The Street

The casual Mexican restaurant sector has faced a challenging year in 2026, as dining chains have closed underperforming locations, filed for Chapter 11 bankruptcy protection to reorganize their businesses, and in at least one case, filed for Chapter 7 liquidation to shut down all operations.

Once popular Mexican chain On the Border ceased operations in 2026, after closing all of its locations before its operating company, OTB Hospitality, filed for Chapter 7 liquidation on June 19, 2026, the company shared in a press release.

Another chain facing financial distress is Session Taco, a St. Louis-based casual Mexican dining chain, which closed one of its restaurant locations for the second time in seven months. The chain has not filed for bankruptcy.

Session Taco’s owners closed a new restaurant concept only three months after opening the establishment.Shutterstock

New restaurant closes after 3 months

The Mexican chain, originally branded Mission Taco Joint until a 2023 name change, closed its Sobremesa restaurant in St. Charles, Mo., on Sept. 13 after only three months of operation, according to its Facebook page.

The St. Charles location was previously branded as Session Taco until the company closed the restaurant on Feb. 13 to redesign and rebrand the restaurant as Sobremesa before reopening in June 2026.

Session Taco’s owners had renovated the Sobremesa restaurant space, adding some booths, more lower seating options, warm colors, new lighting, and artwork. The updated restaurant served tacos, burritos, soups, salads, fajitas, and other entrees.

“Sobremesa” is a Spanish term for the tradition of hanging out after a meal to converse, relax, and connect with family and friends.

Economy hit restaurants hard

“Unfortunately, the economy has hit restaurants hard and sales are not close to where they need to be to sustain operations,” Sobremesa‘s ownership said in a message on their Facebook page. “Very sorry to say that we will be closing this Sunday, Sept. 13.”

“When we closed Session Taco to create Sobremesa, we wanted to bring something exciting to St. Charles. We created a beautiful space, a great menu and an amazing team,” the message said.

Sobremesa gift cards can be used at any of the company’s three remaining restaurants: Session Taco at 6235 Delmar Blvd. and 908 Lafayette in St. Louis, and LaPeZ Mod Mex at 398 N. Euclid Ave. also in St. Louis, the message said.

Other Session Taco locations closed

The St. Charles Session Taco restaurant closed in February about three weeks after the owners closed a location in Kirkwood, Mo., on Jan. 25, 2026, according to St. Louis Magazine.

The Mexican restaurant chain, which at one time operated nine locations, closed its Town and Country location in St. Louis in November 2025 after opening in April 2024.

“We signed the lease there in early 2023 when restaurants were seeing a post-Covid boom, but then the restaurant sales started declining across the country the second half of 2023, and by the time we opened it was very difficult to gain any traction at the location, despite mostly positive reviews,” Co-owner Adam Tilford told KSDK-TV after the closing.

The chain in December 2025 closed its Central West End location in St. Louis and rebranded the restaurant as LaPeZ Mod Mex, according to the Webster-Kirkwood Times. LaPeZ Mod Mez continues operating as one of the restaurant chain’s three locations.

Session Taco had some setbacks since opening as Mission Taco Joint in 2013, facing a trademark infringement lawsuit in 2023, and completing a name change in September 2024.

Owner settles trademark lawsuit

The Mexican restaurant chain settled a lawsuit with Mission Foods parent Gruma in November 2023, agreeing to change its name from Mission Taco Joint, after the Mission tortillas maker sued the restaurant chain for trademark infringement.

Session Taco’s owner explained that the restaurant dropped the M and the I in the Mission Taco Joint name and added an S and an E to come up with its new name.

“And yes, if you drop the M and the I, you have Session Taco. And yes, this was intentional,” owner Tilford told KTVI-TV.

The chain has closed six locations since expanding to as many as nine locations by 2022.

Related: Wine brand closes troubled business, files Chapter 11 bankruptcy

Jim Cramer has a warning for investors. On his September 11 Mad Money segment, the host said today’s market looks similar to the fall of 2018, a stretch that ended in one of the worst stock selloffs in years.

Oil trades above $100 a barrel, and the 10-year Treasury yield just hit 5%. Inflation also remains above the Federal Reserve’s target. Cramer wants investors to get ready for a possible crash, and he has a plan for how to do it.

Jim Cramer sees 2018 warning signs in today’s market

Cramer detailed the parallels on his CNBC show. Both 2018 and 2026 fall in the second year of a Trump presidency. Stocks rallied strongly in each. 

Oil prices and Treasury yields climbed in both periods, and inflation sat above the Fed’s 2% target. In late 2018, that combination helped drive the S&P 500 down about 20% between its September peak and Christmas Eve.

Cramer said there are “eerie similarities” between now and the fall of 2018. He says the situation is close enough to watch carefully, even though he does not expect an exact repeat.

On recent shows he has flagged the same pressures, and he named higher oil prices and long-term bond yields as the main forces behind stock moves right now.

Why $100 oil and a 5% Treasury yield are raising everyday costs

Crude oil has risen above $100 a barrel and briefly traded near $104 on Monday, its highest in four months. When oil rises, the cost of shipping and manufacturing follows, and companies pass on much of that increase to the prices people pay.

