Vertiv jumped without a clear catalyst

Key highlights

1. Memory & storageSamsung Says HBM Share Matches DRAM Standing as HBM4 Sales TripleSamsung Electronics +9.0%
2. Neoclouds, bonds & AI financingAIB plans 50MW AI data center at former Spartanburg cryptomine to serve NebiusNBIS +7.0%
3. Data centers, cooling & build speedVertiv shares jump 14 percent as data center earnings beat expectationsVRT +16.5%
4. AI models & applicationsAbsci Soars 12%, Schrödinger Up 11%, Recursion Up 9% as AI Drug Discovery Stocks RallyABSI +12.4%SDGR +15.5%
5. AI chips & foundryNvidia, AMD Commit $4B to Meta AI BuildoutNVDA -1.2%AMD +3.2%
6. Optics & networkingMarvell Stock Slides. Why the Market Hates the Idea of a Lumentum BuyoutMRVL +3.3%LITE +5.5%

Markets

The S&P 500 rose 0.3%, the Nasdaq 100 rose 0.6% and chip stocks outperformed (+1.7%). Asia had a mixed session: KOSPI -1.2%, Taiwan TAIEX -1.4%, Nikkei 225 +1.1%, Hang Seng -0.6%. In Korean memory, SK hynix rose 10.9% and Samsung +9.0%. The US 10-year yield rose 5bp to 5.04%; oil -1.3%, VIX 16.9.

The AI chain today average move · day / week

AI chips & foundry +3.3%

Chip stocks +3.3% on the day (34 of 40 up), +0.3% on the week. Samsung Electronics led (+9.0%) and United Microelectronics lagged (-3.2%).

• INTC, AMD, AVGO, MU Decline On Samsung’s Profit Miss, Lighter Capex From Microsoft, AlphabetINTC +1.9%AMD +3.2%
• AMD's Real Test Isn't the GPU RaceAMD +3.2%

Memory & storage +8.0%

Memory and storage stocks +8.0% on the day (7 of 7 up), +6.2% on the week. Kioxia led (+13.8%).

• SK hynix-owned Solidigm is plotting a new $45 billion flash memory factory for the US, report claimsSK hynix +10.9%
• Micron’s stock rises after SK Hynix earnings. Here’s its next major testMU +5.9%SK hynix +10.9%

Optics & networking +3.8%

Optics and networking stocks +3.8% on the day (16 of 19 up), -0.1% on the week. AXT led (+10.6%).

• Optical Stocks Climb as Analysts Flag AI Bottleneck: Lumentum Rises 4%, Applied Optoelectronics and Corning Gain 3%, Coherent Sits Out the RallyLITE +5.5%AAOI +6.8%
• Tata Communications to invest $450m into 10,000km of AI-ready fiber to support data center connectivity in India

Optical Transceivers +6.1% Stood out today

Optical Transceivers stocks +6.1% on the day (7 of 7 up), +0.6% on the week. Zhongji Innolight led (+10.3%).

Servers, racks & components +3.5%

Server and component stocks +3.5% on the day (22 of 27 up), +0.2% on the week. Gold Circuit Electronics led (+9.7%) and onsemi lagged (-3.9%).

• Samsung Electro-Mechanics tightens MLCC, FCBGA supply as AI demand surgesSamsung Electro-Mechanics +8.7%
• Enphase and Infineon deploy 900V GaN switches in solid-state transformers designed for AI data centersInfineon Technologies +1.6%

AI PCBs & laminates +6.7% Stood out today

PCB and laminate stocks +6.7% on the day (5 of 5 up), -4.0% on the week. Gold Circuit Electronics led (+9.7%).

Power & grid +1.7%

Power and grid stocks +1.7% on the day (38 of 50 up), +0.1% on the week. Vertiv led (+16.5%) and Vistra lagged (-2.7%).

• PingThings to expand use of AI platform across Dominion Energy Virginia's grid data
• Russia limits new cryptomining grid connections to interruptible power
• Now We Know What The Gigawatt Supercycle Actually Means for GE VernovaGEV -1.9%

Electrical equipment (switchgear, UPS, busway) +4.2% Stood out today

Electrical equipment stocks +4.2% on the day (6 of 6 up), +1.7% on the week. Vertiv led (+16.5%).

• Legrand launches Starline T5 DoubleBar, the highest ampacity open-channel track busway with most pluggable spaceLegrand +2.7%

Data centers, cooling & build speed +4.3%

Data center, cooling and builder stocks +4.3% on the day (21 of 22 up), +0.2% on the week. Vertiv led (+16.5%) and Trane lagged (-2.7%).

• Meet the Gen Zers fighting back against AI data centers—70% of young adults don’t want one in their town
• Texas Data Center Boom Collides With Backlash Ahead of Midterms

Hyperscalers & AI spending +2.3%

Hyperscaler stocks +2.3% on the day (3 of 5 up), -1.3% on the week. Oracle led (+10.7%).

• Oracle Just Did What Alphabet Couldn’t: Convince Wall Street That AI Spending Pays OffORCL +10.7%GOOGL +1.3%
• Microsoft’s Profit Jumps 32% Despite Big Increase in SpendingMSFT -0.1%
• Cash is king as investors draw new battle lines in AI spending boom

Neoclouds, bonds & AI financing +5.8%

Neocloud stocks +5.8% on the day (5 of 5 up), +3.1% on the week. CoreWeave led (+7.3%). The news was mostly about new capacity and spending.

• DCD Studio: Europe's gigawatt opportunity with Maria Poyer, CoreWeaveCRWV +7.3%
• EdgeCore secures $521 million in ABS financing

AI models & applications +1.1%

AI software and security stocks +1.1% on the day (16 of 35 up), +7.1% on the week. Schrödinger led (+15.5%) and Fortinet lagged (-5.9%).

• ServiceNow’s 19% Crash Says Wall Street Thinks AI Will Eat Software. Its OpenAI Deal Says the OppositeNOW -3.0%
• Canadian Startup Aims to Be Quantum’s ‘Picks’ and ‘Shovels’

Robotics & physical AI +1.4%

Robotics stocks +1.4% on the day (32 of 45 up), +1.6% on the week. UBTech Robotics led (+9.2%) and Sony lagged (-2.8%).

• Alphabet earnings miss reflects first real sign that AI is taking a bite out of searchGOOGL +1.3%
• Unitree's quarterly revenue surges 70% in test for China's robotics sector
• Tesla Gains Another 4% as ARK Restates $4,400 Robotaxi Target and Musk Teases “A Storm of Cybercabs”TSLA -0.8%

Materials +1.2%

Materials stocks +1.2% on the day (16 of 25 up), +1.6% on the week. AXT led (+10.6%) and United States Antimony lagged (-2.4%).

• Copper ‘Sold Out Everywhere’ as Key China Gauge Flashes Warning
• Critical Metals Drops 7% as European Lithium Deal Sets Up New Share IssuanceUAMY -2.4%USAR +0.8%

Policy & regulation

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

• DataBank's CEO on the Texas data center moratorium and the impact of the US midterm elections
• Malaysia intercepted $12.2 million shipment of servers with AI chips suspected of violating export controls

Data & what's coming

• H100 rental price: -3.6% over 7 days.

Next 7 days

• 10-29EarningsHyundai Motor (005380.KS)
• 10-29EarningsIbiden (4062.T)
• 10-29EarningsNSK (6471.T)
• 10-29EarningsKeyence (6861.T)
• 10-29EarningsASE Technology (ASX)
• 10-29EarningsAXT Inc (AXTI)