Nike ($NKE) has fallen from its 2021 peak of $179 to around $34, wiping out more than $210 billion in market value. Now, Goldman Sachs’ reported purchase of 4.9 million shares has investors asking whether the sell-off has gone too far. 📉 Why consider buying? ✅ A globally recognised brand with strong sports and lifestyle appeal. ✅ Potential upside if management successfully turns the business around. ✅ A lower share price could offer an opportunity if earnings recover. ⚠️ Why be cautious? ❌ Nike expects revenue to decline by a high-single-digit percentage in FY2027. ❌ Competition and weaker demand are putting pressure on sales. ❌ A falling share price doesn’t automatically mean a stock is cheap. Goldman’s buying is interesting, but institutional purchases don’t guarantee a rebound. My view:

The AI boom is entering a new phase. The biggest question is no longer just how many people use AI, but how much businesses are willing to pay for it. OpenAI is reportedly targeting $70 billion or more in annualised revenue by the end of 2026, driven largely by growth in its enterprise business. Reports put its annualised revenue at approximately $50 billion at the end of September, making the year-end target an ambitious goal rather than an achieved result. That is a significant development for the AI industry. It also raises an interesting question for stock investors: if AI companies are generating revenue at this scale, which publicly traded businesses stand to benefit most? My attention is on three names: Microsoft, Nvidia and Oracle. Each plays a different role in the AI ecosystem, a

Sometimes the most interesting stock story is not about a new product, but about a market that could be much bigger than investors originally expected. $Palantir Technologies Inc.(PLTR)$ is back in the spotlight after Goldman Sachs upgraded the stock from Neutral to Buy, setting a 12-month price target of $230. The analyst sees potential for Palantir to benefit from sovereign AI, customised software applications and deeper relationships with businesses.  🔍 What does Palantir actually do? Palantir builds software that helps organisations bring together large amounts of data, understand what is happening across their operations and make better decisions. Its customers include government agencies and commercial businesses. Its platforms can hel

While investors debate AI valuations and technology stocks face pressure, I’m watching a different sector today: airlines. $Delta Air Lines(DAL)$  is worth watching as its latest earnings put travel demand, operating costs and profit expectations in focus. 🛫 What does Delta do? Delta is one of the largest US airlines, earning revenue from passenger travel, premium cabins, loyalty programmes and cargo services. Its premium travel business and loyalty ecosystem help differentiate it from competitors. 📊 Why is DAL interesting now? 1. Earnings provide a reality check Investors will be looking beyond headline revenue to passenger demand, unit revenue, profit margins and management’s outlook. Strong travel demand is positive, but the key question is

When investors think about AI, NVIDIA and other chipmakers usually come to mind first. But the latest market moves suggest the opportunity may be spreading further down the AI supply chain. While some chip stocks have faced selling pressure, several AI infrastructure companies have moved sharply higher. Lumentum gained 11.04%, Bloom Energy rose 9.63%, Nebius climbed 7.73%, and CoreWeave jumped 11.72% in the market update. These moves highlight an important question: Are investors starting to look beyond AI chips and focus on the infrastructure needed to make AI work at scale? 🔹 Lumentum — AI needs faster connections AI data centres require enormous amounts of data to move between processors and servers. Optical networking technology helps meet that demand by enabling faster, more efficient

I think it’s more than the Fed. Heavy Treasury supply, rising term premium and renewed inflation concerns are pushing the long end higher. The key question is whether 5%+ yields become the new normal.

