Daily US Equity Opening News: NVDA in talks for USD 2.5bln Thinking Machines investment; MU plans HBM capacity increase

NVDA in talks for USD 2.5bln Thinking Machines investment; MU plans HBM capacity increase

DAY AHEAD:

• BROKER MOVES: SHEL upgraded at Morgan Stanley; PATH downgraded at Canaccord. For the full list, click here.
• MAJOR MORNING MOVES RECAP: FICO, EFX, TRU, LULU, ADBE, TTD, ZS, GWRE. For the full list, click here.
• CRA: Potential reviews are due from Scope Ratings on Germany (AAA).
• ENERGY: Baker Hughes reports weekly rig counts (prev. oil 447, gas 132, total 588).

TECH:

• Apple (AAPL) - Apple’s initial foldable iPhone production was limited to a few hundred units daily in late August as strict quality standards slowed ramp-up, Nikkei reports. Apple targets 8-10mln units this year, but added verification and production issues could constrain supply. The company and suppliers are working to increase output.
• Nvidia (NVDA) - Nvidia is in talks to invest about USD 2.5bln in Thinking Machines Lab, founded by former OpenAI executive Mira Murati, The Information reports. The startup is also discussing raising at least USD 1bln at roughly a USD 40bln valuation. Nvidia previously partnered with and invested in Thinking Machines Lab, with plans to supply at least 1 gigawatt of AI systems.
• Micron (MU) - Micron reportedly plans to add up to 60K HBM wafers monthly by year-end, lifting capacity to about 100K and narrowing the gap with Samsung Electronics (SSNLF) and SK Hynix (SKHY). Its 12-high HBM4 share could reach 50%, supporting Nvidia’s (NVDA) Vera Rubin. Counterpoint Research estimates Q2 HBM shares at 50% for SK Hynix, 32% for Samsung, and 18% for Micron.
• YMTC - Yangtze Memory Technologies has entered the formal Shanghai Stock Exchange review process for its planned IPO after receiving first-round inquiries, Bloomberg reports. YMTC plans to raise CNY 33.3bln. The exchange issued questions 13 days after accepting the application, broadly matching recent IPO timelines. The company must respond before advancing to a listing hearing.
• DeepSeek - Plans to install at least 160,000 Huawei AI chips at a data center in Inner Mongolia, supporting China’s push to replace Nvidia silicon amid US chip restrictions, Bloomberg reports. The chips will mainly be used for AI inference, with DeepSeek’s V4 model already optimized for Huawei hardware; the planned cluster would be comparable to large US AI data centers by chip count, although Huawei chips remain less powerful than Nvidia’s, which DeepSeek still uses for train.
• SoftBank (SFTBY) - SoftBank priced a JPY 1tln 7yr retail bond at 4.75%, near the top of its 4.3-4.9% indicated range.
• Anthropic - Anthropic is set to finalise an expansion of its revolving credit facility to USD 15bln ahead of its planned IPO filing, Bloomberg reports. Morgan Stanley (MS) is leading the process, with Goldman Sachs (GS), JPMorgan (JPM) and Citigroup (C) also holding prominent roles; the four lenders are also leading Anthropic’s IPO.
• OpenAI - OpenAI CEO Altman said AI developers, including OpenAI, have poorly communicated the technology’s benefits. He said AI should increase users’ power and autonomy amid growing opposition to data centres and cybersecurity concerns.
• Adobe (ADBE) - Anil Chakravarthy, president of Adobe’s Customer Experience Orchestration business and worldwide field operations, will become Adobe president and CEO and join its board from 1st December. Shantanu Narayen will become executive chair, working with Chakravarthy on the leadership transition and Adobe’s ongoing transformation.
• Flex Ltd. (FLEX) - Flex has agreed to acquire EPC Power for USD 4.4bln; closing expected in Q4, subject to regulatory approvals. EPC Power will join Flex’s Cloud and Power Infrastructure segment, which Flex plans to separate in Q1 2027. EPC Power is expected to generate about USD 800mln revenue in 2026 and roughly 30% EBITDA margin in 2027.
• DocuSign (DOCU) - Shares rose 2.7% in extended trading after quarterly earnings and revenue beat expectations, and it raised its annual recurring revenue growth outlook, citing accelerating AI-driven momentum. Q2 adj. EPS 1.16 (exp. 1.09), Q2 revenue USD 875.7mln (exp. 867.16mln). CEO said AI is seeing accelerating momentum across the business, with AI agents executing contract workflows end-to-end, and the IAM platform ingesting a record volume of agreements. Sees Q3 revenue between USD 886-890mln (exp. 888.5mln), Q3 adj. gross margin between 81.5-81.9%. Sees FY27 revenue between USD 3.5-3.51bln (exp. 3.5bln), annual recurring revenue growth between 8.5-9.0% Y/Y, adj. gross margin between 81.5-82.0%, and adj. operating margin between 31.0-31.5%.
