AI Stock Market Roundup w/c 28th of October

Each week I review the biggest movements within the AI stock market from last week and let you know what key market trends to look out for in the coming week, to keep you updated and ahead of the curve.

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Main AI Stock Market Movers

Ticker: AAPL | Price: $222.91 | Market Cap: $3.39T | Weekly Loss: 3.73% ⬇️

Apple reported earnings last week with a revenue of $94.9B, boosted by iPhone and Mac sales. However, shares fell on the announcement due to a $10.2B tax charge from a European court ruling, which raised concerns from investors. Warren Buffet's Berkshire sold 25% of their Apple shares in Q3, compounding the negative news drivers and contributing to Apple's share decline. The earnings report highlights strong underlying performance but the lack of forward guidance left investors wanting more.

Ticker: NVDA | Price: $135.40 | Market Cap: $3.32T | Weekly Loss: 4.33% ⬇️

Nvidia struggled to consolidate above the previous all-time high price this week, dropping 4% on Thursday. The stock continues to be very volatile and with earnings due to be released on the 20th of November, this volatility can be expected to continue. Despite this recent pullback, it is important to give context to the generational gains Nvidia has made. The stock has returned approximately 31,300% over the past decade and is the clear market leader in the AI chip space. This dominance has drawbacks with their Blackwell GPU products having a lead time of around 12 months, and they don’t expect this to change anytime soon.

Ticker: MSFT | Price: $410.37 | Market Cap: $3.05T | Weekly Loss: 4.18% ⬇️

Microsoft also reported earnings on Thursday, exceeding revenue estimates by 1.58%. Despite this revenue beat the stock sold off in line with the rest of the market. Investors are concerned that gross margins are decreasing due to AI infrastructure scaling. This is a strategic move by the company that they hope will pay off in the coming years as they invest heavily in AI. Microsoft also shared bearish news, predicting slower growth for Azure due to capacity constraints at its data centres. These challenges could impact future performance as they work to scale operations.

What To Watch This Week

Look out for the presidential election results on Tuesday heading into Wednesday, this will have a major impact on the markets

Look out for Unemployment Claims releasing on Thursday at 8:30am EST

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