To The Moon

The "No Bailout" Declaration.

On Wed, 05 Nov 2025, at a Wall Street Journal event, OpenAI CFO, Sarah Friar mooted the idea of a federal “backstop” or guarantee to support infrastructure investments in AI.

Although she later clarified that OpenAI was not seeking a bailout and that her comments were misinterpreted, the damage was done.

President Trump’s AI and crypto czar, David Sacks issued a statement in response to Friar’s suggestion, categorically stating.

• There will be no federal bailout for AI.

• Next, he emphasized that US has multiple frontier model companies and market forces should determine winners and losers.

To be fair, before this whole saga, there was already (significant) uncertainty about how OpenAI and similar AI companies would finance massive AI infrastructure investments.

After Sacks's firm statement, investors' sentiments turned cautious, leading to Thursday meltdown, signaling fears around financing risks without a government safety net.

Three Most Affected.

Needless to say, AI related stocks were badly affected by this fiasco, no fault of these companies.

Three stocks most badly affected were:

• $Advanced Micro Devices(AMD)$ fell by -7.27%, Thursday alone.

• $Palantir Technologies Inc.(PLTR)$ fell -6.84% on Thursday.

• $NVIDIA(NVDA)$ fell by -3.65% on the same day.

Greater Details.

• AMD experienced the steepest decline of the 3 stocks, falling by -7.27%, falling from $256.33 to $237.70 per share.

• This drop reinforced investor anxiety about competitive dynamics and sector-wide funding issues.

• It is also below its 20-day, 50-day and 200-day moving averages, signaling overall bearish outlook for the chipmaker.

• Known for its AI-driven analytics platforms, PLTR’s stock also dropped amid fears of reduced government support and tightening enterprise budgets.

• This comes about despite a blowout Q3 2025 earnings report showing +63% YoY revenue growth, a raised full-year guidance, and a strong commercial AI pipeline.

• After Thursday fall, PLTR is below its 50-day and 200-day moving averages — implying a bearish outlook trend across medium-term, and long-term time frames.

• PLTR remains ‘hopeful’ of a recovery pending stability returning to US market.

• As the leading supplier of AI chips, NVDA saw a sharp decline in its stock price following the announcement.

• Investors feared reduced demand from AI startups facing capital constraints.

• Nvidia dropped -3.7% to $188.08 from Wednesday closing of $195.21, the day of the statement.

• The sizeable decline illustrates immediate risk premiums applied by investors in light of capital uncertainty.

• Despite the drop, Nvidia’s price remains marginally above its 20-day key technical support levels signaling underlying confidence in its AI hardware leadership but acknowledging new financing risks.

Will The 3 Amigos Cont’d To Fall ?

On Wed, 05 Nov 2025, Michael Burry made headlines due to his large bearish bets against prominent AI-related stocks NVDA and PLTR, igniting investors’ concerns.

Then OpenAI CFO had to wade into the pool to stir up resting mud in the pool, resulting in a run on AI stocks.

There weren’t any mega cap companies reporting Q3 earnings on Thursday (after market closed). There will not be any mega cap companies reporting Q3 earnings on Friday morning.

Without catalysts injecting optimism into the US market on a weekend trading day, the 3 AI-stocks may continue marginal downwards corrections as traders are unwilling to keep open positions over the weekends.

Based on the past 5 days’ performances, the 3 amigoes actually fell ‘big’ time:

• AMD fell by -8.34%.

• PLTR fell by -12.14%.

• NVDA fell by -8.88%.

In all likelihood, the negative sentiments / momentun might filter through to next week. This begs the question - is it time to watch patiently and dip buy PLTR at first available opportunity ?

Remember to check out my other posts. (See below). Help to Repost ok, Thanks.

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• BAC Raises GOOG Price Target To $335. Buy Now ? Fri, 07 November. Idea post.

• US Market Cont'd To Fall This November ? Thu, 06 November. Idea post.

• S&P 500 vs AVGO. Which Is A Better Buy ? Wed, 05 November. Idea post.

• Do you think the 3 AI stocks will continue to fall on Friday and into next week ’?

• Do you think there is/are catalyst this Friday to lift US market higher overall ?

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