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Taiwan Semiconductor Manufacturing (TSM) reported June revenue on July 13 that ran counter to its own recent history, and the timing is not a coincidence.June is normally the month when the world’s largest contract chipmaker cools off, not accelerates.This year revenue climbed instead of slipping, and the gap between the two patterns is where the real story sits, two days ahead of the company’s second-quarter earnings release.Consolidated revenue for June reached NT$442.68 billion, up 6.2% from May and 67.9% higher than a year earlier, according to TSMC’s own monthly filing. First-half revenue hit NT$2.4 trillion, or roughly $74.99 billion, a 35.6% increase from the same period in 2025. Shares traded about 1% higher on the day of the filing, CNBC noted.The break from seasonality is what caught analysts’ attention. June revenue has declined from May in each of the past four years, SemiAnalysis analyst Sravan Kundojjala told CNBC, calling this year’s figures “quite robust.”Related: Goldman Sachs turns its back on major semiconductor stockThat reversal, more than the headline growth rate, is the signal worth reading closely.It matters because TSMC’s three monthly reports for April, May and June effectively preview the second quarter before the company confirms it.Kundojjala noted the resulting quarterly total already exceeded the high end of TSMC’s own guidance of $40.2 billion, a range the company set based on a fixed exchange rate in its first-quarter earnings release. That is the “something bigger” June’s number was pointing toward.The reason has less to do with demand spiking and more to do with supply running out. TSMC is sold out on its N3 process, the node used by nearly every leading AI GPU and CPU shipping this year, Kundojjala said.Nvidia, Apple and Advanced Micro Devices (AMD) remain among the chipmaker’s largest customers, CNBC reported. Nvidia and Apple are both members of the so-called Magnificent Seven, though TSMC itself sits outside that group.AI chip revenue is becoming the real growth engineKundojjala estimated TSMC is on pace for more than $40 billion in AI chip revenue in 2026, or close to 25% of total sales, according to CNBC.A business segment that barely existed in TSMC’s reporting a few years ago is now approaching a quarter of the company’s revenue base.That concentration cuts both ways for investors. It explains why a single node running at capacity can override four years of seasonal decline.It also means TSMC’s near-term results are now more tied to AI accelerator demand than to smartphones, the business that used to set the company’s cadence.For investors, the practical read is pricing power. When capacity runs below demand, TSMC has historically been able to hold or raise prices on its most advanced nodes rather than compete on volume, a dynamic that supports margins even as unit growth slows elsewhere in the industry.

TSMC’s June revenue rose 6.2% from May, breaking a four-year pattern of seasonal decline as AI chip demand keeps N3 capacity sold out.PonyWang / Getty Images

Packaging capacity is the next constraint to watchTSMC will add two advanced chip packaging plants at the Chiayi Science Park in southern Taiwan, Reuters reported, citing National Science and Technology Council Minister Wu Cheng-wen.The first plant at the site is already in mass production, and the second is expected to start soon, Wu said.The new facilities, the third and fourth planned for the park, are part of a second development phase that will eventually cover roughly 90 hectares, a Seeking Alpha report noted.Once all four plants are running, the site is projected to generate more than NT$300 billion, or about $9.35 billion, in annual production value and support more than 9,000 jobs, according to Wu.The Chiayi expansion is part of a broader spending surge. TSMC has guided for 2026 capital expenditure toward the high end of its $52 billion to $56 billion range, more than a quarter above 2025 levels, GuruFocus reported. Advanced packaging and next-generation process nodes account for most of that budget.More AI:The new Chinese AI model rattling U.S. tech investorsAnthropic restores access to Mythos 5 for select organizationsSoftBank CEO offers stinging critique of Musk’s AI betWafer fabrication gets most of the attention in TSMC coverage, but packaging is where finished chips actually get assembled for shipment.Expanding that capacity alongside N3 output suggests TSMC expects the current demand environment to persist well past this earnings cycle, not just through the third quarter.TSMC’s grip on the foundry market keeps tighteningTSMC held 73% of the global pure-play foundry market in the first quarter of 2026, according to Counterpoint Research data. That level of concentration means the AI supply chain increasingly runs through one company’s execution, for better or worse.It also raises the stakes for Thursday’s earnings call. Investors will be listening less for whether TSMC beat its own guidance, which the June numbers already suggest, and more for what management says about capacity plans and pricing into the second half of the year.TSMC’s monthly disclosures were designed as routine accounting, not a market signal. But when a four-year pattern breaks the way June’s did, routine is no longer the right word for it.Thursday’s call will show whether the rest of the AI supply chain is running just as hot, or whether TSMC is absorbing the strain alone.Related: Nvidia partner sued over five critical products

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.Why we love this dealSummer is the time for grilling. Making burgers for a quick weeknight meal, hosting a holiday get-together in the backyard, or just trying to keep the heat out of the kitchen to save on the cooling bill — grills can be versatile, quick, and easy to use. While there are grills that have multiple cooking surfaces, tons of different accessories, or extra-large cooking areas, sometimes simple is best, and we’ve found a fantastic grill at Walmart that has just enough room without being overly bulky or complicated. The Master Cook Charcoal Grill offers two levels of grill space with a convenient lower storage shelf and two side tables for under $100. Originally $170, shoppers can get this dual-table grill on sale for just $90 at Walmart.Master Cook Charcoal Grill, $90 (was $170) at Walmart

