Burry warns on AI trade, Arctic drilling pushback, SpaceX catalyst – 5 things to know

Stock index futures edged higher Monday as Wall Street aimed to extend a strong week. The S&P 500 sat near levels that have tested buyers before. A handful of catalysts – activist investor positioning, new semiconductor demand, and a looming SpaceX milestone – are reshaping the sector narratives traders are tracking.

Michael Burry, the investor who famously bet against subprime mortgages, has publicly questioned the sustainability of the AI-driven rally. His comments come as chip giants like Nvidia and AMD have more than doubled over the past year. Burry's skepticism stands apart from the consensus that artificial intelligence spending will keep accelerating.

A group of institutional investors pushed back on Arctic drilling plans, calling on major oil companies to reconsider projects in the region. The move adds pressure on producers that have been ramping up exploration in Alaska and the Arctic National Wildlife Refuge. Shareholder resolutions targeting drilling expansion are gaining traction ahead of proxy season.

SpaceX is approaching its next major launch event, which could test the Starship program's progress. The company has scheduled a key test flight in late May, a milestone that would demonstrate orbital capability after earlier attempts ended in explosions. A successful launch would clear a regulatory and technical path for Starlink deployment and government contracts.

Foxconn shares surged after the company reported strong demand for AI servers from clients including Nvidia. The Taiwanese manufacturer, best known for assembling Apple's iPhone, said its AI server revenue more than doubled year-over-year. The update reinforces the view that AI infrastructure spending is real and accelerating, benefiting suppliers across the supply chain.

AMD secured a new customer for its MI300 AI accelerators, expanding its foothold in the enterprise data center market. The chipmaker has been clawing market share from Nvidia, whose dominance in AI processors remains overwhelming. The customer win suggests enterprises are seeking a second source for training and inference workloads, a trend that could reshape the competitive balance over the next 12 to 18 months.

The week ahead includes key earnings from AI bellwethers and Federal Reserve commentary that could sway the bull case. For now, the market is betting the rally has room to run. The Fed's Beige Book is due Wednesday, offering fresh color on regional economic conditions and inflation pressures.