Name: Stocks Rally on Strong Earnings; SpaceX's AI Spending Hits Shares | Bloomberg Brief 08/05/26
Uploaded: 2026-08-05T11:57:11+00:00
Duration: 2608 s

Speakers

Neil

Matthew McLennan — Co-Head of Investment Management, Goldman Sachs

Tosha Keeney — ARK Invest

Summary

US equities hit a record as Iran deal hopes and AI bets fueled a rally, but the mood was tempered by a Houthi shipping threat and heavy AI spending that crushed SpaceX shares. Matt McLennan of First Eagle sees the overall market as fully priced, advocating broadening into undervalued areas like Workday and international equities while flagging peak capex pressure on semiconductors. AMD's disappointing guidance was framed as a reset rather than fundamental breakdown.

S&P 500 closed at a record for the first time since June on US-Iran deal hopes and AI bets
SpaceX plunged >10% as $18.4B spending ($16B on AI) overshadowed strong debut earnings
AMD fell on disappointing guidance but underlying GPU/CPU demand seen intact
Oil rebounded above $80 after Houthi threats on Saudi shipping and Iran state TV comments
Matt McLennan says markets are fully rich, urges diversification beyond AI
He highlights Workday as a system-of-record software value play
He warns hyperscaler capex may have peaked, posing headwinds for semiconductor profits
International equities seen cheap and poised to benefit from any Iran resolution

Ideas

Neil 8:12

AMD demand intact, selloff a reset.

AMD's revenue grew 50% year-on-year and underlying demand for GPUs and CPUs remains intact; the post-earnings selloff is a reset of overly optimistic estimates rather than a fundamental deterioration.

Matthew McLennan Co-Head of Investment Management, Goldman Sachs 24:48

US stocks fully priced, broaden exposure.

US equity markets are fully priced due to AI narrative complacency: credit spreads very low, earnings multiples very high, households heavily allocated to equities, and S&P 500 companies are net issuers; time to broaden, not outright bearish but the market is rich.

Matthew McLennan Co-Head of Investment Management, Goldman Sachs 26:36

Workday mispriced on AI disruption fears.

Workday as a system-of-record software company owns proprietary data that AI cannot scrape; it is priced for disruption but AI will bring incremental business opportunities, creating value.

Matthew McLennan Co-Head of Investment Management, Goldman Sachs 28:14

Hyperscaler capex peak hits semis profit.

Hyperscaler capex has grown to consume all of their cash flow, and is naturally reaching its limits; they are tapping debt markets and facing rising input costs (copper, DRAM), signaling semiconductor profit growth will moderate.

Matthew McLennan Co-Head of Investment Management, Goldman Sachs 31:02

International equities undervalued vs US.

International equity valuations are more modest than US; they have been hit harder by energy prices and are discounting a worse Iran outcome; resolution would be more positively elastic for them, offering upside.

This Bloomberg Markets video, published August 05, 2026, features Neil, Matthew McLennan discussing AMD, SPY, WDAY, SMH, ACWX. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Neil, Matthew McLennan · Tickers: AMD, SPY, WDAY, SMH, ACWX

Stocks Rally on Strong Earnings; SpaceX's AI Spending Hits Shares | Bloomberg Brief 08/05/26

Summary

Ideas

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