Most Important News

1. Iran Launches Missiles Targeting US Bases in Gulf;
2. Anthropic's Valuation Soars to $1.2 Trillion in Secondary Market;
3. SK Hynix IPO in the US Sees Strong Demand;
4. Wall Street Backs NVIDIA Amid Strong Pricing Power and Low Valuation;

Stock futures were mixed on Thursday as equity markets tried to rebound despite renewed US-Iran tensions and a jump in oil prices.

As of 03:50 PM Riyadh Time, S&P 500 futures were 0.21% higher, while Dow Jones Industrial Average futures traded near the flatline. Nasdaq 100 futures, on the other hand, advanced 0.87%, with semiconductor stocks outperforming.

European stocks recovered, with the Stoxx 600 up 0.1%. In Asia, Japan's Nikkei 225 closed 1.4% higher, while Hong Kong's Hang Seng Index fell 0.5%.

The US launched fresh strikes on Iran after attacks on commercial shipping, but crude futures stabilized following President Trump's call for a deal. “Any assumption of a quick return to normal Persian Gulf exports is being challenged,” noted Mason Mendez of Wells Fargo Investment Institute. He warned that further escalation would raise oil's geopolitical risk premium.

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As of 03:47 PM Riyadh Time, top pre-market movements are as follows:

Iran Launches Missiles Targeting US Bases in Gulf

Iran's Revolutionary Guard launched heavy missiles at US bases in Gulf Arab countries, according to the Iranian Labor News Agency. This follows explosions near Iran's Bushehr nuclear plant due to US shelling. Reports indicate blasts at Kuwait’s Ali Al Salem Air Base and port areas, with missiles hitting a Jordanian industrial complex and the Muwaffaq Salti US base.

IMF Warns of Prolonged Inflation Due to US-Iran Conflict

The IMF's latest economic outlook highlights that the US-Iran conflict's actual economic damage is less severe than initially expected. However, it warns of persistent inflationary pressures. Despite a fragile ceasefire leading to a faster-than-expected drop in oil prices, inflationary impacts remain. The IMF predicts US inflation won't return to the Fed's 2% target until the end of 2027. Recent escalations saw oil prices surge 6% in a day, underscoring ongoing geopolitical uncertainties.

Anthropic's Valuation Soars to $1.2 Trillion in Secondary Market  

Anthropic's valuation has skyrocketed to $1.2 trillion in the secondary market, making it one of the most sought-after companies in venture capital history. Despite the staggering price, acquiring shares remains challenging. Caplight's CEO, Javier Avalos, notes that Anthropic shares are trading at this valuation on their platform. Rainmaker Securities' CEO, Glenn Anderson, also confirms transactions at this valuation, though they are rare due to limited sellers. Just three months ago, Anthropic's valuation reached $1 trillion, surpassing OpenAI for the first time.

SK Hynix IPO in the US Sees Strong Demand

SK hynix(SKHY.US) has seen its US IPO oversubscribed by over seven times, according to Bloomberg. Union Bancaire Privee's Vey-Sern Ling noted strong investor interest despite market uncertainties. The focus remains on profit, sustainability, and valuation. SK Hynix reported interest from Baillie Gifford, Coatue Management, and Situational Awareness Partners in purchasing up to $7 billion in ADRs.

Meta to Invest $10 Billion in Canada's Largest Data Center

Meta Platforms(META.US) plans to invest $10 billion in building its first Canadian data center, the largest outside the US, to advance its AI goals. Located in Alberta's Sturgeon County, the 33rd in Meta's network will feature 1GW capacity, powering 750,000 homes. Meta is also funding a new power plant for Alberta's grid, signaling continued global expansion despite concerns over AI infrastructure oversupply.

Meta to Begin AI Chip Production in September

Meta Platforms(META.US) plans to start producing AI chips in September as part of its strategy to double computing capacity to 14 GW next year, according to an internal memo cited by Reuters. The chips, named "Iris," are part of Meta's fourth-generation "Meta Training and Inference Accelerator" project. Collaborating with Broadcom Limited(AVGO.US) for design and Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR(TSM.US) for manufacturing, Meta aims to cut computing costs and reduce reliance on external suppliers.

