TMTB Morning Wrap
Good morning. QQQs -75bps / SPX -55bps and Oil +5% as Trump saying Iran peace deal is “over” as US launched new strikes on Iran. In Tech, not a ton of factor whiplash so far as semis -1.7% only mildly underperforming early as Internet/Software -1.2% Memory names weaker (SNDK/MU -4% / WDC/STX -3%) following weakness in Asia names (Samsung -8%, SK Hynix -6.5%)
Asia generally red overnight: TPX -1.37%, NKY -2.11%, Hang Seng +2.99%, HSCEI +4.04%, SHCOMP -0.49%, Shenzhen -1.97%, Taiwan TAIEX +0.56%, Korea KOSPI -5.35%. However, seeing strength in China internet names this morning with BABA +9% after a positive company update with analysts calling out better cloud growth (BIDU/JD +4% in sympathy)
Lots to get to, so let’s get to it…
AAPL/AVGO: Apple commits $30 billion to Broadcom for U.S. chipmaking push
CNBC:
Apple said it’s expanding its partnership with chipmaker Broadcom in a multi-year deal expected to exceed $30 billion, marking the iPhone maker’s largest U.S. manufacturing commitment to date.
The agreement, announced by Apple on Wednesday, will lead to the production of more than 15 billion U.S.-made chips and includes a $1.5 billion expansion of Broadcom’s facility in Fort Collins, Colorado. Apple didn’t provide a timeline for when the new capacity will come online.
AVGO: JPMorgan Reiterates OW Post-Management Meeting — TPU v9 “Totally On Track,” Apple Extended Through 2031 With New ASIC Sockets
JPMorgan came away from a meeting with CEO Hock Tan incrementally more confident, with management directly rebutting the key bear debates. The next-gen Google TPU (v9) roadmap is “totally on track” for a CY28 ramp with 400G SerDes already working, and the 5-year Google deal embeds rising revenues and majority volume share — easing share-loss fears. The Apple relationship extends through 2031 with new ASIC sockets plus RF. Inference is accelerating custom XPU adoption (frontier builders trending toward ~50/50 XPU/GPU next year), Tomahawk 6 is sold out, and management dismissed hyperscaler in-house tooling concerns given multi-die packaging complexity.
Some more color on the NDR call in TMTB Slack: