user balances.

"There's no 100% security," CZ added. "So when you run a platform, especially a crypto platform the possibility is always there. I did not think it was going to be this big of magnitude, probably not."

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SpaceX Is Reportedly in Talks To Buy Boost Mobile for Wireless Market Push

SpaceX is negotiating to acquire EchoStar's Boost Mobile wireless service, or to secure use of its network, after holding discussions with EchoStar over the past several months about rolling out a wireless service of its own.

Boost Mobile leases its network from AT&T (T) and T-Mobile (TMUS). Its leasing agreements may not carry over to a buyer unless the carriers sign off, so a SpaceX service may need their consent.

SpaceX intends to construct a mobile network, called Starlink Mobile, that blends satellite and terrestrial technology. The network would link its orbiting satellites to land-based equipment in order to take on AT&T, Verizon (VZ) and T-Mobile. A Boost Mobile deal would give SpaceX a customer base already in place and a way to distribute its service.

EchoStar's wireless customer count stood at 7.38 million as of the second quarter's close, with Boost Mobile and Gen Mobile accounting for most of them.

EchoStar stock climbed roughly 3.4% before the opening bell Monday, while T-Mobile stock dropped 2%. Shares of AT&T and Verizon also edged lower.

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James Altucher:

Binance Outflows Hit $4.7 Billion After Record North Korea Hack

Traders have pulled billions from Binance since late last week, when the crypto exchange giant suffered the largest cyber theft in history.

Net withdrawals from the platform reached $4.7 billion by Monday morning in London, according to a Binance spokesperson. While sizeable, the outflows still represents less than 4% of the $128 billion in assets held on the world's largest crypto venue.

Binance restored customer withdrawals on Sunday after freezing them in the wake of the $6.4 billion exploit, which the Federal Bureau of Investigation has attributed to North Korean hackers. After the hack was first detected on Thursday evening, Binance worked with industry partners, including stablecoin issuers, to swiftly freeze almost half the stolen funds. The company vowed to cover the losses in full, and as of Sunday, had patched about 95% the total.

Withdrawals have remained within the exchange's expectations, the Binance spokesperson said, adding that deposits have been "steadily increasing".

The wider digital-assets market, meanwhile, has remained relatively steady in the wake of the incident. Industry bellwether Bitcoin was little changed, trading at around $78,000 on Monday.

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Davis Wilson:

About the Bloodbath… Google -12%, Intel -24%

Last week was a bloodbath. Alphabet (GOOG) dropped 12%. Intel (INTC) plunged 24%. Fortinet (FTNT) lost 24%. Let's break it down…

Alphabet reported revenue of $127.6 billion vs. $128.2 billion expected, and earnings per share (EPS) of $2.67 vs. $3.02 expected. Missing both expectations is never a good sign. But the real problem is uncertainty about what AI is doing to Alphabet's most important business: Google Search.

Intel, meanwhile, reported an alright quarter. However, for the third quarter, it expects adjusted EPS of $0.25 on revenue between $15 billion and $16 billion. Analysts were expecting EPS of $0.43 and revenue of $17.1 billion. The problem is AI data centers are consuming enormous amounts of memory, creating shortages and sending prices through the roof, which is terrible for companies like Intel that sell chips for PCs.

Then there's Fortinet which fell after reporting decent earnings. The concern is that Fortinet has been losing market share to companies like Palo Alto Networks (PANW) and CrowdStrike (CRWD) who offer more comprehensive cybersecurity platforms.

To see my full breakdown of last week's winners and losers, plus a rundown of this week's upcoming earnings reveals, click the link below!

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North Korea Steals $6.36 Billion From Binance in the Largest Hack in History

On Thursday, an attacker moved approximately $6.36 billion out of Binance wallets on 10 blockchains, most of it in about 20 minutes. That makes this the largest crypto theft on record, about four times the $1.5 billion Bybit hack of February 2025. Binance has confirmed a security incident and suspended withdrawals on several networks.

Cryptocurrency-forensics company TRM attributes the attack to TraderTraitor, North Korea's elite hacking unit, based on robust on- and off-chain intelligence.

On Ethereum, the attacker turned a Binance hot wallet into a sweeper it controlled, with 50 pre-signed authorizations prepared in advance. In the same window, Binance wallets on the other nine chains sent funds to the attacker through ordinary signed transfers. In TRM's assessment, this points to a compromise of Binance's hot wallet signing infrastructure.

Tether, Circle, Ripple and World Liberty Financial froze about $2.67 billion in stablecoins, and Arbitrum's Security Council froze 8,426 ETH and 74.6 million ARB on its network, for a total of roughly $2.7 billion. The attacker raced the freezes by selling USDT to market makers and borrowing ETH against USDT on Aave. It now holds more than 420,000 ETH and 18,270 BTC, about $2.4 billion in assets beyond any issuer's reach.

