TMTB Morning Wrap
Good morning. QQQs +95bps led higher by Semis +4%, which got an extra dose of fuel after Reuters reported that META is looking to 2x computing capacity next year. For reference, street at around $165B for ‘27 vs. $135B this year, although buyside numbers were closer to $200-$210B next year vs $155B this year. Either way, big numbers. Strength across the board with HDDs +6% / Memory +5-6%; Optical +5%, Semi-cap +5%, etc.
Hyperscalers are being sold on implication of higher capex #’s with META -4% / MSFT -2% / AMZN -1.6%. Software -2% as CRM -4.5% leading the way lower on a Keybanc downgrade.
Overnight, Asia saw mixed action: TPX +0.35%, NKY +1.38%, Hang Seng -0.7%, HSCEI -1.08%, SHCOMP +1.65%, Shenzhen +2.22%, Taiwan TAIEX -0.83%, Korea KOSPI +0.62%. Memory names were strong however with Kioxia +8%; Samsung +6%; SK Hynix +11%
Lots to get to this morning, so let’s get straight to it…
