TMTB Morning Wrap

Good morning. Futures +1% have a bid this morning in large part on talks of an int’l coalition of ships being formed to reopen Hormuz, although much of the details remain unclear and it’s not certain any escorts would start until fighting ends. BTC +2.5%. Asia mixed although memory names ripped in Korea: TPX -0.5%, NKY -0.13%, Hang Seng +1.45%, HSCEI +1.67%, SHCOMP -0.26%, Shenzhen +0.16%, Taiwan TAIEX -0.17%, Korea KOSPI +1.14%. PHISON+10%, NANYA+10%, KOIXIA+7.5%, HYNIX+6%, SAMSUNG+2.5%

Got a full week ahead of us. GTC kicks off today with Jensen’s keynote is at 2pm est today and analyst briefing at noon est. tomorrow. Focus on Groq and NVDA’s rack systems, Feynman, 800v DC transition, Scale out CPO, memory, etc.

This week we also get the start of OFC where the optical vs. copper debate will be a key focus. Both LITE and COHR have investor presentations tomorrow (LITE at 1:115pm and COHR at 1pm).

MU Earnings on Wednesday as well.

Should be a fun one.

Let’s get straight to it…

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NVDA/INTC/OpenAI: What to Expect From GTC: Nvidia’s Groq Chip - TheInformation

Per The Information, Nvidia will unveil at GTC a new server rack integrating Groq's inference-focused "language processing unit"—the first time it has built another company's AI chip into its systems—with OpenAI expected as a buyer for its coding AI agent. The rack pairs 256 Groq chips with Intel processors handling inter-chip communication, since Nvidia's own tech doesn't yet integrate cleanly with the LPU. Groq chips will initially be fabbed at Samsung before moving to TSMC, and Nvidia is exploring eventually fusing the LPU with its next-gen Feynman GPU into a single chip.

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META +3%: Planning 20% layoffs - Reuters

Meta is planning sweeping layoffs that could affect 20% or more of the company, three sources familiar with the matter told Reuters, as ‌Meta seeks to offset costly artificial intelligence infrastructure bets and prepare for greater efficiency brought about by AI-assisted workers.

If you assume $300k-$400k per employee for ~15k employees, translates into ~$2+ in EPS, about 6% of FY26 $33.