• Zscaler (ZS) - Q4 EPS 1.19 (exp. 1.09), Q4 revenue USD 898.19mln (exp. 877.6mln). Q4 ARR +25% Y/Y, net new ARR +24% Y/Y, adj. operating margin reached a record 24%. CEO said AI is creating a significant opportunity across Zero Trust SASE, Agentic SecOps, Data Security and Security for AI. CFO highlighted strong non-seat-based solution growth, Z-Flex momentum, record large-deal activity and improving sales productivity. Sees Q1 EPS between 1.15-1.16 (exp. 1.08), Q1 revenue between USD 935-939mln (exp. 926.12mln); sees FY27 EPS between 4.86-4.90 (exp. 4.60), FY27 revenue between USD 3.91-3.94bln (exp. 3.9bln), and FY27 gross margin of 80%.
• Ambarella (AMBA) - Q2 EPS 0.18 (exp. 0.17), Q2 revenue USD 108.13mln (exp. 107.76mln). Edge AI revenue reached a record, with balanced sequential growth across Auto and IoT and very strong growth from the 5nm CV75 and CV72 AI SoCs. CEO said the company is extending its market reach through higher-value products and new go-to-market strategies, including the X7 stand-alone AI Accelerator and seven-year agreements with Macnica and Capgemini. Appointed Macnica as a non-exclusive authorised distributor across the Americas and EMEA, and engaged Capgemini to accelerate enterprise adoption of Edge and Physical AI solutions.
• Guidewire Software (GWRE) - Guidewire shares fell 15% after its quarterly results were overshadowed by weaker-than-expected near-term revenue guidance. Q4 adj. EPS 0.99 (exp. 0.94), Q4 revenue USD 411.1mln (exp. 402.81mln). The CEO said customers are deepening commitments to Guidewire’s core offerings and expanding into new pricing and AI-focused products, with AI driving momentum among insurance customers. Sees Q1 revenue between USD 372-378mln (exp. 387.11mln), and ending ARR between USD 1.253-1.259bln. Sees FY27 revenue between USD 1.707-1.727bln (exp. 1.7bln) and ending ARR between USD 1.45-1.46bln.
• Asana (ASAN) - Q2 EPS 0.10 (exp. 0.09), Q2 revenue USD 216.4mln (exp. 214.2mln). Core customers +7% Y/Y to 26,778, Core customer revenue +11% Y/Y, customers spending USD 100,000 or more annually +16% Y/Y to 890, overall dollar-based net retention 97%, Core customer retention 98% and retention among customers spending USD 100,000 or more 98%. CEO said retention is improving, upmarket growth is accelerating, and AI products are showing strong momentum. Sees Q3 EPS 0.08 (exp. 0.09), revenue of USD 219mln (exp. 218.2mln). Affirms FY26 EPS view at 0.37 (exp. 0.37); raises FY27 revenue view to between USD 858.5-863.5mln (exp. 860.8mln; prev. saw 855.5-863.5mln).
• Samsara (IOT) - Q2 adj. EPS 0.20 (exp. 0.16), Q2 revenue USD 508.4mln (exp. 483.3mln). ARR +30% Y/Y to above USD 2.1bln, marking the third consecutive quarter of 30% growth. CEO said large customers continue to drive momentum, and adoption of some newer AI features has increased more than 4x over the past two months. Sees Q3 adj. EPS between 0.18-0.19 (exp. 0.18), revenue between USD 514-516mln (exp. 509.68mln). Raises FY27 adj. EPS to between 0.76-0.78 (exp. 0.71; prev. saw 0.70-0.72), and revenue between USD 2.043-2.047bln (exp. 2.01bln; prev. saw 2.005-2.013bln).
• UiPath (PATH) - Q2 adj. EPS 0.15 (exp. 0.15), Q2 revenue USD 410mln (exp. 397.85mln). CEO said AI is expanding enterprise automation while increasing demand for orchestration, governance and deterministic automation, with UiPath positioned to connect AI agents, robots, systems and people across end-to-end processes. Sees Q3 revenue between USD 440-445mln (exp. 441.17mln), Q3 ARR between USD 1.992-1.997bln. Raises FY27 revenue view to between USD 1.789-1.794bln (exp. 1.78bln; prev. saw 1.776-1.781bln), and sees FY27 ARR between USD 2.065-2.07bln. UiPath also promoted Hitesh Ramani to CFO, with Ashim Gupta remaining COO.
• Planet Labs (PL) - Q2 adj. EPS USD 0.02 (exp. -0.02), Q2 revenue USD 116.1mln (exp. 104.22mln). Raised FY27 revenue outlook to USD 430-441mln (exp. 435.91mln, prev. USD 415-440mln) and sees Q3 revenue USD 101-105mln (exp. 114.49mln).