Tesla's Third-Generation Optimus Finalized, Musk Sets Mass Production Targets

Tesla Motors, Inc.(TSLA.US) has finalized the design of its third-generation Optimus robot, with Elon Musk setting aggressive production targets for the supply chain. According to LatePost, Tesla has issued detailed procurement guidelines, requiring suppliers to scale production to 1,000 units per week by September and further increase to 2,000–2,500 units per week by year-end. Orders for hundreds of units have already been placed for August, and suppliers are expected to achieve an annual capacity of 100,000 units by the end of the year. This marks a major milestone for Optimus, as it transitions from over three years of R&D to mass production following Musk’s approval of the latest version in late June.

Wall Street Backs NVIDIA Amid Strong Pricing Power and Low Valuation

Bank of America highlighted NVIDIA Corporation(NVDA.US)'s robust pricing power, noting that while high-bandwidth memory (HBM) costs rose by only $200,000–300,000 per rack from the Blackwell to Rubin architecture, NVIDIA raised rack prices by $2–3 million. With a 70%+ gross margin and a forward P/E 18— 30–35% lower than peers like Amazon.com, Inc.(AMZN.US), Meta Platforms(META.US), and Alphabet Inc. Class A(GOOGL.US), analysts see significant upside. Citigroup confirmed no delays in $NVDA’s product roadmap, including Vera Rubin Ultra and NVLink.

JPMorgan Bullish on ASML Ahead of Q2 Earnings

JPMorgan expressed optimism about ASML Holding NV ADR(ASML.US)'s upcoming Q2 results, emphasizing the importance of signaling strong demand and capacity expansion for 2027 and beyond to boost stock performance. They forecast Q2 revenue at EUR8.7 billion, up 13.1% year-on-year but down 0.8% quarter-on-quarter, aligning with company guidance. Expected gross margin is 51.7%, slightly below the market consensus of 52%.

Starbucks Embraces AI for Software Development

Starbucks Corporation(SBUX.US) is developing AI-driven software tools to replace systems from Microsoft Corporation(MSFT.US) and IBM Corp(IBM.US). If successful, these tools may launch by next year. CTO Anand Varadarajan highlighted the potential to cut software expenses, which currently reach $400 million annually. While internal software development promises cost savings, Starbucks aims to reduce overall expenses by $2 billion, balancing long-term maintenance and personnel costs.

SpaceX and Cursor Unveil Grok 4.5 AI Model

SpaceX(SPCX.US) has launched Grok 4.5, a new AI model developed with startup Cursor, targeting finance, legal, and programming tasks. This move aims to strengthen its position against rivals like Anthropic PBC and OpenAI. Following SpaceX's acquisition of Cursor, valued at $60 billion, Grok 4.5 is designed for complex, long-running tasks, expanding beyond software engineering to include legal and financial services, with enhanced cybersecurity features.

TD Cowen Bullish on Amazon: AWS Growth to Surge to 35.5%, AI Revenue to Skyrocket 500%

TD Cowen released a bullish report on Amazon.com, Inc.(AMZN.US), forecasting AWS Q2 revenue growth of 35.5% YoY, significantly higher than last year's 28.4% and beating consensus by 3.4 percentage points. Analyst John Blackledge attributes this growth to the rapid rise in generative AI workloads. Amazon's substantial investments in AI infrastructure are alleviating supply constraints, enabling the company to better meet growing demand for generative AI solutions.

AstraZeneca Shares Plunge After Drug Trial Failure  

AstraZeneca PLC(AZN.US) shares fell as much as 9.5% on Thursday, leading losses in the FTSE 100 index. The decline follows the failure of its heart disease drug Wainua in a key Phase 3 trial. Developed with Ionis Pharmaceuticals, Wainua failed to meet primary goals in treating ATTR-CM, a condition causing abnormal protein deposits in the heart. The 140-week trial involved 1,432 patients but showed no significant improvement.

Bloom Energy Faces Short-Seller Scrutiny Over Supply Chain  

BLOOM ENERGY CORP(BE.US) came under fire on Wednesday as short-seller Hunterbrook questioned its supply chain and production capacity. Once a star stock driven by AI-related energy demand, the company’s reliance on scandium, a rare earth element for its fuel cells, was highlighted. Hunterbrook noted BLOOM ENERGY’s 5GW capacity goal requires 220 tons of scandium oxide, while the global annual supply is only 240 tons, casting doubts on the feasibility.