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.