COMMUNICATIONS:

• T-Mobile US (TMUS) - T-Mobile announced that Jessica Uhl will join as CFO Designate in mid-September, and succeed Peter Osvaldik as CFO in February 2027. T-Mobile reaffirmed its FY26 guidance, capital return programme and long-term financial framework.
• Disney (DIS) - The FCC asked a judge to dismiss ABC and Walt Disney’s lawsuit alleging unconstitutional retaliation over programming criticised by the Trump administration. The FCC said its probes concern potential employment discrimination and broadcast obligations, not free speech. ABC seeks to block further action on early licence renewals and interference with editorial discretion.
• Rogers Communications (RCI) - Rogers Communications and Quebecor agreed a 12-year sublicensing deal for French-language national NHL games from the 2026-27 season. Quebecor will hold rights to up to 350 regular-season games per season, including 32 Montreal Canadiens games, plus all Canadiens Stanley Cup Playoffs games, Conference Finals, Stanley Cup Final and NHL tentpole events.
• Trade Desk (TTD) - Announced organizational realignment plan, including ~15% workforce reduction in Q3 2026; expects USD 39-51mln in cash restructuring charges for severance and benefits, with charges accrued in Q3, partially offset by a USD 4-5mln reversal of stock-based compensation.

CONSUMER CYCLICAL:

