Meta (META) and Microsoft (MSFT) announced over 20,000 potential job cuts this week, joining Amazon (AMZN), Nike (NKE), Snap (SNAP), and Salesforce (CRM) in the great AI rightsizing of 2026.

Tech workers laid off this year already top 92,000, even as the same companies plan to spend $700 billion on AI infrastructure. Turns out the robots don't need on-site massages and in-office arcades.

— Brooks & Cas

The US Department of Justice just dropped its criminal probe into Federal Reserve Jerome Powell, clearing the way for President Trump’s nominee Kevin Warsh to ascend on time, when Powell’s term ends next month. Senator Thom Tillis (R-NC) had refused to advance the nomination until that inquiry ended. Kalshi bettors now see an 86% chance Warsh is confirmed as Fed Chair by May 15.

It’s been a curvy road. But those of us who followed the Fed closely for the past few years were likely already betting on an anticlimactic ending.

📈 | Advanced Micro Devices (AMD) surged on renewed AI trade faith after Intel's earnings beat and a DA Davidson upgrade.

📉 | Eli Lilly (LLY) slumped after weak first-week prescription data for GLP-1 pill Foundayo.

📈 | MaxLinear (MXL) popped more than 75% after Q1 results smashed expectations and the unsung chipmaker raised its forecast.

📉 | HCA Healthcare (HCA) tumbled after a milder flu season cut patient admissions.

📈 | Organon (OGN) spiked on a report that Sun Pharma is planning a $13B offer for the company.

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Morgan Stanley analysts think Sony is built to win the AI gaming wars.

The bank named the PlayStation owner a top pick in a 63-page deep dive on how generative AI will reshape the industry.

Generative AI could halve the cost of developing a new game, per the firm, opening up a $22 billion profit pool for incumbents.

Sony's scale is its moat. Morgan Stanley argues its diversified portfolio, deep IP library, and recurring live-service revenue make it tough to disrupt and well positioned to capture the AI tailwind.

The trend could also flatten barriers to entry, letting smaller players crowd the field. The bank tagged NetEase (NTES), Roblox (RBLX), and AppLovin (APP) as other potential winners, alongside China's Tencent (TCEHY) and Korea's NC Corp.

Sony ADRs are in the red over the past year, and the broader gaming space is bracing for a shake-up. Morgan Stanley thinks AI is the cheat code that gets Sony back to a high score.

⚛️ | Nuclear startup X-energy (XE) jumped on its trading debut after raising over $1B in the largest nuclear IPO on record.

🤝 | Google (GOOGL) plans to invest up to $40B in Anthropic, valuing the AI lab at $380B.

🚗 | Ford (F) and China's Geely held now-stalled talks about licensing Chinese tech to Ford in a US tie-up.

🛢️ | The Treasury sanctioned Chinese refinery Hengli Petrochemical and roughly 40 shippers over the transport of Iranian oil.

⚖️ | A US Army Special Forces master sergeant was arrested for using classified info to make over $400,000 on Polymarket betting on the downfall of Venezuela’s Nicolás Maduro.

Do you own any shares of On Holding (ONON)?

(Correction: We misprinted the price of ONON at the close yesterday as $44. The stock actually closed around $34, implying 46% upside from RJF’s price target.)

▇▇▇▇▇▇ 🐂 Yup, I’m holding

▇▇▇▇▇▇ 🐻 Nope, not interested

▇▇▇▇▇▇ 👀 No, but I’m interested

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