Amit Kukreja
Tom Lee Buys ANOTHER 200K ETH, Trump PIVOTS on China, Howard Marks Says NO BUBBLE | Daily Recap
10/13/2025, 11:30:58 PM
Economic Summary
- A short-lived 3% S&P drawdown driven by a Trump-China tweet reversed quickly as de-escalation comments and dip-buying returned about $800 billion to the index; episodic VIX spikes appear to be buying opportunities rather than start of prolonged selloff.
- OpenAI-led procurement is accelerating AI-capex: recent deals with AMD (multi-gigawatt), Broadcom/AVGO (10 GW custom ASICs), and prior Nvidia/NVDA arrangements imply massive data-center and semiconductor demand, benefiting chipmakers and infrastructure providers.
- Tom Lee/BMR's growing Ethereum treasury underscores institutional interest in tokenization and stablecoins; BMR reported large ETH purchases and a public ETH target of $10k–$12k, highlighting crypto as an allocable institutional asset.
- Howard Marks signaled caution on valuations but said he doesn't see broad mania; his view: the S&P is expensive relative to history but populated by higher-quality, growth-oriented companies which can justify elevated multiples.
- Precious metals (gold, silver, copper) have seen large year-to-date gains, driven by expected demand for metals in data-center/AI buildouts and the U.S. dollar's weakness, leading investors to reallocate from cash into real assets and digital-gold alternatives.
Bullish
- Fed rate cuts and strong earnings momentum support equity upside.
- OpenAI partnerships create huge demand for chips and data-center buildouts, lifting AVGO, AMD, NVDA, ORCL.
- Institutional adoption (tokenization, stablecoins) and Tom Lee buying ETH supports Ethereum price.
- Precious metals and copper are rallying on AI capex demand and dollar weakness.
Bearish
- Geopolitical shocks (e.g., Trump-China tweets) can trigger sharp short-term selloffs and volatility.
- OpenAI concentration risk — many AI supply-chain winners (AMD, AVGO, NVDA, ORCL) depend on OpenAI demand.
- High market valuations: S&P trading well above historic multiples could correct if earnings disappoint.
- Precious-metals/minerals names may be speculative rallies without underlying revenue or earnings yet.
Bullish tickers
AVGOAMDNVDAORCLETHBTCMSTRMARACLSKHOOD
Bearish tickers
AMDNVDAORCLHOOD
People mentioned
Donald TrumpXi JinpingJD VanceSam AltmanGreg BrockmanTom LeeHoward MarksLisa Su