Anthropic-Akamai $11.6 Billion Deal Lifts Akamai; U.S. Stocks Point Higher

Anthropic, the creator of the Claude chatbot, and Akamai expanded an earlier partnership. The newsletter said the new deal will support Anthropic's accelerating CPU workload demands, and it tied the development to an agentic AI-driven CPU renaissance. The newsletter said that trend is why it owns Intel. Advanced Micro Devices also drew attention after Bank of America raised its price target to $720 from $620, implying 14% upside for a stock that has nearly tripled this year and entered the $1 trillion market-cap club this week. The newsletter said CEO Lisa Su inherited a company on the precipice of bankruptcy in 2014.

The oil retreat followed optimism about an Iranian offer to reopen the Strait of Hormuz and resume nuclear talks with the United States within seven days if Washington accepts its conditions, according to the newsletter. Reports on Thursday pointed to some movement on the diplomatic front after President Donald Trump and Iranian President Masoud Pezeshkian exchanged threats in speeches at the United Nations earlier in the week.

Trump talked with Chinese President Xi Jinping at the White House on Thursday. The Iran war and artificial intelligence were on the agenda, but no details were released. The president held a state dinner for Xi that was attended by a group of AI billionaires. Xi is set to conclude his Washington visit at the National Archives, where the Declaration of Independence, the Constitution and the Bill of Rights are stored.

Micron is scheduled to report earnings next week, giving investors an update on the memory-chip side of the AI trade. Its shares are up 16% since the newsletter added to its Micron position during the Sept. 14 sell-off sparked by the Anthropic CEO's AI safety manifesto. BMO Capital Markets increased its Micron estimates ahead of the quarter and argued that memory 'remains in a supercycle,' with demand outstripping supply through calendar 2027.

Deutsche Bank raised its price target on Meta Platforms to $820 from $750 and kept a buy rating. Analysts called the company's Muse AI personal agent 'virtually unique' and said the launch earlier this month was 'far ahead' of other AI app introductions, according to the newsletter.

Costco reported a better-than-expected fourth quarter Thursday night, but the results were not strong enough to end debate over membership trends and the retailer's growth outlook. The newsletter said it was comfortable holding the stock for now but lowered its price target. Analysts issued a mix of price target cuts and increases.

Wells Fargo banking analyst Mike Mayo released his third-quarter earnings preview with mixed views on BNY and Goldman Sachs. 'Goliath is still winning,' Mayo wrote, but he expects trust banks such as BNY to have outperformed pure-play bets on capital markets activity such as Goldman in the third quarter. He raised estimates for BNY and lowered them for Goldman, while keeping a hold rating on BNY and a buy on Goldman.

Bank of America downgraded Nike to sell from neutral and lowered its price target to $30 from $47. Analysts worried about an earnings miss and cut estimates for Nike's earnings and sales. The newsletter said it exited Nike in July after a weak quarter, describing the decision as necessary because CEO Elliott Hill's turnaround is taking much longer than expected.