HAPPY FRIDAY TO THE STREET
Silicon Valley keeps warning that AI could end humanity. Hollywood's unions have a smaller ask: pay actors when you clone them.
SAG-AFTRA and the Writers Guild say the real damage is already on the call sheet, not in some distant extinction event.
Doomsday just makes for grabbier headlines than a residuals dispute.
🟨 | US stocks were nearly flat today, closing out a losing week marked by increasingly high Treasury yields, oil prices, and interest rates.
📈 | One Notable Gainer: Strategy (MSTR) jumped more than 15% as bitcoin cleared $80K.
📉 | One Notable Decliner: Netflix (NFLX) fell sharply on a downgrade to Underweight over weakening engagement trends.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
XENON, SANDISK, SPACEX
📉 | Xenon Pharmaceuticals (XENE) plummeted after pausing trial enrollment after neuropsychiatric side effects surfaced.
📈 | Sandisk (SNDK) led memory names higher on a fourth straight winning day for chips.
📉 | SpaceX (SPCX) pushed its Starship launch back to Sept. 28.
📈 | Coinbase (COIN) rallied with crypto platforms on bitcoin's breakout.
📉 | Nucor (NUE) guided third-quarter results below consensus.
Tomorrow's Trade Idea, Today
MACOM AND GET IT
Stock Spotlight
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Multiple Choice
Analog chips don’t get the AI headlines. But BMO thinks they deserve an AI valuation.
Analyst Harsh Kumar upgraded analog semiconductor solutions firm MACOM to Outperform, as forward multiples have retraced from the high 50s in June to roughly 29x today.
Data Center Stage
Kumar expects MACOM's data center revenue to grow 70% in fiscal 2026, accelerating from 47% growth the year before, as hyperscalers and AI labs keep writing checks for compute and networking.
Defense has held up throughout, and BMO sees space programs becoming a material growth contributor next year. A recovery in broad industrial demand rounds out the case.
Street Cred
Shares are in the red over the past three months and sit well below their late-May peak. But Wall Street hasn’t flinched: 13 of the 18 analysts covering MACOM rate it a Buy or Strong Buy, with five at Hold.
The chart looks like a company that missed the AI boom. The income statement says it’s just late to the party.
Do you own any shares of MACOM Technology Solutions (MTSI)?
OVERHEARD ON THE STREET
🏦 | Federal Reserve Chair Kevin Warsh's "dose of accommodation" framing has markets pricing 58% odds of an October hike.
🏛️ | California Governor Gavin Newsom ordered experts to strengthen the state's AI safety laws within two months.
🤖 | Anthropic said Claude is now leading 26% of its model R&D, still under human supervision.
🇯🇵 | The Bank of Japan raised its benchmark rate to 1.25%, a 31-year high.
🎩 | Warren Buffett stepped down as chairman of Berkshire Hathaway (BRK.B), handing the title to his son Howard.
THURSDAY'S POLL RESULTS
Do you own any shares of Anheuser-Busch InBev (BUD)?
▇▇▇▇▇▇ 🐂 Yup, I'm holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I'm interested
And, in response, you said:
🐻 Nope, not interested — “Hold my beer. In fact, keep it.”
👀 No, but I'm interested — “Even though the younger generation isn't drinking yet, AB is likely an excellent long-term investment, particularly as inflation bites deeper.”
