AI summary
Summary of article:
With US semiconductor stocks falling, concerns about AI financing rising, Kioxia’s conservative approach, Binance’s largest heist in history and the upcoming US midterm elections, market confidence is facing a number of tests this week.
US chip stocks fell sharply last Friday,intel Outlook Eclipse, Plusanthropic It may not be able to obtain an investment-grade rating after listing, deepening doubts about AI financing and returns. Feiban fell 7.2%, Intel fell nearly 29%, TSMC ADR fell nearly 6%, and the early market of semiconductors this week is not optimistic. Following are the five most notable international and cross-strait news ahead of the market open this week:
S&P 500 Index Last Friday, it fell 1.8% and fell below the 100-day moving average. The Nasdaq fell 2.9%, its biggest one-day loss since June. S&P also changed Meta’s AA-rating outlook to negative due to rising AI spending and financial pressures.
Intel’s weakness is partly due to PC demand and factory crashes, and doesn’t necessarily represent an overall slowdown in AI demand. This week’s financial reports from AMD (Super Micro), Qualcomm and Apple, midterm elections and employment reports will again test market confidence.
Kioxia estimates operating profit for the quarter will be 2 trillion yen, lower than the market expectation of 2.35 trillion yen, and NAND selling prices may be the same as last quarter. Although production capacity in 2027 has been sold out, and more than half of the expected shipments in 2028 are guaranteed by long-term contracts, the market is still worried that price increases and profit growth will not be sustainable. Kioxia’s ADRs fell 17% in U.S. trading on Friday, and SanDisk, which reported better-than-expected earnings, also fell 13.5%. Even Sandisk, which had a better-than-expected financial report, was pulled down 13.5%.
AI industry players face strict funding oversight. Anthropic may not be able to obtain investment-grade ratings immediately after listing, and debt costs may increase; OpenAI reduced its fundraising target from US$30 billion to about US$20 billion, and its valuation dropped to US$1.25 trillion; S&P maintained Meta’s AA- rating, but changed its outlook to negative. All three companies have been unable to raise money, but the market is more concerned about whether revenues and cash can support massive AI spending. Funding conditions will affect subsequent expansion.
Binance was hacked and an estimated $6.3 billion was lost, the largest theft in the history of cryptocurrency. The FBI said that North Korea was behind this. Bitcoin surged amid a $3.6 billion net withdrawal from crypto assets after Binance resumed customer withdrawals on Sunday. Following the incident, Binance immediately established a multinational response team of approximately 100 people, worked overnight with information security companies, stablecoin issuers and law enforcement agencies to trace and freeze the funds, and promised to compensate users for their losses.
US midterm elections begin on Tuesday and Trump will travel to Iowa and Kansas on Sunday to campaign in an effort to maintain the Republican Party’s slim majority in both houses of Congress. In an interview with the New York Post, he said that if the Democratic Party wins the election, he could become “Mr. Veto”, vetoing bills one after another and forcing the other party to negotiate.
Most polls are optimistic that Democrats will win the House of Representatives, and there are seven districts in the Senate that are close; Republicans say internal data shows they are still competitive. The rising cost of living and the war in Iran have become a test for the Republican Party.
Morgan Stanley strategist Wilson is bullish on US stocks regardless of the election outcome and expects the S&P 500 to move towards 8,000 points after a short-term correction.
Summary FAQ
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Semiconductors fell a massive 7.2% last Friday, Intel fell nearly 29% and TSMC ADRs also fell nearly 6%. The market is concerned about the returns on AI spending and demand prospects, which has significantly weakened the semiconductor group’s initial sentiment.
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Kioxia’s profit forecast for this quarter is lower than market expectations, and NAND selling prices may be close to flat. Although long-term contracts and production capacity orders are sufficient, the market is concerned that profit growth caused by price increases and shortages may not be sustainable.
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Anthropic, OpenAI and Meta are all facing more stringent financial oversight, increasing pressure to spend money on AI; The Binance hack has also affected the confidence of the currency circle; With the midterm elections and employment data, short-term market volatility may intensify.
