AMD jumps after reaching deal to deploy 50,000 AI chips in data centers run by Oracle

Advanced Micro Devices is jumping (again) in premarket trading after Oracle said it will deploy 50,000 AMD AI chips in its data centers starting in the second half of 2026.

Financial terms of the agreement were not disclosed.

One could say AMD’s pact with OpenAI that was announced last week is already paying dividends: AMD securing OpenAI as a customer, which itself is responsible for Oracle’s massive backlog in cloud computing capacity, means Oracle is now more comfortable using AMD as a source of AI chips.

Or, given the very peculiar terms of that AMD-OpenAI agreement, a cynic might suggest it’s yet another example of circular deals in the AI space, and that both AMD announcements may be about the same thing!

Today’s revelation didn’t spark any additional move lower for Nvidia, which has been trading in the red ahead of the open.

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Max Knoblauch29m

Roblox rallies on a Jefferies price target hike and positive sentiments from Morgan Stanley

Gaming platform Roblox is in the green on Tuesday, following a price target hike from Jefferies to $130 from $126. That target is about 5% below where Roblox is currently trading.

Meanwhile, Morgan Stanley maintained its higher $170 target on the company — one of gaming’s biggest “black holes.” Morgan Stanley called Roblox a clear leader in next-gen entertainment, with parallels to YouTube given its strong position in user-generated content.

In recent months, Roblox has seen booming player counts through updates and events in its most popular titles, including “Grow a Garden” and “Steal a Brainrot.” According to third-party tracking firm RoMonitor, “Steal a Brainrot” had more than 25 million concurrent players on Saturday, when a Halloween update was added to the game.

Matt Phillips46m

Data center stocks knocked back amid China stress

The buy-everything-data-center-related trade is having a rough ride Tuesday, with Goldman Sachs’ themed basket of AI data center stocks dropping 1.5% in early trading after soaring more than 3.5% to start the week.

That’s partially because some suppliers of bits and bobs needed to fit out the hangar-like concrete structures selling computing power for AI are still exposed to risks of the China-US trade war, which seems to be flaring anew.

For instance, while most of the switches and routers Arista Networks sells are made in Malaysia, Vietnam, and Mexico, it also gets some products directly from China. The company is also reliant on supplies of some critical metals, exports of which China is clamping down on.

Such actions, the company has previously warned, could lead to disruptions to supplies of components it needs, manufacturing delays, and inventory shortages.

Other related stocks slumped in early trading, including hard disk data storage makers Seagate Technology Holdings and Western Digital — also exposed to Asian supply chains — and server maker Dell.

Chip giants Nvidia and Broadcom were also down more than 3% each after Advanced Micro Devices announced a new deal to deploy its chips in Oracle data centers.

While previous announcements to that effect lifted the AI sector as a whole, the AMD deal wasn’t enough offset the pall cast by the renewed China stress.

J. Edward Moreno3h

OpenAI to offer Walmart products for sale through ChatGPT

Walmart is partnering with OpenAI to enable shoppers to purchase products directly through ChatGPT, an executive for the retail giant told Bloomberg.

Soon, ChatGPT users will be able to look up Walmart products (minus fresh foods) and simply click “buy.” OpenAI previously announced similar partnerships with Etsy and Shopify last month.

Walmart Partners With OpenAI to Offer Shopping on ChatGPT

Luke Kawa

My Precious

Gold and silver are the new meme stocks

Momentum. Flows. Options activity. Intense retail enthusiasm. It’s all there.

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Claire Yubin Oh & David Crowther5h

Rare earth stocks are Wall Street’s hottest trade right now, so much so that MP Materials’ stock traded more than JPMorgan yesterday

Rare earth stocks are having a blast at the moment. Small stocks in the critical and rare earth minerals sector — the latest flashpoint of US-China trade relations — have ripped, but the trade went into overdrive to start this week.

After JPMorgan announced a $10 billion plan to directly invest in key industries like critical minerals, the sector spiked again on Monday, as traders responded to the news and continued to bet on the US government’s ongoing support for the nascent sector. In the announcement, Jamie Dimon, JPMorgan’s CEO, wrote that “the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products, and manufacturing.”

One name in particular, MP Materials, soared 21% yesterday, with an eye-watering $4.7 billion worth of the stock trading in a single session. Ironically, that’s even more than the $3.3 billion that changed hands in JPMorgan stock.

Still finding gold

Remarkably, the rare earth trade doesn’t seem to be losing any steam this morning.

As of 7 a.m. ET, MP Materials is up 5%. With risk-off sentiment dominating the premarket session — the US and China just rolled out their tit-for-tat port fees — the one winner from the trade tensions seems to still be the rare earth stocks. Indeed, other names in the industry are also trading higher, most notably United States Antimony Corp., Critical Metals, American Battery Technology Co., and USA Rare Earth.

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