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Public.com presents the rundown. Your daily market update in under 10 minutes. My name is Zadad Mani and Today is Monday, October 13th. In today's episode, we'll recap the wild market moves on Friday and why the markets are already bouncing back. Today we also dive into yet another deal from OpenAI. This time it's with Broadcom. Then stick around to the end of the show to find out about a Korean noodle company that is going viral on TikTok and sending its stock price to the moon. We got a great show for you today. Let's go. Well, guys, we got a Trump tariff surprise on Friday which tanked the markets. On Friday, President Trump posted on Truth Social that he was going to slap China with 100% tariffs starting November 1st in response to China's increased export restrictions on rare earth metals. And I got to tell you, the markets did not like that threat from Trump. And The S&P 500 dropped 2.7% on Friday and the Nasdaq was down 3.6%, both having the worst day since April 10, which was the last time that Trump escalated trade tensions with China. And you know, I have to, I have to call myself out here, guys. I had an all time generational jinx on Friday's episode. If you missed it, I pretty much said the markets didn't care about tariffs anymore and boy, was I humble. It turns out the markets still very much care about tariffs and especially when it comes to China. Nearly $2 trillion in market value was wiped out from the stock market on Friday. And crypto had one of its worst sell offs in history. Now, I think the market sell off caught Trump's attention because he's already starting to walk back his threat on China. On Sunday, he posted again on Truth Social, telling people not to worry about China and that it'll be fine. So it looks like we might be in for a big bounce back today. I'm recording this in the pre market and I'm seeing green across the board. This is, you know, this is a classic taco trade playing out. Trump announces tariffs, the markets freak out, Trump walks it back, and the markets bounce back. But yeah, I think we're going to be in for a wild week this week. We'll see how the Chinese respond to Trump's threats. On top of that, the US Government is still shut down and that's starting to impact the economy with thousands of federal workers about to miss their first paycheck. And then to top it all off, earning season kicks into full gear this week as well, the markets are likely in for a roller coaster. We're going to be staying on top of all of it. So make sure you guys are subscribed to the podcast and and tuning in every day to stay in the loop. And I promise to limit the number of times I jinx the markets moving forward. Not trying to get a Jim Cramer reputation here. Let's run through some headlines, starting with OpenAI. OpenAI just announced another monster deal, this time with Broadcom. OpenAI plans to build their own custom AI chips with Broadcom's help. Now, what's interesting here is the two sides have actually been working together quietly for, for about 18 months already, but they finally hard launched to the public today. Under this deal, OpenAI will design the chips and Broadcom will handle the manufacturing and integration. The two companies plan to deploy 10 gigawatts of computing capacity over four years beginning in the second half of next year. So now we can add Broadcom to the list of chip makers that OpenAI has a deal with. Last week they announced that monster deal with AMD. The week before that it was with Nvidia. And if you add up all these deals, OpenAI has now agreed to buy a total of 26 gigawatts of AI chips. But what's crazy is that OpenAI isn't even close to stopping. CEO Sam Altman recently told employees inside OpenAI that he wants to reach 250 gigawatts by 2033, which would cost like $10 trillion to buy, according to the Wall Street Journal. 10 trillion. I'm not sure how OpenAI is going to get their hands on $10 trillion to pay for all of this. I mean, their latest revenue numbers are estimated to be around $12 billion a year. They're gonna have to raise more money or take on debt. Or maybe they can convince Jensen to give him a couple hundred billion dollars. Again, I don't know. We'll have to see. Broadcom investors are obviously hyped about this deal. Broadcom stock is up around 7% this morning on this announcement. Now to add to all of this, a couple weeks ago, Broadcom CEO said that Broadcom had a secret 10 billion dollar customer and everyone assumed that it was OpenAI. Well, Broadcom CEO clarified today that the secret customer was was not OpenAI. So I wonder who that ends up being. I also wonder how Nvidia and AMD feel about OpenAI partnering with Broadcom to design their own custom AI chips. Is OpenAI planning to just completely move away from Nvidia and AMD? At some point down the line, because that's what it seems like. If you want to learn more about OpenAI, we posted an awesome episode on Sunday. We had Kyla Scanlon and Tech Insider Alex Heath on that episode. It was a fantastic conversation. We talked a lot about OpenAI's ambitions. Highly