• Tesla (TSLA) - NHTSA is evaluating Tesla’s Cybercab autonomous taxi service, which began limited operations in Texas on 3rd September. The two-seat vehicle lacks a steering wheel, pedals and mirrors, raising federal safety compliance questions. Separately, Tesla did not broadcast its Cybercab launch event from Austin live, but posted several videos on X previewing the vehicle’s safety and infotainment features.
• Volkswagen (VWAGY) - VW approved Future Plan 2030, including another 50K job cuts and investment of EUR 135bln between 2027- 31; it targets a 9% operating margin by 2030, corresponding to operating profit of around EUR 31bln, while planning a three-figure billion investment sum to strengthen its brands and competitiveness.
• Stellantis (STLA) - Stellantis is reportedly accelerating its alliance with Huawei and JAC in China as part of a relaunch plan that includes the Maextro brand; no agreement has yet been signed.
• Toyota (TM) - Toyota is considering using hydrogen to power trucks transporting auto parts and potentially its factories and supplier logistics networks, Bloomberg reports. Vice Chairman Sato said hydrogen is gaining importance for energy security.
• Lululemon (LULU) - Lululemon shares fell 18% in extended US trading after revenue missed expectations, comparable sales declined, and the company sharply cut its Q3 and FY outlooks, citing weaker North American demand, inconsistent product response and a slow start to the current quarter. Q2 EPS 2.92 (exp. 1.79), Q2 revenue USD 2.42bln (exp. 2.46bln). Q2 comp sales -9% Y/Y (exp. -4.7%), Americas comps -12% Y/Y, international comps -3% Y/Y. Q2 gross margin increased 5.6%, helped by a USD 134.5mln tariff refund. Execs said product-launch response remains inconsistent, with greater-than-expected weakness in core categories, while management is increasing marketing investment, introducing new styles and tightening inventory. Sees Q3 EPS between 0.93-0.98 (exp. 2.48), sees Q3 revenue between USD 2.29-2.32bln (exp. 2.54bln); sees Q3 North America comps down mid-teens, and Q3 gross margin down approximately 250bps Y/Y. Lowered FY26 EPS view to between 9.48-9.73 (exp. 10.98; prev. saw 10.95-11.15), lowered FY26 revenue view to between USD 10.35-10.50bln (exp. 11.03bln; prev. saw 11.0-11.15bln), and sees FY26 gross margin down approximately 80bps Y/Y.
• Oxford Industries (OXM) Q2: adj. EPS 1.34 (exp. 1.31), revenue USD 394.4mln (exp. USD 394.56mln); cuts FY26 adj. EPS view to USD 1.60-2.00 from USD 2.30-2.70 (exp. USD 2.47), FY26 revenue view to USD 1.43bln-1.47bln from USD 1.48bln-1.51bln (exp. USD 1.49bln); sees Q3 adj. EPS (USD 1.40)-(USD 1.20) (exp. -0.59), Q3 revenue USD 280mln-300mln (exp. USD 313.54mln).
• Bally’s Corporation (BALY) - CFO Mira Mircheva will resign, effective 4th September, for personal reasons. She will remain through 30th September to support the transition. President and board member George Papanier becomes interim CFO from 4th September while retaining his existing roles. The board has begun searching for a permanent CFO.

FINANCIALS:

• Morgan Stanley (MS), X - Morgan Stanley filed DMCA complaints with X over at least 16 accounts posting screenshots of its research. At least one account, belonging to Carson Group’s Ryan Detrick, was temporarily locked and had a Morgan Stanley chart removed.
• PayPal (PYPL) - PayPal has paused plans to sell its venture capital portfolio for around USD 900mln-1bln, Axios reports. The company appears to consider the timing unfavourable because fintech valuations are currently under pressure.
• Coinbase (COIN) - Coinbase filed SEC notice registration documents to offer single-stock perpetual futures to US investors. It now seeks CFTC approvals, and hopes to launch the leveraged, round-the-clock products this year. Coinbase already offers single-stock perpetuals internationally. CME Group (CME) launched single-stock futures on more than 50 major US stocks in July.
• Credit rating agencies - FHFA Director Pulte in a post on X wrote, "FICO has increased the price per a person’s credit score by 1,800%. FICO has enjoyed a monopoly. No more. Fannie and Freddie’s initial rollout of VantageScore has been incredibly successful, with 50 lenders delivering loans. So, effective immediately, I’m instructing Fannie and Freddie to approve all lenders to use VantageScore." He added in another post, "Equifax, Experian, and TransUnion have been overcharging Americans for far too long. This will end soon. We are seriously considering bi-merge, and stronger solutions". FICO, EFX, and TRU are all lower in the premarket.
• Robinhood (HOOD) - AMC (AMC) CEO called on Robinhood to voluntarily cease and desist the trading of AMC stock tokens.
• Citigroup (C) - Expects regulatory approval for its wholly owned China brokerage business as soon as September, with plans to add several dozen staff over the following months; approval could come around Chinese President Xi Jinping's planned late-September meeting with US President Donald Trump in Washington, Reuters reports, citing sources.
• Monte Paschi (BMPSY), Mediobanca (MDIBY) - The ECB has authorised Monte Paschi’s merger by absorption of Mediobanca and related corporate reorganisation measures, Il Sole reports. MPS shareholders may vote on the merger on 29th October alongside offers for Banca Generali (BGN) and Banco BPM (BNNCY).

