This Changes EVERYTHING for Stocks.

The stock market is at all-time highs, with a significant influx of capital due to recent geopolitical events. This period is seeing a surge in interest in private credit and a major development with SpaceX and Intel, which is expected to impact the broader market. Microsoft, for example, saw a significant rally, moving from $396 to a high of $414, closing at $411. Blue Owl Capital also experienced an 8% increase from its morning trading price of $9.38. These movements highlight opportunities in the current market. A key development is the connection between SpaceX and Intel's 18A and potentially 14A fab. Reuters has reported that the "terafab push" by SpaceX is linked to Intel's 18A fab. While Reuters is sometimes questioned, its track record on major scoops regarding Tesla and SpaceX suggests this information is likely accurate. This partnership is crucial because Intel had previously expressed concerns about the economics of expanding chip manufacturing without securing a significant external customer for its 14A fab. The announcement of SpaceX as a partner addresses this concern, implying that the 14A node will proceed, in addition to the 18A node. The 18A fab is a 1.8-nanometer class process and advanced packaging facility, which is vital for Elon Musk's goals. The partnership also grants SpaceX and Tesla access to the high NAEUV buildout of the 14A node, expected to ramp in 2028 and achieve volume production in 2029. This aligns with Tesla's "terafab" ambitions and significantly de-risks both companies, especially considering their previous challenges with Dojo chips. By partnering with Intel, SpaceX and Tesla can leverage Intel's manufacturing expertise and avoid past mistakes. Intel has already de-risked its fab investments through partnerships, such as with Apollo and Brookfield, who funded 49% of Fab 34 in Ireland and took a 49% ownership stake. A similar arrangement is anticipated with SpaceX, where Elon Inc. can benefit from the profits while offloading a substantial portion of the manufacturing and fab risk onto Intel. SpaceX would provide capital through equity investments in the fabs and secure the supply chain. This collaboration is strategically brilliant, especially in the context of the upcoming SpaceX IPO. The IPO is expected to launch with a $2 trillion valuation and aim to raise $75 billion. This would be the largest and most hyped IPO ever. While "space data centers" might be a public-facing narrative to generate excitement, the true objective of this massive capital raise is to fund terrestrial initiatives, specifically "robo taxis and robots." The $75 billion raised from the IPO, when leveraged, could generate approximately $250 billion in capital. To put this into perspective, Coreweave, a company with a market cap of $62 billion, could theoretically be replicated four times with this capital. This indicates the immense potential for on-the-ground data centers and manufacturing facilities in the US, utilizing Intel's 18A and 14A fabs. While Intel's fabs for 14A and 18A will not be fully operational until 2027, 2028, and 2029, the interim period will likely see significant investment in ARM CPUs for AI inference workloads. This will drive demand for components from companies like ARM, AMD, Nvidia, and server rack providers like Dell, fueling a broader hardware boom. The market is currently experiencing a "hardware boom" driven by this AI spending cycle and the SpaceX IPO. This boom is expected to continue until hardware prices become prohibitively expensive, at which point investors will likely shift their focus to software opportunities. In parallel, there's a significant development in private credit. Despite recent fears, private credit funds, including Blue Owl, are showing signs of bottoming out and even turning around. Other funds like TCPC and FSK have already bottomed. PIMCO's recent announcement to buy $400 billion of Blue Owl's private credit fund further suggests that fears surrounding private credit might be overblown. Analysis of bank earnings reports from institutions like BlackRock and JP Morgan supports this view. BlackRock reported net inflows into private credit despite wider spreads due to risk repricing. They emphasized that client sentiment does not align with negative headlines, indicating an opportunity to acquire more private credit and market share. Jamie Dimon of JP Morgan acknowledged the eventual credit cycle and potential for losses but clarified that banks are insulated by significant equity buffers (around 40% LTV for their financing of companies like Apollo). This means substantial losses would have to be absorbed by equity holders before banks are impacted. The stabilization of discounts on bond values and private credit, combined with the expected SpaceX hype cycle, suggests a bullish outlook for the market. The massive capital injection from the SpaceX IPO will fuel a hardware boom, followed by a software boom as investors seek value in high-margin, resilient software companies. This ongoing cycle of AI spending, enabled by Elon Inc.'s capital and Intel's manufacturing, is expected to extend for a considerable period.