ON Semiconductor’s planned acquisition of Synaptics for $7 billion dominated the day’s market talk, with Truist analysts writing in a note that the all-stock deal “leaves us scratching our head.” They had previously viewed ON Semiconductor as focused on increasing exposure to the artificial-intelligence data-center industry, but said the Synaptics deal signals a shift toward providing integrated edge AI systems. “While we see the potential for this combination to achieve accelerated sales growth (by cross-selling and levering channel scale & scope) and higher margins (through elimination of overlapping expenses and some manufacturing integration), it still feels like a pivot away from Datacenter,” the analysts wrote.

CEO Hassane El-Khoury, in a CNBC interview, said the acquisition expands ON Semiconductor’s total addressable market by $30 billion and positions the company beyond components for AI data centers toward integrated systems for physical AI. He cited autonomous vehicles, industrial robots, and humanoid robots as growth markets, noting that Synaptics supplies an “AI-centric compute platform” that complements the company’s existing offerings. ON Semiconductor shares fell 23% on the day. Jefferies analysts wrote that the acquisition makes strategic sense and diversifies the business base, but said “we would frame the impact as incrementally positive rather than transformative,” adding that the product mix is now more tilted toward consumer technology, which carries lower valuations.

The AI investment cycle’s downstream costs continued to emerge. RSM UK analyst James Bull noted in a note that both Apple and Microsoft have issued price hikes, confirming an industry-wide response to supply-chain shortages. “The four largest U.S. technology companies are forecast to spend $725 billion on data centers and AI equipment in 2026 alone. That level of demand for memory chips has created a shortage the supply chain cannot keep pace with,” Bull wrote. He said it is now clear that the costs of building the AI economy are being passed onto consumers and potentially even the inflation outlook, with industry leaders suggesting shortages could last beyond 2028. As MSI reported earlier this week, Apple’s price increases on its major products due to rising memory and storage chip costs have sparked broader fears about the sustainability of the AI boom.

Bitcoin traded at $60,106, up 1.3%, according to LSEG data, after reaching a 21-month low of $58,075 on Thursday. XM analyst Raffi Boyadjian said Apple’s price moves have raised concerns that other companies will also hike prices as massive AI investment drives memory-chip demand, and that consumer demand for tech and AI products could eventually cool, “bringing into question whether all the spending on AI infrastructure will pay off.”

The pressure on bitcoin was amplified by the position of Strategy Inc., which holds 847,363 BTC at an average cost of $75,651 per coin, representing roughly 4% of the total circulating bitcoin supply. At current prices, Strategy sits on an unrealized loss of $13 billion, and its preferred stock, trading under STRC, hit a new low of $71.25. “The market is reading it as a signal of broader fragility,” said James Butterfill of CoinShares in a note. He said Strategy’s holdings do not represent a “systemic risk” to bitcoin prices, but that sentiment still holds that a potential failure of the company could become a “contagion” for prices.

JPMorgan analysts wrote in a note that OpenAI’s foray into advertising does not currently pose a threat to Meta Platforms, Google, or Amazon. The analysts said OpenAI’s advertising technology is in an early stage and the commercialization of agentic platforms seems low. “We expect OpenAI’s initial advertising share gains to come from experimental budgets rather than taking share of sustained, high ROI-spending from core channels such as GOOG/L, META, & AMZN,” they wrote.

In other analyst coverage, BlackBerry shares have tripled this year after the company reported results that CIBC analyst Todd Coupland described as showing a shift from “turnaround skepticism to a cleaner beat-and-raise/re-rate setup.” Both BlackBerry’s QNX and Secure Communications units grew more than 20% in a seasonally soft quarter. Coupland called FY2027 a potential “step-change in growth, operating leverage and value creation.”

Citi raised its rating on Dutch telecom KPN to buy from neutral, calling the stock a core long-term holding for defensive-minded investors. KPN is due to report second-quarter earnings on July 22.

Zhipu AI faces risks from domestic competition and an upcoming unlock of shares, HSBC analysts wrote. Domestic rivals including Moonshot and DeepSeek have raised funds, and Western players like OpenAI and Anthropic are also advancing, the analysts said. HSBC maintained its hold rating on Zhipu AI and raised its target price to 1,900 Hong Kong dollars from HK$920. The stock last closed at HK$2,046.

STMicroelectronics could beat market expectations when it reports quarterly earnings on July 23, Bank of America analyst Didier Scemama wrote. He said the European chip maker should benefit from demand for optical interconnects, low Earth-orbit satellite equipment, and a recovery in automotive and industrial end-markets. Scemama forecast sales of nearly $3.90 billion, 5% above consensus, and a gross margin of 38.5%.

The Corus Entertainment recapitalization now hinges on regulatory approval, with National Bank analyst Adam Shine saying the process has become more uncertain after multiple interventions. Corus reported revenue down 16% and Ebitda cut in half. Minority shareholders and telecom company Quebecor have both urged the CRTC to reject the debt-shedding deal.

The S&P 500 closed at 7,357.49 on Friday, according to FRED data.

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