Prometheus, co-led by Jeff Bezos, raised $12 billion at a valuation near $41 billion. The company focuses on physical AI, software that designs real-world products like jet engines and medical devices.
Prometheus aims to build a universal AI engineer to speed up design, prototyping, and manufacturing. Bezos says processes that now take a decade could be cut by a factor of 10 or more.
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Markets face volatility as $5.15 trillion in S&P 500 options expire on June 19th, the largest monthly expiration ever.
S&P 500 index options total $4.84 trillion, with $307 billion in $SPY options.
Options bought as protection against the Iran conflict will expire, removing a key hedge and likely increasing market swings.
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STRC, Strategy's preferred stock designed to trade near $100, has dropped to around $89, its lowest level since launch in July 2025.
The structure relies on a variable dividend. If the price falls, Strategy can raise the yield and attract buyers. The market is asking for a higher rate, but the company has kept it at 11.5%, likely to preserve cash.
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That cash is becoming more important. In May, Strategy sold 32 BTC, its first Bitcoin sale in four years, to help cover obligations. Cash reserves have fallen from $2.25 billion to roughly $1.1 billion this year.
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The problem is that a preferred stock trading well below par becomes harder to issue, slowing one of Strategy's main funding channels for buying more Bitcoin.
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80% of global fund managers said in early June that long global semiconductors is the most crowded trade, according to a BofA survey. This marks the second consecutive month semiconductors have topped the list.
This reading is the second-highest since 2014, only behind long US tech at 82% in October 2020. Meanwhile, just 12% of respondents named long Magnificent 7 as the most crowded trade, which led for 23 months from 2023 to 2025[ and peaked near 70% in June last year.
Semiconductor stocks have never been hotter.
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For years, U.S. companies spent trillions buying back their own shares. It boosted earnings, supported stock prices, and often signaled there were few attractive places left to invest.
That logic is being reversed.
Google recently announced an $85 billion equity raise, effectively wiping out more than two years of buybacks. Meta is reportedly considering a stock sale as well. The goal is simple: raise capital and deploy it into AI infrastructure.
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Today's market is rewarding spending, not financial engineering.
Companies building data centers, buying chips, and expanding AI capacity are outperforming those focused on buybacks. According to Goldman Sachs, firms with elevated capital expenditures are beating companies with the highest buyback yields by roughly 30%, the largest gap on record.
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The shift is already visible in corporate financials. Across the market, free cash flow has fallen from roughly 90% of net income to about 75%, as companies spend more on AI infrastructure.
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The message from investors is clear.
Raise debt. Raise equity. Build capacity.
In the AI era, capital expenditure has become the new growth signal.
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Yann LeCun called Elon Musk's startup xAI a failure and predicted Musk's AI efforts will end in collapse. He said Musk already cannot compete with leading AI labs.
LeCun criticized Musk for "showing weakness" by leasing his Colossus data centers to competitors Anthropic and Google. He also said Musk won't attract top talent after reportedly mistreating the original xAI cofounders.
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Some of the highest-quality businesses in the world are sitting at the cheapest multiples in YEARS.
βοΈ @venture
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Nebius grew AI cloud revenue by 841% year over year in Q1 2026 to $389.7 million and exited the quarter with an annualized run rate of $1.9 billion. Management expects that figure to reach $7-9 billion by year-end.
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The company belongs to a new category called neoclouds. Unlike AWS, Azure, or Google Cloud, these providers were built specifically for AI workloads, with infrastructure optimized for GPUs, networking, and cooling.
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The market is expanding quickly. Neocloud revenue reached roughly $25 billion in 2025 and is projected to approach $400 billion by 2031.
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At the same time, Nebius is scaling capacity from 172 MW at the end of 2025 to a projected 7.5 GW by 2030, according to Wells Fargo. Two major AI campuses in Missouri and Pennsylvania account for 2.4 GW of that buildout.
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The investment case is simple: if AI demand continues to scale, infrastructure providers may become some of the biggest winners. Nebius is one of the few pure-play bets on that trend.
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Modern AI systems are thousands of chips connected together. As companies spend more on AI infrastructure, a large share of that spending goes into the networking layer that moves data between chips, memory, and servers.
Broadcom provides the networking chips that connect massive AI clusters and also designs custom AI accelerators for hyperscalers. AI semiconductor revenue reached $10.8B in Q2 FY26, up 143% YoY, with guidance for $16B in Q3 and an AI backlog above $73B.
Astera Labs builds the traffic-control layer inside AI racks, helping data move efficiently between chips, memory, switches, and accelerators. Q1 FY26 revenue reached a record $308M, up 93% YoY, with its new Scorpio switch expected to become the company's largest product line by year-end.
Credo dominates active copper connections used inside AI systems and holds an estimated 75% market share. FY26 revenue reached $1.34B, up 206% YoY, while the transition to faster 1.6T networking creates a new upgrade cycle for customers.
When data moves across large AI data centers, fiber optics become essential. Applied Optoelectronics manufactures both optical modules and the lasers inside them. Q1 FY26 data center revenue grew 154% YoY to $81M, with management raising full-year guidance to $1.1B.
The AI buildout is not just about chips. The companies connecting those chips are becoming critical parts of the stack.
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