May 12, 2026 Market Wrap

The dominant story of the day was the continued surge in artificial intelligence-linked stocks, led by a powerful move in AMD and fresh milestones for Nvidia, Intel, Micron and Google. AMD jumped nearly 80% after a Q2 data center beat and a pre-earnings bet tied to Rep. Gil Cisneros, while later headlines said Nvidia reached a new all-time high and was among the most overbought Big Tech names alongside Alphabet and AMD. Intel also remained in focus after a 377% year-to-date gain tied to AI inferencing demand, only to later lose roughly 9% in a Korea-related selloff that also hit Micron and SanDisk. The day’s AI backdrop extended beyond chips: Microsoft agreed to a $38 billion revenue cap with OpenAI as IPO plans advanced, Cerebras said its IPO was 20 times oversubscribed, SoftBank put $450 million into Graphcore, and Google was linked to talks with SpaceX on orbital data centers. Even the more speculative corners of the AI trade stayed active, with headlines on Micron price targets, AMD’s roadmap versus Nvidia, and a note that the sector may still be in an early “parking lot” phase rather than fully mature. Macro data and rates provided the main counterweight to the AI enthusiasm. The April CPI print came in at 3.8%, which pushed the Nasdaq 100 lower and sent the 30-year Treasury yield above 5%. That inflation reading arrived after a strong morning tone in U.S. equities, when the S&P 500 was said to have settled above 7,400, the Nasdaq had jumped 4.5%, and the S&P 500 had added 2.3% on easing geopolitical worries after Trump rejected Iran’s counter-proposal. But the mood was less steady in Europe, where the FTSE, DAX, CAC and Stoxx 600 all retreated as hopes for a U.S.-Iran peace deal faded. The rate and inflation backdrop also intersected with other asset classes: Bitcoin held near $80,000 ahead of CPI data, while a separate note said it was approaching its 200-day moving average, a level that has marked prior bear-market resistance. A market commentary headline also flagged oil, Treasury yields and gold rising at the same time, underscoring the day’s mixed cross-asset signals. Several company-specific headlines added depth to the AI and tech narrative. Google was active on multiple fronts, including blocking a suspected hacker attempt to use AI for a zero-day exploit and 2FA bypass, renewing a multi-year IP licensing deal with Adeia, and being linked to orbital data center talks with SpaceX. Tesla-related headlines were more scattered: Ford launched a Ford Energy subsidiary to manufacture storage systems, explicitly challenging Tesla’s energy business, while SpaceX’s Colossus 1 supercomputer was rented to rival Anthropic and Grok downloads were said to have cratered 60%. OpenAI also remained in the spotlight as its trial continued, with board chair Taylor testifying and Altman expected to take the stand, while Musk accused Altman and Brockman of trying to “steal a charity.” Outside the AI complex, Amazon tapped the debt market with a debut Swiss franc bond sale in six parts and separately expanded 30-minute delivery and Prime Video “Clips,” signaling continued investment in both funding flexibility and instant commerce. Commodities, industrials and select non-tech names also had their moments. Bayer reported Q1 operating profit up 9%, helped by gains in its crop protection unit and a beat on estimates. First Majestic was highlighted as benefiting from soaring gold and silver prices, while a headline on China said it earns $500 million per hour from export growth supercharged by AI. In the background, Intel’s huge market-cap surge over six weeks drew short sellers as short interest rose, and a separate note said Nvidia CEO Jensen Huang was excluded from Trump’s China business delegation, though no specific market impact was reported. Looking ahead, the key items to watch are whether the inflation surprise keeps pressure on Treasury yields, whether the AI trade can hold up after the day’s sharp gains and overbought signals, and how the Korea-related chip selloff, OpenAI trial, and ongoing IPO pipeline shape sentiment into the next session.