In a remarkable turn of events, the S&P 500 has surged by 30 basis points (bp) with AMD’s announcement of a chip supply deal with OpenAI. This news has sent shockwaves through the market, with AI Semis leading the charge higher. The factor squeeze rotation continues unabated, with AI Winners basket advancing 2.8% and Quantum, Rare Earths, Space, Nuclear, Crypto, and Robotics all experiencing significant growth.

The latest development in the AI space is a testament to the rapidly evolving landscape of innovation and growth. Just last month, Nvidia and OpenAI made headlines with their partnership, and now AMD has followed suit. This trend highlights the increasing importance of AI in various industries, driving growth and transformation.

The surge in speculative themes has led to a three-pronged factor squeeze, with Low Quality, High Volatility, and High Short Interest all experiencing significant gains. These factors are becoming increasingly intertwined, representing a new era of investment opportunities.

Investors are flocking to these themes in search of growth and returns, as the old paradigms of value investing no longer apply. The rise of AI Semis, Quantum, Rare Earths, Space, Nuclear, Crypto, and Robotics demonstrates the rapidly evolving nature of the market and the need for adaptability in today’s investment landscape.

As we move forward, it is essential to stay informed and adapt to these changes. The AI revolution is upon us, and those who fail to recognize its potential will be left behind. By embracing this new era of innovation and growth, investors can position themselves for success in the years to come.