Amit Kukreja
S&P NEAR ALL TIME HIGHS, INTEL AND FORD EARNINGS, MARKETS GO GREEN | MARKET CLOSE
10/23/2025, 7:07:31 PM
Economic Summary
- Earnings season shows margin expansion tied to AI adoption: companies like Intel (INTC), Digital Realty (DLR), and others beat EPS, implying AI is improving profitability and could support higher S&P multiples.
- Corporate actions and capital flows: Oracle is pursuing a record debt sale to finance data centers, signaling large-scale investment in AI infrastructure that benefits cloud, colocation, and data-center suppliers (ORCL).
- Government involvement in semiconductor and quantum sectors is rising: the U.S. became Intel's largest shareholder and discussions about equity stakes in quantum firms (e.g., Rigetti) highlight strategic industrial policy risks and support.
Bullish
- AI-driven demand is expanding margins across companies, supporting higher multiples for large tech names.
- Intel reports supply shortages as data-center refresh outpaces expectations, indicating strong near-term server demand (INTC).
- Anthropic's large Google Cloud TPU agreement boosts Google Cloud demand and TPUs usage (GOOGL).
- Palantir is signing sizable government and commercial deals, supporting meaningful revenue upside (PLTR).
Bearish
- Ford's EV unit lost $1.41B in the quarter despite corporate beats, pressuring margins and cash flow (F).
- Target cutting 1,800 corporate jobs could reflect weaker demand or disruptive AI-driven automation risks (TGT).
- Quantum startups face commercial viability and cash-burn risk; potential government equity stakes are uncertain and speculative.
Bullish tickers
INTCNVDAGOOGLPLTRORCLDLR
Bearish tickers
FTGTRGTI
INTC
Bullish
Strong Xeon demand and supply shortages point to robust data-center refresh driven by AI, lifting near-term revenue.
Bearish
Margins remain pressured by fab loading and foundry execution risks despite a strong quarter.
F
Bullish
Beat on EPS and revenue with strong free cash flow and profitable ICE/commercial vehicle segments.
Bearish
EV division losses and lower-than-expected adjusted EBITDA guidance weigh on multiple despite an EPS beat.
PLTR
1 price targets
200
Bullish
Large government and commercial deals and recurring-contract momentum could drive rapid revenue and multiple expansion.
Bearish
Street skepticism remains around how quickly commercial revenue scales beyond government contracts.
GOOGL
Bullish
Anthropic deal to expand TPU usage worth 'tens of billions' boosts cloud demand and hardware consumption.
Bearish
Competitive cloud dynamics and multicloud fragmentation could limit upside depending on partner shifts.
NVDA
Bullish
Continued strong demand for GPUs and partnerships sustain growth as AI workloads scale.
Bearish
High multiple exposes NVDA to sentiment-driven downside if AI hardware spending normalizes.
DLR
Bullish
Large EPS beat and revenue growth suggest strong colocation demand tied to AI infrastructure needs.
Bearish
Data-center REITs face execution and cyclical risks if hyperscaler demand cools.
AMAT
Bullish
As a key semiconductor equipment provider, AMAT benefits from increased chipmaking investment.
Bearish
Planned workforce reduction and restructuring charges indicate near-term cost and execution headwinds.
People mentioned
Christina PartsenevelisJohnDavid ZinsnerMichael FidelkeBrian CornellAlex KarpJensen HuangAnthony NotoMelissa RepkoEamon JaversGeoffrey HintonSteve WozniakRichard BransonPrince HarryTom LeeMike GallagherChauncey BillupsTerry RozierDamon JonesAaron KaturskyDonald TrumpDerekTannerAmitSteve