As earnings announcements from major US technology companies gather pace, expectations are spreading that selling pressure on semiconductor-related stocks will continue. With SpaceX, Tesla and Meta leading the way, the market's reaction through their earnings announcements is attracting attention.
As of 16 October, the PHLX Semiconductor Index, SOX.US, had fallen for 8 consecutive trading days, the longest losing streak since the 2008 financial crisis. Some statistics also indicate that the market capitalization of semiconductor-related companies will decline by approximately $2 trillion, with selling concentrated in AI-related, memory and semiconductor manufacturing equipment stocks. Separate from individual stock movements, concerns are rising over the profitability of AI investment and funding risks. Even so, corporate earnings remain solid, with S&P 500 aggregate third-quarter earnings growth expected to reach approximately 29.0%.
NVIDIA and Micron Technology, which are driving the growth of major AI companies, continue to attract market attention, and their performance is awaited as they approach their earnings announcements. Upcoming earnings announcements are expected to provide important opportunities that could influence market valuations.
SpaceX, Tesla and Meta Platforms are scheduled to enter the main phase of their earnings announcements from 20 October, and the performance of these major companies could affect investors' risk appetite. Investors will assess the earnings results and market reaction while remaining attentive to the profitability of AI-related stocks and changes in the funding environment.