ENERGY:

• Adnoc - Adnoc appears to be continuing LNG loadings at its Das Island export facility despite Strait of Hormuz risks, according to Bloomberg. Satellite imagery showed a tanker docked on 2nd September, while linked vessels have reportedly switched off transponders when travelling through the Strait.
• Weatherford International (WFRD) - Weatherford shareholders approved proposals to redomicile the company from Ireland to Delaware. The move is expected to generate USD 20-30mln in annual cash savings from 2027, and improve adj. free cash flow conversion. The transaction remains subject to conditions including Irish High Court approval. It is expected to take effect in Q4.

MATERIALS:

• Rare earth - Chinese rare earth suppliers are declining to ship to the US over fears of repercussions from Beijing, highlighting continued US concerns over access to critical rare earths ahead of Chinese President Xi Jinping’s planned Sept. 24 visit to Washington; US officials have repeatedly urged China to uphold commitments to ensure the smooth flow of rare earth export licences, Reuters reports, citing sources.
• Fertilisers, Seeds - Senator Chuck Grassley asked President Trump to pressure US seed, fertiliser and chemical companies over lower overseas prices, particularly in Brazil. Grassley said US farmers pay a 68% premium for corn seed vs Brazil, and argued action could reduce the need for USD 11bln in bridge support.
• BASF (BASFY) - BASF sued Apple (AAPL) in the US, alleging that Face ID in various iPhone and iPad models infringes seven patents held by its trinamiX unit. BASF seeks unspecified damages and an end to further alleged infringement.
• WD-40 Company (WDFC) - WD-40 Company named Keith Stauffer as CFO, effective 2nd November. Stauffer will join as vice president, global finance, on 7th September 2026. Current CFO Sara Hyzer will remain in the role through the FY26 Form 10-K filing before becoming division president of the Americas.

INDUSTRIALS:

• Northrop Grumman (NOC) - Northrop was awarded a USD 862.85mln US Army contract to manufacture, inspect, test, package and deliver M1156 precision guidance kits and variants.
• General Dynamics (GD) - General Dynamics was awarded a USD 194.14mln US Navy contract modification for technical and engineering support to the Fire Control Subsystem for the Nuclear-Armed, Sea-Launched Cruise Missile Program.
• XPO (XPO) - XPO reported prelim August LTL tonnage per day +3.7% Y/Y. Shipments per day +5.7%, weight per shipment -1.8%. XPO noted that actual August 2026 results may differ from the prelim update.
• Beta Tech (BETA) - Director Stone bought 25,945 shares of Beta Technologies worth USD 500,664.
• Smith & Wesson Brands (SWBI) - Q1 adj. EPS USD 0.06 (exp. -0.06), Q1 sales USD 112.6mln (exp. 98.7mln), Q1 EPS USD 0.06, Q1 gross margin 28.7%, Q1 net income USD 2.6mln and Q1 adj. net income USD 2.6mln.

