News about tech stocks

Market presenters on Bloomberg's Opening Trade said US and Asian tech futures rebounded after last week's sharp sell-off, while European futures fell amid protests in France and Russia-Ukraine tensions. Treasuries acted as a haven, while riskier bonds issued by AI companies widened from the rest of the market. India performed well because it has little AI exposure, and investors will watch Meta's guidance on AI spending. French debt sold off, with long-end yields up about four basis points, and the euro came under pressure.

U.S. stock futures were trending higher early Monday, shrugging off “Black Monday” crash fears circulating on social media. Wall Street is bracing for a pivotal week of mega-cap tech earnings while geopolitical tensions in the Middle East continue.

Third-quarter earnings from Netflix, Meta Platforms, IBM and Western Digital this week are expected to set the tone for tech stocks. Netflix is forecast to lift revenue 12% to $12.88 billion and EPS 40% to $0.82, while Meta's revenue is expected to rise 24% to $63.39 billion, with investors watching its Muse AI tools closely. Western Digital's results may indicate whether memory demand is durable. Bloomberg reported that Nscale faces investor resistance to the $30 billion valuation it seeks for its IPO, with a group of investors urging $16–19 billion, after Microsoft exited a UK data center deal over power-related delays. Product events from Nvidia, Cloudflare and Oracle are also on the calendar, following a week in which SOXX fell 11.8%.

Asian stocks mostly fell on Monday, tracking a tech-heavy selloff on Wall Street driven by worries over the AI investment boom. Chipmakers and AI-linked firms remain under pressure over inflation, rising costs and when the huge sums invested in the sector will pay off. CoreWeave's stock has fallen around 30 percent this month as yields on some of its bonds surged, and the Nasdaq dropped more than two percent in the latest Wall Street session. Tokyo, Seoul, Taipei, Shanghai, Sydney, Singapore and Wellington all slipped while Hong Kong was closed, and China's third-quarter GDP grew 4.5 percent, slightly above forecasts. Oil held above $100 after surging more than three percent on Friday.

The author says Iren (IREN) is the AI stock he would hold through the next bubble scare, and that he is buying it now. The author argues that many bearish concerns about Iren and the neocloud sector are actually bullish: Gartner projects 80% of neoclouds will stop operating independently by 2030, which would make Iren's capacity more valuable, while CoreWeave's corporate bond yields of 15% reflect its weaker balance sheet, with a current ratio of 0.46 versus Iren's 3.55. Iren has a 5.8-gigawatt pipeline, customer prepayments covering 45% to 55% of GPU capital expenditures, and expects to deliver 300 megawatts in 2026 and 800 megawatts by the end of 2027. Earnings from Meta, Tesla, Alphabet, Microsoft and Amazon later this month should show whether AI spending keeps rising.

At 9.15am, the FBM KLCI had eased 8.42 points, or 0.52%, to 1,599.34 from Friday's close of 1,607.76. Decliners outnumbered advancers 423 to 103. Apex Securities expects the index to stay cautious in the near term, citing persistent foreign selling, global uncertainty, the recent sell-off in US tech and AI stocks, elevated oil prices and inflation, ahead of the US Federal Reserve's October 29 policy decision. Domestically, investors will watch Malaysia's third-quarter 2026 GDP growth of 5.3% and rising operating costs, especially for labour-intensive businesses.

The author argues that last week's sell-off, especially Friday's, does not mean the data center and AI 'super-cycle' is over. He suggests the selling may instead reflect unwinding positions and the collapse of a hedge fund that borrowed billions from a firm that has not yet disclosed its losses. He notes that semiconductors fell nine straight days and CoreWeave's corporate bond yields spiked, arguing the bond market is squeezing debt-funded buyers. He defends Nvidia and CEO Jensen Huang, saying Nvidia's funding of AI companies differs from the circa-2000 'vendor finance' that benefited vendors whose customers did not need their products. He believes AI demand is real, citing OpenAI, Anthropic and Google's Gemini, which have monetized AI at scale.