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Davis Wilson:

The Hidden AI Fortunes Inside Big Tech

With Anthropic preparing to go public, one of the biggest questions on Wall Street is what the company will actually be worth. $1.5 trillion? Maybe even more?

But nobody seems to be asking: Who else benefits from Anthropic's massive multi-trillion-dollar valuation? Because some of the biggest publicly traded companies in the world already own huge stakes in Anthropic.

Amazon (AMZN) owns an estimated 15-20% stake in Anthropic. Alphabet (GOOG) owns another estimated 15%. And Anthropic isn't the only AI company with heavyweight backers.

OpenAI would likely fetch a similar valuation and has an equally impressive investor list. Microsoft (MSFT) owns 27% of OpenAI. Amazon (AMZN) reportedly owns 5%.

Think about that for a second. If Anthropic and OpenAI eventually become two of the most valuable companies in the world, big tech stocks will be some of the biggest winners.

I already like the stocks of Amazon, Microsoft, and Alphabet. But the fact they also own meaningful stakes in two of the world's most valuable AI companies makes them even more attractive. Just remember, these ownership stakes won't remain hidden forever.

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Enrique Abeyta:

NVIDIA: The Biggest Stock Massacre in History

NVIDIA is about to lose investors more money over the next three years than any stock in human history. And before you click away thinking, "Good thing I don't own NVIDIA"… You almost certainly already do. The chipmaker makes up nearly 8% of the entire S&P 500.

Millions of Americans are in the exact same position. Their retirements are chained to the fate of a single stock.

NVIDIA could remain the world's leading AI chipmaker for years. But Wall Street has set expectations so high that even this extraordinary company may struggle to meet them. Even a small shortfall, paired with weaker guidance, could force analysts to cut future earnings estimates, causing the stock to fall.

And these expectations come as customers face growing financial pressure, data center projects are falling behind schedule, and competition is heating up.

That's why I believe NVIDIA is headed for a historic destruction of shareholder wealth over the next three years. A 30% decline in NVIDIA's stock is not unreasonable. At a market value of roughly $5.25 trillion, that would erase about $1.6 trillion in shareholder wealth.

And the consequences won't stop there.

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Kennedy's HHS Relaxes Enforcement on 6 Popular Wellness Peptides

Stopping short of a formal declaration allowing their use, Department of Health and Human Services secretary Robert F. Kennedy Jr. has cleared the way for the compounding of six popular wellness peptides.

The move, which comes after the same peptides won favor at an FDA advisory committee meeting this summer, is being hailed by some in the industry as offering a more accountable alternative to the gray market many peptide-seekers currently use, while others have charged that it undermines institutional FDA pushback on the drugs, which have become increasingly popular among fitness influencer circles and the MAHA crowd.

Under Kennedy's "enforcement discretion policy" issued Wednesday, HHS will not take enforcement action against pharmacies, physicians and federal facilities compounding six specific peptides, assuming those parties meet certain specific qualifications. The specific compounds included in the list are BPC-157, epitalon, KPV, MOTS-c, semax and TB-500.

However, advisory committee votes are recommendations, not binding decisions, and the peptides still haven't been added to the drug substances list in an official capacity.

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Ari Goldschmidt:

Bluesky Blocks Links to Leaked DHS Employee Data As Government Seeks Takedowns

Following a sizable leak of personnel data about employees who work for the U.S. Department of Homeland Security, social network Bluesky is now blocking its users from accessing a nonprofit's website that hosts the leaked dataset.

Users reported that the links to nonprofit transparency collective DDoSecrets were marked as "malicious" soon after news broke on Wednesday that Homeland Security had been hacked.

A hacker obtained over 40,000 user account records from Homeland Security's login system, including the names and contact information, such as work-issued phone numbers and email addresses, of employees and agents working for its various agencies like Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE).

The data included information that was similar to that on an employee's business card. DDoSecrets, which publishes leaked datasets in the public interest, also made the hacked data publicly available.

A spokesperson for Homeland Security said Wednesday that it was "aware of a potential breach and is actively working to address the situation swiftly and effectively."

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Chris Campbell:

Man Granted First-of-Its-Kind Religious Exemption Against Mandatory AI Use at Work

David Durman, a research administrator at the University of Kentucky, has successfully argued that using AI violates his beliefs as a humanist and has received Title VII religious accommodation from university officials not to use the technology.

According to the Religion News Service, Durman believes in "the human part of life," which includes making his own decisions. However, he says that when the UK asked its employees to use AI, he felt that doing so would mean outsourcing his thinking to tools like ChatGPT and Microsoft Copilot, thus violating his deeply held beliefs.

The American Humanist Association assisted Durman with his request for the accommodation.

It should be noted that while anyone can request a Title VII exemption, it will only be granted if the applicant has a deep moral conviction that could count as an article of faith. Aside from that, the law also states that the request should not place an "undue hardship on the employer's business."

So, even though Durman is no longer personally required to use AI tools for his tasks, he is still expected to attend meetings and cooperate with colleagues who use AI or to submit materials to AI tools, as needed.

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