Oil Prices Surge Again as Middle East Tensions Persist
Oil prices are struggling to keep up with contradictory signals from Washington and Tehran. Brent crude climbed back above $100 a barrel after Trump delayed threatened strikes on Iran's energy infrastructure, citing "productive" talks with Tehran that Iran promptly denied. The Strait of Hormuz remains largely choked off, squeezing global supply and sending diesel and jet fuel prices surging, with downstream pain spreading from Chile to Japan to the Philippines.
Broadcom Warns TSMC Hitting Capacity Limits
A Broadcom (AVGO) executive warned that manufacturing partner Taiwan Semiconductor (TSM) is hitting production capacity limits, creating a bottleneck that will persist through 2026 until new capacity comes online in 2027. Laser components and printed circuit boards have also emerged as unexpected constraints, pushing customers into 3-4 year supply agreements, as TSM CEO C.C. Wei acknowledged capacity remains "very tight" with engagement lead times of at least 2-3 years.
Gap Partners With Google Gemini
Gap (GAP) has partnered with Alphabet's (GOOGL) Gemini to allow shoppers to purchase GAP products directly within the AI platform via Google Pay, making it the first major fashion retailer to enable agentic commerce through Gemini. The move comes as retailers scramble to stay relevant as shoppers shift from traditional search to AI platforms for product discovery, with no GAP competitor having announced a similar partnership yet.
OpenAI Expands Ads to All Free ChatGPT Users
OpenAI has rolled out ads to all free ChatGPT users in the U.S., roughly a month after beginning a limited trial, a move RBC Capital Markets says reflects "pent-up demand" from advertisers. Despite the enthusiasm, RBC notes that no company has yet demonstrated a solid in-chatbot ad experience, pointing to Walmart’s (WMT) pullback from in-platform checkout as evidence of OpenAI's attribution challenge. OpenAI has also hired Meta's (META) former top ad executive, David Dugan, as VP of Global Ad Solutions to lead monetization efforts.
Vertiv Acquires ThermoKey to Bolster AI Cooling Portfolio
Vertiv (VRT) is acquiring ThermoKey S.p.A., an Italian provider of heat rejection and heat-exchange technologies with established relationships across OEMs and system integrators. The deal expands VRT's thermal management portfolio and manufacturing capabilities in EMEA, furthering its push into advanced cooling solutions for high-density AI data centers. The acquisition is subject to regulatory approvals and is expected to close in Q2 2026.
