Late at night, all lines rose! A surge of 23%! AI "upstart" is good for raids
Chip stocks bottom out and rebound! On the evening of the 22nd, Beijing time, the three major U.S. stock indexes diverged. The storage sector bottomed out and rebounded, with Seagate Technology rising nearly 3% and Western Digital rising nearly 2%. Other chip stocks also rose sharply, with the Philadelphia Semiconductor Index turning red after falling nearly 2%. It is worth noting that the share price of Supermicro, a server manufacturer known as the "upstart" in AI, soared by more than 23% as preliminary results for the fourth fiscal quarter showed that new orders exceeded US$60 billion and the backlog of orders hit a record.
Chip stocks bottom out and rebound! On the evening of the 22nd, Beijing time, the three major U.S. stock indexes diverged. The storage sector bottomed out and rebounded, with Seagate Technology rising nearly 3% and Western Digital rising nearly 2%. Other chip stocks also rose sharply, with the Philadelphia Semiconductor Index turning red after falling nearly 2%. It is worth noting that the share price of Supermicro, a server manufacturer known as the "upstart" in AI, soared by more than 23% as preliminary results for the fourth fiscal quarter showed that new orders exceeded US$60 billion and the backlog of orders hit a record. The company's gross profit margin is expected to reach 15%-17%, almost double the previous guidance. Boosted by the surge in AMD, Dell Technologies' stock price also rose 10%. That night, gold and silver also rose sharply. As of press time, spot gold has increased by 1.66%, and spot silver has increased by 2.40%. Super Micro Computer stock price surges On Wednesday, Supermicro's stock price surged more than 20%. As of press time, the company's stock price has risen 23.06%. AMD's previously disclosed preliminary performance report showed that in the fourth fiscal quarter ending June 30, 2026, the company signed more than $60 billion in new orders, and these new orders are expected to be delivered in the next few quarters. In addition, Super Micro Computer expects its fourth-quarter gross profit margin to be between 15% and 17%, almost twice the previous forecast (8.2% to 8.4%). The company said that "this is mainly due to favorable customers and product mix." As technology companies and cloud service providers increase investment in data centers to support large language models and other AI applications, the demand for AI infrastructure manufacturers continues to heat up. Super Micro Computer said in its preliminary results announcement that as of the end of fiscal 2026, the company's order backlog had increased to "record levels." Super Micro Computer also reminded that fourth-quarter revenue will fall near the low point of the guidance range of US$11 billion to US$12.5 billion, suggesting that supply chain bottlenecks or the pace of customer deployment may put some pressure on short-term revenue. However, investors did not seem to care about this "flaw" and instead focused on gross profit margin expansion and record order backlog. Some analysts believe that Super Micro Computer’s latest performance forecast has countered recent market concerns about a possible slowdown in AI capital expenditures. AMD's announcement comes as hyperscale cloud service providers and enterprise customers continue to invest billions of dollars in building data centers to support large language models and generative AI workloads. The company's direct liquid cooling technology and modular server architecture make it a core beneficiary of this wave of AI computing power, especially as Nvidia's new generation Blackwell and Rubin platforms continue to increase in volume. AMD designs and manufactures servers and data center systems, and its products integrate semiconductor products from chip manufacturers such as Nvidia, Intel and AMD. Super Micro Computer said in June that it would raise US$7 billion through a series of equity and equity-related financing transactions, and the proceeds would be used to fulfill orders for high-end AI servers worth approximately US$39 billion from more than 20 customers. It is worth noting that on Wednesday, boosted by strong preliminary fourth-quarter results from AI server competitor AMD, the stock prices of Dell Technologies (DELL) and Hewlett Packard Enterprise (HPE) also bucked the trend and rose. As of press time, Dell Technologies and HPE were up 10% and 5.76% respectively. Concept stocks of other cloud computing service providers also continued to rise, with Cerebras Systems rising by more than 15% and CoreWeave rising by more than 5%. Storage concept stocks bottom out and rebound On Wednesday evening Beijing time, the three major U.S. stock indexes diverged. As of press time, the Dow rose 0.31%, the Nasdaq fell 0.35%, and the S&P 500 fell 0.04%. The storage sector bottomed out and rebounded. Seagate Technology rose nearly 3%, Western Digital rose nearly 2%, and Micron Technology rose 0.43%. SK Hynix ADR's decline narrowed to less than 2%, after falling by more than 5% previously; SanDisk rose 0.25%, after falling by more than 4%. Other chip stocks also rose collectively, with the Philadelphia Semiconductor Index rising 0.13% after falling nearly 2% previously. Qualcomm rose more than 1.50%, AMD Semiconductor rose 0.86%, ON Semiconductor rose 0.81%, and ARM fell nearly 2%.