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Shop at WalmartWhy do shoppers love it?This grill is a convenient addition to any outdoor patio or backyard. The whole unit stands on a steel structure with two wheels that make it easy to roll out to use, then roll back out of the way after dinner. It also features a bottom rack to store charcoal bags, plates, cups, or drinks. The side vents and top chimney allow smoke to vent while still maintaining a good internal temperature, and the built-in temperature gauge allows you to more easily keep track of your food while the top is down. The dual side tables make it easy to serve guests, set your grilling utensils, or keep ketchup, relish, and buns. We all know that a barbecue isn’t the same without drinks, so it also has a bottle opener that’s great for sodas, sparkling water, and more. The full unit offers an easy and simple option with a user-friendly setup for any occasion. Related: Walmart is selling a 2-burner grill with 2 side shelves for just $103The grill portions provide a large 332-square-inch enameled steel cooking grate. It also has a second level with a 94-square-inch stainless steel warming rack that offers tons of space to cook hot dogs, corn, burgers, vegetable skewers, and more, while also being able to keep them warm for seconds and thirds. The removable ash catcher offers an easy cleanup. This ash pan is designed like a drawer and sits under the grill to catch all the drippings and ash that falls off the grates, then can easily be pulled out and dumped after cooking, requiring no scrubbing, wiping, or rinsing.  The pros and cons of a charcoal grillProsPortable design: This grill is easy to roll back and forth, making it a great option for smaller decks where space is limited. Once you’re done cooking, just roll it out of the way. Easy cleanup: The ash pan makes it easy to pull out and dump the contents of the charcoal and food. Multiple places to set your items: Between the lower-level shelf and the two side tables, there is plenty of room for your grilling items and food. Cons Charcoal only: This grill is not compatible with propane. Small analog thermometer: The thermometer may be difficult to read for some people. “We were especially pleased by the solid construction. It has a shallow pan for charcoal, so we can be frugal. The design is simple and good-looking,” said one reviewer.Another shopper said, “I love this grill. It’s made out of high-quality material, and it’s very sturdy. The grill cooked the food well. I would most definitely recommend this product.”Shop more dealsVebreda 44-Inch Charcoal Grill and Smoker, $119 (was $220) at WalmartG Taleco Gear Outdoor Table and Grill, $80 at WalmartZimtown Charcoal 3-Level Smoker and Grill, $60 (was $119) at WalmartThe Master Cook Charcoal Grill not only offers a user-friendly design, effortless cleanup, and a versatile and portable option, but it’s also super affordable at under $100. The spacious, two-level cooktop offers room for all sorts of foods, whether you’re grilling for yourself, a family of four, or for a summer party. Shoppers can save 47% on this charcoal grill at Walmart. 

Most economic indicators show that the explosion in artificial intelligence infrastructure spending is having a positive effect on the U.S economy.U.S. gross domestic product rose at an annual rate of 2% between January and March, according to the Bureau of Economic Analysis. While that was below economists’ expectations, it was a significant improvement from the 0.5% growth recorded in the fourth quarter of 2025.“The contribution of artificial intelligence to GDP growth in the first three quarters of 2025 was comparable to the height of the dot-com bubble in 2000. AI accounted for 39% of GDP growth in 2025 (through the third quarter) versus 28% in 2000,” Hannah Rubinton, an economist with the St. Louis Federal Reserve, recently told Marketplace. Still, “while AI investments are still high, their quarterly growth rates have tapered off,” she concluded. Even if it is declining, AI spending is still providing a positive boost for the economy. However, analysts at Wells Fargo also see a downside to the AI-driven economy: inflation.The AI-investment boom is helping drive inflationMuch of the U.S. economy’s resilience of the past year is attributed to a capital expenditure investment cycle that analysts at Wells Fargo call “extraordinary.”But AI spending is also having a less visible effect on inflation, which has already been accelerated due to the Iran War, according to the analysts. Wells Fargo points out that upstream, wholesale inflation, or the prices businesses pay, is up 6.5% year over year in May, according to the Producer Price Index. And even when you strip out volatile food and energy prices, PPI rose by 4.9% in May after rising just 2.7% in June 2025. “While some of this price pressure has stemmed from U.S. tariff increases over the past year, much of the increase has been tied to brisk spending on AI-related and other technology and automation to improve productivity and drive profit growth,” Wells Fargo analyst Jennifer Timmerman said in a report viewed by TheStreet. Related: Workers just sent AI companies an ultimatumAccording to the firm, there are three specific areas where AI spending is causing higher prices. Global shortages of semiconductors and industrial inputsElevated energy costs tied to the explosion of AI data-center capacity”Panic ordering” by companies in a race to secure resources to build data centers and expand manufacturing capacity. “We expect PPI inflation to remain uncomfortably high for the foreseeable future. We believe the scale of AI-related order backlogs for capital goods is substantial enough that elevated investment spending should persist through our forecast horizon of 2027,” Timmerman said. There are still areas of the economy where AI-induced inflation hasn’t impacted yet. Consumer inflation is better insulated from this inflation as “limited passthrough of upstream pressure on technology costs” has helped limit the impact AI spending has had on Consumer Price Index inflation.

Wells Fargo claims that AI spending leads to higher inflation due to issues such as elevated energy costs.Mario Tama / Getty Images

How can investors weather AI inflation storm?Wells Fargo says that some inflation is not necessarily a bad thing for the stock market, as some equity sectors and subsectors can actually benefit from higher prices. Inflation in materials, industrial and specialty chemical sectors is a good thing for investors in those sectors because those companies are well-positioned to pass along higher input costs to customers. More AI:The new Chinese AI model rattling U.S. tech investorsAnthropic restores access to Mythos 5 for select organizationsSoftBank CEO offers stinging critique of Musk’s AI betSo what advice does Wells Fargo have for investors looking to navigate this environment? Turn lemons into lemonade. “Overall, we prefer to keep exposure to longer-term themes – with AI and technology spending being the dominant trend – but adjust portfolios when potential opportunities appear to add value,” Timmerman wrote. “We continue to favor equities over fixed income and, within equities, the Information Technology sector, as well as Materials, Utilities, and Industrials, which build out AI capabilities but appear less expensive to us. Finally, we prefer that investors consider some allocation to commodities, which can serve as a useful inflation hedge and more general portfolio diversifier.”Related: Workers just sent AI companies an ultimatum

