Wedbush Morning Call - Jun 27 2025 7:00AM

The Race to $4 Trillion Market Cap Has Begun With Microsoft and Nvidia Nearing

The Great Replatforming, part I – the Special Theory

Capex ROI is the trending question these days, but what does it actually mean? In a “replatforming”, capex are enablers of revenue growth and productivity enhancements, as long as they are the foundation for a good “right to make money” (a defensible competitive advantage) and meet good demand. Our “Special Replatforming Theory” looks at how it has been at play for a decade already at hyperscalers, and how we expect the next 10 years to play out, with AI bringing an even more capital-intensive model.

Microsoft vs. OpenAI: Implications for investors?

Press reports about ongoing negotiations between Microsoft and OpenAI have intensified in recent weeks. How much does that matter for investors in Microsoft? In this note, we lay out our understanding of the current agreement, outline what is publicly reported about ongoing negotiations, and we provide our perspective on the situation.

SATS, Carr, and the Art of the No Deal…Yet

SATS just filed a new 8-K saying it will make the interest payments on Monday, avoiding a Chapter 11 filing. Our New Street colleagues have published a note today with their perspective. In this note we describe the filing and its implications.

Supreme Court Upholds USF Framework but Reform Still Ahead

Today, the Supreme Court issued its opinion in the case challenging the legality of Universal Service Fund (USF) framework. As we had predicted, the Court upheld the current framework. In this note we analyze the implications of the decision for the USF reform efforts ahead in the Congress and FCC.