Afternoon update
$AMD fell 9.89% Friday, the S&P 500's largest decline, erasing Thursday's 5.9% rally as the AI trade stayed volatile after Jensen Huang resigned as…
$AMD fell 9.89% Friday, the S&P 500's largest decline, erasing Thursday's 5.9% rally as the AI trade stayed volatile after Jensen Huang resigned as Nvidia CEO. The S&P 500 closed the afternoon -0.54% and the Nasdaq -0.99%.
- Cerebras (CBRS) +10.64%: a surprise Q3 profit (adjusted EPS of 12 cents vs. an expected 14-cent loss), revenue of $231M vs. $215M expected, Q4 core revenue guidance raised to as much as $330M, and a new Microsoft cloud partnership.
- Nu Holdings (NU) +10.10%: Q3 net income of $1.09B, up 31% year-over-year and above estimates, with its full-year efficiency-ratio outlook improved to 19%-19.5%, citing an AI-driven hiring slowdown.
- Sandisk (SNDK) -7.95% and Nebius (NBIS) -8.58%: AI-trade selling resumed after Huang's exit, with neoclouds under scrutiny over circular funding tied to Nvidia. Both pared deeper intraday losses.
- Broadcom (AVGO) -5.02% on 43.77M shares vs. a 25.06M average after Rothschild & Co. Redburn downgraded it to neutral from buy over AI financing-circularity risk. Micron (MU) fell 4.49% after a 16% five-session run.
- Breadth: Consumer Staples averaged +1.33% with 10 of 10 members higher. Semiconductors averaged -4.29% with 0 of 11 higher, and SMH lost 3.68%.
AMD's history offers some perspective: 72% of its 97 drops of 8% or more were higher a year later, though only 55% were positive after three months. Nvidia's Tuesday earnings are the next checkpoint for the chip complex.
Not financial advice. For informational and educational purposes only.
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Midday update
The semiconductor basket is down 6.14% at midday, with all 11 members declining.
The semiconductor basket is down 6.14% at midday, with all 11 members declining. $AMD is down 10.37%, AMAT 7.09% and AVGO 6.94% as Jensen Huang's resignation from Nvidia hits AI-exposed stocks. NVDA is down 4.56% on heavy volume. Huang stepped down…