$NEBIUS(NBIS)$ Insiders Are Selling — But Is It Actually a Red Flag? Nebius dropped more than 5% Wednesday, putting insider selling back in the spotlight. At first glance, it’s easy to think: Insider sells at a huge valuation = warning sign. But the details matter. Nebius COO Ophir Nave sold 77,430 shares on October 5 at an average price around $232. The important detail? The sale was made under a 10b5-1 trading plan adopted back in May, rather than being an on-the-spot discretionary decision. The filing says the shares represented approximately 17% of his granted equity, and he retained more than 877,000 shares afterward.  That’s very different from an executive suddenly dumping most of their position after a disappointing business update. And t

Samsung just delivered a number that would normally stop the market in its tracks. The world’s largest memory-chip maker estimates Q3 operating profit of 107.4 trillion won — roughly US$80 billion — up 782.5% from a year earlier. Revenue is estimated at 195 trillion won, up 126.6% YoY.  That’s an extraordinary result. But here’s the interesting part: The market isn’t reacting like this is a surprise. Samsung’s preliminary profit was only modestly above the LSEG SmartEstimate of 106.1 trillion won, while some other analyst estimates were actually higher. The full breakdown won’t arrive until October 29.  And that’s where the memory-stock debate gets interesting. 📈 The bull case Memory demand remains extremely strong. DRAM, NAND and HBM are all benefiting from tight supply and massive dema

The latest Fed minutes sent a mixed message. All 19 policymakers backed September’s 25bp rate hike, taking the federal-funds rate to 3.75%–4.00%. Most officials still think another hike will probably be appropriate before the end of 2026 — but they left the timing open.  Meanwhile, something else is happening that could matter even more for stocks. Long-term Treasury yields are surging. The 10-year yield touched around 5.36% and the 30-year reached roughly 5.73% on Wednesday — both their highest levels since 2002.  So here’s the question: What if the Fed eventually stops hiking, but long-term yields keep climbing? That’s possible because the Fed doesn’t directly control the entire Treasury curve. Long-term yields reflect a combination of: 🔹 Inflation expectations 🔹 Economic growth 🔹 Trea

Sometimes the strongest businesses are the ones with a simple formula — loyal customers, recurring revenue and products people buy every week. Today I’m watching Costco $Costco(COST)$   — a business built around something surprisingly powerful: getting customers to pay for the privilege of shopping there. So what does Costco actually do? Think about a typical Costco trip: groceries, petrol, electronics, appliances, clothing, furniture, pharmacy items and its famous food court. It sells a huge range of products through membership warehouses and its online business, using high sales volumes and rapid inventory turnover to keep prices competitive. And that’s the interesting part of the business model. Costco makes money from selling pr

The AI trade isn’t just about chips anymore. My Stock of the Day is $Lumentum(LITE)$  a company sitting in a less obvious but increasingly important part of the AI infrastructure chain. What does Lumentum do? Lumentum makes optical and photonic components that allow huge amounts of data to move quickly between servers, switches and data centres. Think of it this way: GPUs are the brains. Optics are the highways connecting them. As AI clusters get larger, the amount of data moving between GPUs is exploding. Traditional electrical connections become harder to scale efficiently, increasing the importance of high-speed optical technology. And LITE is already seeing that demand. Its latest quarter delivered more than $1 billion in revenue, up

The S&P 500 has done it again. A new record above 7,800. The Nasdaq is also at record levels, with investors continuing to price in strong AI-led earnings growth. Analysts are expecting around 30% year-over-year S&P 500 profit growth for Q3.  But I think the market has reached the point where price momentum alone isn’t enough. Now the numbers have to catch up. That’s what makes this earnings season particularly important. Investors aren’t just looking for companies to beat expectations. They want to know: • Are AI orders translating into revenue? • Are margins holding up? • Are companies increasing their guidance? • Is demand broadening beyond a handful of mega-caps? Because at record highs, “good” earnings may no longer be good enough. A company can beat estimates and still fall

While the S&P 500 keeps making records, parts of the memory and storage trade are suddenly telling a very different story. $Seagate and $Western Digital were hit particularly hard, while other semiconductor names held up better. The sell-off followed renewed concerns about future storage supply and Toshiba’s expansion plans.  But I don’t think the market is simply saying “AI demand is over.” The more interesting debate is about pricing power. Memory has been one of the strongest parts of the AI infrastructure trade because supply has been tight and demand has been strong. That creates a powerful setup when supply is constrained. But it also creates a dangerous one when investors start believing new capacity could arrive faster than expected. Suddenly, the question changes from: “How m

