Nvidia Pops, Oracle Jumps, Better Home Surges | Stock Movers

On this edition of Stock Movers:

- Shares of Nvidia (NVDA) popped today after the company announced that they will invest as much as $100 billion in OpenAI to support new data centers and other artificial intelligence infrastructure, a blockbuster deal that underscores booming demand for AI tools like ChatGPT and the computing power needed to make them run. The companies announced the agreement Monday, saying they’d signed a letter of intent for a strategic deal. The investment is meant to help OpenAI build data centers with a capacity of at least 10 gigawatts of power — equipped with Nvidia’s advanced chips to train and deploy AI models. Investors applauded the tie-up, sending Nvidia shares up as much as 4.5% in New York trading. The shares have now gained about 36% this year, cementing the company’s status as the most valuable business on Earth. OpenAI, meanwhile, is the world’s biggest tech startup, with a valuation of $500 billion.

- Oracle (ORCL) shares soared today after it was confirmed by the White House that they would provide security and help oversee the re-creation of a new US version of TikTok’s algorithm under a deal taking shape to sell the popular Chinese-owned app to a consortium of American investors. The arrangement, outlined by the White House official on Monday, seeks to ensure that the American buyers control TikTok’s recommendation software in the US following a divestiture by its Chinese parent, ByteDance Ltd. Owners of the US-based TikTok would lease a copy of the algorithm from ByteDance that would then be retrained “from the ground up” with Oracle’s oversight, according to the official. Data from US users would be stored in a secure cloud managed by Oracle with controls established to keep out foreign adversaries, including China, the official said. Beijing-based ByteDance would not have access to information on TikTok’s US subscribers, nor would it have any control over the algorithm in the US, the official said.

- Shares of Better Home & Finance Holding Co. (BETR) soared after Eric Jackson said his hedge fund had bet on the stock, echoing the retail-driven rally he kicked off in Opendoor Technologies Inc. in July. Shares of the online mortgage company known as Better rose as much as 176% on Monday, triggering multiple halts for volatility, before paring gains to 47%. They’ve now gained more than 450% so far this year. In series of posts on the social-media site X, Jackson called the stock a “350-bagger,” meaning he sees the shares hitting around $12,000 apiece in two years versus a close of $34.09 on Friday. That would give the company, worth about $521 million at the end of last week, a market value over $180 billion. He said his fund, EMJ Capital, was long the stock.

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Nvidia Pops, Oracle Jumps, Better Home Surges