Borrowing costs are also rising. The 10-year Treasury yield, which helps set mortgage and auto loan rates, hit 5% on Monday, its highest in years, before falling back slightly.

That move followed the August inflation report, which showed consumer prices up 3.4% over the year, and the energy index up 16.3%, according to the Bureau of Labor Statistics.

Jim Cramer says today’s market closely resembles the fall of 2018.Rusty Jarrett / Getty Images

Why Kevin Warsh could keep 2026 from turning into 2018

Cramer pointed to one big difference between the two years. The Fed is now run by Kevin Warsh, who replaced Jerome Powell as chair in May and used his Jackson Hole debut to take a hard line on inflation.

Warsh is a former Fed governor who served through the 2008 financial crisis, so he knows how policy missteps can deepen a downturn.

Cramer thinks that experience helps.

He said Warsh was around in 2018 and is unlikely to repeat Powell’s mistakes. Back then, Powell kept raising rates into a weakening market, and the selling got worse before he changed course.

More Market Coverage:

Veteran analyst predicts Fed rate hike after Warsh’s hawkish shift

Veteran fund manager’s Fed interest rate hike prediction will frustrate consumers

Jim Cramer says big tech stock could double in 3–5 years

Greg Gizzi, head of fixed income at Nomura Asset Management International, said Warsh’s “hawkish messaging was unmistakable.” Warsh still faces a hard call this week. Traders see about a 90% chance the Fed raises rates on Wednesday, its first increase since 2023, CNBC reported.

What Cramer says to do now, and which sectors tend to hold up better

Cramer’s advice is simple. If stocks get shaky, he said, “don’t freak out.” Instead of a full exit, he advises investors to trim winning positions and build cash. His own Charitable Trust has raised its cash level into the mid-teens so it can buy quality names if prices drop.

Other pros favor a careful but invested stance. Andrew Dubinsky, a senior U.S. economist at UBS, said “investors should maintain diversified exposure and use market volatility around economic data and Fed decisions to rebalance portfolios toward their long-term targets.” 

History also shows which sectors tend to fall less. In the 2018 decline, healthcare and other defensive sectors fell less than the market, because people keep paying for medicine and healthcare in any economy.

Energy is the exception. In 2018, the sector fell sharply as oil dropped, but today high oil prices are raising energy profits instead. That is why Cramer wants investors ready to act, with cash on hand, if the selling starts.

Related: Jim Cramer has strong message for Nvidia, Broadcom investors

All eyes will be on the September Federal Open Market Committee (FOMC) meeting. Unless there is extraordinary news, like collapsing crude oil prices, I am fully expecting a key Fed interest rate hike. 

The Fed never fights market rates. Since market rates have risen globally due to higher energy prices, and after the ECB hike, more central banks are expected to follow and raise key interest rates. 

The big news is expected to be the FOMC statement that may signal whether or not the Fed is “one and done” or signal that more key interest rate hikes will be forthcoming. Under new Fed Chairman Warsh, the Fed may not provide good guidance, since Warsh wants Wall Street to take its cue from market rates.

Related: Louis Navellier is buying 3 headline-making stocks, including Google

The good news is that with a hike already baked into the cake, there shouldn’t be a negative market reaction on September 16.  In other words, don’t fear the reaper because even if interest rates rise and market volatility increases, fundamentally superior stocks continue to outperform.  Ahead of the meeting, however, I suspect the stock market will trade sideways.

Here are three fundamentally and quantitatively superior stocks investors can consider to ride out the storm. 

AI demand fuels Super Micro Computer’s growth

Super Micro Computer (SMCI) continues to benefit from strong demand for its servers, especially from data centers.

The company reported receiving $60 billion in new orders during its fourth quarter in fiscal year 2026. Fourth-quarter revenue jumped 91.4% year-over-year to $11.1 billion, and earnings surged 314.6% year-over-year to $1.70 per share. Analysts expected earnings of $0.96 per share on $11.56 billion in revenue, so SMCI posted a whopping 77.1% earnings surprise and a slight revenue miss.

My stock grading system rates SMCI as a C.

Cenovus Energy’s higher production powers its earnings

Cenovus Energy (CVE) is Canada’s second-largest oil and natural gas producer, as well as the second-largest refiner and upgrader in Canada.

During the second quarter, Cenovus Energy produced 970.4 thousand barrels of oil equivalent per day, up 26% year-over-year. Second-quarter earnings surged 237.2% year-over-year to $2.87 billion, or $1.53 per share. Analysts expected earnings of $1.16 per share, so Cenovus Energy posted a 31.9% earnings surprise. Total revenue rose 40.3% year-over-year to $17.4 billion.

My stock grading system rates Cenovus Energy as an A.

Kennametal’s earnings growth accelerates

Kennametal (KMT) makes high-performance tools used to cut and shape metal. It also makes metal and ceramic parts, tools and metal powders.

In fiscal year 2026, the company achieved 237.5% annual earnings growth and 20% annual revenue growth. For its first quarter in fiscal year 2027, the company expects sales between $745 million and $775 million. Adjusted earnings are expected between $2.50 and $2.80 per share. That compares with sales of $497.97 million and earnings of $0.34 per share in the first quarter of 2026.

My stock grading system rates Kennametal as an A.

