SpaceX Nvidia Deal Lifts Chips; AMD Forecast Disappoints

Nvidia ($NVDA) shares gained 2.5% in premarket trading to $217.30 after SpaceX ($SPCX) announced it would exclusively use Nvidia AI chips. The decision provided a significant boost to $NVDA while its chief AI processor rival faced headwinds. Advanced Micro Devices ($AMD) declined before the bell despite delivering a stronger-than-expected revenue forecast, as the guidance fell short of lofty expectations and investors sought clearer signs that multibillion-dollar AI spending will translate into faster growth. Bernstein analyst Stacy Rasgon noted that expectations had moved higher following Intel ($INTC) results, and the buyside already had a fairly bullish outlook. The competitive dynamics underscore intensifying rivalry as $AMD aims to challenge $NVDA dominance while $INTC races to regain technology leadership.

Custom AI chip developments also advanced as MediaTek raised its target to capture 15% to 20% of an estimated $80 billion custom AI-chip market in 2027. The company expects its first AI accelerator for a major U.S. cloud provider to enter production in the fourth quarter, with more than $2 billion in 2026 data-center revenue anticipated. The expansion could impact competitive positioning among AI chip suppliers. Intel ($INTC) packaging progress, particularly improving EMIB yields, may bring a long-rumored TPU partnership with Alphabet ($GOOGL) closer to realization.

Salesforce ($CRM) announced that the U.S. Army Human Resources Command has selected Missionforce National Security to deploy secure, autonomous AI agents and modernize HR support for 9.2 million Soldiers, Veterans, civilian staff, and military families. The deployment of Agentforce will deliver AI-powered support around the clock to this user base. Additionally, $CRM announced that the DOW can now leverage the full capabilities of Agentforce 360 through Missionforce National Security, providing a complete mission-ready agentic portfolio that combines real-time data harmonization with autonomous AI action.

Oracle ($ORCL) and Alphabet ($GOOGL) Google Cloud expanded their partnership to bring Google's Gemini models into Oracle's core applications, including Fusion Cloud Applications and NetSuite. The deal pairs Oracle's grip on databases and ERP systems where mission-critical business data lives with Google Cloud's AI capabilities for enterprise customers. The integration deepens the collaboration between the two companies in the enterprise software market.

Soaring AI infrastructure demand is fueling a major backlog buildup, with billions of dollars of orders accumulating across AI servers, data-center equipment, networking and power infrastructure. The AI infrastructure boom is creating opportunities for companies supplying servers, racks, cooling systems, power equipment and grid infrastructure required to build AI data centers. Dell ($DELL) is positioned to benefit from record backlogs driven by massive demand, key partnerships with top chip makers, and strong technical tailwinds. The company offers a blend of growth fundamentals with AI server demand.

The infrastructure buildout extends beyond traditional server suppliers as power and memory constraints set the pace of deployment. Broadcom ($AVGO) benefits as its core customers are now ordering compute far ahead of delivery because power and memory considerations dictate deployment schedules, providing the company with a forward view that semiconductor companies rarely obtain. This visibility into future demand sits in the company's order book and could drive stock performance.

Uber Technologies ($UBER) and Wayve's partnership to bring autonomous rides to London advanced after Transport for London granted Private Hire Vehicle licences to Wayve's autonomous all-electric Ford Mustang Mach-E vehicles. The cars are equipped with the Wayve AI Driver and surround cameras and radar, and were inspected to confirm they meet all of TfL's policy and safety standards. The licensing represents an important step forward for the partnership's deployment plans in London.

Competition in the autonomous vehicle space is intensifying as Waymo, Alphabet's ($GOOGL) self-driving unit, pulled back on partnership cooperation with $UBER. The development raises questions about competitive dynamics in the ride-hailing and autonomous vehicle market as multiple players advance their technology deployments.

S&P 500 futures rose 0.3% while Dow Jones Industrial Average futures added 0.2% as stocks built on record highs. The broader market sentiment was supported by AI trade momentum and hopes of easing Middle East tensions, with Iran peace deal prospects contributing to positive investor sentiment. U.S. stock futures edged higher as investors reacted to renewed hopes of reduced geopolitical tensions alongside corporate earnings developments.

Technology sector attention focused on earnings from SpaceX ($SPCX) and Advanced Micro Devices ($AMD), which drove significant premarket trading activity. Although geopolitical developments supported overall market sentiment, investors also assessed company-specific news, particularly developments affecting both $SPCX and $AMD shares. Palantir ($PLTR) led S&P 500 gainers amid the AI trade rally.