Chip frenzy

Good morning. Tech stocks position for a strong rebound as a key chipmaker predicts a boom in demand. SpaceX wants its own city. And your favorite hot sauce may soon go from wild to mild. Listen to the day’s top stories.

The AI spending frenzy looks like it still has a ways to go. Chipmaker Broadcom said it expects 65% growth in AI product sales this quarter and that the potential market for AI components that it designs for data centers may reach $90 billion by fiscal 2027. Investors piled into the stock in early trading, offsetting the blow from yesterday’s news that Apple—one of its biggest customers—plans to replace Broadcom’s wireless chip with homegrown tech, code-named Proxima.

Tech stocks took a leap higher, signaling a positive end to the week as traders look ahead to the final Federal Reserve interest-rate decision of the year. Global markets were less sanguine: The pound fell after Britain’s economy shrank for a second month, while Asian markets took a knock after Chinese authorities again left investors guessing on the specifics of a promised fiscal stimulus.

Elon Musk fired up his long-standing feud with the Securities and Exchange Commission as he revealed the agency is investigating his brain-computer interface company Neuralink and may take action over his early investment in Twitter. After having already pledged to move the headquarters of X and SpaceX to Texas, Musk is now seeking permission to turn his rocket company’s Starbase site there into a new city.

Donald Trump’s plan to renew tax cuts for households may do almost nothing to grow the US economy, according to analysis from a nonpartisan budget watchdog. Some other models show a small boost, but nowhere near enough to cover the estimated cost: $4.6 trillion over a decade. Cuts for corporations—which Trump promised to business leaders and donors at the NYSE yesterday—would be a bigger spur for investment, the group said.

Deep Dive: Chips, no dip?

Milder chili peppers, blander coconuts and lower-quality cabbage in kimchi are on the menu thanks to climate change, and chefs are feeling the heat.

The Big Take

Opinion

Crypto bros may save luxury sales next year, Andrea Felsted writes. After all, they’ve done it before. With Chinese demand constrained and US assets including Bitcoin soaring, there’s a good chance Americans will pick up the bling baton once again.

Before You Go

New York’s luxury housing market is waking up from its slumber as prices cool, borrowing costs start to stabilize and new developments go on sale. The market for deals in November was the strongest in three years, with 90 contracts to buy homes over $5 million signed that month, according to brokerage Corcoran.

Mysterious drones spotted over New Jersey have sparked an FBI probe and resident hysteria, with theories ranging from Iranian motherships to ETs. Authorities have confirmed the sightings and say they’ve found no evidence of foreign (or alien) involvement.

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