Most of the U.S. optical communications sector turned red, with Credo up more than 2%, Lumentum up nearly 1%, Coherent up 0.70%, Marvel Technology up 0.50%, and Corning's decline narrowed to 1.50%. GE Vernova fell more than 7%. The company's second-quarter revenue increased by 22% year-on-year to US$11.1 billion, with a record order scale of US$24.2 billion. The expansion of AI data centers drove strong growth in demand for gas turbines and power grid equipment. However, the company's adjusted EPS in the second quarter was $2.47, lower than market expectations of $3.01. At the same time, the company's wind power business is still a clear drag, with order volume falling by 40% and quarterly EBITDA losses reaching US$275 million. Despite improvements in its services business, GE Vernova still expects the wind power segment to lose about $400 million for the full year. Most large technology stocks fell. Facebook and Microsoft fell by more than 1%, Apple fell by 0.68%, Amazon fell by 0.50%, Nvidia fell by 0.25%, Tesla fell by 0.32%, and Google rose by 0.43%. Investors remain cautious ahead of the first earnings reports from technology giants. Some foreign media pointed out that whether the current AI-led market can continue will largely depend on the performance of these financial reports. The major U.S. stock indexes have accumulated considerable gains since their rebound from the lows in March. However, recent trends have been volatile, and volatility in the heavily weighted semiconductor sector has intensified, suppressing the market's risk appetite. The market is currently paying close attention to the second-quarter results to be disclosed by Google parent company Alphabet and Tesla after the market close. These two companies are the first among the "Seven Big Tech" companies to announce financial reports. Investors are looking for evidence that the billions of dollars these companies are pouring into AI are paying off. Among them, Alphabet has received particular attention after the release of a key AI model of the company was delayed, exacerbating market concerns. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Large technology companies are putting a lot of free cash flow into the pockets of chip manufacturers, but these investments have not yet proven to bring sufficient returns. If they release a signal to slow down the pace of spending, the semiconductor sector may suffer another sell-off." This week's financial reports are intensive, the market may experience greater fluctuations, and geopolitical risks have also made investors more cautious. The war in the Middle East remains the focus of attention. The threat to shipping from the Houthi armed forces in Yemen, coupled with the expansion of the scope of the conflict, has caused disruption to the world's two important energy transportation channels. Crude oil prices climbed to nearly six-week highs, which also added uncertainty to the outlook for central bank policymakers. The median of a Reuters survey of economists showed that the Fed is expected to keep interest rates unchanged for the remainder of 2026, but respondents also said the risk of raising interest rates remains high. CME Group's FedWatch tool shows traders believe there is more than a 70% chance the Fed will keep interest rates unchanged at next week's meeting.
Most of the U.S. optical communications sector turned red, with Credo up more than 2%, Lumentum up nearly 1%, Coherent up 0.70%, Marvel Technology up 0.50%, and Corning's decline narrowed to 1.50%. GE Vernova fell more than 7%. The company's second-quarter revenue increased by 22% year-on-year to US$11.1 billion, with a record order scale of US$24.2 billion. The expansion of AI data centers drove strong growth in demand for gas turbines and power grid equipment. However, the company's adjusted EPS in the second quarter was $2.47, lower than market expectations of $3.01. At the same time, the company's wind power business is still a clear drag, with order volume falling by 40% and quarterly EBITDA losses reaching US$275 million. Despite improvements in its services business, GE Vernova still expects the wind power segment to lose about $400 million for the full year. Most large technology stocks fell. Facebook and Microsoft fell by more than 1%, Apple fell by 0.68%, Amazon fell by 0.50%, Nvidia fell by 0.25%, Tesla fell by 0.32%, and Google rose by 0.43%. Investors remain cautious ahead of the first earnings reports from technology giants. Some foreign media pointed out that whether the current AI-led market can continue will largely depend on the performance of these financial reports. The major U.S. stock indexes have accumulated considerable gains since their rebound from the lows in March. However, recent trends have been volatile, and volatility in the heavily weighted semiconductor sector has intensified, suppressing the market's risk appetite. The market is currently paying close attention to the second-quarter results to be disclosed by Google parent company Alphabet and Tesla after the market close. These two companies are the first among the "Seven Big Tech" companies to announce financial reports. Investors are looking for evidence that the billions of dollars these companies are pouring into AI are paying off. Among them, Alphabet has received particular attention after the release of a key AI model of the company was delayed, exacerbating market concerns. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Large technology companies are putting a lot of free cash flow into the pockets of chip manufacturers, but these investments have not yet proven to bring sufficient returns. If they release a signal to slow down the pace of spending, the semiconductor sector may suffer another sell-off." This week's financial reports are intensive, the market may experience greater fluctuations, and geopolitical risks have also made investors more cautious. The war in the Middle East remains the focus of attention. The threat to shipping from the Houthi armed forces in Yemen, coupled with the expansion of the scope of the conflict, has caused disruption to the world's two important energy transportation channels. Crude oil prices climbed to nearly six-week highs, which also added uncertainty to the outlook for central bank policymakers. The median of a Reuters survey of economists showed that the Fed is expected to keep interest rates unchanged for the remainder of 2026, but respondents also said the risk of raising interest rates remains high. CME Group's FedWatch tool shows traders believe there is more than a 70% chance the Fed will keep interest rates unchanged at next week's meeting.