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Every Wednesday we publish “The Mid-Week Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!
This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.
This article is designed to truly give you that EDGE in the day ahead!
Grab your afternoon pick me up and let’s dive in.
Market Talk
The major indexes are lower to start the week following Powell’s speech on Tuesday where he said "equity prices are fairly highly valued”.
3 Stories Moving the Market
These are some of the biggest stories so far this week that are having an influence on market action.
Nvidia to Invest $100B in OpenAI’s AI Infrastructure Push
Nvidia $NVDA ( ▲ 0.28% ) announced it will invest up to $100 billion in OpenAI to finance massive new AI data centers powered by its GPUs. The project, which could eventually require 10 gigawatts of power and 4–5 million GPUs, represents the largest infrastructure bet yet in the AI arms race. The partnership deepens Nvidia’s role as OpenAI’s critical supplier while reinforcing the chipmaker’s dominance at the heart of the AI ecosystem.
🔑 Key Points
Scale of project: OpenAI aims to build 10 gigawatts of data centers, equal to the entire GPU output Nvidia will ship this year.
Initial funding: Nvidia’s first $10 billion tranche will deploy when one gigawatt comes online, with further phases tied to progress.
Infrastructure cost: Each gigawatt build is estimated at $50–60B, with ~$35B of that flowing directly to Nvidia’s systems and GPUs.
Strategic alignment: Nvidia becomes OpenAI’s “preferred” supplier, cementing its role as the backbone of next-gen AI development.
Competitive backdrop: While Nvidia dominates AI chips, rivals like AMD and in-house cloud silicon are pushing to erode its lead.
👀 What You Need to Know
For Nvidia, the move locks in a captive customer while boosting visibility on multi-year demand, but it also raises questions about concentration risk and sustainability of returns. For OpenAI, the arrangement ensures supply but underscores how dependent its future is on Nvidia’s hardware roadmap. Investors should watch execution on the first gigawatt phase and whether competitors can chip away at Nvidia’s entrenched position before 2026 deployment.
🔐 Edge Takeaway: Nvidia’s $100B investment into OpenAI marks the return of vendor financing, where…upgrade to Edge+ to read the full Edge Takeaway.
Micron beats on Q4 earnings as AI demand fuels record DRAM sales
Micron $MU ( ▲ 0.28% ) delivered fiscal fourth quarter results that came in ahead of Wall Street’s expectations, driven by surging demand from AI data centers. The memory chipmaker also issued guidance for the upcoming quarter that surpassed analyst forecasts. Strength in DRAM continued to offset weakness in NAND, positioning Micron as one of the biggest semiconductor beneficiaries of the AI buildout.
🔑 Key Points
Top-line beat: Revenue reached $11.3B versus $11.15B expected, supported by AI-driven data center demand.
Earnings strength: Adjusted EPS of $3.03 exceeded the $2.84 consensus, extending Micron’s execution streak.
DRAM dominance: DRAM sales surged 70% YoY to $8.98B, beating the $8.55B estimate and securing a 35% market share.
NAND weakness: NAND revenue fell 5% YoY to $2.25B, below the $2.35B forecast, though management flagged signs of improvement.
Raised outlook: Q1 revenue is guided at $12.2–$12.8B with EPS of $3.60–$3.90, both comfortably above consensus.
👀 What You Need to Know
Micron is firmly cementing itself as a top-tier AI play, with high-bandwidth memory chips becoming critical in AI data centers. DRAM momentum underscores its edge, while NAND remains a lag but could turn into a secondary growth engine. Its $200B U.S. fab expansion signals long-term positioning, though the nearly 100% rally in shares this year, the stock now faces scrutiny over bubble risks versus sustained execution.
🔐 Edge Takeaway: Data centers now drive 40% of sales for Micron and Nvidia alone is ~16% of revenue, leaving…upgrade to Edge+ to read the full Edge Takeaway, including the Edge score and CMG Strength Ratio.
Trump Links Autism to Tylenol and Vaccines
President Trump reignited controversy Monday by linking autism to childhood vaccines and prenatal Tylenol use, claims rejected by decades of research. At a White House briefing with Health Secretary Robert F. Kennedy Jr., he urged pregnant women to avoid Tylenol and called for splitting vaccine doses. The remarks sparked swift backlash from medical groups while Kenvue shares tumbled before rebounding late in the day.
🔑 Key Points
Unfounded Claims: Trump claimed prenatal Tylenol and clustered vaccines cause autism, contradicting extensive studies showing no proven connection.
Experimental Treatment: His team promoted leucovorin as a potential autism therapy despite only limited small-scale clinical evidence.
Medical Opposition: Major groups, including the American Academy of Pediatrics, condemned the remarks as harmful and misleading to families.
Stock Volatility: Kenvue fell more than 7% intraday but recovered 5% after analysts noted no new evidence was introduced.
Policy Signals: The administration suggested Tylenol label changes and Medicaid coverage for leucovorin, raising fears of politicized health regulation.
👀 What You Need to Know
Trump’s intervention pulls fringe theories into official policy debate, risking erosion of trust in vaccines and widely used medicines. For investors, Kenvue faced a temporary reputational shock, but analysts view the selloff as sentiment-driven rather than data-based. The greater concern lies in regulators adopting warnings without causal evidence, which could reshape consumer behavior. Healthcare investors must now weigh political overhang against fundamentals when judging consumer health stocks.
🔐 Edge Takeaway: Kenvue got hit because Trump said “Tylenol,” not “acetaminophen.” That made KVUE the…upgrade to Edge+ to read the full Edge Alert.
📚 Edge-ucation: What is Headline Risk?
Headline risk refers to stock moves driven by news events rather than business fundamentals. A company can post steady sales and earnings yet still see its stock swing if it becomes the center of political or public controversy. For investors, separating noise from fundamentals is key when volatility strikes.
Emotion Over Numbers: Headlines trigger buying and selling based on perception, even when the underlying financials are unchanged.
Brand Exposure: Well-known products like Tylenol attract more scrutiny than generics, concentrating the market reaction in one ticker.
Temporary Distortions: Price moves tied to controversies often fade once attention shifts, creating opportunities for patient investors.
Investor Takeaway: Always ask whether the stock move reflects real cash flow risk or just a passing narrative.
Headline risk matters because markets trade on stories in the short term, but fundamentals tend to endure in the long run.
In Other News
In this section we'll be curating a selection of news headlines we think you'll find interesting. If a topic catches your eye, click the provided links to read more about it.
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The Second Half
All eyes are on Friday’s PCE report as the market looks for the data to support further rate cuts into year end.
Earnings Reports
There’s only one stock we cover reporting this week, Costco, which reports on Thursday after the bell:
Here is the full calendar of earnings releases scheduled for the rest of the week:
Source: Earnings Whisper
Economic Reports
The main spotlight for the rest of the week is Friday’s PCE inflation report, with both headline and core expected to tick higher. We also get more housing data, jobless claims, GDP, and consume sentiment to round out the week, but markets will focus on whether inflation trends can keep the Fed on its easing path.
Here is the full calendar of events scheduled for the remainder of the week:
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Thank you for reading this edition of the Mid-Week Wrap-Up.
Until next time investors!
Mark & Chris
The Investor’s Edge
Disclosure
This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.