The AI trade is starting to look very different. $Vistra jumped more than 10% after the U.S. Department of Energy announced a conditional loan commitment of up to $4.2 billion for nuclear upgrades. The projects are expected to preserve nearly 4 GW of existing capacity and add another 433 MW.  At the same time, $Nebius rallied on new AI inference demand. These companies operate in completely different industries, but the connection is becoming harder to ignore: AI needs enormous amounts of electricity. The first wave of the AI trade was about GPUs. The next wave could be about everything required to keep those GPUs running. That means nuclear power, grid infrastructure, cooling, data centres, networking and storage could all become part of the same investment chain. What I find interesting

I’d take the index here. The big names may keep leading, but the concentration adds risk. Owning the index gives exposure to the leaders while still leaving room to benefit if market breadth improves

The market keeps pushing higher, but I think there is an important question investors should be asking right now: How much of the rally is coming from the market itself, and how much is coming from a handful of big names? The Nasdaq recently reached another record close, while the Dow was much more subdued. On the surface, that looks like a healthy market continuing to move higher. But underneath the headline numbers, the picture is more complicated. A small group of large companies has become increasingly important to the direction of the major indexes. When those companies are strong, the indexes can keep climbing even if many other stocks are struggling. That creates an interesting situation for investors. The index can look stronger than the average stock When we hear that the Nasdaq h

Something unusual is happening on Wall Street. The Nasdaq just closed at a fresh record high, gaining 1.05% to 27,477.31. The S&P 500 added 0.66%, finishing at 7,773.95 and sitting close to its own record. QQQ also gained 0.88%. On the surface, everything looks bullish. But there is another number investors should be watching: The US 10-year Treasury yield just moved above 5.3%. It reached around 5.32%, its highest level since 2002.  Normally, higher long-term yields create a problem for growth stocks. Why? Because when Treasury yields rise, investors can earn more from relatively low-risk government bonds. At the same time, higher borrowing costs can pressure companies and make future earnings less valuable when discounted back to today. That should be particularly relevant for expen

Friday, investors saw one headline and hit the sell button. Western Digital and Seagate both dropped more than 10% after reports that Toshiba plans to nearly double its HDD production capacity by fiscal 2027. The immediate market reaction was simple: More supply = more competition = lower pricing power. But just one trading day later, the story looked very different. Western Digital jumped around 6% and Seagate gained about 4–5% as analysts pushed back on the idea that Toshiba’s expansion will suddenly flood the market.  That reversal is interesting because the underlying facts didn’t change overnight. Toshiba still plans to invest roughly $380 million to expand its Philippine facility, with the goal of significantly increasing HDD production.  What changed was the interpretation. Analys

$Taiwan Semiconductor Manufacturing(TSM)$  didn’t need a signed Terafab contract to get Wall Street’s attention. After Elon Musk confirmed that TSMC is in discussions around the massive chip project, TSMC jumped 2.75% to a record $485.80. At the same time, Intel fell 2.63% to $116.19. That divergence is what makes this story interesting. Intel had previously been the only publicly named foundry partner for Musk’s Terafab plans, with Musk saying the project would use Intel’s 14A process. Now TSMC is part of the conversation. But here’s the important distinction: TSMC is not replacing Intel — at least not based on what has been confirmed. Musk has described the TSMC discussions as preliminary, and there is no disclosed contract, order size,

AI stocks keep pushing the Nasdaq to records. But the next question is becoming more important: Who actually has the infrastructure to support all that computing demand? That puts $APPLIED DIGITAL CORP(APLD)$ on my radar. APLD is an AI infrastructure play focused on building and operating high-performance data centres. The story is less about flashy AI applications and more about the physical infrastructure needed to power them. And this week brings an important test. APLD is scheduled to report earnings Wednesday, with analysts expecting revenue to jump sharply year over year.  That creates a simple setup: 📈 Bull case: Rapid revenue growth and expanding AI infrastructure demand could reinforce the long-term growth story. ⚠️ Risk: Expectatio