HEALTHCARE:

• Stoke Therapeutics (STOK), Biogen Inc. (BIIB) - Stoke Therapeutics and Biogen presented long-term zorevunersen data showing durable seizure reductions and continued cognitive and behavioural improvements in Dravet syndrome. The Phase 3 EMPEROR study has completed primary population enrolment of 162 patients, with a data readout expected in Q3 2027 and a planned rolling US NDA submission in H2 2027.
• Roche (RHHBY) - Roche plans to deploy a LightCycler diagnostic system in Bunia, DRC, with technical support and training, Bloomberg reports.

MACRO:

• Norway SWF - Norges Bank Investment Management has proposed cutting government bonds to 50% of its bond portfolio (from 70%). The change could reduce US Treasury holdings by about USD 80bln, and global government bonds by roughly USD 106bln. Norges Bank also proposed market-value weighting instead of GDP weighting.
• China US Treasuries Purchases - Chinese banks have been buying US Treasuries after raising dollar deposit rates, Reuters reports. The shift reflects low Chinese government bond yields and demand for more profitable safe assets. Some dollar deposit rates have risen above 3% since June and near 4% at smaller or foreign banks, while the US 10yr yield reached 4.76%.
• Japan - Japanese ministries requested JPY 143.1tln for the fiscal year starting in April (vs JPY 122tln last year). The requests include record allocations across several ministries, and could rise further with unresolved defence spending. PM Takaichi is aiming to keep new bond issuance below JPY 40tln, while overhauling Japan’s budgeting process.
• BoE - BoE chief economist Pill warned that governments seeking central bank financing for large fiscal deficits could threaten monetary policy independence. Pill called this the defining challenge facing central banks, citing weak growth, supply shocks, larger deficits and higher public debt. He also warned that the UK economy’s non-inflationary growth capacity has fallen.
• RBNZ - RBNZ Assistant Governor Silk said the central bank is more likely to wait until December rather than October before raising rates again. Markets price a 31% chance of a 25bps hike to 3% in October, and it is fully priced in December.

GEOPOLITICS:

• US-Iran - US Vice President Vance said he would not describe the Iran conflict as a ‘war’ because major combat operations ended several weeks ago. He acknowledged recent flare-ups, but said there was no active shooting at the time, and that major combat operations lasted about six weeks.
• US-Russia - A Russia sanctions bill passed 86-11 by the Senate is likely stalled in the US House until after November elections, Bloomberg says. The measure would authorise 100% tariffs on major buyers of Russian energy and countries aiding sanctions evasion. Lawmakers fear expanded Presidential tariff powers and higher oil prices; Speaker Johnson cited bipartisan concerns. Separately, the FBI is investigating a potential breach that may have exposed scans of millions of Americans’ identity documents. A service called Nexus advertised access to data from more than 160mln North American driver’s licences and over 10mln other documents.
• US-Ukraine - Ukrainian President Zelensky expects US envoys to visit Kyiv in the coming days and also meet officials in Moscow. Zelensky recently spoke with Witkoff and Kushner, who are both reportedly to travel to Kyiv, according to TASS.
• UK-Argentina - Argentina’s President Milei said he will accelerate sanctions against firms operating around the Falkland Islands without Buenos Aires’ approval, and build a naval base in Tierra del Fuego. He targeted the Sea Lion oil project, expected to start production in March 2028 at 35K barrels of oil and equivalent gas per day.

TRADE:

• US-China - USTR Greer said he is optimistic about US-China relations ahead of the Trump-Xi summit on 24th September. Greer expects announcements on agricultural non-tariff barriers and progress on a proposed board of trade. Greer added that the US is not seeking a comprehensive trade agreement with China in September.
• US-UK - USTR Greer warned that UK alignment with the EU rather than the US is an issue for any US trade deal, FT reports. Greer added that the UK had not taken full advantage of Brexit, had aligned with EU-made rules that restricted US goods, and continued to maintain relatively high tariffs.
• US-South Korea - South Korea’s Industry Ministry says four US companies have committed USD 2bln collectively of investment across its semiconductor, advanced materials and energy sector; the companies include Air Products (APD), Axcelis (ACLS), Corning (GLW) and Pacifico Energy (PEMC).