The Chip Deal of the Decade? 🤝

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If you read my newsletter for stock ideas and insights, this book will show you why those ideas work — and how to think like the investors who built fortunes from patience, not hype.

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THE CHIP DEAL OF THE DECADE? 🤝 

$AMD ( ▲ 23.71% ) just inked a deal with OpenAI that could change the AI hardware game — and the market went nuts.

Here’s the short of it: AMD and OpenAI have teamed up to roll out six gigawatts of AI power using AMD’s Instinct GPUs. The first one-gigawatt batch drops in the second half of 2026, powered by AMD’s new MI450 chips.

In return, AMD gave OpenAI a warrant for up to 160 million shares — about 10% ownership if all milestones are hit. Those shares vest as OpenAI ramps up GPU deployments from 1GW to 6GW and AMD’s share price climbs through targets that could go as high as $600 per share.

That’s a big “if,” but investors clearly like the odds. AMD’s stock popped 27% on Monday.

AMD CFO Jean Hu called it a “tens of billions” revenue opportunity. This could be the biggest money-printing moment in AMD’s history.

OpenAI CEO Sam Altman said the partnership is about “building the compute capacity needed to realize AI’s full potential.” 

In plain English? More chips, more models, more power.

The Bigger Picture

This move is part of a full-blown AI arms race. $NVDA ( ▼ 1.11% ) recently announced a $100B plan to help OpenAI build 10 gigawatts of data centers using Nvidia systems. Until now, AMD’s been the quiet kid in the corner. Now they’re stepping into the ring with Lisa Su leading the charge.

Wedbush called the deal a “major moment in the AI revolution.” Analyst Daniel Ives even said this puts AMD “right into the core of the AI chip spending cycle.”

He’s not kidding. Big Tech’s AI spending is expected to hit $350 billion this year alone. And it’s spreading — from Microsoft, Amazon, and Google to governments and enterprises worldwide.

If this deal pans out, AMD goes from “the other chip company” to a cornerstone player in the next wave of AI infrastructure.

TL;DR

• AMD and OpenAI struck a massive multi-year deal for 6 gigawatts of AI GPUs.

• OpenAI gets up to 10% ownership in AMD if milestones and share targets are met.

• AMD’s stock surged 27% on the news.

• The deal could bring in tens of billions in revenue for AMD.

• Nvidia isn’t the only AI chip titan anymore — AMD just joined the big leagues

1. Ride the AMD Momentum
AMD’s OpenAI deal signals major AI revenue growth and validation from one of the biggest players in tech. The market’s already reacting, but institutional money could keep flowing in.
📌 Action: Accumulate $AMD ( ▲ 23.71% ) shares on short-term dips and hold through 2026 as the first GPU deployments begin. Focus on long-term AI infrastructure growth rather than quick flips.

2. Bet on the AI Infrastructure Boom
OpenAI’s six-gigawatt expansion means someone has to power all that compute — from chips to cooling to electricity. The ripple effect will lift more than just AMD.
📌 Action: Add exposure to AI infrastructure ETFs or companies like $SMCI ( ▲ 5.12% ) , $NVDA ( ▼ 1.11% ) , and $PLTR ( ▲ 3.73% ) that benefit from large-scale AI buildouts.

3. Front-Run the Supplier Surge
AMD’s new MI450 chips will need manufacturing, logistics, and data center support. The suppliers behind those pipelines could quietly see huge upside.
📌 Action: Research and accumulate positions in semiconductor supply chain players like $TSM ( ▲ 3.49% ) , $ASML ( ▲ 1.07% ) , or $LRCX ( ▲ 2.29% ) before investor attention shifts downstream.

IS GOLD ABOUT TO CRASH? 📉 

Gold’s been acting like it’s trying to win a sprint and a marathon at the same time. The shiny metal is up a ridiculous 50.7% this year, cruising toward the $4,000 per ounce mark. That’s the biggest annual jump since 1979, back when inflation fears and geopolitical chaos made everyone hoard gold like doomsday preppers.

But according to Bank of America, this rally might be running out of steam.

The Good Times Might Be Over

BofA’s Paul Ciana says gold’s recent surge hit several key “upside targets,” and now the charts are starting to flash warning lights.

Here’s the issue:

• Momentum’s overbought.

• Moving averages are stretched.

