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Asian chip stocks rally as Super Micro forecast revives AI demand optimism
Sector News

Asian chip stocks rally as Super Micro forecast revives AI demand optimism

INVESTING.COM

Investing.com -- Asian chipmakers and artificial intelligence-related stocks rallied on Wednesday after stronger-than-expected preliminary revenue guidance from Super Micro Computer offered relief to investors concerned about the sustainability of spending on AI infrastructure.

South Korea’s KOSPI jumped 4.6% to 5,805.63, while Japan’s Nikkei 225 rose 1.7% to 65,162. South Korea’s Samsung Electronics climbed 6.2% and SK Hynix gained 6.5%, while Japan’s Kioxia Holdings rose 4%, TDK advanced 3.5% and Murata Manufacturing added 3.7%.

Super Micro said it expects revenue for the first quarter of fiscal 2027, ended September 30, to range between $18.5 billion and $19.5 billion, well above its previous forecast of $14.5 billion to $15.5 billion and analyst expectations of around $15 billion.

The company also raised its preliminary gross margin outlook to 12%–12.5%, from 10.4%–10.8%, citing a more favourable customer and product mix.

The AI server maker’s shares rose about 12% in after-hou

French supermarket giant’s shares plunge 14% after warning ‘unprecedented’ unrest will hit business
Company News

French supermarket giant’s shares plunge 14% after warning ‘unprecedented’ unrest will hit business

CNBC.COM

In this article

Shares of French supermarket giant Carrefour plunged 14% on Wednesday after the company cut its full-year profit forecast, citing “an unprecedented situation in France.”

“In light of the worsening social and security situation, the Group considers that consumption trends and operating conditions in France are facing a deterioration,” the company said in its third-quarter earnings report published late Tuesday.

Over the past few days, French cities have been thrown into chaos as hundreds of thousands of protesters took to the streets calling for more spending on public services and expressing discontent over high costs of living. While most protesters were peaceful, over the weekend some looted and vandalized shops, set fire to city halls and attacked police officers.

Carrefour now expects operating margin growth of just 0 to 15 basis points, down from a previous expectation of a rise of 25 basis points. It also forecasts flat to slightly higher adjusted earnings per

PHP patches critical flaw hitting 70% of websites; Cloudflare, others surge
Sector News

PHP patches critical flaw hitting 70% of websites; Cloudflare, others surge

STREETINSIDER.COM

Investing.com -- PHP released emergency patches today fixing two critical remote code execution vulnerabilities rated CVSS v4.0 9.2, affecting every web server running PHP 5.4 or later — a population spanning an estimated 70% of the world's websites.

The flaws, collectively dubbed PHP2Shell (CVE-2026-109618 and CVE-2026-109619), were patched in four simultaneous releases: versions 8.5.12, 8.4.27, 8.3.36 and 8.2.35.

Cloudflare Inc (NYSE: NET) is one stock most exposed to this crisis: its Web Application Firewall is the frontline commercial barrier between attackers and millions of PHP sites, and the stock is trading at $307.79, up $16.10 (+5.52%) intraday on Wednesday as investors price in the company's prominent mitigation role. Other cybersecurity stocks, like CrowdStrike and Palo Alto Networks, are also up.

The trouble started before the patch even shipped. Cloudflare logged the first attacks against PHP sites at 07:43 UTC on October 21, hours before the official patch window open

Nvidia announces plug and play Vera Rubin racks that can be shipped on a truck
Company News

Nvidia announces plug and play Vera Rubin racks that can be shipped on a truck

CNBC.COM

In this article

Nvidia announced Wednesday a new product that will put seven of its Vera Rubin AI racks into a shipping container, the company’s latest effort to move up the stack and offer complete systems for artificial intelligence computing.

The DSX Pod AI Factory is roughly the size of a standard shipping container and weighs about 28,000 kilograms (nearly 62,000 pounds), Nvidia said. It’s designed to be shipped on a truck on normal roads and all the cabling and liquid cooling for the Pod are assembled at the factory, the company said.

“The only thing that has to happen when it gets to the site is it’s placed in its location, connected to the rest of the other containers, and validated through final burning and testing,” Ian Buck, vice president of hyperscale computing at Nvidia, said on a call with reporters this week.

