AnalytixInsight

Last week, Dow Jones, S&P 500 and Nasdaq composite all fell ~2%. US 10-year Treasury yield rose 11 bps 4.39%, for its highest close since last July, yields have risen globally. Markets now expect a modest chance of a rate hike in 2026, despite Fed signals. On the back of its GTC event, Nvidia dominated tech headlines, CEO Jensen Huang projected US$1 trillion in revenue from Blackwell and Rubin AI chips through 2027. This bullish outlook aligns with massive infrastructure spends, including Meta’s US$27 billion deal with Nebius Group for AI data centers. Nvidia unveiled NemoClaw agent software and a Groq-based chip system, while also restarting H200 manufacturing for the China market despite ongoing regulatory friction. Jeff Bezos is reportedly raising a US$100 billion fund for AI-driven manufacturing, and his space firm Blue Origin filed for a 51,600-satellite constellation for orbital AI compute. Prediction market Kalshi is raising US$1 billion at a US$22 billion valuation. Uber committed US$1.25 billion to Rivian for a future robotaxi fleet. Mastercard will acquire stablecoin startup BVNK for US$1.8 billion. The “AI hangover” continues to impact traditional software. Intuit leadership canceled stock sales and accelerated US$3.5 billion in buybacks. JPMorgan halted a US$5.3 billion debt deal for Qualtrics. A jury found Elon Musk liable for misleading Twitter investors. The DOJ charged Supermicro employees with smuggling US$2.5 billion in AI servers to China. In Canada, the federal government committed $225 million to advance sovereign space launch, headlined by a $200 million lease at Maritime Launch Services’ Nova Scotia spaceport. Calgary-based CoolIT Systems will be acquired by Ecolab for US$4.75 billion. In news pertaining to Sophic clients, Kraken Robotics announced $24 million in new defense orders across five countries. Cybeats Technologies secured its first automotive contract for its SBOM Studio. Boardwalktech signed a new Silicon Valley semiconductor client and expanded its AI-driven Unity Central platform with an international chemical firm.

Last week, Dow Jones lost 2%, S&P 500 was down 1.6%, Nasdaq composite fell 1.3%, the third consecutive down week for major indices. Increased volatility could impact potential 2026 IO plans. While OpenAI is likely at least six months away from going public, and possibly longer, it could face a skeptical investor community. A potential 2026 IPO at a rich ~30x projected 2026 revenue, despite forecasts of negative cash flow until 2030, could give some investors pause. Several large IPOs could also divert liquidity from other areas of the market in the event of a listing. SoftBank is fueling its AI ambitions by seeking US$40 billion in debt, following the successful US$12 billion market cap debut of portco PayPay. Amazon tapped the bond market for US$37 billion to support its staggering US$200 billion annual capex plan. Nvidia injected US$2 billion into Nebius Group to scale AI cloud infrastructure. The shift toward AI efficiency continues to drive a painful reset elsewhere. Meta is reportedly weighing 20% staff cuts. Atlassian announced a 10% reduction to prioritize AI investment. Strategic M&A remains active with Anduril’s acquisition of ExoAnalytic and Zendesk’s purchase of Forethought. Regulatory friction is surfacing in other areas, Anthropic claims the DoD’s “supply chain risk” designation has already cost it over US$100 million in revenue. The legacy auto sector continues to struggle with the energy transition, as Honda took a massive US$15.7 billion hit amid a retreat from its North American EV strategy. In Canada, Sophic Client, Kraken Robotics closed its $402.5 million offering to fund its $615 million acquisition of Covelya Group. MDA Space priced its US$300 million IPO at US$30.50 and debuted on the NYSE. The Canadian federal government continues its massive push. BDC expanded its Defence Platform to $6 billion. The NRC secured $900 million for a new drone innovation hub. Xanadu is negotiating up to $390 million in government support as it prepares for a US$3.6 billion SPAC deal.