More money going into the build-out

Key highlights

1. Policy & regulationGoogle hit with criminal probe over unapproved AI data center deforestationGOOGL -12.6%
2. Optics & networkingCommentary: Why Marvell's rumored Lumentum buy may be hard to pull off but harder to pass upMRVL -13.2%LITE +0.6%
3. AI models & applicationsServiceNow’s 19% Crash Says Wall Street Thinks AI Will Eat Software. Its OpenAI Deal Says the OppositeNOW -26.9%
4. Data centers, cooling & build speedFoxconn hopes to own 50% of the global AI server market within a couple yearsHon Hai (Foxconn) -1.4%
5. Power & gridHyosung, Siemens partner on digital power grid and AI data center solutionsHyosung Heavy Industries -4.3%Siemens +1.4%
6. Neoclouds, bonds & AI financingNebius leases 50 MW AI data center capacity from AIB for 12 yearsNBIS -5.7%

Markets

The S&P 500 fell 0.4%, the Nasdaq 100 fell 1.4% and chip stocks lagged (-1.1%). Asia had a sell-off: KOSPI -3.5%, Taiwan TAIEX -2.5%, Nikkei 225 -2.1%, Hang Seng +1.5%. In Korean memory, SK hynix rose 2.6% and Samsung -4.1%. The US 10-year yield fell 6bp to 4.99%; oil +2.1%, VIX 18.4.

The AI chain today average move · day / week

AI chips & foundry -1.4%

Chip stocks -1.4% on the day (15 of 40 up), +6.8% on the week. Advantest led (+6.0%) and Marvell lagged (-13.2%).

• Nvidia-Backed Marvell, Lumentum Could Be Nearing a DealNVDA -0.8%MRVL -13.2%
• Key facts: Lumentum — Marvell talks; Nvidia $2B; revenue ~$10BLITE +0.6%MRVL -13.2%
• Stocktwits AI Roundup: Intel, Amazon, Alphabet Results Trigger Meltdown As Big Tech’s Record Spending Returns To FocusINTC -3.6%AMZN -4.2%

Memory & storage -1.5%

Memory and storage stocks -1.5% on the day (3 of 7 up), +11.9% on the week. SK hynix led (+2.6%) and SanDisk lagged (-5.3%).

• Samsung Electronics Posts $80B Operating Profit on AI Memory DemandSamsung Electronics -4.1%
• SK hynix deepens Japan ties to align AI memory roadmap and supply chainSK hynix +2.6%
• Musk: Robot RAM Needs “Will Exceed Everything Else on Earth.” What That Means for MicronMU -5.0%

AI storage (SSD & HDD) -1.0% Stood out today

Storage stocks -1.0% on the day (2 of 4 up), +10.3% on the week. SanDisk lagged (-5.3%).

• Sandisk Revenue Up 378% on Datacenter, Edge: Rapid Earnings ReactionSNDK -5.3%
• Ai server shift drives DRAM to record as NAND rally stalls after 21 months

Optics & networking -2.3%

Optics and networking stocks -2.3% on the day (5 of 19 up), +7.2% on the week. IQE led (+4.7%) and Eoptolink lagged (-11.1%).

• Arista Networks Could Be 23% Undervalued Following Its AI Infrastructure OutlookANET -1.3%
• Corning Q3 Sales Jump 19% as AI Optical Demand and Margins AccelerateGLW -1.8%

Optical Transceivers -4.7% Stood out today

Optical Transceivers stocks -4.7% on the day (1 of 7 up), +8.3% on the week. Eoptolink lagged (-11.1%).

Servers, racks & components -1.5%

Server and component stocks -1.5% on the day (7 of 27 up), +2.7% on the week. Walsin led (+6.3%) and Gold Circuit Electronics lagged (-5.9%).

• Samsung Electro-Mechanics wins 879.3 bln-won AI server capacitor supply dealSamsung Electro-Mechanics -1.0%
• AI demand triggers massive PCB shortage for PC makers as order books full until 2030

Power & grid -0.4%

Power and grid stocks -0.4% on the day (28 of 50 up), +4.3% on the week. Prysmian led (+6.6%) and Hitachi lagged (-9.8%).

