11/12 Mixed with Apple and Pharmaceutical Stocks despite sluggish AI-related companies such as U.S. stock markets, semiconductors
The U.S. stock market fell mainly on the Nasdaq, shrinking most AI-related companies in the aftermath of Coreweave (-16.31 percent). However, most stocks showed strength in confidence in the economy due to Kevin Hessett’s remarks and the end of the shutdown, and the Dow showed strength to rise. In the end, the market closed mixed amid differentiation, in which the Nasdaq fell due to anxiety over the AI industry, while pharmaceutical stocks and Apple (+2.16%) strengthened Dow (+1.18 percent, Nasdaq -0.25 percent, S&P 500 +0.21 percent, Russell2000 +0.11 percent, Philadelphia Semiconductor Index -2.48%)
*Variables: AI Industry, Economy
Coreweave (-16.31%) fell sharply despite better-than-expected earnings reports. The market said that the related news clearly revealed the structural instability inherent in the AI infrastructure industry as a whole, rather than an individual issue of Coreweave. First, it is a constraint on the physical infrastructure supply chain, and Coreweave management mentioned that despite explosive AI demand, it is lowering its 2025 sales forecast due to certain delays in development partners. This shows that supply chain bottlenecks in physical infrastructure, such as power transformers, which are essential for data center construction, are not keeping up with the pace of AI growth. In other words, it suggests a fundamental risk that no matter how high the demand, if the physical construction capacity is not supported, the realization of profits may be delayed
In addition, excessive debt leverage and financial soundness concerns are also highlighted. Coreweave’s total debt has soared to expand AI infrastructure, resulting in massive interest payments. This raises the question of whether the AI industry requires large-scale capital expenditures for growth, and a model that covers them with high debt is financially sustainable. Therefore, it is highlighted that if AI demand slows or supply chain delays are prolonged, it can cause financial instability due to interest costs.
As a result, AI-related investment contracted, some companies that announced borrowing, and controversy over monetization flowed in, and most AI-related stocks, including semiconductors, were sluggish. However, after the market closed, AMD (-2.65%) is up 4% after hours due to the announcement of an upward revision of its margin rate, and semiconductor companies are also showing strong expectations for the AI industry
Although the related news encouraged the Nasdaq to weaken, the strong Dow has built confidence in the solid U.S. economy. White House economic adviser Kevin Hessett, one of the Fed’s candidates for chairman, expressed confidence in the economy, saying that U.S. economic growth will recover to 3-4 percent by early 2026. In addition, he argued that prices are stabilizing and productivity is estimated at 3 percent. He mentioned that explosive economic growth is possible when this productivity and capital accumulation overlap. In particular, he argued that this growth is on the supply side, so the economy can expand without price pressure.
*Featured Stocks: Nvidia Slump Vs. Apple Bullish, Pharmaceutical Stocks Rise
Semiconductors: Nvidia Falls On News Of SoftBank’s Stake Sale
Nvidia (-2.96%) fell in response to the news that SoftBank sold all of its shares. In particular, Coreweave (-16.31%) fueled controversy over profitability due to supply chain instability despite its good performance. Of course, these are not really big issues, but the recent AI bubble controversy is believed to have caused the company to be sensitive to investment sentiment. Other chipmakers such as Micron (-4.81 percent), Ram Research (-4.32 percent), TSMC (-1.39 percent) as well as Credo Tech (-6.85 percent) and Lamberth (-5.12 percent). The Philadelphia Semiconductor Index fell 2.48 percent. Qualcomm (+1.40 percent) rose as its 2026 outlook was redefined by its AI strategy and strong cash flow following its recent earnings announcement.
Semiconductors: AMD Expands Investor Day Events and Volatility
AMD (-2.65 percent) claims that there is explosive demand from companies for CEO Lisa Su to gain a competitive advantage at the investor day event. In addition, it raised expectations for the future, saying it expects the AI market to exceed USD 1 trillion by 2030. In the meantime, the company claims that sales growth will begin in earnest over the next three to five years, especially in the AI sector, which will grow by more than 80 percent. Although it fell sharply at the beginning of the remarks, it turned upward on the remarks on sales growth. After Lisa Su’s remarks ended, the company increased volatility, and eventually closed the decline. After-hours, chip companies jump more than 3% as it announced it would raise its margin rate. Semiconductor companies are rising after-hours as a result
Nuclear, uranium, electricity grids: AI industry slumps amid weak investment sentiment
Oclaw (-6.55%) fell despite news that the U.S. Department of Energy approved the fuel manufacturing facility. Despite the news that it signed an MOU with Idaho National Laboratory, its earnings fell by 4 percent after the market closed. Nuclear companies such as NewsCale Power (-5.94 percent) and Nano New Clear Energy (-4.67 percent) also fell due to supply chain instability issues in the AI industry. Notably, there is concern that the practice of companies investing with debt could contract. Uranium-related companies such as uranium energy (-4.91 percent), Centrus energy (-5.05 percent), and Energy Fuels (-4.91 percent), and electrical grid companies such as Constellation Energy (-2.57 percent) and Vistra (-4.84 percent) are also sluggish.
Cars: Tesla Slacks On Slower Sales In China
Tesla (-1.26%) fell in October after China’s sales fell to the lowest monthly figure in three years, citing intensifying competition and falling demand. Rivian (+9.81%) continued to rise sharply today, reflecting expectations for its future value after its recent earnings report. Of course, there is continuing anxiety over the fourth quarter, but supply and demand factors such as a surge in call option trading also have a positive impact on the stock price. Internal combustion engine companies such as GM (+0.24%) and Ford (+1.06%) rose, reflecting confidence in the economy and expectations of increased sales in the future. Secondary battery companies such as QuantumScape (-2.27%) are sluggish. Lithium-related companies also showed sluggish performance, with Albemarle (+0.29%) turning upwards but Lithium America (-3.14%) showing sluggish performance