Money rotated out of AI hardware and semiconductors and into software this week, and CNBC reported more than $1 trillion erased from the largest chip and AI names. Zscaler led large-cap gainers at +23.04%, while Carpenter Technology fell 24.51% on a first-quarter revenue miss.
Week's Verdict
Indexes
SPY $759.97 (-0.52%), QQQ $704.40 (-0.01%), DIA $521.37 (-1.24%) on the latest prints.
Rotation into software
Software names including Zscaler and JFrog rallied as semiconductor and AI hardware stocks sold off.
Biggest Gainers
ZS Zscaler
+23.04%. About a dozen brokers raised targets into a $230-$275 range after Investor Day, and the company reaffirmed fiscal Q1 guidance.
FROG JFrog
+19.35%. BofA raised its target to $115 from $105 and kept a Buy ahead of Q3 results on November 5.
HAS Hasbro
+18.91%. Adjusted EPS of $2.90 beat roughly $1.85 expected, revenue rose 15% to $1.6 billion, and the buyback target doubled to $400 million.
Biggest Losers
CRS Carpenter Technology
-24.51%. Revenue of $798.2 million missed the roughly $830.8 million consensus despite an EPS beat, and management blamed planned maintenance outages.
SE Sea Ltd
-20.41%. A founder memo announced a planned cloud business and a possible IPO for fintech arm Monee, while DBS downgraded to Hold and executives sold shares.
FIX Comfort Systems USA
-19.33%.
What Smart Money Did
SPCX Space Exploration Technologies
Among the most-bought names in our tracking this week.
NBIS Nebius Group
Among the most-bought names in our tracking this week.
SOXL Direxion Semiconductor Bull 3X
Tracked analysts were net sellers this week.
LLY Eli Lilly
Tracked analysts were net sellers this week.
See all of today's top buys at fintwit.ai
AI's Top Signals
No scored AI picks cleared the bar this week, so the AI story was the selloff.
AI hardware selloff
CNBC reported more than $1 trillion erased from the largest semiconductor and AI stocks this week, on worries over how AI infrastructure gets financed and on elevated interest rates.
Coming Up
VZ Verizon
Reports Monday pre-market, $1.27 EPS estimate.
CDNS Cadence Design Systems
Reports Monday after close, $2.05 EPS estimate.
NUE Nucor
Reports Monday after close, $5.84 EPS estimate.
Q3 earnings batch
Ten large caps report Monday, October 26, including Welltower, Public Storage, Hartford, Celestica, Cincinnati Financial, Brown & Brown and Principal Financial.