← The Rundown
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Public.com presents the rundown, your daily market update in under 10 minutes. My name is Zaydadmani and today is Monday, October 6th. In today's episode, we'll recap the massive deal between OpenAI and AMD and what it means for Nvidia. We'll also tell you about Tesla's upcoming announcement this week, then stick around to the end of the show to find out the first publicly traded spot sports team in the US and why teams just don't trade on the stock market these days. We got a great show for you today. Let's go. The stock market is coming off another winning week, shrugging off all the drama around the government Shutdown. The S P 500 and Nasdaq both jumped more than 1% last week and are sitting at record highs. But it wasn't just stocks. Crypto is also coming off a solid week. Bitcoin and Ethereum both climbed around 4% last week. And gold continues to defy the laws of market gravity. It's sitting at record highs and it's now within $50 of breaking $4,000 an ounce. If you want to hear why gold has been on such a heater this year, check out our deep dive episode from this past weekend. We broke down the three main reasons behind the gold rally and what it says about the economy moving forward. Now, looking ahead to this week, on paper it looks like it's going to be a pretty slow week. We're not getting any major economic data or earnings. Markets seem to be taking a bit of a breather. But before the start of earnings season which kicks off next week. But you know, a lot can happen these days. Maybe we'll get a resolution to the government shutdown. So we're going to stay on top of everything that's happening. So make sure you guys are subscribed to the podcast to stay in the loop. Let's run through some headlines, starting with OpenAI. OpenAI just announced another massive AI infrastructure deal, this time with Nvidia's rival AMD. The two companies signed a five year deal in which OpenAI will buy 6 gigawatts worth of Nvidia's new Mi 450 chips to use in their data centers starting next year. And this deal will result in tens of billions of dollars in revenue for AMD. This news is sending AMD stock price to Jupiter. It's up 35% in pre market trading and it might be up way more by the time you guys listen to this podcast. Now as part of this deal, OpenAI will get warrants for up to 160 million AMD shares, or about 10% of the company is if OpenAI hits some milestones. So OpenAI could ultimately end up owning 10% of AMD. So this is a pretty huge deal and it's a direct shot at Nvidia's dominance in the AI chip space. Nvidia still has 70% of market share when it comes to AI chips. They're still the preferred chips that everyone wants to get their hands on. And now OpenAI also has this AI app, Sora too, which is going viral and I imagine that requires a ton of computing power as well. So OpenAI is trying to get their hands on as many chips as possible to meet the demand and, and they don't seem to care if it's Nvidia or AMD at this point. Now my initial reaction to when I saw this deal was I wonder how Nvidia CEO Jensen Huang is going to feel about this partnership. You know, Nvidia just announced a $100 billion investment in OpenAI a couple of weeks ago, so I wonder if that's still going to happen because that was still in the early stages. There was no official contract signed. And also this is going to fuel more concerns about circular financing in the AI space. Does OpenAI even have the money to buy all these chips from amd? Are they going to use some of that money from the Nvidia investment a couple weeks? Because that would just be hilarious where Sam Altman is using Jensen's money to buy chips from amd, which is pushing up their stock price. So there's a lot of questions here and yeah, I think it's just going to fuel more concern of an AI bubble. By the way, while Sam Altman is making 12 figure deals on a weekly basis at this point, OpenAI is also working on some hardware as well, led by former Apple designer Johnny I. But according to a recent report by The Financial Times, OpenAI is running into some roadblocks in the design of their palm size AI gadget. It's supposed to be the screenless AI personal assistant, which I'm not really bullish on that kind of product, but I don't know, we'll see. The device is expected to come out sometime next year, but that's going to require even more computing power for OpenAI, which I guess explains why they're trying to get as many chips as possible. So yeah, there's a lot going on in the AI space, especially with OpenAI. You know, you know, it's times like these where I wish that HBO would bring back the Silicon Valley show. That show is so good and it would just be great to have like a comedic take on what's happening these days. Maybe we here at the Rundown should just do our own version. I'll write like a screenplay and maybe we'll release like a short film four episode series on YouTube or TikTok. Let me know what you guys think about that idea. Let's shift gears and talk about Tesla. Their stock price has been on a heater over the past couple months and the company just posted a mysterious teaser video on X over the weekend that many believe is for the launch of the next generation Roadster. The video shows a mysterious vehicle shrouded in the dark and it ends with the date 10:7. So