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Jensen Huang, CEO of Nvidia, prepares to throw the ceremonial first pitch before a game between the San Francisco Giants and the Arizona Diamondbacks at Oracle Park on September 3, 2024, in San Francisco, California (Lachlan Cunningham/Getty Images)
The chosen one

Nvidia’s not just lapping other chip stocks. It’s running the table on the Magnificent Seven.

The relationship between the daily swings in Nvidia and other megacap tech stocks has virtually disappeared despite the fact that many of them are its biggest customers.

Luke Kawa

Nvidia isn’t just breaking away from its competitors in the semiconductor industry with an eye-popping run of recent gains.

It’s also setting itself apart from another set of peers: the so-called Magnificent Seven of Apple, Microsoft, Alphabet, Amazon, Meta, and Tesla.

Apple, the Magnificent Seven component that’s done the second-best over the past month, is still 20 percentage points behind Nvidia’s whopping 24% gain.

In the process, the relationship between the daily swings in Nvidia and the other megacap tech companies has effectively gone to zero. The 21-day average pairwise correlation between the percent change in Nvidia versus the other six of the Mag Seven has dropped from 60% at the start of October to less than 7% as of the close on Monday. That’s the lowest level since early to mid-July, when the correlation was actually negative. Soon thereafter, tech stocks had a correlations-to-one move as investors rotated into small caps, resulting in a pullback for the S&P 500.

I’ve maintained that it’s very curious whenever Nvidia is able to trade so independently of other tech titans, given that many of these are its most important customers. Microsoft, Alphabet, Amazon, and Meta are widely assumed to be the four companies that make up roughly half of Nvidia’s sales. The chip designer needs those companies to be raking in so much cash from their business operations that they can justify spending tens of billions of dollars on AI without batting an eye.

The relationship between Nvidia and its cash-flush customers is charitably symbiotic, where its chip sales will facilitate massive cost savings down the road, or at best temporarily parasitic until the economic cycle turns or there’s sufficient evidence that the returns on AI investments don’t make the juice worth the squeeze.

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Opendoor surges on bullish options bets as traders look to potential real estate tokenization

Opendoor Technologies is surging on Friday amid bullish options bets and social media posts referencing unconfirmed rumors about the company.

The stock moved higher in the premarket session after the soft inflation report boosted stocks and briefly pushed long-term bond yields lower (positive for a real estate company). But the real gains came after the opening bell rang and options demand picked up.

As of 12:11 p.m. ET, roughly 664,000 call options have changed hands versus a 10-day average of about 364,000 for a full session.

What seems to be galvanizing members of the “$OPEN Army” is the potential for the company to pursue the tokenization of real-world assets, with Robinhood often bandied about as a potential partner in this endeavor.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

Opendoor bulls have often pointed to signs that Robinhood CEO Vlad Tenev appears to be fond of the company, from what appeared on-screen during a demo of a social trading feature at HOOD’s conference in Las Vegas in September to offering support to Opendoor CEO Kaz Nejatian in setting up an opportunity for retail shareholders to ask questions during the online real estate company’s next earnings call.

Opendoor is currently in a quiet period ahead of earnings, which restricts what type of announcements a company can make.

The call options seeing the most demand expire this Friday with strike prices of $8, $8.50, and $9.

Intel Earnings Researchers

Wall Street analysts see some issues with Intel’s earnings

Even with the US government as a partial owner, Intel’s turnaround has a long way to go.

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Luke Kawa

Beyond Meat gains amid slightly better-than-expected Q3 sales, positive commentary on legal issues

Shares of Beyond Meat built on their premarket gains after the plant-based meat seller reported preliminary Q3 sales a bit ahead of Wall Street’s expectations, before paring this advance after the market opened.

For the three months ended September 27, management said net revenue would be approximately $70 million. That’s in line with their guidance range of $68 million to $73 million, but Wall Street was expecting sales to skew toward the lower end of that range, at $68.7 million.

However, its anticipated gross margin of 10% to 11% is lower than analysts had been expecting (13.8%). That’s still the case even adjusting for expenses related to its downsizing of operations in China, which would have left margins around 12% to 13%, per Beyond.

Perhaps more importantly, the company provided positive commentary regarding arbitration discussions with a former co-manufacturer that appear to bring it closer to a resolution while limiting potential damages:

“As previously disclosed, in March 2024, a former co-manufacturer brought an action against the Company in a confidential arbitration proceeding claiming that the Company inappropriately terminated its agreement with the co-manufacturer and claimed damages of at least $73.0 million. On September 15, 2025, the arbitrator issued an interim award (the ‘Interim Award’) and found that the Company had a valid basis to terminate the agreement with the Manufacturer. The details of the Interim Award are confidential, and a final arbitration award has not been issued. Additional proceedings will be held to determine the award of attorneys’ fees, prejudgment interest and costs, if any, before a final arbitration award will be issued. On September 25, 2025, the Manufacturer filed a request with the arbitrator to re-open the arbitration hearing. On September 29, 2025, the Company opposed this request. On October 20, 2025, the arbitrator denied the Manufacturer’s request.”

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