Meanwhile, earnings forecasts are rising as semiconductor valuations fall, and more. Each week, the Syz investment team takes you through the last seven days in seven charts.
On 5 November, markets gave a harsh first verdict on the elections: the Philadelphia Semiconductor Index fell 12.3%, as investors weighed what Democratic gains in state governments could mean for the cost and pace of the data centre build-out, at a time when local communities already question its impact on electricity bills.
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On 5 November, markets gave a harsh first verdict on the elections: the Philadelphia Semiconductor Index fell 12.3%, as investors weighed what Democratic gains in state governments could mean for the cost and pace of the data centre build-out, at a time when local communities already question its impact on electricity bills.
AI assistants are challenging Google's dominance in Search. That story is now well known. Far less attention has been paid to what Alphabet has been building on the other side of the AI race: a full stack stretching from its own chips to products used by billions. At its heart is the Tensor Processing Unit (TPU), a chip developed for internal use a decade ago that has since become a product rival that AI labs are willing to pay for. This combination is difficult to replicate and is already driving growth. The catch? The economics are far less attractive than those of Search, with significantly lower profitability.
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Meanwhile, earnings forecasts are rising as semiconductor valuations fall, and more. Each week, the Syz investment team takes you through the last seven days in seven charts.
Major U.S. stock indexes ended a volatile week lower as investors weighed the implications of Tuesday’s midterm elections, which saw Democrats gain control of both chambers of Congress. Democrats’ win initially fueled optimism that a shift in the political landscape could ease geopolitical tensions, particularly with Iran. However, equities reversed course sharply on Thursday as investors reassessed the implications of Democratic electoral gains for corporate earnings and regulatory policy. Concerns about potentially tighter oversight of the AI industry, compounded by disappointing outlooks from major semiconductor companies, triggered substantial selling in technology shares. The Nasdaq 100 declined 6.4%, while semiconductors plunged more than 12%, both recording their worst sessions since March 2020. U.S. stocks partially recovered on Friday.
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