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.Why we love this dealWhether out and about around town, running to the nearest coffee shop, relaxing in bed and watching TV on your laptop, or speed studying for finals, having earphones that can keep up with your lifestyle makes all the difference. Between school, your commute, the gym, running errands, and relaxing at home, the last thing you want to worry about is having to charge your headphones every day after all that use. You want something comfortable that can keep up with your activities, offer hours of music and audiobooks, and stay on during your most intense workouts or runs to the bus stop.With all these features, the Veatool V6 Sport Bluetooth Earbuds fit the bill. Their long-lasting battery, easy-to-read LED screens, and over-the-ear hook offer a comfortable solution for everyday listening needs. Originally up to $190 in two color options, these earphones are on sale for just $22 right now at Walmart, saving shoppers a mind-blowing $168.Veatool V6 Sport Bluetooth Earbuds, $22 at Walmart

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Shop at WalmartWhy do shoppers love it?The sport headphones offer a comfortable and convenient design that stays on while preventing damage with a waterproof, sweatproof nano-coating, making them a great option for rainy weather, sweaty workouts, or hanging out by the pool. The over-ear hook shape offers a near-perfect fit, thanks to the three included ear hook sizes that can be easily switched out. They feature a 13-millimeter, double-layer diaphragm driver that provides a strong bass and clear sound for any music, TV show, or audiobook. Related: Walmart’s bestselling noise-canceling earbuds are on sale for just $20You never have to stop listening, even when the batteries are low. Charge the case while using the headphones, so that later, the case can charge the headphones while you’re at work or in class. With up to 88 hours of playback time on one single charge, these headphones are made to last. The case offers as many as six full headphone charges before needing to be recharged, and each earbud offers up to 10 hours of playback time. They easily connect to any other Bluetooth-enabled devices, including TVs, laptops, tablets, phones, and more, thanks to the Bluetooth 5.3 technology.  The pros and cons of this dealProsLong-lasting playback time: The earbuds, combined with the charging case, offer a whopping 88-hour playback time for movies, music, audiobooks, and more. Ear Hooks: The ear hooks allow you to run, work out, clean, and more without worrying about them falling off.Dual LED screens: The display allows you to see the charge of each headphone and the case easily.  Cons They might take time to get used to: While still usually comfortable, having the hook around your ear may take getting used to. They don’t feature active or passive noice-canceling: These headphones are only for listening, not cutting out sound. With 1,900 five-star ratings, these headphones are fantastic. One reviewer said, “I really like the fact that I can wear these buds and bend over or shake my head without them coming out. They stay put, and although the reach isn’t too far, I can have my phone charging in the bedroom and still be listening to a podcast in the kitchen.”Another shopper said, “Almost all others hurt my ear. These are extremely comfortable. I charged them when they arrived, and wear them at work for 7-8 hours. Then another 45 minutes of sweating and exercising with no problems.” Shop more dealsTikland Bluetooth Headphones, $17 (was $130) at WalmartSta Noise-Canceling Earbuds, $20 at WalmartNo matter what you’re listening to, the Veatool V6 Sport Bluetooth Earbuds offer long-lasting, quality sound for under $25. They’re comfortable, easy to use, and require virtually no setup. Shoppers can save up to $168 on this deal, paying just $22 for these earphones.

One of the companies powering the global artificial intelligence boom has opened a new door for U.S. investors.SK Hynix, a South Korean semiconductor manufacturer that produces memory chips used in AI servers, smartphones, computers, vehicles, and other electronic devices, made headlines after its Nasdaq debut on July 10, 2026.The company is especially important to the AI industry because it is a leading producer of high-bandwidth memory, or HBM. Those chips sit alongside powerful processors and allow AI systems to move enormous amounts of data quickly.SK Hynix also produces dynamic random-access memory, better known as DRAM, along with NAND flash storage, solid-state drives, and multi-chip packages. Its products reach data centers and everyday consumer devices.This position helped generate intense demand when SK Hynix brought its shares to Nasdaq through a $26.5 billion American depositary receipt offering.But the stock’s first few days in the U.S. market have also shown how quickly enthusiasm around AI chips can reverse.SK Hynix stock gives back most of its debut gainSK Hynix priced its U.S. offering at $149 per ADR before the shares began trading on a when-issued basis on July 10.The stock opened at $170, roughly 14% above its offering price, reached $177, and finished its first session at $168.01.However, by midday on July 13, SK Hynix shares fell around 9%, hitting a low of $151.30 and giving back most of its opening-day jump.And the day ended with SK Hynix closing at $139.14.More AI:The new Chinese AI model rattling U.S. tech investorsAnthropic restores access to Mythos 5 for select organizationsSoftBank CEO offers stinging critique of Musk’s AI betThat contrast from a strong debut to a sharp pullback the next trading day captures the debate surrounding SK Hynix.Investors are gaining easier access to a major supplier of the memory chips required for AI. But they are also buying into an industry known for expensive factories, rapid changes in supply and demand, and dramatic swings in memory-chip prices.All of which has a dynamic effect on stock prices, and investors are aware of it. Look at SpaceX, down 14% this past month, and at $137 on Monday, July 13, it has edged closer to its $135 IPO price.Meanwhile, the selling was even more severe in South Korea.SK Hynix’s Seoul-listed shares fell more than 15% on July 13 as investors locked in profits following a huge AI-driven rally. The selloff pulled South Korea’s Kospi index down about 9% and triggered a temporary marketwide trading halt, Reuters reported.TheStreet Pro’s Alex Frew McMillan notes that the listing comes at a “tumultuous” time, “with the bull run in semiconductor stocks looking decidedly toppy, creating very choppy trade.”“Any hint of a sale or profit slowdown is punished severely after a record first six months of the year,” said McMillan.

