The AI Selloff Looks Like a Bear Trap. Follow the Bottleneck Instead.
One stop remains in our AI series, and it’s the one folks rarely think about.
Netflix Down, SpaceX Up: Upside/Downside Movers in the A.M.
Upside
– $SMCI +12% (preliminary fiscal Q1 revenue outlook was raised well above expectations, with gross-margin upside)
– $SPCX +8.2% (Q3 revenue and profit crushed expectations, marking its first quarterly profit since the IPO, while special committees evaluate a potential TSLA merger)
– $CRDO +7.2%, $VRT +6.7%, $DELL +6.9%, $LITE +5.6%, $HPE +5.0%, $COHR +4.6% (AI-infrastructure suppliers rise as the SMCI outlook and SPCX AI-compute results reinforce data-center demand)
– $WDC +4.0%, $SKHY +3.7%, $SNDK +3.7%, $STX +3.6%, $MU +3.1% (memory and storage names gain on the stronger AI-infrastructure demand read-through)
– $APLD +4.0% (Texas AI data-center agreement and bullish analyst action)
– $INTC +2.3%, AMD +2.1%, $NVDA +2.0% (chip stocks rise as strong AI-compute and server demand updates lift the broader complex)
– $TSLA +1.4% (special committee formed with SPCX to evaluate a potential merger ahead of earnings)
Downside
– $TKNO -30% ($40M primary offering priced at $5 per share, a steep discount to the prior close)
– $NFLX -7.0% (Q3 profit beat, but the Q4 sales outlook missed and the 2026 advertising-revenue forecast was cut to $2.7B from $3B)
– $ISRG -6.7% (Q3 beat, but U.S. procedure growth slowed, instrument pricing reductions were outlined and the high end of the procedure-growth outlook was cut)
– $T -5.6% (Q3 beat and FY EPS guidance was raised, but postpaid phone additions missed expectations amid satellite-competition concerns)
– $DHR -3.6% (Q3 beat and FY EPS guidance was raised, but the Q4 core-growth outlook remained modest with a respiratory-revenue headwind)
– $TMO -3.0% (sell-the-news reaction after a Q3 beat and raised FY guidance)
– $ACN -1.5% (Baird downgrades to Neutral from Outperform on valuation and slower organic growth)
Tech Bounces Back but Rising Yields Pressure Non-Tech
The megacap growth sectors went from worst (Friday) to first (Monday) as chipmakers snapped an eight-session losing streak, but rising Treasury yields left seven sectors, the Dow Jones Industrial Average, and the equal-weight S&P 500 lower.
AI Data Center Stocks Could Bounce Hard. Here’s What Would Make It Last.
Three things are needed to bring beaten-up AI data center stocks back — and one developer is closest to breaking through.
AI Needs More Data Centers. So Why Are Their Stocks Getting Crushed?
When a stock keeps falling on good news, the market’s trying to tell you something.
Oil Up on Renewed U.S.-Iran Concerns: 8 Key Items Shaping the Stock Market Thursday
PepsiCo cuts its outlook, TSM September revenue and other headlines moving the market this morning.
Oil & Treasuries Up, Fed Minutes Ahead: 8 Items Shaping the Market Wednesday
Let’s check key items to watch today, including Marvell’s Investor Day reaction and SpaceX looking for Nvidia cash.
AI Needs Somewhere to Plug In: 7 Stocks That Have the Power
OpenAI, Anthropic and others are searching for power-ready data center sites, creating opportunities for companies helping AI overcome its biggest infrastructure constraint.
Upside, Downside Movers in the Morning
Upside
– $AEMD +403% (merger agreement with North Immunology adds an IL-13 x IL-18 bispecific-antibody program for atopic dermatitis)
– $GNRC +30% (Amazon supply agreement includes $2.4B of backup-generator deliveries expected during 2027-2028)
– $VEEA +30% (non-binding combination term sheet with NovaGen targets a $750M AI-health platform)
– $DTSS +12% (strategic cooperation expands into AI-powered elderly-care robots in China)
– $MEDS +12% (Helomics acquisition expands its cancer-diagnostics and precision-oncology platform)
– $VICR +12% (licenses its vertical power-delivery technology to a leading AI OEM)
– $NBIS +9.0% (reported AI-compute price increases signal stronger pricing power amid constrained capacity)
– $IREN +5.5%, CIFR +6.3% (AI-compute peers gain on the pricing-power read-through from NBIS)
– $APLD +5.8%, HUT +5.0%, WULF +4.7% (Wells Fargo initiates the data-center infrastructure names at Overweight)
– $NOK +5.0% (expands its Microsoft partnership by integrating network-automation data tools with Microsoft Fabric)
– $BE +4.5%, $GEV +3.3% (data-center power names gain as the Amazon-GNRC agreement reinforces hyperscaler power demand)
– LCID +4.2% (partners with Bolt to deploy at least 25,000 Level 4 autonomous vehicles across Europe)
– QGEN +3.5% (traders circulating German press report saying Qiagen attracts interest from KKR, Advent, TPG)
– GLW +3.7%, ANET ($ANET) +2.7%, CIEN +3.2% (AI networking and optical names rise as compute pricing points to continued infrastructure tightness)
– MRVL ($MRVL) +3.5%, LRCX +3.6%, INTC +3.2%, TER +3.6%, AMAT +3.2%, KLAC +3.2% (semiconductors rebound with technology shares after the Fed decision clears a major policy-event overhang)
Downside
– LGVN -49% (Phase 2b ELPIS II trial in hypoplastic left heart syndrome missed its primary efficacy endpoint)
– DLXY -45% (reverses sharply after a non-binding LOI covering up to a 48% interest in a Kazakhstan oil-field project)
– FLNC -22% (cuts FY guidance as supply-chain issues and delays ramping its Houston manufacturing facility drive a much larger expected loss)
– S -3.9% (no clear fresh catalyst identified; notable liquid cybersecurity move)
– BDX -3.5% (no clear fresh catalyst identified; unusually large premarket move in the medical-device name)
– LEN ($LEN) -1.3% (quarter missed and forward guidance disappointed as affordability pressure continued to weigh on homebuilding demand)
Source: Trade The News
Wall Street Fears an AI Slowdown. I’m Not Buying It.
It’s a considerable leap from slowing AI development to assuming the industry will need less computing power.