Breakfast News: New Stargate Plans Emerge
September 24, 2025
| Tuesday's Markets |
|---|
| S&P 500 6,657 (-0.55%) |
| Nasdaq 22,573 (-0.95%) |
| Dow 46,293 (-0.19%) |
| Bitcoin $111,837 (-0.3%) |
1. Oracle Dips on AI Cost Fears
Oracle (ORCL +3.18%) closed 4% down yesterday, after the S&P 500 and Nasdaq broke their 3-day winning streak, on fears for the sustainability of AI ambitions. It comes after Oracle, OpenAI and Softbank detailed plans for five new data centers across the U.S. as part of the government-backed Stargate project.
- "We are growing faster than any business I've ever heard of before": OpenAI CEO Sam Altman said "People are worried. I totally get that. I think that's a very natural thing" after CNBC described the project's demand as "equal to the output of 17 nuclear plants."
- "We are vigorously advancing a three-year ... AI infrastructure initiative": Alibaba (BABA 0.41%), meanwhile, popped 9% in pre-market trading after CEO Eddie Wu revealed plans to expand AI spending past an earlier $53 billion target.
2. Micron Boosted by Chip Demand
Micron (MU 3.21%) edged up 1% overnight, after the memory chip maker posted $11.15 billion fourth-quarter revenue and $3.03 adjusted earnings per share – beating expectations for $11.15 billion and $2.84 respectively. Full-year revenue grew 49% over last year.
- "Micron is uniquely positioned to capitalize on the AI opportunity ahead": CEO Sanjay Mehrotra pointed to Micron's position as the only U.S.-based memory manufacturer, speaking of "all-time highs across our data center business."
- "Over the coming years, we expect trillions of dollars to be invested in AI": Mehrotra predicted growing spend on memory, as the company lifted Q1 guidance ahead of forecasts, with $12.8 billion revenue expected.
3. Key Wednesday Earnings to Watch
Longtime Stock Advisor recommendation Cintas (CTAS 0.37%) will report its first quarter of fiscal 2026 before today's opening bell, after quarterly revenue rose 8% year over year last time, though full-year revenue missed expectations.
- Superscore of 68 on our Moneyball database: KB Home (KBH 2.48%) will post Q3 earnings after market close, on the same day as the August new home sales print is due. Wall Street expects an 8.6% dip in revenue year over year, and it could take time to get back to strength after backlogs plunged last time.
- "Now in the growth phase of our transformation": Stitch Fix (SFIX +2.85%) CEO Matt Baer was bullish about the year's prospects at Q3 time, though analysts expect a 4.9% year-over-year fall in Q4 revenue – due after the closing bell.
4. The World's Most Valuable Stablecoin?
Tether Holdings, which issues the world's largest stablecoin – also known as Tether (USDT +0.01%) – is planning to raise funds through a new stock issue, CEO Paolo Ardoino has confirmed.
- Private placement for a 3% stake: A Bloomberg report put the planned raise at between $15 billion and $20 billion, for the El Salvador-based company whose stablecoin – pegged to the U.S. dollar – has a market cap above $170 billion.
- One of the world's most valuable private companies: The raise could value the company upwards of $500 billion, putting it up with the likes of OpenAI and SpaceX.
5. Your Take
Sure, Palantir (PLTR +1.04%) has captured all the headlines with its +1,880% rise over the past five years. But The Washington Post recently flagged an under-the-radar winner that's up more than 2,500% over the same timeframe: Build-A-Bear (BBW 15.54%).
Which other stock's performance over recent years has surprised you lately? Discuss with friends and family, or become a member to hear what your fellow Fools are saying.