SK Hynix has a blockbuster debut at Nasdaq, plunges later.Bloomberg / Getty Images

SK Hynix completes a historic U.S. offeringDespite the Monday sell-off, SK Hynix sold 177.9 million ADRs at $149 each, raising about $26.5 billion.Ten ADRs represent one SK Hynix ordinary share. The transaction therefore represented the equivalent of 17.79 million newly issued shares, or about 2.44% of the company’s shares outstanding following the offering.Demand was more than seven times the number of shares available, reflecting strong investor interest in a company at the center of the AI memory supply chain.The deal surpassed Alibaba’s $25 billion 2014 offering as the largest U.S. stock sale by a company based outside the United States, according to TheStreet Pro.SK Hynix began trading on July 10 under the temporary ticker SKHYV on a when-issued basis.The ticker changed to SKHY when regular-way trading began on July 13, with settlement scheduled for July 14.Although the transaction is being described as an IPO, SK Hynix did not become a publicly traded company for the first time.The business was founded as Hyundai Electronics in 1983 and began its initial public offering process in South Korea in 1996. It joined SK Group and adopted the SK Hynix name in 2012.Its ordinary shares have traded on the Seoul exchange for decades.The 2026 transaction is a U.S. offering of sponsored ADRs intended to raise money for additional factories and equipment.Before the Nasdaq listing, U.S. investors could access unsponsored SK Hynix ADRs over the counter under the ticker HXSCL.But trading volume was limited, and the company was not directly involved in that program.The new sponsored listing should provide stronger trading liquidity and better price discovery, according to McMillan.Analysts see volatility after SK Hynix’s hot debutThe strong demand did not eliminate concerns that investors might rush to take profits after the shares began trading.TheStreet Pro’s James “Rev Shark” DePorre questioned before the debut whether SK Hynix could experience the same “sell-the-news” pressure that followed SpaceX’s listing.DePorre noted that SK Hynix’s deal was driven more heavily by institutional investors. Baillie Gifford, Coatue Management, and Situational Awareness Partners took roughly one-quarter of the offering.That investor mix could mean fewer traders quickly flipping their allocations, though DePorre said selling pressure could still emerge after initial demand fades.The decline arrived sooner than that thesis suggested.SK Hynix’s U.S. shares fell nearly 9% on their first day of regular trading, while the company’s South Korean shares suffered an even larger loss.McMillan had also warned investors to expect “intense volatility” because semiconductor trading had become highly leveraged and memory-chip stocks had already posted enormous gains.SK Hynix’s Seoul shares had risen almost 359% from the beginning of 2026 through their June 25 record before retreating nearly 27% from that high by July 9.TheStreet Pro analyst also highlighted customer concentration and the possibility that major technology companies could eventually slow spending on AI data centers.Why SK Hynix matters to consumersSK Hynix’s business may sound far removed from the average shopper, but memory chips affect the price and performance of many products consumers use daily.DRAM provides the short-term working memory that allows computers, phones, and other devices to run applications and access information quickly.NAND flash stores data after a device is turned off and is used in smartphones, tablets, solid-state drives, and other electronics.SK Hynix also manufactures complementary metal-oxide semiconductor image sensors, or CIS products.Those sensors can be used in smartphones, laptops, medical devices, digital cameras, vehicles, security systems, gaming consoles, and home appliances.The company’s HBM products are more directly tied to data centers, but the consequences of the AI spending boom can spread throughout the electronics industry.AI companies and cloud providers have been buying large quantities of advanced memory, tightening supply and driving up prices.McMillan noted that elevated chip costs were already moving through the production chain and contributing to higher prices for products such as Microsoft’s Xbox Series X and Sony’s PlayStation 5 at a point in their life cycles when consoles would typically be discounted.For consumers, SK Hynix’s expansion could eventually help ease memory shortages by adding new production.But those factories take years and billions of dollars to complete. In the meantime, strong demand for AI infrastructure can keep memory prices elevated, potentially increasing costs for PCs, smartphones, gaming systems, and other devices.SK Hynix has also become one of the biggest winners from the rapid expansion of AI data centers.The company held about 58% of the global HBM market by revenue  and 29% of DRAM share during the first quarter of 2026, according to Counterpoint Research.The bullish case is that spending on AI servers will continue to grow, keeping demand for HBM and advanced DRAM ahead of available supply.The stock’s opening-day surge showed how eager investors were to make that bet.But its sharp decline the next day also shows how quickly they can reconsider it.Related: Bessent’s Treasury has troubling news for every taxpayer