recommend checking that episode out if you want to learn more. Let's shift gears and talk about a big announcement from JP Morgan. The world's largest bank is making a massive bet on American Economic Security. JP Morgan is launching a 10 year, $1.5 trillion initiative called the Security and Resiliency Initiative, and a part of that includes a $10 billion investment directly from J.P. morgan and into industries that CEO Jamie Dimon says are critical for U.S. national security. J.P. morgan had plans to invest in four key areas, including supply chain and advanced manufacturing, defense and aerospace, energy, and frontier technologies like AI. In a statement, CEO Jamie Dimon said that America has become too reliant on unreliable sources for critical minerals, products and manufacturing. I got a feeling he's talking about China in that statement, and China is now using that as leverage in trade negotiations on like their increased export restrictions on rare earth metals. And this is good business for JP Morgan as well. For one, it probably puts them in the good graces of the Trump administration. On top of that, trillions of dollars are being invested into areas like AI and advanced manufacturing, and JP Morgan is positioning themselves in the middle of that. I'm sure they're going to try to help facilitate some of that investment, which is, you know, good business for a bank. This move makes for a flashy headline for JP Morgan, but we'll see how this all plays out and what they actually end up doing. Let's talk about some stuff. Stocks making moves today Shares of Bloom Energy are soaring this morning after the company inked a $5 billion deal with Brookfield's Asset Management to install fuel cells in AI data centers. The two companies are partnering to design and build what they're calling AI factories, which are data centers powered by Bloom's clean fuel cell tech that can run on natural gas, biogas or hydrogen. The first site will be in Europe and announced by the end of this year. Now, we've talked a lot about how power is going to be a bottleneck when it comes to the AI buildout. These AI data centers require a ton of energy, so Bloom's fuel cells could be a potential solution to that problem. Investors definitely seem to be hyped about it. Shares of Bloom Energy are up more than 30% this morning at the time of this recording. By the way, we did a deep dive this past weekend on nuclear energy stocks that are seeing a huge surge thanks to the AI boom to so if you want to learn more about that, go give that episode a listen. Now, on the flip side, let's talk about Beyond Meat. Their shares are plummeting down nearly 60% this morning after the company said that all of its creditors accepted a debt for equity swap that massively dilutes existing shareholders. As part of this plan, Beyond Meat plans to issue 316 million new shares. You know, the company says they're making this move to reduce their massive debt pile. As of the last annual filing, beyond meat had over $1.3 billion in debt. And that debt issue has been compounded by weak demand. Sales for beyond meat fell about 20% last quarter to $75 million. This stock has been absolutely crushed this year. It started the year above $6 a share and now it's trading under a dollar. It's crazy to think that this company was trading at nearly $200 a share back in 2020. Let's wrap the show with a fun fact. Gen Z and Gen Alpha are obsessed with a Korean instant noodle called Bulldog, and it's sending shares of the parent company to the moon. Bulldog ramen has become like a full blown pop cultural phenomenon. Their spicy fire noodles keep going viral on TikTok. Kids are filming themselves doing the fire noodle challenge and I have never felt so old in my life. I mean, I had no idea this was happening until I read about it in Bloomberg. Just to show you how out of touch I am with this stuff. I mean, I just recently figured out what 6, 7 is and now my daughter's asking me for these Korean noodles. I wish I had heard about these Korean noodles sooner though, because Bulldog's parent company, Sam Young Food, has seen their stock price double this year with sales in the U.S. topping $185 million so far. And I'm not going to lie after reading the article on Bloomberg. I was watching some of these videos on TikTok and now I kind of want to try these spicy doodles just to see if it's worth the hype. If anyone listening has tried these Bulldog noodles, let me know in the comments if it's worth the hype. Well, all right guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did and you have like six extra seconds, consider giving us a five star rating on Apple, Spotify, YouTube, wherever you listen to your podcast. And if you are listening on Spotify, don't forget to vote in today's Spotify poll. Leave us a comment on Spotify. All that engagement really does help us out and it helps other people find the show. Thank you guys so much for listening, watching and commenting. Shout out to Mike and Connor for all the work behind the scenes and we'll see you guys back here tomorrow.
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