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Market Data Table

Breakfast News: Boeing's Recovery Hits Turbulence

September 29, 2026

Monday's Markets
S&P 500 7,684 (-0.77%)
Nasdaq 26,820 (-0.92%)
Dow 51,482 (-0.67%)
Bitcoin $83,315 (-1.73%)

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1. Boeing's "Very Soon" Just Got Later

Chart tracking Boeing's price-to-book ratio over the past five years, starting at about -10 in early 2022 and remaining flat up to late 2024, when it decreased to around -40 through mid-2025 before rising to its current 28.07.

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Twelve days after Boeing (NYSE:BA) CEO Kelly Ortberg mentioned approval "very soon," the Federal Aviation Administration (FAA) hit snooze on the years-late 737 Max 10. The 737 Max 10 is the largest version of the narrow-body jet that airlines fly on most domestic routes. The FAA said Monday that it's holding certification back until it rules out a safety risk from a newly found software glitch. The bug could cut off a pilot's automated flight guidance during a go-around, when a landing is aborted and retried. The Team Hidden Gems recommendation closed almost 7% lower on the news.

The fix sits with a supplier: GE Aerospace (NYSE: GE), the jet-engine maker, supplied the software. Bedford said GE may try to rush a correction, but couldn't say how fast. A safety finding could delay deliveries of the Max 7, too, which won FAA approval in August. Alaska Air (NYSE: ALK) ordered 105 Max 10s in January, its biggest aircraft order ever. It expects its first delivery next spring.
Not a major safety threat, but timing matters: Boeing's turnaround depends a great deal on Max production growth, and Max 10 is an attempt to secure a place in the single-aisle market, where Airbus (OTC: EADSY) has gained ground. This isn't a major safety threat yet, but Boeing can't afford delays as it tries to rebuild its reputation and market share.

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2. Anthropic Bares Its Risks

Anthropic, the artificial intelligence (AI) lab behind the Claude chatbot, is preparing what could be the largest initial public offering (IPO) ever. Yet, its own prospectus, reviewed by Reuters, contains an unusual warning: The technology it sells might pose "existential risks to humanity." Nearly a third of the filing catalogs risk factors, including the potential for advanced AI models to manipulate their way around safeguards. That's quite a sales pitch for a company that could be valued above $2 trillion when it lists on the Nasdaq this fall. That's more than double its funding-round level from May.

Growing fast, spending faster: As per the prospectus, Anthropic's sales grew 12x in 2025 to around $4.6 billion. Operating losses still topped $8 billion, though. It foresees $518 billion in capital expenditure (capex) on cloud and data center commitments over the next few years. Two customers reportedly accounted for nearly 25% of last year's revenue.
Safety is the product and the cost: Those figures put numbers around the emerging frontier AI economic model. Yet, the warning puts an unusual constraint on the AI investment thesis. Could the risks Anthropic itself is disclosing eventually change the economics of building and deploying increasingly powerful models? That's what investors would want to pay attention to.

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3. AMD's $8.2 Billion Bet on 3D AI Models

Chipmaker Advanced Micro Devices (NASDAQ:AMD) has agreed to spend $8.2 billion in stock to own some of the AI itself. The target, World Labs, is a research company "building AI that can understand and simulate the physical world, not just generate text," according to Team Llama's Karl Juhl. "This could power robots, self-driving systems, games, simulations, and other AI that need to operate in the real world," he says. CEO Lisa Su wants that know-how baked into its future hardware, software, and systems for AI's next phase. AMD shares nudged up nearly 1% in pre-market trading.

Another brick in the vertically integrated pile: AMD is a World Labs investor and partner. Owning it gives AMD an early read on what tomorrow's AI models will demand so that it can design chips around them. That could bolster AMD's position against Nvidia (NASDAQ:NVDA). AMD is trying to move up the stack with this deal, though, moving beyond components to the core AI software powering robotics and simulation.
Shares already assume a lot of good news: Since Team Rule Breakers recommended AMD in Stock Advisor in January 2024, its shares have outperformed the S&P 500 by 220%. The rally over the past year pushed its market value to $1 trillion. A muted pre-market reaction means investors want proof this deal changes what AMD's chips need to do.

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4. Summit Gets a Lifeline

Team Hidden Gems rec Summit Therapeutics (NASDAQ:SMMT) develops ivonescimab, a cancer drug already approved in China and awaiting a Food and Drug Administration (FDA) verdict by Nov. 14 for a form of lung cancer. On Monday, AstraZeneca (NASDAQ:AZN), a Team Rule Breakers recommendation, agreed to buy $2 billion of Summit's convertible preferred shares. The price was a 10% premium to last week's average. The deal lets the two companies co-run clinical trials pairing ivonescimab with AstraZeneca's own cancer drug. Each keeps commercial rights to its own product. Summit shares jumped over 23% after hours; AstraZeneca's rose about 1%.

Exposure without full acquisition risk: AstraZeneca gets to tap into Summit, a company going from strength to strength. It's a Team Hidden Gems rec. Back in July, Fool contributing analyst Rachel Warren said, "The medical results coming out of the company's recent trials have stunned the industry," and "the blueprint for building a massive, recurring revenue stream is already in place."
The next catalyst has a date: In July, Summit warned that its roughly $690 million in cash and short-term investments wouldn't last a year. AstraZeneca's $2 billion is nearly 3 times that cushion. The FDA is scheduled to rule by Nov. 14 on not only ivonescimab but also chemotherapy for one form of lung cancer. That verdict, more than AstraZeneca's endorsement, will decide whether Summit's valuation holds up.

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5. Little-Known IonQ Beats Alphabet and IBM at Their Own Game

IonQ's (NYSE: IONQ) quantum computers now make fewer mistakes than Alphabet's (NASDAQ: GOOG) or IBM's (NYSE: IBM). The company just posted a 0.01% error rate -- the odds that a quantum operation fails -- a record that beats pure-play rivals stuck above 1% and even the two giants racing to build quantum machines of their own.

Team Rule Breakers and Team Hidden Gems have both recommended IonQ three times in our Quantum Leap real-money portfolio, first in October 2025 at $62.80. Founded a decade ago by two professors, IonQ builds both the quantum computers and the software meant to run them, with plans for an entire quantum ecosystem spanning the globe.

Consolidation is the strategy: IonQ closed its $1.8 billion acquisition of Skywater Technology (NASDAQ: SKYT), another Team Rule Breakers recommendation in Quantum Leap. CEO Niccolo de Masi said on the earnings call: "We enter the second half of this year as a clear technology leader, critical merchant supplier, and vital ecosystem enabler for the entire quantum industry."
Valuation is the risk: Shares trade at around 60 times sales, and IonQ isn't expected to turn a profit for years. That's the price of admission for early exposure to a technology this unproven.

Our first recommendation is down around 29%. But both teams see enough in the quantum opportunity to justify a modest position.

Team Rule Breakers has a 5-year price prediction of $120.35.

Team Hidden Gems has a 5-year price prediction of $79.43.

Shares trade around $45 today.

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6. Today's Question

Boeing's delays can test investor patience. Is there a stock you're becoming impatient with?

Discuss with friends and family, or become a member to hear what your fellow Fools are saying!

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