Suze Orman is aggressively pushing back against a wave of viral social media advice urging pre-retirees to claim their Social Security benefits at age 62.The bestselling personal finance author and media personality warns that following this popular trend is a permanent mistake that can strip away tens of thousands of dollars in lifetime purchasing power.”There’s been some chatter on social media lately about Social Security that I think is bad advice,” Orman warns in a recent comprehensive retirement guide on her personal blog.”The message is that you are better off claiming as early as possible — at age 62 — rather than waiting to collect a larger benefit by starting your checks later,” she added. “That’s just not good advice.”Suze Orman breaks down the early filing penaltyThe mathematical reality of filing for benefits early carries with it significant consequences.Workers born in 1960 or later face a Full Retirement Age (FRA) baseline established at exactly 67, according to regulatory data managed by the Social Security Administration, Commencing monthly check distributions at age 62 triggers a permanent, irreversible 30% reduction in the lifelong primary insurance amount.The standard rationale used by social media advocates focuses heavily on a “break-even age,” arguing that banking early checks provides a cash head start.However, data from the Social Security Administration indicate that this narrow focus completely ignores modern lifespans, leaving older retirees severely exposed to rising costs as they outlive their principal assets.”Waiting to collect a larger benefit is not a gamble — it is insurance against the very real possibility of living a long time,” Orman explains. “A woman in average health who reaches age 65 maintains a 50% probability of living until age 88, meaning she faces at least a full decade of expenses past that traditional break-even threshold.”Social Security filing impacts your 401(k) and IRA horizonsThe danger of an early filing extends far beyond the Social Security system itself, actively dragging down personal wealth-building structures.According to data published by the Brookings Institution, individual households are under immense pressure to sustain their standard of living as traditional employer pensions vanish, placing the entire financial burden onto private portfolios.When a worker claims Social Security early out of fear or convenience, they frequently run down their personal liquid cash or trigger premature distributions from tax-advantaged vehicles.Keeping capital compounding inside a workplace 401(k) or a Roth IRA provides essential insulation against late-stage inflation, which cannot be matched by a penalized government check.”Social Security was never designed to be your only source of income during retirement,” Orman wrote. “By combining Social Security with personal savings, retirees can better address the rising costs of living, healthcare, and housing.”And the federal government officially locked in the 2026 Social Security cost-of-living adjustment (COLA) at 2.8%.While this is an increase, it highlights the structural reality that standard government adjustments often lag behind real-world household constraints, such as escalating medical care and food prices.Making reactive, early-claiming choices risks locking older workers into fixed, permanently lower income brackets over a multidecade retirement. This threat is a central focus in Suze Orman’s video guides on retirement planning mistakes, which illustrate how simple timeline adjustments can protect your compounding growth window.Comparing your potential Social Security claiming timelinesWith all that in mind, I modeled the following financial case studies to show exactly how a filing timeline changes your retirement security, giving you practical benchmarks to match against your personal financial situation.These projections assume you were born in 1964 and have an estimated Full Retirement Age monthly benefit of $2,500. To keep the math realistic, I calculated these scenarios according to official IRS guidelines for the 2026 tax year, assuming you need to pull from your personal investments to cover a standard $4,500 monthly household budget.Scenario A: The penalized early distribution track (age 62 filing)Social Security Benefit: A permanent 30% filing penalty reduces your monthly check to $1,750.Private Portfolio Target: Your household must draw down $2,750 monthly from private tax-advantaged accounts to bridge the remaining baseline budget.Long-Term Impact: You end up draining your personal savings much faster in those early years, cutting short the time your 401(k) and IRA have to grow and compound.Scenario B: The baseline stabilization track (age 67 filing)Social Security Benefit: Your Full Retirement Age payout yields the 100% baseline check of $2,500.Private Portfolio Target: The household draws down $2,000 monthly from private investment vehicles to meet expenses.Long-Term Impact: By waiting, you keep an extra $9,000 a year growing inside your market investments, massively lowering the risk of running out of money if the stock market takes a dive.Scenario C: The maximized delayed incentive track (age 70 filing)Social Security Benefit: Your delayed retirement credits yield a permanent 24% benefit premium, generating a lifelong monthly check of $3,100.Private Portfolio Target: Your long-term retirement drawdown drops to just $1,400 monthly from private wealth balances.Long-Term Impact: This maximizes your guaranteed, inflation-proof government check, shielding your personal stock and bond portfolio from future market crashes.(Source:Jeffrey Quiggle, TheStreet)Maximizing long-term retirement securityThese numbers tell an undeniable story. Rushing to claim your benefits early is essentially making a permanent bet against your own longevity. Trading away a massive chunk of your guaranteed check for a little short-term comfort forces you to rely way too heavily on volatile stock portfolios just when you need stability the most. True financial peace of mind means letting your private savings grow as long as possible and leaving those government checks alone until they reach their absolute peak value.This educational analysis is designed to help you understand general financial strategies and does not constitute personalized tax, investment, or financial advice. Because individual circumstances vary, you should always consult a certified financial planner or qualified tax professional before making major financial decisions.Related: AARP reveals 56 million workers missing out on a 401(k)

Over the past 18 months, TheStreet has closely covered Ford’s persistent quality control issues and the progress it has made.Last year, Ford blew away the record for most recalls in a year, surpassing rival GM’s more than decade-old record by the summer of 2025. Ford CEO Jim Farley and his lieutenants have spoken about quality control on earnings calls and done interviews about what they are doing to improve the quality of their vehicles. But in all the interviews and quotes from the company and Farley, I had never heard the term “Gembas.”Farley mentioned Gembas during his recent interview with the Detroit News, calling them “one of the first things I did as a CEO.” He credits them with helping turn Ford’s quality fortunes around, so it’s worth exploring what they are.Ford CEO uses “Gemba” walks to reboot manufacturing qualityFord’s quality control issues have been known to the company for years. In 2023, Ford said it spent $4.8 billion fixing customer vehicles. So CEO Jim Farley is taking a more hands-on approach, visiting over a dozen plants in just the past year. Farley is using a Japanese tool he learned while working for Toyota in the ’80s, and it’s called a “Gemba.”In Japanese, Gemba means “actual place,” according to 4 Industry. In the business context, it is a staple of a lean management philosophy that beckons leaders to the factory floor to observe processes, engage with employees, and discover opportunities for improvement.”When we decided to build a new plant, it was a common expectation at Toyota, even if you were a Westerner, to spend time in the plant,” Farley said in his interview with Detroit News. “I watched very senior people at Toyota in Japan go to the line, find problems, go to the operator who is dealing with the problem, and then try to problem-solve to help the team.”Farley says that when he became CEO of Ford, the company was 25th in initial quality. But he is using the lessons he learned about “servant leadership” from his Toyota days to gradually turn that around. Now, he is fine-tuning his Gembas to address more specific issues.”For the last seven years, I’ve refined my plant visits, my Gembas,” Farley said.”At first, I spent a lot of time in skip levels, meeting with the local union leadership, trying to understand whether people felt safe at work, and, more generally, whether quality was more important than output, or whether making production was more important than quality. As years have gone by, as we’ve made more and more changes, I first started to ask our engineers in the plant, our supply chain people in the plant, kind of more structural, organization, design and cultural issues.”But Farley is a veteran of the auto industry, and he says that in his 40 years in the business, “I watched Ford fall in love and fall out of love with quality like four times.”So how can Farley ensure that this time around is different, and that the current emphasis on quality won’t be forgotten and thrown away in short order?”What I’m looking for is: are my teammates tied to some greater responsibility than just winning awards? Are they trying to do this for our customers? Are they trying to do this for the Ford family? And when they talk about creating quality around the process, adherence to the process, improving the process, and in between those two things is a problem-solving culture,” Farley said.