A broad sell-off in technology stocks pushed Wall Street lower, with the S&P 500 down 1.1% and the Nasdaq down 2.1%, leaving the S&P 500 about 2% lower for the week and erasing last week's record gains. Chipmakers including Micron, AMD, Broadcom and Intel led the declines amid doubts about how long the AI spending boom can last, as tech giants that rely on debt may struggle to keep borrowing while bond yields climb. The 10-year Treasury yield eased to 5.09% but had topped 5.30% earlier this month, its highest since 2002, and traders now see a 74.3% chance of a Fed rate hike in December, up from 50.2% a month ago. Brent crude jumped 3.7% to $109.86 a barrel as the Iran war continues without a U.S.-Iran deal. The Australian sharemarket was set to edge lower, with futures pointing to a loss of 11 points (0.1%).

A broad sell-off in tech stocks pushed Wall Street lower, with the S&P 500 down 1.1% and the Nasdaq down 2.1%, marking the market's worst week since late June. Chipmakers including Micron, AMD, Broadcom and Intel fell as investors questioned how long the AI spending boom could last, while Netflix dropped 2.9% after a management change. The 10-year Treasury yield eased to 5.09% from 5.10%, after touching its highest level since 2002 earlier this month, and traders put the odds of a Fed rate hike in December at 74.3%. Brent crude jumped 3.7% to $US109.86 a barrel amid the Iran war and Strait of Hormuz supply concerns. The ASX was set to open slightly lower.

Wall Street closed lower as a broad tech sell-off pushed the S&P 500 down 1.1%, the Nasdaq down 2.1% and the Dow down 0.3%. The S&P 500 lost about 2% for the week, erasing the gains it made last week when it set an all-time high. Chipmakers including Micron, AMD, Broadcom and Intel led the declines amid worries that the AI spending boom may not last and that big tech may struggle to keep borrowing as bond yields climb. The 10-year Treasury yield eased to 5.09% but had topped 5.30% earlier this month, while CME Group data showed the odds of a Fed rate hike in December jumping to 74.3%. Brent crude rose 3.7% to $109.86 a barrel as there is still no U.S.–Iran deal to end the war.

US tech stocks fell sharply last week, with the Nasdaq 100 down 5.5%, the S&P 500 down 2% and the Philadelphia Semiconductor Index down 11.4%. Broadcom CEO Hock Tan compared speculative AI investing to casino gambling, while the article flags worries over heavy capital spending and rising debt, such as CoreWeave's roughly $50 billion in borrowings. US inflation reached 3.7% in September and Brent crude hit $112 a barrel, leaving the Federal Reserve less room to maneuver. Still, 70% of S&P 500 stocks rose on the week as money rotated into energy, utilities and consumer staples. Global tech equity funds saw $4.75 billion in outflows, emerging-market equity funds drew $717 million, and the PSEi rose 2.1% to 5,782.70.

Technology stocks fell this week as financing concerns mounted, pulling the S&P 500 and Nasdaq into negative territory. CoreWeave (CRWV) and Nebius (NBIS) each closed the week down more than 25%, and Baird's Ted Mortonson placed Oracle (ORCL) near the bottom of tech on free cash flow, citing a higher cost of capital and scrutiny of circular finance. Nvidia CEO Jensen Huang voiced optimism about CoreWeave, in which Nvidia holds roughly a 10% stake. Patrick Moorhead (Moor Insights & Strategy) called the sell-off another scare, while Dan Ives (Wedbush Securities) pointed to CoreWeave's revenue backlog of roughly $104 billion at the end of the second quarter. UBS described the volatility as a recalibration of expectations rather than a fundamental break, urging investors to watch whether AI spending turns into sustainable earnings growth.

Dell Technologies shares fell 22.9% last week to close at $451.71 on Friday, Oct. 15, after Barclays downgraded the stock to hold from buy. Barclays argued that recent server revenue growth reflects memory cost inflation passed on to customers rather than a surge in enterprise AI adoption, and noted that hardware is only about a quarter of corporate AI budgets. In its last quarter ended July 31, Dell reported record revenue of $47 billion, up 57.7%, including $16.4 billion in AI server revenue. The article says Dell trades at a trailing P/E of 26.2 and that its AI-optimized servers are estimated to account for less than 40% of annual revenue this fiscal year. The next quarterly earnings report is scheduled for Nov. 24.

Broadcom (AVGO) closed at $344.33 on October 15 after returning -13.59% over six months, even though revenue in the latest quarter rose 85.5% and earnings grew 216.1% year over year. Most of that growth comes from custom chips designed for large technology companies, which are sticky because customers cannot switch suppliers without restarting engineering, while infrastructure software is a smaller business acquired through deals. Per CNN, analysts' median target sits 52.47% above the current price, while the stock is down 1.43% over twelve months. The article flags concentration risk, since the custom chip business depends on a few very large customers able to bring the work in-house, and notes a trailing P/E of 46.50x.

