Memory Calls Spenders Are Signal Oil On Water

This report highlights positive memory market momentum from Micron's earnings while noting growing risks in the oil market and a strategic shift toward vertical integration in AI hardware. It emphasizes monitoring hyperscaler spending as the primary barometer for the AI investment cycle's sustainability.

Key Takeaways

• 1.Micron reported strong results driven by AI infrastructure demand, with new multi-year customer agreements shifting the perception of memory from a commodity to critical AI infrastructure.
• 2.Oil markets are weakening with spreads flipping into contango, driven by abundant supply and weak Chinese demand.
• 3.Vertical integration in AI hardware is accelerating as hyperscalers pursue custom silicon, exemplified by the new 'Jalapeño' processor from OpenAI and Broadcom.

Table of Contents

• Markets
• All About Spenders
• Jalapeño & Qualcomm
• Core PCE is due today.
• Technicals/Risk
• Gulf Flows Recover: Market Fast-Forwards to Future Surplus

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