Goldman Sachs vs Morgan Stanley

10-Year Treasury Yield Breakout Above 5% Could Pressure Stocks and AI Trade

Ruchir Sharma, founder and CIO of Breakout Capital, warned that a decisive break above 5% on the 10-year Treasury yield could spell trouble for equity markets, particularly the artificial intelligence trade. The 10-year yield touched 5% this week, reaching a 19-year high, before pulling back to 4.94%. Sharma notes that above 5.25%, equity prices historically decline, as the equity-bond correlation turns positive. Higher yields increase the discount rate on future profits, reducing stock values. The Fed raised rates by 25 basis points to 3.75%-4% and signaled further hikes, with inflation above target until 2029. Mega-cap AI companies are increasingly tapping bond markets for infrastructure spending, and Goldman Sachs notes higher capital costs reduce the value of their future cash flows.

• The 10-year Treasury yield touched 5% earlier this week, a 19-year high, before pulling back to 4.94%.
• Breakout Capital's Ruchir Sharma warns that a decisive break above 5% could pressure stocks and the AI trade.
• The Federal Reserve raised the federal funds rate by 25 basis points to 3.75%-4% on Wednesday.

Nvidia CEO predicts 70% revenue growth amid AI infrastructure surge

At the Goldman Sachs Communacopia + Technology conference, Nvidia CEO Jensen Huang reiterated his forecast of 70% year-over-year revenue growth for the next fiscal year, driven by soaring demand for AI infrastructure. Huang emphasized that Nvidia's products are no longer simple chips but massive computing systems costing up to $8.5 million, with thousands shipped. He cited 27% month-over-month growth for the GB200 NVL72 system, combining Grace CPUs and Blackwell GPUs. Huang also addressed concerns about competition from hyperscalers and AI labs building their own chips, as well as startups like Cerebras and Etched, asserting Nvidia's foundational role across the AI ecosystem. He dismissed criticisms of 'circular' investments, claiming $100 billion in verified contracts from AI companies. The company expects to end the current fiscal year at around $400 billion in revenue, with 70% growth implying approximately $680 billion next year.

• Nvidia CEO Jensen Huang reiterated 70% year-over-year revenue growth guidance for next fiscal year.
• Nvidia expects around $400 billion revenue this fiscal year, implying ~$680 billion next year.
• The GB200 NVL72 system, combining 36 Grace CPUs and 72 Blackwell GPUs, saw 27% month-over-month sales growth.

Goldman Sachs Opens New Engineering Office in Bellevue, Wash.

Goldman Sachs announced the opening of a new engineering office in Bellevue, Washington, as part of its ongoing expansion of engineering capabilities.

Morgan Stanley Investment Management Announces Effort to Convert Nearly $10 Billion in Municipal Mutual Funds to ETFs

Morgan Stanley Investment Management announced an effort to convert nearly $10 billion in municipal mutual funds to ETFs, closed its inaugural growth equity investment fund oversubscribed at $1.3 billion, and announced the 2026 global cohort of innovators for its Inclusive & Sustainable Ventures.

Analyst Calls: Nvidia, SpaceX, Tesla, Apple, Chevron, Micron

CNBC rounded up Wednesday's most significant Wall Street analyst calls across major technology, industrial, and consumer companies. Morgan Stanley reiterated Microsoft as overweight, citing an increased dividend and attractive risk/reward. Seaport initiated Cava with a buy rating, highlighting brand awareness and growth potential. BTIG initiated American Bitcoin with a buy, noting its mining operations. Goldman Sachs reiterated Tesla as neutral, lowering Q3 delivery forecasts below consensus. UBS upgraded Union Pacific to buy, predicting strong volume growth. Deutsche Bank upgraded Anheuser-Busch InBev to buy, citing undervaluation on free cash flow yield. Citi reiterated Meta as buy with a positive catalyst watch ahead of Meta Connect. Morgan Stanley also reiterated Apple as overweight, seeing better-than-feared iPhone 18 demand. Bank of America reiterated buy ratings on Nvidia, Marvell, Broadcom, and Micron, maintaining a bullish stance on AI infrastructure semis.

• Morgan Stanley reiterated Microsoft as overweight, citing dividend increase to $0.98 per share.
• Goldman Sachs lowered Tesla's Q3 2026 delivery forecast to 435K from 490K.
• UBS upgraded Union Pacific to buy from neutral.

Morgan Stanley Inclusive & Sustainable Ventures Announces 2026 Global Cohort of Innovators

Morgan Stanley Inclusive & Sustainable Ventures announced its 2026 global cohort of innovators, as listed in the September 2026 press releases.