Chips, Crude and AI Defections Dominate Monday Trade

US Market Snapshot

Semiconductor stocks are front and centre today. Micron and Sandisk — up 201% and 421% year-to-date respectively — face a two-sided options market. Bulls are buying calls while hedgers pile into puts. That tension reflects wider market uncertainty about whether the AI chip boom can sustain its pace.

CoreWeave is the evening's key event. The AI cloud company reports earnings tonight. Markets want clarity on its relationships with NVIDIA and Anthropic. NVIDIA itself trades near record highs with a $5.4 trillion market cap. Short sellers are adding negative bets in both AMD and NVIDIA despite the relentless rally.

An OpenAI leadership shake-up added another layer of AI-sector noise. Brad Lightcap, former COO and Special Projects Lead, is departing the company. The news rippled through Microsoft, OpenAI's biggest backer.

Crude Jumps on EIA Forecast

The EIA raised its 2026 WTI crude price forecast to $80.88 per barrel. That is up from a prior estimate of $76.26. The agency cited ongoing Middle East output disruptions — roughly 600,000 barrels per day — running through end of 2027. Energy stocks and oil-sensitive names are watching closely.

European Focus

European markets are absorbing geopolitical crosscurrents. Iran-Israel tensions and the Ukraine-EU loan deal are both driving volatility in defence and energy names. InterContinental Hotels Group reported earnings this morning, with RevPAR trends in focus given the uncertain travel backdrop.

Analyst Spotlight

Monster Beverage absorbed the sharpest analyst cut of the day. Its consensus price target was slashed from $98 to $48 — a near-50% reduction. B of A Securities raised its target on Hims & Hers Health to $32 while keeping its Neutral rating.