Solar Massacre

Solar Massacre

Solar stocks plunged after Senate Republicans proposed phasing out solar and wind tax credits by 2028 in changes to US President Donald Trump’s tax bill, Seeking Alpha reported. Sunrun [RUN] fell 27.9%, SolarEdge [SEDG] 21.6% and Enphase [ENPH] 15.9%. First Solar [FSLR], seen as less exposed, declined 7%. “This proposal would pull the plug on homegrown solar energy and decimate the American manufacturing renaissance,” said Solar Energy Industries Association CEO Abigail Ross Hopper.

Ek Doubles Down on Defense Tech

Spotify [SPOT] founder Daniel Ek’s investment firm, Prima Materia, is leading a €600m round in Helsing, valuing the German defense tech start-up at €12bn. Helsing, which began as an artificial intelligence (AI) software company, is now expanding into drones, aircraft and submarines. Prima Materia made its first investment in 2021, and is now “doubling down”, Ek told the Financial Times.

OpenAI Initiates DoD Partnership 

OpenAI has secured a $200m, one-year contract with the US Department of Defense to explore AI applications for administrative and security tasks. This marks the first project under “OpenAI for Government”, the firm said in a blog post, which is a new division consolidating the company’s public sector work. The initiative includes efforts like ChatGPT Gov and collaborations with NASA, the National Institutes of Health, the Air Force and the Treasury Department. 

Can Qualcomm Compete in the Data Center Segment?

Founded in 1985, San Diego-headquartered Qualcomm [QCOM] is a multinational technology company. In recent years, the company has expanded into semiconductor design and manufacturing, and has an increasingly large footprint in fields such as AI and virtual and augmented reality. OPTO examines Qualcomm’s recent moves and financial health, as well as the investment case for this key player in the global semiconductor ecosystem.

Is the S&P 500 Heading for a Wipeout?

The S&P 500 could drop as much as 20% if oil prices surge on the escalating Middle East conflict, according to a report from RBC Capital Markets seen by Bloomberg. Strategists led by Lori Calvasina warn that stretched valuations leave US equities exposed. In a milder scenario, the index may fall 13%. Rising energy costs could raise inflation fears, dampen consumer sentiment and shift US Federal Reserve expectations, pressuring stocks further. 

Pharma Giant Poised to Buy Biotech

Eli Lilly [LLY] is close to acquiring gene editing firm Verve Therapeutics [VERV] in a deal worth up to $1.3bn, according to the Financial Times. The offer includes nearly $1bn upfront and $300m tied to clinical milestones. Verve shares jumped 78% premarket on the news. The biotech is developing in-vivo gene editing therapies targeting liver genes linked to cardiovascular disease.

OKLO Flies High

Oklo [OKLO] shares hit a record high of $73.55 on Monday, following news that the company will supply its nuclear reactor tech to power Eielson Air Force Base in Alaska. Wedbush raised its price target to $75, linking the deal to President Trump’s push for AI and nuclear. Oklo also closed a $440.6m stock offering to fund growth. OPTO recently detailed how this stock, while it is not without risks, is currently in a very exciting place.