For more information about my stock grading system, click here. 

Related: Fund manager’s Fed interest rate outlook will frustrate consumers

A major discount retailer is closing several stores across the U.S. this year, but the moves don’t necessarily signal a broader retreat.

The company has been evaluating which locations make sense for its evolving retail strategy as it looks at smaller store formats and new opportunities in markets where other retailers have pulled back.

Founded in 1976, The TJX Companies (TJX) is a leading off-price retailer of apparel and home fashions, operating TJ Maxx, Marshalls, HomeGoods, Homesense, and Sierra in the U.S.; Winners, Homesense, and Marshalls in Canada; TK Maxx and Homesense in Europe; and TK Maxx in Australia.

TJ Maxx closes stores in 2026

TJ Maxx has closed at least four stores in 2026, according to Inc.

The locations include:

Gilbert, Arizona: 4075 S. Gilbert Road

Boston, Massachusetts: 360 Newbury Street

Silver Spring, Maryland: 8661 Colesville Road

Cumberland, Maryland: 1262 Vocke Road

TJX’s real estate strategy involves reviewing how and where it uses its store footprint, while also pursuing smaller formats and new locations in densely populated urban areas and rural markets where department stores have closed.

Why TJX is closing locations

TJX has been reassessing its store portfolio while becoming more flexible about where it opens locations, taking into account factors such as population and density.

“We have experienced strong comp growth for so many quarters that we are seeing the ability to put stores closer together than we thought before,” TJX CFO John Klinger said during the company’s latest earnings call.

Klinger also discussed the company’s use of smaller-format stores, which allow TJX to expand in densely populated urban areas.

The strategy gives TJX more flexibility as it evaluates individual locations while continuing to look for opportunities to expand its overall store base.

TJ Maxx closes stores in the U.S.Bloomberg / Getty Images

TJX continues to grow, despite store closures

The individual closures have taken place even as TJX continues to expand its overall physical footprint.

During the second quarter of fiscal 2027, the company reported:

Net sales: Climbed 5% year over year

Consolidated comparable sales: Increased 4%

Diluted earnings per share: Rose 24% to $1.36

During the fiscal quarter ended Aug. 1, 2026, TJX increased its total store count by 23 locations to 5,285 stores and grew total square footage by 0.4% compared with the prior quarter.

TJX has said it plans to accelerate store openings to 4% beginning next year, with a long-term goal of growing its global store base to 7,500 locations across its retail banners in the countries where it currently operates. 

The store-count growth shows that the closures are occurring alongside a broader strategy of evaluating individual locations while pursuing new markets and formats for expansion.

Retailers that have closed stores nationwide

TJX is not alone in reassessing its physical footprint. Several major retailers have closed stores or announced additional shutdowns as they adjust to changing consumer demand and shifting market conditions.

Here’s some of my previous coverage of recent store closures:

Victoria’s Secret: Closed 38 locations between Jan. 31 and Aug. 1, 2026, as part of its turnaround plan.

Zegna Group: Closed 14 stores during the first half of fiscal 2026 to focus on directly operated stores.

Dick’s Sporting Goods: Closed 113 stores across its portfolio during fiscal 2026 through the second quarter as it reviews “unproductive assets.”

Related: Discount retailer quietly closes another store

Headlines highlighting large retailers closing hundreds of stores frequently grab massive attention. However, sometimes beneath the flashy titles lies a story of a strategic store optimization that is yielding strong results. 

That is the case of a 44-year-old iconic mall retailer, which, after 40 quiet closings, is projecting a return to profitability.

And while industry projections from Capital One Shopping Research suggest that the majority of traditional malls might close over the next decade, the retailer’s latest results confirm that certain shopping centers are still bringing in consumers.

Moreover, July 2026 Placer.ai data confirmed that foot traffic across all three mall formats increased year over year.  However, performance varies widely by mall tier, prompting several major anchors to skip lease renewals and pivot toward open-air shopping centers.

Retail analyst Neil Saunders has argued that store closures and bankruptcies are recurring features of the retail cycle, rather than necessarily evidence of a failing industry. According to him, “they’ve happened at every stage of retail history and are, in fact, a sign that the market is working properly. But the temptation to link them to a dramatic narrative is often too great.” 

Running a successful retail business for several decades requires the ability to adapt to the changing economic environments and shifting consumer habits. Tilly’s recent strategic moves suggest it is able to do so. 

After closing 40 stores, 44-year-old mall retailer Tilly’s returns to profitability.Wolterk / Getty Images

Tilly’s posts net sales growth, projects profitability 

For decades, Tilly’s has anchored the youth retail scene by channeling the rebellious spirit of ’90s and 2000s skater style. The chain continues to draw younger shoppers with a heavy lineup of graphic tees, classic Vans kicks, and authentic Santa Cruz skate gear.

Tilly’s recently reported its second quarter of fiscal 2026 results. Total net sales were $163.5 million, up 8.1% compared to the same period in 2025. 

More importantly, after closing 40 stores in roughly two years, its comparable net sales for the quarter increased by 12.1%. Comparable net sales include both physical stores and e-commerce. 

Tilly’s Q2 fiscal 2026 earnings highlights: 

Net sales from physical stores were $129.0 million, an increase of 5.1%. 