Jim Farley brings President Donald Trump along on one of his Gemba walks.MANDEL NGAN / Getty Images

JD Power ranks Ford first in initial qualityWhile Ford again leads all automakers in recalls so far this year, according to Datahub, analysts at JD Power report that the company was the top pick in its 2026 U.S. Initial Quality Study.JD Power uses a scale of problems per 100 vehicles. The fewer problems per 100, the better the vehicle quality.The average number of reported PP100 improved in 2026 to 175 from 192 a year ago. It was the best year-over-year improvement since 1997 and the fourth-best performance in the study’s 40-year history.Among mass-market brands, Ford ranked the highest with a score of 152 PP100. Nissan was second with a 156 score, and General Motors’ brand Buick came in third at 162.Ford’s ubiquitous F-150 led in its pickup category, while the Ford Mustang and Ford Super Duty also ranked highest in their respective categories.Ford CEO Jim Farley commented on the recognition and the work Ford has been putting in to improve its quality.“Oh boy, this is a big day for Ford,” Farley said in an interview with Yahoo Finance. “We’ve worked really hard for four years to be an overnight success story. It’s been an incredible journey over the last several years. We have completely transformed all of our plants and our quality operating system.”“You go into any of our plants in the U.S., you’ll see our workers completely obsessed with all the data. Every torque wrench is measured. We look at every defect and understand why it happened,” he said.Ford details plan to turn around its quality-control troublesFord set a record last year for the most recalls in a single year, but the issue runs deeper than that.A recent study by iSeeCars.com, analyzing 31 years of recall history, found that Ford is the least proactive car brand in issuing recalls. Fewer than 30% of the cars recalled over the last three decades were due to a problem Ford found on its own.More Auto:Mercedes wants AMG to become a much bigger profit machine by 2030Popular Ford model faces yet another recallTesla faces lawsuit from family of victim killed in Texas home crashBy 2023, the company reached a breaking point when Ford said it spent $4.8 billion fixing customer vehicles. In 2024, the company said it was initiating a new quality assurance program that incorporates “testing vehicles to failure,” running them “at extremely high mileage” in order to find potential problems before customers do.The company said at the time that it would take up to 18 months to see the benefits of that new process. “It makes our quarters lumpy, and it’s challenging, but it will reduce warranty (costs) over time,” Farley said at the time.During a recent call, Chief Operating Officer Kumar Galhorta identified four areas the company is focusing on now:Seamless launch executionMinimal defectsGreater reliabilityTime“We are not satisfied with the current level of recalls or the number of vehicles impacted. We are working to reduce the cost of these recalls,” said Galhorta during the company’s second-quarter earnings call last year.Galhorta went on to say that the majority of its recalls are “tied to vehicles engineered several years ago before we made all the robust process changes across our industrial system.”Related: Alleged Ford cookie thief responds after losing $200,000 a year job

BMW solidified its position as the top-selling luxury automaker in the U.S. with strong second-quarter sales, a result that comes as many rivals experienced declines.The timing of BMW’s impressive quarter is important. One of the brand’s largest markets, China, has gone in the opposite direction in 2026, forcing BMW (BMWYY) to revise its outlook for the year. While U.S. demand can’t fully offset the China slowdown, the growth in U.S. sales gives BMW a resilient and profitable market it can rely on. It’s also a source of stability at a time when rivals like Mercedes-Benz, Lexus, and Audi have seen sales slide.America keeps BMW’s momentum aliveExcluding the smaller Mini brand, BMW sold 102,713 vehicles in the U.S. in Q2, a healthy year-over-year increase of 13%. First-half sales reached 186,944 units, up by 4.7%.103,257 of those models were larger, more expensive SUVs.These are some of the brand’s most profitable models, led by the X5, with 41,554 sales in the first half. BMW will launch an all-new X5 soon, giving the company the chance to strengthen one of its core nameplates.SUVs aside, BMW also saw strong first-half gains for the 3 Series (+32.3%) and Z4 (+47.8%), demonstrating the sustained interest in the manufacturer’s overall lineup.More Automotive:BMW’s new SUV is built for an uncertain futureAmerican drivers just sent Detroit a clear messageChina is becoming the auto industry’s innovation labBMW didn’t merely grow — it has also pulled further ahead of rivals. Audi’s first-half sales dropped by 17% and Lexus saw a 5.2% drop, reports Automotive News.”Our second-quarter results reflect the confidence customers continue to place in the BMW brand and validate our long-term strategy for the U.S. market,” said BMW of North America CEO Sebastian Mackensen.Just as demand wanes elsewhere, BMW’s U.S. performance has maintained its momentum.

BMW saw strong first-half gains for the 3 Series and Z4.BMW

China slowdown magnifies importance of other marketsCombined Mini and BMW sales fell to 117,815 units in the China sales region in Q2 2026, a decline of 30.2%. Year-to-date sales in the region are down by 20.4%, by far the largest decline for the automaker. The only other region that declined in the first half was Asia-Pacific, Eastern Europe, Middle East, and Africa, down by 9.6% combined. Every other region experienced growth in 2026.Related: BMW’s biggest market is becoming its biggest headacheDue in part to the impact of China, historically a key profit driver for the brand, BMW revised its guidance for the 2026 financial year. Its automotive EBIT margin guidance was cut to between 1% and 3%, down from 4% to 6% previously.BMW also anticipates a significant group profit decline, which the company defines as a figure above 15%, reports Reuters.The widening gap in BMW’s performance in China and the U.S. will become a focus of its strategy moving forward. Presently, BMW is depending on the U.S. to cushion the slump in China sales and profits.BMW’s U.S. strength has limitsBMW’s U.S. business is in a healthy position and performing as well as management could hope.As a whole, its lineup is performing well, with most models increasing their sales in 2026. Its product mix is strong and demand for both newer and older models appears consistent. The carmaker’s high-margin SUVs like the X5 and X6 are performing well in 2026.However, the U.S. market’s growth can’t fully account for the losses in China. As Autoblog reports, BMW is also about to launch the Neue Klasse generation of vehicles in the U.S., and their success can’t be guaranteed.Relying too heavily on one or two markets could leave the automaker vulnerable to regional economic slowdowns and unpredictable shifts in demand.As the China market becomes less reliable, BMW could become increasingly dependent on other markets like the United States. Together with Europe, America may play a growing role in protecting the brand’s earnings.Related: America’s car affordability crisis is getting worse

