Wall Street Breakfast Wall Street Roundup: Micron, Alibaba, Nvidia, AI theme maturing
7 snips
Sep 26, 2025 Nvidia is making waves with its plans to invest $100 billion in OpenAI, marking a significant shift in the AI market. Micron's strong earnings didn't impress the market as expected, while Alibaba's aggressive AI spending boosts its stock. The buy now, pay later sector is experiencing a downturn, with Klarna and Affirm struggling. PayPal is offloading $7 billion in receivables to minimize risk. Meanwhile, Starbucks is adjusting its retail strategy amid closures, and concerns about job data are looming as inflation remains elevated.
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AI Forms A Separate Pocket Market
- AI companies form a distinct pocket market with dynamics separate from the broader market.
- NVIDIA's deals show firms are using AI windfalls to expand beyond chips into broader AI hubs.
NVIDIA Uses Capital To Entrench In AI
- NVIDIA will invest to help build OpenAI's infrastructure and expect purchases of NVIDIA chips in return.
- The deal reflects NVIDIA redeploying cash to entrench itself across the AI stack.
Market Reacts Differently To Execution Vs. Promise
- Micron beat earnings but saw a muted stock response amid high prior optimism and valuation pressure.
- Alibaba gained after announcing AI model work and higher AI spend, showing market rewards promises as well as execution.