TMTB EOD Wrap
Good afternoon. QQQs -1.1% after being down close to 3.5% at one point. Why the early sell off? Combination of some fears around CPI tomorrow, some Iran/Trump headlines, talks of Crusoe’s delay in Wyoming, and some Semi analysis headlines throwing cold water on the optical and 800V trades,. However, Anthropic came to the rescue, releasing Mythos/Fable today and it’s not a coincident the market bottomed right around the time it was released into the wild, as the Fable 5 benchmarks look even better than the Mythos Preview. Just the type of tape we’re in — even on days like today with some negative news flow in AI semis (that gets amplified given technical backdrop), there always seems to be backup firepower for the AI trade. Then NYT had an article about US and Iran nearing an agreement, which also helped the market while Brent fell 300bps and yields falling 3bps across the curve.
Ok, we’ll cover more of what went on in AI semis below. Let’s get right to it…
AI/SEMIS
Couple key news items today, with the big one being the release of Anthropic Mythos/Fable 5 public release
Second one was Crusoe pausing the 1.8GW Wyoming Site. The tenant hasn’t been confirmed but likely OpenAI. Chatter is that they fired Crusoe for cost overruns and going self-build, but haven’t gotten confirmation on the speculation. CEO was on CNBC, although didn’t give much other than "site related issue"
Now onto the good stuff…