Net sales from e-commerce were $34.5 million, an increase of 20.9%.  

Gross profit was $58.1 million, or 35.5% of net sales, compared to $49.1 million, or 32.5% of net sales, last year.

Net income amounted to $8.4 million or $0.27 per diluted share, compared to a net income of $3.2 million, or $0.10 per diluted share in 2025. 

Source: Tilly’s Q2 Fiscal 2026 Earnings Document on SEC.gov 

The above strong results come as the company ended the second quarter with 220 total stores, a decrease of 12 stores or 5.2%, compared to 232 total stores at the end of the second quarter last year. 

My previous analysis for TheStreet, however, revealed a fuller picture: the retailer has closed even more stores over the last two years than the latest earnings report shows. 

Why has Tilly’s previously closed 40 stores in two years? 

Founded in 1982 as World of Jeans and Tops by Hezy Shaked and Tilly Levine, Irvine, California-based Tilly’s grew into a national retail staple before going public in May 2012 with a $124 million IPO.

The chain sells lifestyle apparel, footwear, and accessories, featuring roughly 200 third-party brands alongside its proprietary labels, including RSQ, Full Tilt, and West of Melrose.

As of early 2026, Tilly’s physical footprint spans three distinct shopping formats: 128 regional mall locations, 79 off-mall centers, and 16 outlet stores.

An analysis of Tilly’s previous reports revealed Tilly’s has closed 40 stores and opened 12 stores in around two years, reducing its footprint by 28 stores or 11%. Based on its latest earnings report, the brand has 220 operational stores remaining, down from the 248 it had at the beginning of the first quarter of fiscal 2024. 

Tilly’s CEO Nate Smith framed the 21 closures in fiscal 2025 as a necessary structural realignment rather than a retreat. 

Smith emphasized that scaling back required tough, disciplined decisions, but the move proved effective when the company achieved fourth-quarter sales growth despite operating 17 fewer net stores. He noted that management’s primary focus remains restoring historical sales productivity and operating performance across the remaining fleet.

“Returning to historical levels of store sales, productivity, and the operating performance this business is capable of is the goal we’re driving toward, and we know there is meaningful work still ahead of us to get to that point,” Smith said during Tilly’s fourth quarter and full year 2025 earnings conference call, as reported by MarketBeat.

Tilly’s management explained that margins also improved because of improved full-price selling and lower buying, distribution, and occupancy costs “due to decreased occupancy costs associated with reduced store count.” 

What do Tilly’s closures mean for the retailer? 

During the second quarter of fiscal 2026 earnings call, Smith first highlighted four consecutive quarters and 13 consecutive months of year-over-year comparable net sales growth. 

The CEO then stressed that Tilly’s turnaround strategy has successfully returned the retailer to profitability. 

The company earned nearly $2 million over the past four quarters and $400,000 so far in fiscal 2026. While these figures are modest, Smith highlighted them as crucial milestones for the business. He emphasized that the brand is now on track to deliver its first profitable full year since 2022.

Tilly’s is not the only mall retailer pursuing this strategy 

In my extensive retail coverage for TheStreet, I recently reported on how several legacy mall retailers are executing strategic pivots similar to Tilly’s. Rather than signaling total financial collapse, these targeted store closures come in an effort to trim underperforming locations, protect profit margins, and adapt to shifting foot-traffic dynamics.

Fossil Group serves as a primary example of this shift. Over the past five years, the company closed more than 200 stores, including seven in early 2026 alone. By aggressively downsizing its physical footprint, Fossil expanded its gross margins and redirected resources toward high-margin digital channels. 

Similarly, Shoe Carnival is closing dozens of stores to correct a recent merchandising mistake. The footwear retailer is using these closures to shed low-margin real estate and pivot back to its core audience of value-focused shoppers.

Specialty fashion and luxury retailers are following the same playbook:

Michael Kors (Capri Holdings): Shuttered 139 stores over a three-year optimization window, stripping away excess real estate to focus on higher-yield flagship stores and online sales.

Vera Bradley: Quietly closed 13 underperforming locations to reduce occupancy costs, optimize inventory distribution, and protect brand value.

Parent company of Marshall Rousso & Misura: Closed 14 locations with additional consolidations planned, reallocating budget to consolidate footprint in high-density tourist hubs.

Across some of my recent reporting, the underlying theme is clear: rightsizing a store fleet is no longer just a defensive retreat. These retail brands are actively using targeted store closures as an operational tool to lower overhead, rebuild profitability, and position themselves for long-term survival.

Related: 102-year-old mall retailer quietly closes 25 stores 

What’s next for Tilly’s? “We’re not finished” 

Based on the Q2 fiscal 2026 earnings call transcript, Tilly’s is focusing heavily on maintaining its turnaround momentum through strategic real estate management and continued digital investments.

Smith expressed confidence in their trajectory, stating, “These are important milestones cleared in our turnaround story as we work towards producing what we currently believe will be our first profitable fiscal year since 2022. We are encouraged by our progress, but we’re not finished.”

Regarding real estate, management outlined a disciplined approach to managing the physical footprint. They expect to finish the fiscal year with 218 stores. This includes scheduled closures taking place in September, December, and January as leases expire.