Stock market investors are heading into CPI week with a familiar playbook.The hope is that inflation cools off further and the Fed stays on hold, with robust earnings taking over as the next driver of the S&P 500.For perspective, the S&P 500 recently traded near 7,575, up about 10.7% year to date, according to Yahoo Finance, indicating the market has held up despite a remarkably choppy period.Earnings, in particular, have moved the needle, helping the market remain resilient amid the AI boom. However, according to a Goldman Sachs note cited by Seeking Alpha, strategist Ben Snider argues that stocks could face near-term pressure if interest rate hikes return to the conversation, even as corporate profits remain the bigger long-term force behind the market.Markets still see only a limited chance of a hike this month, but the path beyond that is less settled.That leaves a ton of tension for investors, even though the rally still has earnings support; one hawkish shift from the Fed might test how much of the risk market could absorb.The Fed risk hiding inside the S&P 500 rally The S&P 500 has held up as investors have relied on a familiar clean story, but that only holds if rate expectations are contained. On top of that, earnings have continued to impress, with Q2 expectations jumping following a superb Q1 showing.More AI:The new Chinese AI model rattling U.S. tech investorsAnthropic restores access to Mythos 5 for select organizationsSoftBank CEO offers stinging critique of Musk’s AI betIn fact, FactSet says analysts and companies were “more optimistic than normal” heading into Q2 earnings season, and that estimated S&P 500 Q2 earnings were higher than at the start of the quarter.It also says Q2 earnings growth is expected to be above 20% for the second straight quarter. Nevertheless, if interest rates rise, earnings alone may not be enough to justify further gains in the market. Today’s market is much more exposed to financing costs, as AI investments have been the primary drivers of earnings and stock market valuations.History explains why the gap matters. Goldman found that the S&P 500 has fallen about 2% on average in the three months after the start of the past seven Fed hiking cycles. In 1997, even a single quarter-point hike coincided with a roughly 10% drop before stocks recovered.However, markets see only about a one-third chance of a rate bump at the Fed’s next meeting, even as futures already imply a half-point of hikes through mid-2027.Goldman economists are a lot less hawkish, though, expecting the Fed to stay on hold this year and assign only a 25% probability to more tightening.

Goldman Sachs warns interest rate hikes could pressure the S&P 500 rally.Andrew Harnik/Getty Images

Key numbers behind Goldman’s S&P 500 warningMarkets see only about a one-third chance of a Fed hike this month, but there’s plenty of debate on the next major policy surprise being tighter, not looser.Futures imply nearly 50 basis points (half a percentage point) of hikes through mid-2027, as a more hawkish rate path would pressure valuations and financing-sensitive growth stocks.Goldman economists assign only a 25% probability to more tightening, creating room for a relief rally if inflation data supports the bank’s less hawkish view.The S&P 500 has fallen about 2% on average in the three months after past Fed hiking cycles began, showing why even a modest rate reset could hit stocks in the near term.AI-related companies represent 42% of S&P 500 market cap and 38% of the expected 2026 EPS, which means that higher borrowing costs are a bigger threat to the market’s dominant growth trade.
Source: Goldman Sachs note cited by Seeking Alpha
What has to go right for the rally to keep climbing For the S&P 500 to keep grinding higher, the next inflation print needs to keep the Fed-hike debate from gaining momentum.That puts a ton of weight on June CPI. Goldman economists expect core inflation to rise just 0.17% month over month, while headline CPI is forecast to fall 0.11% as energy prices ease. So, if we see a print that’s near or behind those levels, it would support the idea that the Fed can stay on hold and let earnings drive the market’s next move.Fed Chair Kevin Warsh recently doubled down on that during a European Central Bank panel in Sintra, Portugal, according to Reuters. He stressed that the Fed would stick firmly to its 2% inflation target and that “we’re going to deliver price stability in the U.S.” The second test is earnings season. Investors need companies, especially the biggest in the tech space, to continue showing that demand is holding up, margins haven’t cracked, and that AI-related spending is still translating into meaningful bottom-line expansion.That’s important because Bank of America recently raised concerns about rising valuations, largely driven by AI, setting the stage for a potentially volatile summer trading season. For the most part, Goldman’s own outlook is still constructive. The firm expects S&P 500 earnings per share to reach $340 in 2026 and has an 8,000 year-end target, implying single-digit upside from current levels.Wall Street price targets for the S&P 500Citi set an 8,100 year-end target, banking on stronger earnings and resilient AI-led momentum.Goldman Sachs raised its target to 8,000, citing earnings growth as the market’s main support.Morgan Stanley lifted its target to 8,000, favoring industrials, hyperscalers, financials, and discretionary stocks.JPMorgan raised its target to 7,800, citing AI capex and resilient economic conditions.Bank of America stayed at 7,100, warning valuations and speculative growth expectations look stretched.
Sources: Reuters, Goldman Sachs, Morgan Stanley, Investing.com, and Yahoo Finance
Related: Goldman Sachs says Americans may pay for the AI boom