Marvell Technology (MRVL) closed at $241.24 on October 15 and has returned 80.88% over six months, well ahead of the 15.4% return of the Insider Monkey Billionaire Index and 11.4% of the State Street SPDR S&P 500 ETF Trust. According to CNN, 92% of analysts covering the stock rate it a buy, while the remaining 8% do not. The article says the holdouts are not doubting growth or Marvell's position, which is supported by 36.5% revenue growth in the latest quarter and a 174% share price gain over the past year. Their concerns centre on valuation: the stock trades at 62.11 times next year's expected earnings, the most demanding multiple in the article's list, while operating margin of 16.68% is modest against peers selling into AI. The article frames the disagreement as one about price rather than the health of the business.

Seagate (STX) closed at $690.81 on October 15 and its shares are up 206.48% over the past year, even though hard disk drives have been largely replaced by flash memory in laptops and phones. Hard drives remain popular with data centers because they are considerably cheaper per unit of capacity, which suits the large volumes of rarely read data that AI produced. Revenue rose 48.5% in the latest quarter and earnings grew 165.2%, driven by scarce supply, as only three companies make hard drives and Seagate told investors its data center capacity is fully allocated through this year. The article warns that prices could fall once supply catches up, and notes debt is 179.88% of equity. The stock trades at 25.71 times next year's expected earnings, against 66.17 times over the past twelve months.

Micron (MU) closed at $931.24 on October 15, with an operating margin of 80.68% and revenue up 379.3% from the same quarter last year. The article says these figures look nothing like a commodity business, citing that only three companies supply nearly all the working memory used in advanced computing and that building a new plant is very costly. However, it argues Micron may lack a durable moat, since standard memory does not lock in customers who can buy from any of the three suppliers, and history shows prices collapse once supply catches up with demand. Capacity decisions made today take two or three years to arrive. The stock trades at 7.02 times next year's expected earnings against 24.78 times over the past year, meaning analysts expect earnings to climb steeply again.

The Vanguard Information Technology ETF (VGT) is a passive index fund holding 318 technology stocks. Nvidia, Apple, Microsoft and Broadcom together made up about 49% of the fund's assets as of Sept. 30. The fund has averaged 15.03% annual returns since its January 2004 inception, with 24.7% over 10 years, 20.9% over five years, 35% over three years and 35.2% over the past year. VGT does not hold Alphabet, Amazon, Meta or Tesla because they are not classified as information technology under its benchmark. The article notes that investors worried about this concentration could instead buy an S&P 500 or Nasdaq-100 ETF for broader diversification.

Apple's iPhone Duo, its first foldable phone and most expensive iPhone, opened for preorder on Friday, with launch-day pickup inventory selling out quickly and some online delivery estimates slipping into late January. Apple called demand 'nothing short of extraordinary' and said it will keep taking online orders. The Duo starts at $1,999 and passes $3,000 at the 2TB tier, and supply is expected to be tight; IDC expects Apple to ship about 7 million units this year, roughly 3% of its total, and sees shipments growing 70% next year, which could give Apple about 40% of the foldable market. Analysts say the high price could lift revenue, but it could also stretch out upgrade cycles. Apple's latest quarter brought in $109.4 billion in revenue, up 16%, but it guided September-quarter revenue growth to 9% to 11%, citing supply limits and memory costs.

Applied Digital Corporation (NASDAQ: APLD) shares closed at $18.05 on October 16, down 26.4% from the December 31, 2025 close, even though revenue and contracted capacity grew quickly. Recurring earnings have not yet caught up with the financing costs of building AI data centers. The fiscal 2026 annual report listed 1,410 contracted megawatts and about $36.2 billion in base-term contracted revenue, with revenue rising from $228.6 million to $611.3 million and operating cash flow turning positive at $89.7 million. In the first fiscal quarter of 2027, revenue reached $341.9 million, up 322%, but adjusted EBITDA of $64.4 million fell about $13.0 million short of the $77.383 million interest expense. The article notes that most of that quarter's revenue came from tenant fit-out services ($183.5 million) rather than base rent ($65.8 million), and that questions over cash, debt and dilution remain large.