Optical communication concept stocks led the declines in the Hong Kong market. As of press time, Zhongji Innolight (03308) fell 5.51% to HK$738; Yangtze Optical Fibre and Cable (06869) dropped 5.26% to HK$118.9; Cambridge Technology (06166) declined 4.33% to HK$78.45; and Huiju Technology (01729) slid 4.10% to HK$12.62.
On the news front, Meta released its third-quarter earnings report, raising its full-year 2026 capital expenditure guidance to $135 billion to $145 billion, with the lower bound of the range increased by $5 billion from $130 billion. Tesla's earnings report showed third-quarter capital expenditure of $4.73 billion, more than double the same period last year, but approximately $1 billion less than the second quarter. Tesla also lowered its full-year 2026 capital expenditure target from over $25 billion to approximately $20 billion, a reduction of about 20%.
Founder Securities previously published a research report noting that the continued expansion of cloud providers' capital expenditure is an important support for this round of AI hardware market rally, but the rise in investment scale and stock price gains do not always move in sync. Whether the market expectation that the growth rate of cloud capital expenditure has peaked this round will hold true may have significant guiding implications for the sustainability of future AI hardware stock performance.
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