The artificial intelligence boom has been nothing but a headache for Apple (AAPL) since it started. The stock quickly gained a reputation as an AI laggard.The company recently had to raise prices for some of its products due to the skyrocketing memory prices, caused by the AI buildout.The difficult situation prompted it to start lobbying the Trump administration for clearance to buy memory chips from ChangXin Memory Technologies (CXMT), which is on the Pentagon’s blacklist.Apple is now going straight for the heart of the AI bubble by suing OpenAI.Apple alleges trade secret theft by former employees and OpenAIOn July 10, Apple filed a lawsuit in a federal court in Northern California, alleging that its former employees Chang Liu and Tang Yew Tan, currently working for OpenAI, stole Apple’s intellectual property in order to develop OpenAI’s own consumer hardware.The filing states some very damning things:“This much is clear, however: at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information.”Drew Pusateri, spokesperson for OpenAI, posted a response on X:“Our statement in response to this suit: We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”If the allegations are proven true, they will also prove that Palantir CEO Alex Karp’s recent statements about the AI industry must be taken seriously.

Apple is alleging trade secret theft by former employees and OpenAI.Mariia Shalabaieva/Unsplash

Alex Karp blasts the AI industry on CNBC Squawk BoxPalantir CEO Alex Karp’s interview on CNBC’s Squawk Box quickly turned from what was supposed to be a discussion of Palantir’s new partnership with Nvidia into a heavy critique of frontier AI model companies.Karp talked about the issues very passionately, using too much expert-level terminology, to the point that what was being said left many people scratching their heads.However, for those proficient in the inside baseball, he was absolutely making sense, though he could have done it a bit more coherently, as his thoughts were jumping too much from one topic to another.Related: Apple’s iPhone cost problem reveals AI’s hidden billHere is the key part of the interview where Karp laid it all out:”In this country, at every single enterprise I deal with, these people are livid. They’re like, I am paying for tokens that create no value. These people are stealing the weights and alpha of my business, and they’re creating a wealth tax that does not help the poor.”He also said:”[If] I can make you $1 billion tomorrow, wouldn’t I say I’ll make you $1 billion, and I want 30%. Why are they charging for tokens if it’s so valuable?”If we unpack what he said, he raised three key issues within the industry:AI customers feel that Large language models (LLMs) create no valueCharging for tokens is impracticalFrontier model makers can steal their customers’ IP if they wishPointing out the issues was certainly motivated by a promotion of Palantir’s product Ontology. However, he didn’t really try to hide that. Here is what he said:”We have this thing called ontology that now everyone’s copying, but de facto, it takes a large language model, it makes it safe and useful and precise. So safe because it doesn’t touch your underlying data, safe because it prevents the large language model from caching your data and replicating your business.”Karp continued: “Safe because it doesn’t transfer your IP, or how to fight secret data, top secret data, or in a clinical context.”Former AI czar speaks up in support of Karp’s statementsFormer White House AI czar David Sacks posted a long post on X about why Karp is right. Sacks points to Figma being blindsided by Anthropic’s launch of Claude Design, and adds that it isn’t the only example.He wrote:“Anthropic has launched Claude Science, Claude Security, Claude Legal, and of course, Claude Code — each expanding into categories previously served by companies building on top of their models. The pattern is consistent: watch where value is being created, then move in directly. Dominate the model layer, then use that position to capture the most lucrative verticals.”Apple’s lawsuit now alleges that OpenAI was ready to do much more than that, and it should wake up many companies to rethink their approach to AI use.But if the allegations are proven to be correct, they will pretty much prove that Karp’s other key points make sense, too.Technical limitations of LLMs make charging per token impracticalOpenAI has gone from promising to cure cancer, replacing workers, and enabling people to prompt into existence billion-dollar businesses, to allegedly stealing trade secrets.The lawsuit presents another serious bump in the road for the company’s IPO, on top of the previous one.By the previous one, I am referring to tech writer and prominent AI skeptic Ed Zitron publishing OpenAI’s leaked audited financial statements. The data was verified by the Financial Times. This leak revealed an increase in OpenAI’s net loss, from $5.09 billion in 2024 to $38.53 billion in 2025.Someone might defend this by saying, “What is wrong with charging for tokens? Everyone pays for electricity exactly how much they use it. No one is paying for the value of what you do with that power.”However, that would be making a wrong comparison.When you get electricity, you use it to power things you get value from. Let’s take, as an example, the simplest thing: a light bulb. It is absolutely easy to calculate how much that light bulb will cost you at the end of the month. It will also work predictably.More tech stocks:Cathie Wood buys $22.8 million of surging tech stock5-star analyst sends AMD stock investors a warning5-star analyst sets bold SpaceX stock price targetThe problem is that when you get “hallucinations” from AI, you still have to pay for them. You can never know how many tokens a prompt will end up burning, so you can never tell how much it will cost you. If electricity worked like LLM tokens, it would look very different.You would never know how much electricity you’ll spend when you turn the light on. It would be totally random. Sometimes, keeping it on for an hour would cost you as much as keeping it on for a year.The light would sometimes be normal, sometimes it would start to work like a disco ball, sometimes it would produce just red light.Calling LLMs “artificial intelligence” is stretching the truth. The term hallucinations is also misleading; it “humanizes” LLMs and makes it sound like they are a bug that can be fixed.In a simplified view, LLMs are randomized algorithms, and what is termed a “hallucination” is perfectly normal functioning of said algorithm.The reason AI companies charge per token is that AI inference (processing tokens) is extremely expensive.These inherent issues have led to the end of the era of token-maxxing, with Tesla (TSLA) among the most recent companies to fold. According to The Telegraph, Elon Musk has set a $200-a-week limit on Tesla employees’ AI spending.Both Karp’s interview and the Apple lawsuit show that the industry is in crisis.If LLMs were really as valuable as their use costs, OpenAI and Anthropic would not be selling access to them but would be using them to solve real problems and make money from the solutions.Related: Bank of America sets alarming SpaceX stock price target