The DSX Pod AI factory will reduce the time for a new AI data center to start serving tokens from six months to 14 days, according to the company. Nvidia said

Fortinet stock falls as Arete delivers rare double downgrade to sell
Analyst & Opinion

Fortinet stock falls as Arete delivers rare double downgrade to sell

STREETINSIDER.COM

Investing.com -- Fortinet (NASDAQ: FTNT) shares fell 2.7% in premarket trading Wednesday after Arete Research downgraded the cybersecurity company by two notches, from buy to sell, warning that a convergence of favorable growth drivers could make 2026 a peak year for the stock.

Analyst Ellie Kearney raised her price target to $117 from $104, but the new target remains well below Fortinet’s Tuesday closing price of $170.93, implying approximately 31.5% downside.

A two-notch downgrade from buy directly to sell is relatively rare and signals a sharp reversal in an analyst’s conviction, rather than a routine reassessment of a stock’s prospects.

“We think FY26 benefits from multiple tailwinds converging at once, a dynamic we don’t see being replicated in FY27 and FY28,” Kearney wrote. “Peak multiples rarely survive a deceleration.”

Kearney identified several factors supporting Fortinet’s performance in 2026, including demand from the 2020–21 hardware refresh cycle, list-price increases

Earnings call transcript: Teneo’s Q3 2026 revenue slump weighs on shares
Company News

Earnings call transcript: Teneo’s Q3 2026 revenue slump weighs on shares

INVESTING.COM

Teneo said its third-quarter results reflected a steep drop in sales after the loss of a major U.S. reselling partner, even as the company cut costs, eliminated senior debt and advanced a rebuilt platform aimed at regulated enterprise customers. The stock was last quoted at $0.03, down 16.77% from the previous close, and remains close to its 52-week low of $0.02 to $0.8.

Teneo’s quarter was defined by a major revenue reset rather than by growth. Management said the decline stemmed mainly from the termination of a large U.S. reselling partnership, which sharply reduced sales and recurring revenue.

The company said it has rebuilt its organization into a leaner operation of about 22 to 23 people. It also cut roughly 50 employees and consultants since the start of 2024, bringing annualized operating expenses to about SEK 60 million.

Despite the lower revenue base, Teneo said its gross margin remained at 76%. Management argued that the margin could improve further as Teneo10 is deployed

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Nvidia is significantly expanding its AI supply chain, driving major gains for partners. Amkor Technology (AMKR) surged 8% after announcing an expanded advanced packaging partnership with Nvidia in South Korea, targeting a 300% increase in interposer wafer capacity by 2028 . This move is part of Nvidia's broader strategy to scale global manufacturing capacity across multiple partners to meet surging AI demand .

Separately, Moody's upgraded Taiwan Semiconductor Manufacturing Co's (TSM) issuer rating to Aa2 from Aa3, citing its dominant market share and persistent demand for AI applications. TSM reported a 51% YoY revenue surge in Q3 2026, with advanced nodes accounting for 79% of wafer revenue .

Amkor Technology stock jumps on Nvidia advanced packaging expansion

Amkor Technology stock jumps on Nvidia advanced packaging expansion

STREETINSIDER.COMOct 21, 11:47 AM UTC
Moody’s upgrades TSMC rating to Aa2 on booming AI demand and market dominance

Moody’s upgrades TSMC rating to Aa2 on booming AI demand and market dominance

STREETINSIDER.COMOct 21, 4:34 PM UTC
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Nvidia is significantly scaling its AI infrastructure supply chain, announcing major capacity expansions and investments:

  • Advanced Packaging: Expanding partnership with Amkor Technology in South Korea, targeting a >300% increase in interposer wafer capacity by end-2028 .
  • Substrates: Plans to increase substrate capacity 2.5-fold over three years, adding Samsung Electro-Mechanics to its supply chain and backing Unimicron's Taiwan expansion .
  • Testing: Providing a $1.1 billion capacity reservation advance to KYEC for new U.S. testing facilities, targeting high-volume production by April 2027 .
  • Robotics & Automotive: Expanding Isaac robotics platform with a humanoid reference robot and seeing European automakers adopt its Hyperion platform for autonomous vehicles .

These moves underscore Nvidia's aggressive strategy to meet surging AI demand and diversify its manufacturing base.

