Key Takeaways
- Costco and Marvell Technology both exceeded analyst expectations in their latest quarterly reports, with Marvell issuing a surprisingly strong revenue forecast for the coming quarter driven by robust AI demand.
- Geopolitical conflict in the Middle East intensified as Iran launched multiple missile salvos toward Israel, while a drone strike forced the suspension of production at the HKN Energy-operated Sarsang oilfield in Iraqi Kurdistan.
- The U.S. government is considering invoking the Defense Production Act to accelerate offshore drilling by Sable Offshore Corp (SOC) in California, potentially overriding significant state-level permitting barriers.
- A new four-tier framework for AI chip exports is under consideration by U.S. officials, which could require companies to invest in domestic data centers for high-volume shipments exceeding 200,000 units.
- OpenAI integrated professional financial data from FactSet, S&P Global (SPGI), and LSEG into ChatGPT, alongside a new beta launch of ChatGPT for Excel to enhance financial modeling.
Corporate Earnings: Costco and Marvell Outperform
Costco Wholesale Corp (COST) reported strong second-quarter 2026 results, posting an earnings per share (EPS) of $4.58, which beat the consensus estimate of $4.55. Total revenue reached $69.60 billion, slightly ahead of the $69.27 billion expected by analysts. The retailer's comprehensive sales growth, excluding gas and currency fluctuations, rose by 6.7%, surpassing the anticipated 5.9% as membership loyalty remained near record highs.
Marvell Technology (MRVL) also delivered a "double beat" for its fourth quarter of 2025, reporting adjusted earnings of 80 cents per share on revenue of $2.22 billion. The company’s outlook for the first quarter was particularly bullish, with revenue projected at $2.4 billion, significantly higher than the $2.265 billion analyst estimate. CEO Matt Murphy noted that AI-driven data center demand is accelerating bookings at a record pace, positioning the firm for continued growth in fiscal 2027.
Middle East Conflict and Energy Disruptions
Geopolitical instability surged on Thursday as Iran launched a new series of missile strikes toward Israel, identified by state media as part of "Operation True Promise 4." The escalation follows reports of Israeli forces bombing Hezbollah targets in southern Beirut. In Iraq, an explosion was reported near Victoria Base close to Baghdad International Airport, though U.S. officials denied separate reports claiming a U.S. fighter jet had been shot down over Basra.
The conflict had a direct impact on energy infrastructure as production at the Sarsang oilfield in Iraqi Kurdistan was suspended following a drone strike. The field is operated by the American firm HKN Energy. This disruption comes as the U.S. considers utilizing the Defense Production Act to fast-track drilling projects for Sable Offshore Corp (SOC) in California. The move would aim to bypass state regulatory hurdles that have long delayed the restart of critical offshore pipelines.
AI Regulation and Tech Integration
The U.S. is weighing a new four-tier regulatory framework for the export of advanced AI chips from leaders like Nvidia (NVDA) and AMD (AMD). Under the proposed rules, shipments of more than 200,000 units could be contingent on companies meeting strict security conditions or committing to investments in U.S.-based AI data centers. This policy shift reflects growing concerns over the global diffusion of high-end computing power.
Simultaneously, OpenAI moved to solidify its presence in the professional finance sector by launching integrations with major data providers, including Dow Jones Factiva, FactSet, and S&P Global (SPGI). The company also introduced ChatGPT for Excel in beta, a tool designed to assist users in building complex financial models using natural language. These updates follow reports that OpenAI’s annualized revenue has topped $25 billion, underscoring the rapid commercialization of generative AI.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.