HAPPY MONDAY TO THE STREET
President Trump rang the market's opening bell from the Oval Office this morning to launch Trump Accounts, the new tax-advantaged investment vehicles for US kids. Then he told Americans to go out and buy… a Dell (DELL) computer?
Shares promptly soared. The president, per his own disclosures, actively trades Dell stock. Ringing the bell, or ringing the register?
🟩 | US stocks rose to start the week, pushing the Dow to its first-ever close above 53,000.
📈 | One Notable Gainer: IREN (IREN) soared on a report it may sell Claude-maker Anthropic at least 1.4GW of Australian data center capacity.
— Brooks & Cas
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
WHO WINS THE WORLD CUP?
Answer: the house.
The World Cup won't crown a champion until the knockout finale on July 19, but prediction markets already won. Kalshi handled more than $31B in June volume, a 70%+ jump from May, while Polymarket notched a record $10.8B.
Market Movers
TERAWULF, BROADCOM, O'REILLY
📉 | O'Reilly Automotive (ORLY) is reportedly making a cash bid for Genuine Parts' (GPC) auto-parts business.
📈 | TeraWulf (WULF) landed a 20-year Anthropic data center lease worth about $19B.
📈 | ASML (ASML) scored a 30%+ Bernstein price target hike on AI-driven capacity expansion.
Tomorrow's Trade Idea, Today
GREAT WALL STREET
Stock Spotlight
Stock: Cambricon Technologies
Firm: Macquarie (MQG)
Current Price: 1,370 yuan (~$202)
Price Target: 2,060 yuan (~$303)
Implied Upside: 50%
Looking for more upside? Street Sheet Research members get 3 stock picks from the Top 30% of analysts with 30%+ implied upside each week. Subscribe today.
Peking Order
Macquarie has initiated coverage on five of China's homegrown AI chipmakers, and Shanghai-listed Cambricon sits atop the pecking order with an Outperform rating.
The firm's analysts argue the moment to buy China's AI chip players has finally arrived, with Beijing's curbs on Nvidia (NVDA) imports handing domestic leaders far better growth visibility.
Cloud Cover
Cambricon has shifted its base from government computing clusters to China's leading cloud providers and LLM developers, a mix Macquarie says delivers more balanced sales, healthy margins, and solid cash flows.
The company ranked second only to Huawei's Ascend in Chinese AI chip shipments last year, per IDC data cited in the report.
A-Shares for Effort
Cambricon trades in Shanghai, but US investors don't need an international broker for exposure. The stock is the fourth-largest holding in the iShares MSCI China A ETF (CNYA) and the single largest position in the KraneShares SSE STAR Market 50 ETF (KSTR), at roughly 15% of the fund.
Macquarie is far less charmed by peer Hygon, rated Underperform on market share concerns. Its favorite, meanwhile, may be staring down a Cambricorn explosion.
Do you have any exposure to Chinese chipmakers?
OVERHEARD ON THE STREET
🎮 | Microsoft (MSFT) cut 4,800 jobs and will spin off four gaming studios as Xbox sheds 20% of its staff.
🎓 | Student loan servicers began issuing 90-day notices to the 6.9M borrowers still in the SAVE plan to pick a new repayment option.
🏦 | Klarna (KLAR) applied for an FDIC-insured Utah bank charter in its push beyond buy now, pay later.
🪙 | Bitcoin turned positive after Trump declared himself "a big crypto guy," erasing a drop sparked by Strategy's (MSTR) sale of another $216M in bitcoin.
FRIDAY'S POLL RESULTS
Do you own any shares of Innio NV (INIO)?
▇▇▇▇▇▇ 🐂 Yup, I'm holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I'm interested
And, in response, you said:
👀 No, but I'm interested — “Data centers are part of the future, whether you like it or not. It will happen. This is a good time to enter.”