Amkor Technology stock jumps on Nvidia advanced packaging expansion

Amkor Technology stock jumps on Nvidia advanced packaging expansion

STREETINSIDER.COMOct 21, 11:47 AM UTC
European automakers adopt Nvidia Hyperion for autonomous vehicles

European automakers adopt Nvidia Hyperion for autonomous vehicles

INVESTING.COMOct 21, 10:23 AM UTC
Nvidia expands Isaac robotics platform with humanoid reference

Nvidia expands Isaac robotics platform with humanoid reference

INVESTING.COMOct 21, 10:32 AM UTC
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UK inflation rose to 3.5% in September, exceeding the 3.4% forecast and marking the highest annual figure in nearly a year. The surge was primarily driven by motor fuel costs, which increased 29.8% year-over-year.

  • Key Driver: Motor fuel inflation hit its highest level since August 2022.
  • Policy Impact: Markets are now pricing in a 98% chance of a 25 basis point rate hike by the Bank of England next month, with further hikes expected in December.
  • Analyst View: J.P. Morgan notes accelerating services inflation, raising concerns about second-round inflationary effects beyond energy prices .
UK inflation jumps to 3.5% — cementing rate hike expectations

UK inflation jumps to 3.5% — cementing rate hike expectations

CNBC.COMOct 21, 7:50 AM UTC
0

Super Micro Computer (SMCI) shares surged 12% in after-hours trading after significantly raising its fiscal Q1 revenue outlook. The company now expects revenue of $18.5B-$19.5B, up from $14.5B-$15.5B, well above analyst consensus of $14.99B. Gross margin outlook also improved to 12.0%-12.5% from 10.4%-10.8%, driven by a favorable customer and product mix. This positive revision signals robust demand for AI platforms and offers relief after a prior preliminary results warning .

Supermicro stock surges 12% after raising revenue outlook on AI demand

Supermicro stock surges 12% after raising revenue outlook on AI demand

STREETINSIDER.COMOct 20, 8:41 PM UTC
0

Super Micro Computer (SMCI) shares surged 12% in after-hours trading after significantly raising its fiscal Q1 revenue outlook to $18.5B-$19.5B, up from $14.5B-$15.5B. The new midpoint is well above consensus estimates of $14.99B. The company also increased its gross margin outlook to 12.0%-12.5% from 10.4%-10.8%, driven by a favorable customer and product mix. This positive guidance signals robust demand for AI platforms.

Supermicro stock surges 12% after raising revenue outlook on AI demand

Supermicro stock surges 12% after raising revenue outlook on AI demand

STREETINSIDER.COMOct 20, 8:41 PM UTC
0

Data center and AI infrastructure stocks are facing renewed pressure after South Korean cloud company Elice's IPO plunged 30% on its market debut. This event amplifies growing investor concerns about overcapacity and debt within the AI-dedicated computing power sector .

Key points:

  • Elice's IPO, though small ($150M), is seen as a signal of bearish sentiment towards the AI build-out .
  • HSBC reiterated a 'reduce' rating on CoreWeave, citing 'debt market woes and moderating LLM revenues' .
  • Recent revenue disappointments from private AI algorithm companies like Anthropic and OpenAI are contributing to profitability concerns for neoclouds .
Data center stocks remain under pressure after Korea IPO plunges 30%

Data center stocks remain under pressure after Korea IPO plunges 30%

CNBC.COMOct 20, 3:45 PM UTC
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Data center stocks, particularly 'neoclouds' like CoreWeave, are facing renewed pressure after a South Korean AI cloud company's IPO plunged 30% . This event signals growing investor wariness over potential overcapacity and debt market woes in the AI infrastructure sector . HSBC reiterated a 'reduce' rating on CoreWeave, citing structural concerns and moderating LLM revenues . This follows recent disappointments from private AI algorithm companies like Anthropic and OpenAI, which reported decelerating revenues . The broader market saw the AI 100 basket fall 5% last week, with CoreWeave's credit default swaps surging . This trend highlights increasing scrutiny on the profitability and financial health of companies in the AI value chain.

Data center stocks remain under pressure after Korea IPO plunges 30%

Data center stocks remain under pressure after Korea IPO plunges 30%

CNBC.COMOct 20, 3:45 PM UTC
Global equities: Rally or selloff? Which catalysts matter most?