At the same time, for fiscal 2027, the company is targeting 5 to 8 new store openings. However, management emphasized that this expansion is contingent upon achieving appropriate lease economics. 

CFO Michael Henry also noted the financial balancing act of this strategy. He pointed out that while a reduced store count resulted in occupancy cost savings, those savings “were largely offset by higher e-commerce shipping expenses.”

How Tilly’s is changing the in-store experience

To complement its physical store strategy, Tilly’s is aggressively expanding its investment in digital and operational technology to improve efficiency. Management summarized plans to launch an “AI-driven smart inventory allocation tool.” This tool is designed to increase accuracy in balancing sizes and units across both the e-commerce platform and the physical store fleet.

Furthermore, the company plans to roll out new tech at the store level, by implementing RFID technology in its stores starting in early 2027.  An initial focus will be on the footwear category to improve customer experience and in-store efficiency relating to size availability.

RFID uses smart-tagged labels to track inventory in real-time, allowing store staff to instantly verify if a customer’s shoe size is available without searching the backroom.

Bottom line, Tilly’s is demonstrating that, for some struggling mall retailers, shrinking the store base can be part of the path back to growth, provided the remaining stores become more productive and the company reinvests in the right channels.

Related: Ikea closes another key store after barely a year 

Even before we go deeper, I want to be upfront about this. I think Dario Amodei’s concerns about the pace of artificial intelligence (AI) development deserve to be taken seriously.

As the CEO of Anthropic, one of the companies building this technology, he has a front-row view of where AI is heading. That alone gives his warnings a perspective most of us don’t have.

Dario Amodei published an essay titled “We Must Pace the Frontier” on Sep. 12, 2026, calling for an intentional slowdown in advanced AI development.

He received remarkable support. OpenAI CEO Sam Altman endorsed it. Elon Musk said Amodei was “right.” Even competitors in a fiercely competitive industry agreed that independent evaluators made sense.This has been a primary topic of discussion for some time. I also think that if AI development continues at its current pace without safeguards, there is a real risk that we could eventually confront the darker side of what the technology is capable of doing.

Yes, of course, the potential benefits are enormous, but so are the consequences if its risks outpace our ability to manage them.

Hock Tan was on Mad Money on Sep. 14 and said that none of this changes anything for Broadcom (AVGO).

Both things can be true simultaneously. And understanding the tension between them is the most important thing for Broadcom investors right now.

What Broadcom CEO actually said and what he didn’t dismiss

The market’s reaction to Amodei’s essay was expected. AVGO fell over 4.8% on Sep. 14. The iShares Semiconductor ETF dropped 5.6%. Infrastructure providers across the board got hit. 

And most investors’ question was whether a slowdown in frontier model development means a slowdown in compute demand.

Cramer asked Tan whether any of this has caused him to reconsider Broadcom’s fiscal 2027 and 2028 AI semiconductor forecasts.

No, not in the least.

“We see the demand for compute infrastructure, for AI development or AI frontier models, and inference for the products that they feed to the world, as continuing to be very strong and, I believe, very durable,” Tan said.

Tan wasn’t dismissing Amodei’s concerns. Tan agreed that AI needs guardrails. 

“Like any tool, it’s important to put governance and safeguards on how we use the tool,” Tan said. 

But he pushed back on the framing that AI poses existential risk at current capability levels. “It’s not a live animal that will run wild by itself.”

More AI Stocks:

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Marvell’s $120 billion deal with Google has fine print

Analyst rethinks Nvidia stock ahead of earnings

His more optimistic framing compared generative AI to the Industrial Revolution, a disruptive force that demanded major adaptation but ultimately raised living standards and expanded what humans could accomplish.

That’s a reasonable position right there. It’s also the position you’d expect from the CEO of a company whose entire growth trajectory depends on continued AI infrastructure spending.

The Broadcom numbers that make Tan’s confidence legible

Broadcom reported Q3 fiscal 2026 results that give his confidence a factual foundation. 

Q3 AI semiconductor revenue came in at $16.7 billion, up 221% year-over-year (YoY) and 54% quarter-over-quarter. 

Total consolidated revenue hit $29.6 billion, up 86% YoY, with free cash flow of $13.7 billion — 46% of revenue.

Q4 guidance calls for AI semiconductor revenue of $21.7 billion, up 236% YoY, and consolidated revenue of $34.8 billion, up 93% YoY

Full fiscal 2026 AI revenue is now expected to be $58 billion, raised from prior guidance of $56 billion.Source: Broadcom Q3 2026 Earnings Call Transcript

The multi-year targets are even wilder. On the earnings call, Tan guided fiscal 2027 AI semiconductor revenue to approximately $115 billion, doubling again to approximately $230 billion in fiscal 2028. He reiterated confidence in exceeding $30 in EPS by fiscal 2028.

What makes these targets credible is the customer visibility behind them. Anthropic is on track to become Broadcom’s largest XPU customer in 2027-2028, with visibility to 10 gigawatts of deployment by 2028, according to the earnings call transcript.

Anthropic is on track to become Broadcom’s largest XPU customer in 2027-2028.Remus Rigo Via Shutterstock

Why inference demand is the argument Tan is really making

I also think Tan made an important distinction on Mad Money that deserves some attention. He separated training, which involves building new frontier AI models, from inference, which is the process of deploying those models and serving users at scale.