we're either going to get a big announcement on Tuesday of this week or on July 10th of next year, depending on if Elon was using the date writing format used by everyone else outside of the U.S. you know, the second generation Roadster was first announced back in 2017 and it still hasn't come out yet, but maybe it's finally time. So I hope everyone that reserved it eight years ago hung onto their reservation. Elon has been hyping up the next generation Roadster, saying that it would be a collab between Tesla and SpaceX and that the car would go 0 to 60 in under a second, which sounds insane. But again, all of this is just speculation. We might not even get the Roadster this week because some analysts think that Tesla is about to show off a cheap mass market car that costs between 25 and $30,000, which would help boost sales now that the EV tax incentive has gone away in the U.S. so yeah, we'll find out what Tesla is cooking up later this week. Tesla stock is up more than 2% this morning, so investors are already getting excited. Let's look a take talk about some stocks making moves today. Shares of the regional bank Co America are ripping higher this morning after they agreed to be acquired by another bank, Fifth Third Bank Corp. In a $10.9 billion all stock deal. This combined bank will create the 9th largest bank in the US with roughly $288 billion in assets. Fifth Third is based out of Cincinnati and they are already a big player in the Midwest, but this move gives them a stronger foothold in the Southeast, where Co America mostly is. It's one of the fastest growing regions in the U.S. so this merger makes sense and I think we're going to see even more regional banks merge over the next couple of years because regulations have been relaxed under the Trump administration and these banks are going to try to merge to compete with the big players like JP Morgan and Bank of America. So I'm keeping my eye on regional bank stocks. Now switching gears, let's talk about Aston Martin. The stock of the luxury automaker is down this morning after they cut their sales outlook again. The company reported that their Q3 deliveries were down 13% because of weak demand in the US and Asia. So now the company expects overall sales to drop by mid to high single digits for 2025. Now one reason for the drop in sales is tariffs. Aston Martin is facing a 25% tariff rate on their cars imported into the US beyond the 100,000 vehicle quota from the UK. And that's going to eat into their profits. And it probably doesn't help that their F1 team has been pretty bad this year. So shares of the company are down more than 7% this morning at the time of this recording. But don't worry Aston Martin Fans, I think 2026 could be a bounce back year for the F1 team. And there's new regulations coming. They're spending a lot of money on development. So I don't know. We'll see F1 fans in the comments. Let me know if I'm just being delusional here. Let's wrap the show with the fun fact. The NBA's Boston Celtics used to be a publicly traded company that you could buy shares of on the New York Stock Exchange. See, back in 1986, right after winning the NBA Finals with Larry Bird, The Celtics sold 40% of the franchise to the public, raising $48 million in the process. And that IPO valued the team at around $120 million. And for 16 years, the stock traded on the New York Stock Exchange under ticker symbol CLTFF. But then in 2002, a local investor group led by Wick Grusback bought the team for $360 million and took them private. And there hasn't been a publicly traded major sports team in the US Since. Now going back to the value of the Celtics, it tripled from 1986 to 2002, going from $120 million to $360 million. Well whick gross back just sold the team earlier this year, but this time it was for $6 billion. It's just another example of how fast the value of these sports franchises are going up these days. And that's why I wish that sports franchises were publicly traded in the U.S. i mean, could you imagine the swing in the stock price after a big win or loss or after an injury to a star player or a big trade? It would just make sports even more interesting. But I can see why the owners of the sports teams don't want that to happen. These sports owners don't want to have to answer questions from fans and also shareholders. Well, all right guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did and you have like 8 extra seconds, consider giving us a 5 star rating on Apple, Spotify, wherever you listen to your podcasts. And if you guys missed it, don't forget to check out our weekend episodes. We posted a weekend deep dive about gold and also a fantastic interview with the Chief Revenue Officer of Nebius. Nebius has been one of the hottest companies this year. They're on the forefront of this area AI infrastructure build out. So it was great talking to someone at the company and getting their perspective of the AI hype machine from the inside. So go check that episode out and let me know what you guys think. Thank you guys so much for listening, watching and commenting. I want to give a special birthday shout out to Ryan. Ryan, thank you so much for listening to the show. I hope you have a fantastic birthday. And of course a shout out to Mike and Connor for all the work behind the scenes and we'll see you guys back here tomorrow.