AnalytixInsight

Last week, Dow Jones fell 3%, S&P 500 lost 2%, Nasdaq composite declined 1.2%. Nvidia is doubling down on infrastructure, investing US$4 billion into photonics leaders Lumentum and Coherent, while simultaneously licensing Groq’s technology for a new inference-specific chip. This shift was mirrored at Broadcom, where AI chip revenue surged 140% to US$10.7 billion, lifting overall growth to 47% despite sluggishness in non-AI segments. OpenAI could be officially prepping for a historic IPO, anchored by a US$730 billion pre-money valuation and a US$30 billion investment from Nvidia. SoftBank is betting the farm to stay relevant, seeking a record US$40 billion bridge loan to fund its own OpenAI ambitions. Meanwhile, a strategic pivot in OpenAI’s commerce strategy, moving from direct in-chat sales to app-based checkouts led to a relief rally for Booking.com and Expedia, which jumped 8.5% and 13% respectively. Anduril is targeting a US$60 billion valuation (roughly 14x 2026 sales), despite forecasting a US$1.2 billion operating loss this year. The Pentagon officially designated Anthropic a “supply chain risk.” Ironically, this spat propelled Claude to the #1 spot on the U.S. App Store. In Canada, Sophic client Kraken Robotics executed a massive growth move, acquiring Covelya Group for $615 million. The combined entity will have pro forma revenue of $365 million and 24% EBITDA margins. Canadian Defense startup, Dominion Dynamics committed $50 million to build a an “autonomous wingman.”

Last week, Dow Jones fell 1.3%, S&P 500 lost 0.4%, Nasdaq was down 0.95%, the weekend’s geopolitical developments could increase volatility next week. The market continues to grapple with the “AI as a headwind” thesis, as traditional software giants faced a reckoning. Salesforce and Snowflake stocks lost 5% and 2% respectively on decelerating growth forecasts. The most dramatic move was IBM’s 13% tumble following Anthropic’s claim that Claude Code can automate the modernization of 65 year old COBOL systems, direct strike at IBM’s high-margin mainframe services moat. Block co-founder Jack Dorsey said the company plans to lay off 40% of its staff as it believes AI tools can help a smaller workforce “do more and do it better.” Nvidia delivered stellar results, yet again including 73% revenue growth to US$68.1 billion. The company is doubling down on its ecosystem, joining Amazon and SoftBank in a massive US$110 billion funding round for OpenAI, which now equates to a US$730 billion pre-money valuation. Meta is diversifying its silicon supply, striking a 6-gigawatt compute deal with AMD that includes warrants for a 10% equity stake, signaling a shift toward co-designed, proprietary infrastructure. CoreWeave is seeking US$8.5 billion in new debt, but for the first time, it’s seeking a credit rating to appease wary lenders. Stripe is reportedly exploring a massive acquisition of PayPal. Netflix walked away from Warner Bros. Discovery, labeling the Paramount-Skydance bid “superior” and the financial math no longer attractive. In Canada, Sophic client, Cybeats Technologies secured a landmark OEM partnership with Keysight Technologies to operationalize SBOM management for safety-critical environments. CPPIB anchored a US$4 billion deal for Nordic data center operator atNorth. The Canadian federal government’s RDII initiative deployed its first $15 million into Ontario-based defense tech like Wolf Advanced Technology.

Last week, Dow Jones rose 0.25%, S&P 500 was up 1.1%, Nasdaq composite gained 1.5%. Software stocks had another rough day Friday, driven by fresh terminal value concerns driven by Anthropic’s new cybersecurity tools, which sent CrowdStrike and Okta tumbling 8-9%. Nvidia’s earning report next week will provide investors the next readthrough for the AI trade. ServiceNow CEO Bill McDermott is attempting to stem a 25% YTD stock slide by halting personal stock sales and initiating a US$5 billion buyback. It remains to be seen whether investors will interpret this move to support the thesis that AI is a tailwind, not a headwind for traditional per-seat SaaS models. AMD is mirroring the Nvidia playbook, backstopping a US$300 million loan for Crusoe to support chip sales. Meta’s move deepening ties with Nvidia via Vera Rubin chips signals another move towards co-designed proprietary models. OpenAI expects to burn US$17 billion this year alone, maintaining a 20% revenue share with Microsoft until 2032. Anthropic’s cloud payouts are projected to rise to US$6.4 billion next year. The battle for the “AI Edge” is moving to hardware. Apple is accelerating work on AI-powered glasses and pendants. OpenAI (via its Io acquisition) and Meta prepare to flood the market with smart speakers and watches by 2026/2027. Even the mobility sector is seeing CapEx shifts, with Uber earmarking US$100 million for robotaxi charging hubs to challenge Waymo. Macro tailwinds emerged as the US Supreme Court struck down Trump tariffs, providing a relief rally for Shopify and Amazon. On the bearish side, credit cracks could be forming in the “Nvidia-backed” ecosystem as CoreWeave shares stumbled 12% on reports that lenders are growing wary of below-investment-grade AI infrastructure debt. Blue Owl (a major investor in data center projects) gated redemptions from its non-traded business development company. In Canada, MDA Space is pivoting toward terrestrial defense with its 49North subsidiary, following Ottawa’s $6.6 billion industrial strategy.

Last week Dow Jones fell 1.2%, S&P 500 lost 1.4%, Nasdaq composite was down 2.1%. Sector rotation and AI disruption fears hit stocks, rolling across sectors. Software stocks continue to endure their worst rout since 2002. Shopify epitomized the volatility, falling 11% despite reporting 31% revenue growth and a US$2 bullion buyback program. Investors remain skeptical of legacy SaaS revenue growth and margins as AI giants like OpenAI and Anthropic threaten to disrupt traditional enterprise workflows. The “SaaSpocalypse” could stall expected 2026 IPO momentum, with firms like Visma and Liftoff Mobile delaying listings. Private equity giant Thoma Bravo is viewing the panic as a “bargain” opportunity, arguing that “AI is software” and public markets are failing to discern winners from losers. The AI and private co funding supercycle continues unabated. Anthropic raised US$30 billion at a US$380 billion valuation, fueled by a US$14 billion revenue run rate. Databricks raised US$7 billion in fresh capital. Stripe is eyeing a US$140 billion valuation in a new tender offer, marking a significant valuation rebound. Alphabet is tapping the bond market for US$20 billion to fund exploding Capex. Supply chains remain a bottleneck as memory chip prices soar; SK Hynix shares have surged 150% since September. To protect the AI boom, the Trump administration is reportedly planning tariff “carve-outs” for hyperscalers like Amazon and Google, tying exemptions to TSMC’s US$165 billion investment in U.S. domestic manufacturing. In Canada, Cohere hit a US$240 million ARR milestone, setting the stage for a potential 2026 IPO alongside SpaceX and OpenAI. Apple continued its quiet acquisition spree in Kitchener-Waterloo, snapping up database startup Kuzu. In the MicroCap space, Sophic client Cybeats is capitalizing on global SBOM mandates, with CEO Justin Leger highlighting the transition of cybersecurity from a regulatory hurdle to a foundational enterprise layer.