“I don’t know about training, but when you want to productize inference, I see it continuing to be very, very strong,” Tan said.

Even if Amodei’s essay succeeds in moderating the pace of training new frontier models, the inference demand from deploying existing models continues growing. Every ChatGPT query, every Claude conversation, every AI agent running in enterprise software requires compute. That compute doesn’t slow down if training slows down.

Also Read: Broadcom Inc. Latest News and Stories 

Tan also helped establish a $35 billion AI special-purpose vehicle platform with Apollo and Blackstone to support Anthropic’s one-gigawatt deployment. 

The commitment sits somewhat awkwardly alongside Amodei’s caution. But it also addresses clearly the point that capital is still pouring into AI infrastructure, regardless of the debate over how quickly the models themselves should advance.

Broadcom shares are down 1.44% year-to-date and 5.97% over the past year, according to Yahoo Finance. That weakness stands out against the company’s 86% YoY revenue growth and reflects the expectations gap Morgan Stanley flagged in my earlier pre-earnings report.

As mentioned before, the main problem with AVGO performance is expectations rather than fundamentals. The business is growing at a remarkable pace. The stock, however, isn’t getting the same memo.

Related: Jim Cramer has strong message for Nvidia, Broadcom investors

As a consumer, I’m mixed on private-label brands. I’ll buy Costco’s Kirkland brand for over-the-counter (OTC) medicine, but I’m wary about using any private label when it comes to food.

It’s reasonable to believe that the warehouse club or a grocery chain has copied a workable formula for an OTC painkiller, allergy medicine, or product such as a household cleaner. I’m much more skeptical of any chain’s efforts to knock off big-label food brands.

Yes, you may save some money, but to me, the trade-off generally isn’t worth the risk.

America mostly does not agree with me, according to an August study from NielsenIQ (NIQ).

58% of consumers say they don’t care whether a product is a national brand or private label — they simply buy what they need .

68% of consumers view private-label products as a good alternative to national brands. 

69% of consumers believe private-label products offer good value for money.

It’s a change that matches part of Kroger CEO Gregory Foran’s plan for the chain’s turnaround.

Kroger scores with private labels

The NIQ data shows that, at least for some consumers, private labels are not seen as trading down.

“This is one of the most significant shifts happening in consumer goods today,” NIQ E-Commerce President Ramon Melgarejo said. “Consumers are no longer evaluating products primarily based on who makes them. They are evaluating whether a product delivers the right mix of quality, value, convenience, and relevance. That has created a much more democratic and competitive shelf than we’ve seen historically.” 

Foran spoke about Kroger’s private-label business during the chain’s second-quarter earnings call.

“Customers are looking for value, but they are not willing to compromise on quality. Our brands answer both, and the momentum shows it,” he said. “…Private selection sales increased more than 14% during the quarter, driven by strong customer response to new products. Including more ready-to-heat and ready-to-eat meals.”

Costco has long been a leader in private labels with its Kirkland Signature brand.

“At a time when grocers are pouring money into private brands, Kirkland Signature shows the heights to which a store brand can soar. It accounts for around $86 billion in annual sales, or around a third of Costco’s total haul,” according to a Wall Street Journal story.

Costco has opted to group all of its private-label options under the Kirkland Signature label.

“Around 600 products globally carry the Kirkland Signature label in categories ranging from batteries to pet food to wine to bath tissue. And some of its best sellers — including eggs, bottled water and butter, according to a recent story in Costco Connection, Costco’s in-house magazine — are the same products grocers rely on to drive trips,” Grocery Dive reported.

Kroger has seen growth in private-label sales.Shutterstock

Kroger plans more private-label investments

Data from Numerator backs up Foran’s points.

Kroger’s private-label sales in the produce, meat, seafood, deli and prepared foods, and in-store bakery categories were up by about $420 million over the 12-month period that ended July 31, Retail Dive reported.

Foran shared more information on Kroger’s private-label efforts.

“Across the portfolio, our brand sales grew faster than national brands. And penetration increased approximately 50 basis points,” he said.

He also made it clear that the company plans to invest in lower-cost, private-label options.

“Looking ahead, we are also expanding SmartWay, our opening price point brand, with more items, broader coverage across the store, and improved visibility both in store and online,” he added.

Private labels are growing

RTM Nexus CEO Dominick Miserandino thinks that Kroger is simply doing what it has to do.

“Private label isn’t rocket science — it’s just Kroger protecting its margins,” he told TheStreet.

It’s a way to deliver value, while also making money, he added.

“Standard grocery margins are practically nonexistent, hovering around 1% or 2%. When big brands jack up their prices, Kroger gets squeezed. Selling their own store brands cuts out the middleman, so they actually make a decent profit on the shelf while offering lower prices to shoppers,” Miserandino shared.

In the United States, private-label sales reached $330 billion, capturing a 24% unit share and a 23% dollar share of the total market, according to data from Circana.

“As we look ahead to 2026, the outlook for private label remains positive, though more balanced,” said Circana Chief Advisor Sally Lyons Wyatt. “While we anticipate continued unit share growth, the pace will likely be more measured as private label transitions from an acceleration phase into a normalized growth cycle.”