Global equities: Rally or selloff? Which catalysts matter most?

STREETINSIDER.COMOct 20, 12:37 PM UTC
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ByteDance, Alibaba, and Tencent have placed orders for over 3 million Nvidia RTX PRO 5500 chips, totaling more than $35 billion. Nvidia (NVDA) has informed customers it cannot guarantee fulfilling these orders, citing demand exceeding production capacity and U.S. export restrictions .

Key points:

  • Chinese tech giants ordered more than double the 3 million RTX PRO 5500 cards Nvidia can produce globally in 2027.
  • Nvidia warned partners they might receive only 5-10% of requested quantities.
  • The RTX PRO 5500 is among the most powerful chips available to China under current U.S. controls, as advanced Blackwell and Hopper chips are restricted .

This highlights intense AI chip demand from China despite export curbs, signaling continued supply constraints for advanced AI hardware.

ByteDance, Alibaba and Tencent order $35 billion of Nvidia chips: Reuters

ByteDance, Alibaba and Tencent order $35 billion of Nvidia chips: Reuters

INVESTING.COMOct 20, 9:23 AM UTC
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Investors are increasingly hedging against AI-related debt, driving a surge in Credit Default Swaps (CDS) for major tech firms. Weekly trading volumes for CDS linked to Oracle, SpaceX, Alphabet, Amazon, Meta, Broadcom, and Nvidia jumped from under $2 billion in July to over $9 billion in September .

Key points:

  • AI-linked debt issuance reached $466 billion in 2026, up from $101 billion in 2025 .
  • Cost of CDS for AI-linked companies like CoreWeave and Microsoft hit record highs .
  • Five-year Meta CDS climbed to 108 bps, Nvidia to 101 bps, both record highs .
  • Oracle's CDS rose to 322 bps from 144 bps YTD; SpaceX hit 226 bps .
  • HSBC CEO warns investors to be selective in data center investments, citing potential challenges in tenancy agreements and pricing .

This trend signals growing caution around the sustainability and financial risks associated with the rapid expansion of AI infrastructure, despite a recent rebound in US tech stocks .

Investors hedge AI boom with credit default swaps on tech debt

Investors hedge AI boom with credit default swaps on tech debt

STREETINSIDER.COMOct 20, 8:23 AM UTC
HSBC CEO warns the AI boom won’t make every data center a good bet

HSBC CEO warns the AI boom won’t make every data center a good bet

CNBC.COMOct 20, 10:39 AM UTC
CNBC Daily Open: Tech rebounds in the U.S., but Asia isn’t buying it yet

CNBC Daily Open: Tech rebounds in the U.S., but Asia isn’t buying it yet

CNBC.COMOct 20, 7:14 AM UTC
European chip stocks fall, tracking Asian selloff over AI investment worries

European chip stocks fall, tracking Asian selloff over AI investment worries

INVESTING.COMOct 20, 7:35 AM UTC
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Tech stocks, particularly in the AI sector, saw a rebound with the Nasdaq Composite rallying over 1% after last week's rout . However, analysts warn it's too soon to be aggressively bullish due to technical and fundamental headwinds . Concerns about AI infrastructure debt and potential credit stress for companies like Oracle continue to loom. Former Google CEO Eric Schmidt's significant stake in Anthropic highlights the high valuations in the private AI space, with Anthropic's IPO potentially at a $1.5 trillion valuation . Investors are advised to wait for clearer signals before re-entering the sector .

CNBC Daily Open: Tech investors buy the dip — but debt remains a concern

CNBC Daily Open: Tech investors buy the dip — but debt remains a concern

CNBC.COMOct 20, 1:13 AM UTC
Jim Cramer says don’t chase the AI rebound just yet. Here’s what needs to happen first

Jim Cramer says don’t chase the AI rebound just yet. Here’s what needs to happen first

CNBC.COMOct 19, 10:46 PM UTC
Former Google CEO Schmidt owns 1% stake in Anthropic, Bloomberg reports

Former Google CEO Schmidt owns 1% stake in Anthropic, Bloomberg reports

INVESTING.COMOct 19, 10:24 PM UTC
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