HAPPY MONDAY TO THE STREET
AI is starting conversations than an unemployed X user suffering from chatbot psychosis.
It all kicked off last week, when an Anthropic researcher quit, warning the technology could kill everyone by the end of the decade. The Claude-maker’s CEO responded Saturday, publishing a post urging the industry to slow down. OpenAI's Sam Altman and Elon Musk both said they agreed, a true rarity.
Companies responded fast, with Microsoft (MSFT) publishing a provisional code of conduct capping what its future models are allowed to do. But markets responded faster. Chipmakers and AI infrastructure names sold off today, while cybersecurity stocks ripped higher.
Washington, per usual, is split down the middle. Senator Bernie Sanders introduced a bill to permanently ban superintelligent AI. Meanwhile, President Trump called the panic a hoax, and said the only guardrail AI needs is a high-IQ president.
As for our take? The AI risk they want us talking about is Skynet. The AI risks with actual receipts are strained power grids, automated jobs, feed slop, and very high stock prices. If you don’t like what people are saying, change the conversation.
🟥 | US stocks slid today as AI fears and rising Treasury yields spooked markets.
📈 | One Notable Gainer: Roblox (RBLX) climbed after unveiling AI-powered creator tools at its developer conference.
📉 | One Notable Decliner: Nvidia (NVDA) fell as chip stocks sold off on the aforementioned calls for an AI slowdown.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
ELMET, MARA, RUM
📈 | Elmet Group (ELMT) surged on a $450M Department of Defense investment in the US tungsten supply chain.
📈 | Rum Group (RUM) rose on a reported six-year, $13.7B deal to supply computing power to Anthropic.
📈 | Baldwin Insurance Group (BWIN) jumped after agreeing to go private at $32.50 a share.
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Underrated Under The Hood
Wall Street still prices General Motors like a car company. Analyst Joseph Spak thinks it’s a burgeoning tech giant.
He reiterated a Buy rating and raised his price target, arguing GM's digital capabilities are both underappreciated and undervalued by investors.
Recurring Revenue Lane
Spak's case is about margin mix. Digital revenue is recurring, less cyclical and higher margin than selling trucks, which he says deserves a richer multiple than the core business.
That bucket includes Super Cruise, the hands-free driving subscription, and in-vehicle AI assistant services. UBS models total digital revenue reaching $9.6B by 2036, roughly triple today's level.
As more of the fleet gets connected, GM can earn from a vehicle long after it leaves the lot, and from the second owner too. Spak says a cleaner breakout of digital revenue and profit could spark a re-rating on its own.
The Street Buckles Up
Spak is not out on a limb. Of the 29 analysts covering GM, 22 rate it a Buy or Strong Buy. Shares are in the green year-to-date, but have trailed the broader market.
General Motors is making a move from horsepower to power buttons. UBS says it’s a winning one.
Do you own any shares of General Motors (GM)?
OVERHEARD ON THE STREET
🛢️ The 10-year Treasury yield briefly topped 5%, hitting its highest intraday level since 2007, as oil prices surged.
🏭 The EPA is repealing greenhouse gas limits on coal and gas power plants, which would potentially save the industry more than $300B.
📱 Apple (AAPL) released iOS 27, whose rebuilt Siri AI assistant requires an iPhone 15 Pro or newer.
🍼 Abbott Laboratories (ABT) agreed to pay $385M to settle claims over its Michigan baby formula plant.
🍦 Chinese chain Mixue passed McDonald's (MCD) as the world's biggest food chain with more than 47K locations.
FRIDAY'S POLL RESULTS
Do you own any shares of Tesla (TSLA)?
▇▇▇▇▇▇ 🐂 Yup, I'm holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I'm interested
And, in response, you said:
🐂 Yup, I'm holding — “Every once in a while there is a catalyst.”
🐻 Nope, not interested — “Tesla has done some amazing things. But their stock is probably 10x where it should be. Too many promises, too little delivery.”