• Exhaustion signals are popping up everywhere.

In short, the uptrend is looking tired.

“Gold prices have nearly doubled since 2024,” Ciana said. “We’re paying close attention near $4,000, especially given the warning signals that follow.”

The Stats Don’t Lie

Ciana looked at history since 1983 and found that when gold hits these kinds of technical extremes, it usually cools off fast.

• 11 out of 11 times, gold was lower 4 weeks later.

• 10 out of 11 times, it was lower 5 weeks later.

• The metal is now 21% above its 200-day moving average and 70% above its 200-week average — levels that previously led to 20–30% corrections.

And the 14-month RSI just hit 90, a level last seen at the top in 2011 and 1980. Both of those were followed by nasty pullbacks.

What BofA Says to Do

If you’re sitting on gold profits, BofA says it’s time to tighten those stops or hedge your bets. They expect volatility ahead as the market cools off.

“Spot gold prices have tended to pivot near round-number levels,” their note reminded investors. What it really means? Round numbers like $4,000 often act like brick walls.

TL;DR

• Gold’s up 50%+ this year, closing in on $4,000/oz.

• BofA says the rally looks stretched and may be nearing exhaustion.

• History suggests pullbacks of 20–30% after similar setups.

• They recommend tightening stops or hedging ahead of possible turbulence.

1. Rotate Into Underpriced Metals
Gold’s exhaustion could send investors hunting for the “next shiny thing.” Silver, platinum, and copper often benefit when gold cools off.
📌 Action: Accumulate exposure through ETFs like $SLV ( ▲ 1.24% ) or $CPER ( ▼ 0.61% ) while sentiment is still fixated on gold.

2. Buy the Pullback, Not the Peak
History says gold tends to drop 20–30% after RSI extremes.
📌 Action: Set alerts near $3,000–$3,200 and scale in slowly if gold corrects. Focus on physical gold or low-cost ETFs like $GLDM ( ▲ 1.91% ) once the panic selling fades.

3. Rebalance Into Real Yield Assets
A gold peak usually signals that fear is maxed out.
📌 Action: Shift part of your portfolio toward assets that benefit when fear subsides—think Treasury ETFs like $SHY ( ▼ 0.02% ) or dividend-heavy equity funds that pay while gold chills.

BUFFETT’S RED ALERT SIGNAL 🚨

The “Buffett Indicator” just flashed red again.

It measures the total value of all publicly traded U.S. stocks compared to the nation’s GDP. In simple terms, it’s Wall Street’s weight versus the real economy’s muscle.

According to Bespoke Investment, that ratio just climbed above 2:1. For every $1 the U.S. economy produces, the stock market is now worth more than $2.

That’s… a lot of optimism.

The last time we saw levels like this? Right before the dot-com crash and again before the pandemic boom went pop.

Buffett has called this ratio “probably the best single measure of where valuations stand.” In other words, if it’s screaming overvalued, he listens.

Of course, it’s not perfect. GDP and market caps move at different speeds, and interest rates, tech dominance, and global capital flows all muddy the water. But as a big-picture signal, it’s hard to ignore.

TL;DR:

• The Buffett Indicator — total U.S. market cap divided by GDP — just hit over 2:1.

• Stocks are now worth twice as much as the economy produces in a year.

• Historically, that’s been a sign we’re getting frothy.

1. Rotate into Value Plays
With the Buffett Indicator flashing “overvalued,” high-growth names could be stretched thin. Value and dividend stocks often outperform when markets cool.
📌 Action: Rebalance toward value-focused ETFs like $VTV ( ▼ 0.11% ) or high-dividend funds like $SCHD ( ▼ 0.26% ) to lock in yield while the market stays frothy.

2. Boost Cash & Short-Term Yields
When stocks are priced for perfection, holding some dry powder gives you leverage when the next dip hits. Yields are still strong on cash equivalents.
📌 Action: Park profits in high-yield money market funds or short-term Treasuries via ETFs like $BIL ( ▲ 0.02% ) or $SGOV ( 0.0% ) and wait for better entry points.

1. Add International Exposure
If U.S. equities are overvalued, other markets might offer better bang for your buck.
📌 Action: Diversify into international ETFs like $VXUS ( ▲ 0.21% ) or emerging markets via $VWO ( ▲ 0.35% ) to capture growth at lower valuations.

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