A Tech Led Rebound to Kick Off the Week
Let’s dig in following an up day on Wall Street to see what’s happened and what to expect.
Iran Concerns Weigh on Stocks as Tech Steadies to End a Volatile Week
Brent topped $116 and stocks pulled back on fears of renewed U.S.-Iran hostilities after the midterm elections. For the week, small caps led with the Russell 2000 up 2% while the S&P 500 and Nasdaq slipped.
Weekly Roundup: Renewed AI Concerns Weigh on the Market and Portfolio
We added to six holdings, and upgraded and lifted a price target on another as favorable AI data conflicted with market emotion.
Tech’s Capital Problem
As more and more funds are raised for the AI buidout, is there a scarcity of capital?
Key Earnings See Negative Reactions as Rotation Hits a Bump in the Road
SpaceX spent more, Tesla spent less, and Meta proved its spending works. The market is selling all three.
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.
New Intel Price Target After Huge Surprise Upgrade
A Wall Street analyst turned heads with a significant change of view on the tech firm.
Select Upside, Downside Movers in the Morning
Upside
– $IRON +52% (Phase 3 APOLLO trial met all primary and secondary endpoints in erythropoietic protoporphyria)
– $AAME +41% (long-delayed 2025 annual report was filed, showing a return to annual profitability)
– $XLAB +24% (extends rally after securing an $8.2M AI-server order)
– $TCRT +20% (extends volatile rally tied to a proposed acquisition and financing of up to $350M)
– $MEDS +15% (extends rally after outlining peptide-compounding expansion and licensing a direct-to-consumer GLP-1 platform)
– $CLF +11% (Q3 profit and EBITDA beat expectations, Q4 EBITDA was guided higher and 2027 EBITDA is expected to exceed $4B)
– $NBIS +7.5%, $CRWV +7.7%, $BE +5.2%, $SMCI +4.1%, $IREN +5.9% (AI-infrastructure names rebound from last week’s financing-driven selloff as Treasury yields ease)
– $CRDO +4.7%, $TER +5.1%, $LRCX +4.6%, $AMD +3.7%, $MU +3.7%, $AVGO +3.1% (chip names rebound from last week’s AI-led selloff ahead of key sector earnings)
– $INTC +4.3% (JPMorgan upgrades to Neutral from Underweight as confidence in the turnaround improves)
– $VAI +4.0% (agrees to acquire an 18MW Ohio computing center)
– $DDOG +3.9% (Bernstein upgrades to Outperform and sharply raises its price target on stronger AI-consumption trends)
Downside
– $ACTU -9.1% (files to sell 40M shares with 20M warrants)