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Optical networking stocks fell sharply after Broadcom CEO Hock Tan said access to capital could become a bigger constraint on AI expansion than chip shortages, and Intel CEO Lip-Bu Tan pointed to rising borrowing costs. Applied Optoelectronics (NASDAQ:AAOI) dropped 9% to $88.99, Coherent (NYSE:COHR) fell 7% and Lumentum (NASDAQ:LITE) slid 7%, while the Roundhill Photonics & Optics ETF (CBOE:LYTE) lost 8%. The article notes that no company-specific news explained the move, even though AAOI reported Q2 2026 revenue of $191.92 million, up 86.4%, and guided Q3 revenue to $255 million to $290 million. Its top 10 customers accounted for 99% of Q2 revenue, leaving it exposed if one major buyer slows spending or delays deliveries. Fresh order commentary from these suppliers could show whether the pullback reflects a real shift in demand.
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Wall Street has grown more divided, as AI and tech stocks sold off sharply in recent days on worries about the AI trade and a hot inflation report. In the 32-stock CNBC Investing Club portfolio, CrowdStrike rose 19.4% as concerns about powerful AI models boosted cybersecurity demand, Meta Platforms gained 14.4% after new AI model releases, and TJX Companies rose 13% in a rebound from a post-earnings sell-off. Bank of New York fell 15.4%, Goldman Sachs fell 13.8% and FedEx Freight dropped 12.4%, as financials faced pressure from the Fed's first rate hike in three years and FedEx Freight was hit by higher diesel prices from the Iran war. As of Wednesday's close, the Nasdaq was down 2.5% for the week, though it was up 2.3% from the Sept. 10 meeting through that close while the Dow was down nearly 1%.
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The article argues that Amazon, trading at about $250 a share, is still worth buying for the author, who would buy it if he did not already own it. The main reason is that the stock looks appealingly valued: its forward P/E of about 24 is well below its five-year average of 39, while its price-to-sales ratio of 3.6 is slightly above the five-year average of 3. Amazon ranked fourth in the 2026 Kantar BrandZ Global Top 100, with a brand value of $1 trillion, and its shares have averaged annual gains of 22% over the past 15 years. The author stresses that a stock's absolute price means little on its own, so investors should compare it with earnings and sales and research each company in depth.
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Amazon announced TorchNeuron, a free open-source tool that lets developers run existing PyTorch code on its Trainium chips with minimal changes, with a public beta due on Oct. 20. This challenges a key part of Nvidia's moat, because switching away from CUDA typically carries large costs in time and labor. However, the tool only covers PyTorch work, custom CUDA code will not port easily, and the release is still in beta, with the ease-of-switching claims coming from Amazon itself. Google is also developing a similar tool, TorchTPU. The author sees it as a chink in Nvidia's narrative and does not expect a major near-term effect on order flow or pricing power, but says the market may no longer pay quite the same premium for Nvidia stock.
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- Top 3 Founder Led Stocks To Watch In October 2026
The article presents three founder-led stocks from a screen: monday.com, Palantir Technologies and Figure Technology Solutions. monday.com has revenue of about US$1.37b and a market cap of US$3.8b. Palantir earns US$3.21b from Government customers and US$2.95b from Commercial clients, with a market cap of US$447.04b. Figure Technology Solutions reports US$619 million of revenue and a market cap of US$6.1b. The article argues that founder ownership can align leadership with long-term shareholder interests, but each stock depends on key assumptions to watch, such as customer expansion, pricing power or the pace of blockchain adoption. The full screen surfaced 26 more businesses with similarly strong founder ownership.
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