ALSO READ: Kroger has a problem Walmart and Amazon will never have

Many AI investors have not heard of Axe Compute, and a year ago the company was doing something completely different. It used to be Predictive Oncology, a small firm that applied artificial intelligence to cancer research. Late last year it changed its name, its ticker, and its entire business.

Now it rents out the computing power that companies need to run AI, and the stock has moved sharply. Shares trade near $11, up nearly 590% over the past six months.

Chief Executive Officer Chris Miglino and President Kyle Okamoto sat down with me to explain how the business works, where the money comes from, and what they think happens next in the market for AI infrastructure.

How Axe Compute went from cancer research to selling AI computing power

The company was called Precision Therapeutics, then Predictive Oncology, before it became Axe Compute in December 2025, as reported on Yahoo Finance, and began trading on the Nasdaq as AGPU.

Miglino took over as chief executive in February 2026, and Okamoto, who helped build the Aethir GPU network, joined as president in April.

The business rents out graphics processing units, the specialized chips that train and run AI models. Axe Compute buys and owns the hardware, leases space and power inside data centers run by partners, and rents finished, dedicated clusters to business customers.

It draws on Aethir’s distributed network, which reaches more than 400,000 GPUs across 93 countries.

Okamoto said the company was built to fix what he and Miglino disliked about rival providers, starting with how little say customers usually get.

“The primary tenet that we’ve built this around is choice,” he said, meaning customers pick their location, their chips, and their contract terms instead of taking a fixed package.

Axe Compute transformed from a small oncology research firm into a specialized AI infrastructure provider renting out graphics processing units, driving a significant surge in its stock value.gorodenkoff / Getty Images

What the surge in Axe Compute stock reflects

The climb tracks investor appetite for anything tied to AI infrastructure, plus a fast pivot and a crypto-linked treasury the company calls a Strategic Compute Reserve. Over six months, the shares are up nearly 590%, and for the 2026 calendar year they are up about 56%, according to the chart. The 52-week range runs from $1.04 to $12.

There is real business behind the move, at least on paper. Miglino said the order book has grown fast. “We’ve closed $3 billion worth of business. We have $6 billion worth more in the pipeline,” he said. Okamoto put the announced contracts at about $696 million in annual recurring revenue once the large builds are deployed.

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The reported figures today are far smaller. For the fiscal year ended December 2025, according to an SEC filing, revenue was tiny, the computing segment brought in nothing, and the company posted a net loss of $233.1 million.

Market value sits near $128 million, and the shares are volatile. For now, the price reflects what investors expect the company to become.

How the business actually makes money

Building a dedicated cluster costs a fortune long before a customer pays, so Axe Compute does not build on speculation.

“We never execute on a cluster until we have a tenant,” Miglino said.

The customer, which the company calls an offtaker, pays 25% to 45% of the contract value upfront. That money buys the chips, and Axe Compute finances the rest against the equipment.

The contracts are take-or-pay deals, so a customer pays the same fixed amount each month whether or not it uses the capacity, which gives Axe Compute predictable income. Almost all of its clusters are bare metal, meaning one customer gets the entire machine and runs its own software on it.

That setup is the pitch against the largest cloud providers. Okamoto said those providers force customers into fixed offerings at a premium.

“If you go to a hyperscaler, you’re going to sit in a long line, and you’re going to get exactly what they have. If you ask for changes, the answer is no,” he said. He added that they can charge 40% to 60% more.

What Miglino and Okamoto say comes next

Both executives expect the market to thin out. Miglino said many current players simply rent capacity from one another and add a markup, and that this layer will disappear.

“I think that margin in the middle will go away,” he said, arguing that the survivors will own their hardware and know how to run data centers.

Getting there depends on power and land, which are scarce. Okamoto said about 80% of U.S. data center capacity is sold before it is even built, and both men flagged community resistance to new data centers as a growing constraint.

Axe Compute has locked in extra capacity abroad, including sites in Sweden and the Middle East.

For investors, Okamoto offered a plain test. He said a signed deal means little until a company shows the money and the buildout behind it, and he pointed to customer prepayments as the signal that matters.

“I would look at a company’s overall execution path, not just the exciting press release,” he said.

That is the honest read on AGPU. It is a speculative, early-stage bet that trades alongside other neocloud infrastructure names, the shares swing hard, and anyone buying after a near-590% run should size the position carefully and set a clear exit plan.

Related: Analyst sets jaw-dropping Nvidia price target

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Why we love this deal

Finding storage for smaller items can be difficult. You don’t want to throw everything in one giant container together, making it difficult to find what you need, but it’s also hard to keep every single item separate from each other. Having smaller storage baskets can help you categorize your items so they’re still easy to find while also not taking up counter space or cabinet space.

The Taimasi 6-Pack Stackable Storage Baskets and Lids offer easy storage for all sorts of items, like bathroom accessories, tools, crafting supplies, or office items, without taking up tons of space. Each basket has its own lid, and they can be stacked or used separately, making this a versatile set that can be used in any part of the home. This 6-pack set is just $21 at Walmart, saving shoppers $16.

