Happy Tuesday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟩 | US Stocks Rose on Tuesday. All three major indexes made modest gains, with the S&P 500 climbing to a record close off the back of yet another Nvidia rally.

• 📈 | One Notable Gainer: Shares of Nvidia rose 4%, lifting the company’s market cap above $3.33 trillion. Nvidia has now surpassed Microsoft and holds the crown of being the most valuable public company in the world.

• 📉 | One Notable Decliner: Aluminum packaging company Ball Corp saw its stock fall 6%. The stock has shed $742 million from its value in the past seven days, and the company’s EPS has continued to decline over the past three years with no turnaround in sight.

• 📦 | Tomorrow's Trade: Good Things Come In Small Packages. Scroll down for more.

Plus, discover trading platforms for Cboe index options.

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YESTERDAY’S POLL RESULTS

Are you bullish or bearish on Starbucks (SBUX) over the next 12 months?

🟩🟩🟩🟩🟩🟩 Bullish

🟨🟨🟨🟨🟨⬜️ Bearish

MARKET MOVERS

Silk, Occidental, & Rocket Lab

SILK (+24%) Silk Road Medical’s stock surged on news that it agreed to be acquired by Boston Scientific Corp. for $27.50 a share (MW)

STLA (-1%) Stellantis, the maker of Chrysler and Jeep, is recalling over 1 million vehicles in the US for a software issue affecting rear-view cameras (Forbes)

AAPL (-1%) Apple is discontinuing its buy now, pay later service known as Apple Pay Later barely a year after its initial launch in the US (AP)

OXY (+2%) Berkshire Hathaway has purchased shares of Occidental Petroleum for nine consecutive trading sessions, bringing its stake to nearly 29% (CNBC)

RKLB (+13%) Rocket Lab, a global leader in space systems, announced it signed its largest Electron launch agreement in the company’s history (BusinessWire)

TOGETHER WITH CBOE

OVERHEARD ON THE STREET

CNBC: Billionaire investor Steve Cohen’s Point72 plans to launch a separate, artificial intelligence-focused hedge fund to capitalize on the boom.

ABC: McDonald’s confirmed that it ended its global partnership with IBM to test AI technology at select McDonald’s drive-throughs.

MW: Fed Gov Adriana Kugler said “it will likely become appropriate” to cut interest rates later this year if the economy continues to slow and inflation wanes.

NPR: The independent Amazon Labor Union has voted to affiliate with the Teamsters, an organization with 1.3 million members.

CNBC: BofA Securities research analyst John Murphy delivered a warning to GM, Ford, and Stellantis, saying they should exit China “as soon as they possibly can.”

TOMORROW’S TRADE IDEA, TODAY

Good Things Come In Small Packages

AI Chipmaking Is Changing

Chipmaking is becoming more expensive as companies try to keep up with the development of AI technology. Now, companies are focusing on advanced packaging to help cut costs. 

In the past, most of the effort was focused on making chips fast and as small as possible. But now advanced packaging is center stage.

Advanced Packaging

Advanced packaging consolidates different chips in a single package to streamline data transfer and energy usage. 

This is particularly popular with high-bandwidth memory (or HBM) chips. HBM works by stacking multiple layers of memory chips on top of each other near the central processor, which speeds up transfer times. 

In 2023, advanced packaging made up 9% of all global semiconductor revenue, according to Morgan Stanley (MS). It expects that piece of the pie to increase to 13% by 2027.

Disco

Japanese precision cutting equipment manufacturer Disco (DSCSY) has benefited from this recent trend. 

AI chips are printed on silicon wafers, and Disco produces the tools to slice these wafers. The company focuses on tools that create thinner chips, making them easier to stack for the advanced packaging process. 

According to Morgan Stanley, 40% of its revenue comes from advanced packaging. The stock is up 74% this year and 708% over the past 5 years. 

As AI continues to evolve, exposure to companies like Disco could get investors in on the action of the ever-changing tech world.

TOGETHER WITH CBOE

ON OUR RADAR

CNBC: Sen. Warren is accusing Fed Chair Jerome Powell of doing the financial industry’s bidding in considering changes to Basel III Endgame regulations.

CBS: The oldest members of Generation X are nearing retirement, and nearly half of them say they’ll need a miracle in order to retire.

YF: Netflix announced plans to open massive entertainment, dining, and shopping complexes in King of Prussia and Dallas in 2025.

Reuters: Amazon’s pharmacy unit announced it is expanding its monthly subscription service eligibility to those enrolled in Medicare insurance plans.

WTOL: Rite Aid is set to close an additional 27 stores in Ohio and Michigan as the drugstore chain makes its way through its Chapter 11 bankruptcy process.