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Capitalist Insider: Street said 2040. Musk said SpaceX hits $3.5 trillion in 2033
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Capitalist Insider: Wall Street said 2040. Musk said SpaceX hits $3.5 trillion in 2033
Hello Capitalist Insiders!
Nvidia’s monster earnings fail to lift chip stocks
Nvidia posted monstrous quarterly earnings this week, but those results still were not enough to drive a breakout in the broader chip sector on Friday.
70% growth still constrained: Nvidia projected about 70% revenue growth for fiscal 2028 and about $108 billion this quarter after another blowout report.
Thursday pop, limited follow-through: Shares jumped nearly 9% Thursday and added about $440 billion in value, with Broadcom and Intel rising after the release.
Demand outruns what it can ship: CEO Jensen Huang said AI reached its inflection point and demand is much greater than 70%, but supply is the cap.
Rivals and shortages linger: Customer-built custom chips, tight memory supply, and capacity limits at Taiwan Semiconductor Manufacturing Co. remain headwinds.
Odds surge on Tesla merging with SpaceX before 2028
The odds of Tesla merging with SpaceX before 2028 have surged according to the latest data from Kalshi.
Elon’s Mega Corp: Elon Musk, fresh off the back of the SpaceX IPO has been rumored to be debating the move.
A Pattern Emerging: Prior to the SpaceX IPO several of Musk’s ventures were brought in under the SpaceX umbrella. This included the satellite internet division Starlink and the xAI division which runs the AI model Grok.
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Pentagon labeled Anthropic a threat. A judge said no
A San Francisco federal judge on Thursday ruled the Pentagon’s blacklisting of Anthropic as a supply chain risk was illegal, finding the Defense Department violated the First Amendment.
Retaliation, not national security: U.S. District Judge Rita Lin found the Department of Defense acted to make a public example of Anthropic, not on an articulable security basis.
Claude talks collapsed in March: Anthropic wanted limits on autonomous weapons and domestic mass surveillance; the Pentagon wanted unfettered access to Claude for all lawful uses.
D.C. case keeps the brand marked: Anthropic still technically remains a supply chain risk until its separate Washington, D.C., lawsuit is resolved.
IPO path just got clearer: The ruling clears a major hurdle as Anthropic heads toward an expected near-record IPO and possible renewed Pentagon work.
Warsh goes to Jackson Hole with a message about AI and Inflation
Federal Reserve Chairman Kevin Warsh said Friday in Jackson Hole, Wyo., that artificial intelligence could turbocharge the economy and that the central bank is watching its impact closely.
Capital keeps flooding in: Warsh said the potential for substantially higher growth is rising as ever-expanding pools of capital pour into AI-related infrastructure of all sorts.
New factor of production: He said the Fed sees AI as a potential new factor of production with consequences for both the economy and interest rates.
Models and tokens watched: The central bank is attentively tracking large language models at the heart of AI and the tokens used to access those models.
Jobs task force is live: A Warsh-appointed task force is weighing when productivity rises, who captures the value, and what that means for workers.
Inflation is 3.7%. Warsh says that’s not good enough
Federal Reserve Chairman Kevin Warsh said Friday at Jackson Hole that inflation is running too high and the central bank has work to do, while offering no forward guidance on rates.
Conditions barely look restrictive: Warsh said he sees little evidence that broad financial conditions are holding the economy back after the Fed kept rates unchanged at all 5 meetings this year.
AI lifts capex sharply: He estimated capital expenditures rose 9% over the past 4 quarters, with more than half of this year’s gain likely tied to the AI build-out.
Target slips amid war: Inflation moved further from the 2% goal amid the Iran war, and Warsh said summer PCE and CPI readings still do not signal a real improvement in underlying trends.
Households keep spending: Inflation-adjusted consumer spending rose more than 2% over the past 4 quarters despite a surge in oil prices, tariffs, and other shocks.
Advent, Stripe abandon $50 billion PayPal pursuit
A consortium of Advent and Stripe abandoned its more than $50 billion pursuit of PayPal, people familiar with the matter said, ending talks that had helped lift the stock.
Board wanted a higher price: The Wall Street Journal reported this month that PayPal found the initial bid insufficient and that both sides had been negotiating a higher figure.
Takeover premium just vanished: PayPal shares had jumped more than 40% this quarter to a market value of about $52.6 billion on earnings and deal talk.
Stock snapped after the walk-away: PayPal traded at $54.40, down $7.08 or 11.51%, as of 11:40 AM EDT after the reports hit.
Door is not fully closed: People said the situation is fluid and Advent and Stripe could still return later; Advent, PayPal, and Stripe declined to comment.
Costco will now deliver the cake. Yes, that cake
Costco and Instacart said shoppers can now order custom sheet cakes, 10-inch round cakes, and party platters for delivery through Instacart and SameDay Costco.
Paper bakery forms are gone: Those made-to-order bakery and deli items were unavailable online until February, when Costco retired a decades-old warehouse paper-form system.
Platters join the delivery menu: Newly available options also include sandwich platters, shrimp trays, and fruit platters for celebrations that once required a store visit.
Design the cake in the app: Shoppers can choose size, shape, and flavor, pick a preset design, and add a message of up to 30 characters in a chosen color.
Nearly 10 years in the making: Instacart commercial chief Ryan Hamburger said the partnership, which began with same-day delivery in 2017, now covers made-to-order bakery and deli.
The monster quarter itself, for reference: revenue $96.2B, up 106% Y/Y, Hyperscale $48.7B - 51% of it. Net income $59.7B, a 62% margin. All from the 8-K.