Taimasi 6-Pack Stackable Storage Baskets and Lids, $21 (was $37) at Walmart

Courtesy of Walmart

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Why do shoppers love it?

These baskets are made from perforated polypropylene plastic that’s durable and easy to clean off. Each basket features a natural bamboo lid to keep things neatly in place, and to also help them stack up easily. They’re perfect for organizing books, kitchen accessories, decorations, and more. Each basket has a spot for a label to make it even easier to find your items. They are a neutral cream color that matches most decor, and the bamboo lid adds a warm natural tone to the room. The top of the lid also adds room to place items as needed. 

Related: Walmart is selling highly rated desktop drawers for just $11 that clear workspace clutter

The baskets can be kept open for convenience, offering a place to set fruit or seasonings on the counter, or washcloths or face wipes in the bathroom. The lid can conveniently be kept underneath the basket for storage, making it easy to close the basket if needed. Measuring 7 inches wide, 9 inches long, and 4 inches tall, they’re small enough to fit on shelves, in cabinets, or even under the bed while still providing space for your items. 

Details to know

Size: Each basket measures 7 inches wide, 9 inches long, and 4 inches tall. 

Materials: The solid bamboo top keeps your items tidy, and the plastic weave basket is sturdy and easy to clean. 

What’s included: This set features the baskets, lids, labels, and pens for convenience. 

“They stack nicely but do not nest, which is ideal so we can just slide one out if we need something,” one shopper wrote. “We also like that we know what is inside without it being clear plastic, so we don’t see the mess. They look great for the price and are larger than we thought.”Another buyer wrote, “These Storage Baskets exceeded my expectations. Everything arrived in perfect condition. I was surprised by the weight; these baskets are heavier than expected, which speaks to their quality. The bamboo lids are thick, solid wood, not flimsy at all, and the plastic baskets themselves are sturdy and well-made. They stack nicely and feel like they’re built to last for years, not just temporary storage. They’re perfect for organizing.”

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The Taimasi 6-Pack Stackable Storage Baskets and Lids offer ease of use at an affordable price. They’re convenient, fit a good amount of items, are easy to clean, and stack nicely on a shelf or in the closet. At just $21 for a 6-pack, these baskets are a fantastic deal.

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Why we love this deal

Having any amount of outdoor space where you can sip your morning coffee or kick back in a rocking chair is a delight. If this area also includes a patch of yard, it comes with the inevitable maintenance required when grass pokes through the sidewalk or weeds get unruly. Tiny yards are a breeze to tidy up compared to larger ones, taking less time in the blazing sun pushing around the lawn mower and whacking weeds. That said, if you have a small yard, you likely have a small home, which means less space to store all that lawn equipment.

The Black+Decker 3-in-1 Electric String Trimmer, Edger, and Lawn Mower makes yard work even more efficient, giving you every tool you need to maintain the lawn in one streamlined package. Since the compact design has three tools in one, it eliminates the need for multiple pieces of equipment, stowing away easily and giving you back precious storage space. Normally, you’d have to pay $124 to add this handy yard tool to your collection, but it’s currently on sale for just $89 at Walmart. As a bonus, the electric tool only requires an outlet to power up, so you don’t have to deal with extra trips to the gas station for fuel.

Black+Decker 3-in-1 Electric String Trimmer, Edger, and Lawn Mower, $89 (was $124) at Walmart

Courtesy of Walmart

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Why do shoppers love it?

The versatility of this Black+Decker tool is unmatched. When placed in the rolling base, you can use the electric tool as a compact lawn mower to effortlessly cut grass. With a tap of the foot pedal, you can quickly convert the equipment from a mower to a string trimmer or wheeled edger to create clean borders around the sidewalk and tackle dense undergrowth. The tool has a large coverage area with a 12-inch cutting swath, so you’ll spend less time trimming. “I took it out of the box, and 45 minutes later, the lawn was mowed, the weeds were whacked, and the edging done,” one shopper raved. They added, “The HOA came by and was amazed at how good the yard looked.”

Related: Amazon is selling a ‘very roomy’ lockable double-door outdoor storage shed for just $150

With over 150 perfect five-star ratings, this equipment is highly rated by shoppers. The corded tool is powered by a 6.5-amp motor, so it will deliver reliable and consistent performance. While it’s not as heavy-duty as larger models, it should have plenty of power for basic yard work. One shopper reported, “It even went through the high grass, and tall weeds were not a problem.” The same reviewer also appreciated the easy care required for this tool: “Cleanup was a breeze — I just hosed it off after unplugging. Stores in minimal space.”

Details to know 

Power source: Electric.

Cutting width: 12 inches.

Weight: 13 pounds.

Average shopper rating: 4.2 out of five stars.

It’s important to note that this Black+Decker mower, edger, and trimmer does not come with a power cord. You will need to add your own extension cord before starting on yard work. If you don’t have your own, there are many options available at Walmart for under $20. 

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Black+Decker Cordless 2-in-1 String Trimmer and Edger, $69 (was $100) at Walmart

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The Black+Decker 3-in-1 Electric String Trimmer, Edger, and Lawn Mower is such a helpful tool with a smart design that’s perfect for small yards. Score it for just $89 at Walmart by adding it to your shopping cart now.