TMTB Morning Wrap
Good morning. Futures -65bps with semis -1.6% early while software +1% continues to squeeze, led by NOW +5%, TEAM +4%, SNOW/MDB +3%, ZS +3.5% (laggards continue to catch a bid here). Looks like more pain for the momentum basket early. Memory names lower (WDC/STX/SNDK -3%) as well as Neoclouds given the GOOGL/BX news.
Asia mixed: TPX +0.63%, NKY -0.44%, Hang Seng +0.48%, HSCEI +0.49%, SHCOMP +0.92%, Shenzhen +0.51%, Taiwan TAIEX -1.75%, Korea KOSPI -3.25%. SK Hynix -6%, Samsung -2%. Oil flattish. Yields up 3-4bps across the curve.
JPM TMT continues today, including OpenAI CFO Sarah Friar, INTC CEO Lip-Bu Tan, ANET, ALAB, DDOG, NOK, NOW, QCOM, GLW among others
GOOGL I/O officially starts today
Let’s get to it…
GOOGL: Google and Blackstone to Create New AI Cloud Company
WSJ:
The duo said Monday they plan to launch the unnamed U.S. company with $5 billion in equity capital from Blackstone, confirming an earlier report by The Wall Street Journal.
The venture, the biggest attempt yet by Google to sell and monetize its own chips to external parties, will sharpen a rivalry with Nvidia, the market leader in AI computing.
The new company aims in 2027 to bring 500 megawatts of capacity online—roughly the same amount of electric power required to serve a midsize city—and substantially increase capacity over time, Google and Blackstone said.