• DCD Talks: How high-density workloads change power distribution with Megan Josselyn, Starline a brand of LegrandLegrand +1.6%
• GE Vernova in $9B deal to buy high-voltage manufacturer as gas turbine orders slowGEV +1.1%

High-Voltage & Subsea Cable +3.2% Stood out today

High-Voltage & Subsea Cable stocks +3.2% on the day (4 of 4 up), +8.8% on the week. Prysmian led (+6.6%).

Data centers, cooling & build speed -0.9%

Data center, cooling and builder stocks -0.9% on the day (11 of 22 up), +5.7% on the week. Quanta Services led (+4.7%) and IREN lagged (-9.0%).

• AI hyperscalers are expected to finish the year spending a whopping $828 billion on capex
• Hyundai Motor pushes ahead with 9 trillion won investment in Saemangeum AI data centerHyundai Motor -1.2%

Hyperscalers & AI spending -3.7%

Hyperscaler stocks -3.7% on the day (1 of 5 up), -1.2% on the week. Alphabet lagged (-12.6%).

• Q3 earnings disappointments from Amazon and Alphabet have the AI trade on edge as capex spending swellsAMZN -4.2%GOOGL -12.6%
• Microsoft, Google report booming AI revenue as the tech reshapes businessMSFT -0.2%GOOGL -12.6%
• Oracle Just Did What Alphabet Couldn’t: Convince Wall Street That AI Spending Pays OffORCL -3.5%GOOGL -12.6%

Neoclouds, bonds & AI financing -5.7%

Neocloud stocks -5.7% on the day (0 of 5 up), +6.2% on the week. IREN lagged (-9.0%). The news was mostly about new capacity and spending.

• IREN Secures $363 Million Against GPUs And AI ContractsIREN -9.0%
• DCD Studio: Europe's gigawatt opportunity with Maria Poyer, CoreWeaveCRWV -5.0%

AI models & applications -2.1%

AI software and security stocks -2.1% on the day (13 of 35 up), +7.5% on the week. Lockheed Martin led (+2.2%) and ServiceNow lagged (-26.9%). The news was mostly about deals and contracts.

• Broadcom’s $63B Anthropic Deal Could Be The One That Finally Gets it Into GearAVGO -1.9%
• Anthropic Says Enterprise AI Adoption Remains in ‘Early Phases’

Robotics & physical AI -0.5%

Robotics stocks -0.5% on the day (23 of 45 up), +4.5% on the week. AeroVironment led (+7.1%) and Alphabet lagged (-12.6%).

• STMicroelectronics Weighs Developing More Powerful MCUs, MPUs for Humanoid RobotsSTM +3.0%
• The Woman Breathing Life Into Next Generation Home-Help Robots
• Humanoid robot achieves 85% task success rate with AGIBOT's GO-3 model

Materials -0.8%

Materials stocks -0.8% on the day (9 of 25 up), +4.7% on the week. Lynas Rare Earths led (+4.2%) and Pilbara Minerals lagged (-8.0%).

• Infineon’s OktoberTech: Edge AI, SDVs, and the Road to 800 VDCInfineon Technologies +1.1%
• 3 Rare Earth Stocks With Market Caps Over $1 Billion

Policy & regulation

Rules, taxes and local politics are now a regular part of the build-out story.

• DEP To Hold Dec. 3 Meeting/Hearing On Air Permit For Aligned AI PA Data Center Facilities In Shippingport Boro, Beaver County

Data & what's coming

• H100 rental price: +1.9% over 7 days.

Next 7 days

• 10-30EarningsHanmi Semiconductor (042700.KS)
• 10-30EarningsSumitomo Electric (5802.T)
• 10-30EarningsNabtesco (6268.T)
• 10-30EarningsMitsubishi Electric (6503.T)
• 10-30EarningsLasertec (6920.T)
• 10-30EarningsTokyo Electron (8035.T)