To The Moon

November 4 is shaping up to be an interesting trading session. Wall Street is dealing with two competing forces: strong corporate earnings from the semiconductor sector and fresh uncertainty following the US midterm elections.

Tuesday’s market performance was mixed. The Nasdaq gained 0.83%, the S&P 500 advanced 0.36%, but the Dow slipped 0.38%.

However, the latest election results have introduced another concern. Democrats have secured control of both chambers of Congress, raising questions about potential changes to AI regulation, technology policy and government spending.

I think today’s market could create opportunities for investors who distinguish between companies with strong earnings momentum and those relying mainly on market enthusiasm.

Here are six stocks I would watch.

1. $Advanced Micro Devices(AMD)$ - Strong Earnings, But Can the Rally Continue?

AMD is arguably one of the most interesting stocks today.

Its latest quarterly results exceeded expectations, with revenue reaching $13.38 billion and data centre revenue hitting a record $8.5 billion, up 97% year over year.

Management also provided encouraging next-quarter revenue guidance of approximately $17 billion.

The immediate after-hours rally suggests investors welcomed the results.

However, I would watch whether the buying momentum continues during regular trading. Strong earnings are positive, but the market will eventually demand evidence that AMD can deliver on its ambitious growth expectations.

2. $NVIDIA(NVDA)$ - AI Leadership Under Pressure

NVIDIA remains central to the AI investment theme.

Its shares gained around 2.3% on Tuesday as semiconductor stocks recovered.

However, the political developments introduce a new risk. Greater regulatory scrutiny or restrictions affecting data centre construction could influence the pace of AI infrastructure expansion.

I remain interested in NVIDIA’s long-term competitive position, but I would watch how the market responds to the election results.

The next catalyst will be its November earnings report.

3. $Broadcom(AVGO)$  – An Alternative AI Infrastructure Play

Broadcom deserves attention because its AI exposure extends beyond traditional GPU demand.

Its networking technology and custom AI accelerators are important components of large-scale data centre infrastructure.

As hyperscalers continue developing their own AI chips, Broadcom could benefit from demand for customised semiconductor solutions.

I would monitor whether investors continue favouring Broadcom as they become more selective about AI-related stocks.

4. $Apple(AAPL)$  – Rising Costs Could Pressure Margins

Apple presents a different investment story.

Despite delivering strong quarterly results, the company faces pressure from rising memory-chip costs.

This is important because revenue growth does not automatically translate into stronger profitability.

I would watch management’s comments on margins, component costs and demand for its latest products.

Apple’s ability to protect profitability will be an important consideration for investors.

5. $Arista Networks(ANET)$  – The Infrastructure Behind AI

Arista is another company worth watching after reporting strong earnings and experiencing a significant after-hours rally.

AI data centres require more than computing power. They also need high-performance networking infrastructure to move enormous volumes of data efficiently.

Arista’s networking products give it exposure to this part of the AI infrastructure buildout.

I particularly like the fact that this business provides exposure to AI spending without depending entirely on GPU sales.

However, after a sharp earnings-driven move, I would avoid chasing the opening price.

6. Super Micro Computer (SMCI) – High Growth, High Risk

SMCI is worth monitoring following its latest strong revenue performance.

The company benefits from demand for AI servers and data centre systems.

However, this is a higher-risk investment. Investors should pay attention to margins, cash flow, working capital and the company’s ability to convert rapid revenue growth into sustainable profits.

I would treat SMCI as a speculative watchlist candidate rather than a core holding.

My Trading Strategy for November 4

I see three possible market developments today:

• Bullish: Strong semiconductor earnings encourage investors to look beyond election uncertainty, supporting a broader technology recovery.

• Bearish: Concerns about AI regulation and data centre expansion trigger further selling in high-valuation technology stocks.

• Rotation: Investors move away from expensive growth stocks and favour companies with stronger cash flow, established earnings and more reasonable valuations.

My preference is to watch AMD and ANET for earnings momentum, NVDA and AVGO for broader AI sector sentiment, and AAPL for signs of margin pressure.

I would not rush into buying immediately after the market opens. Instead, I would look for stabilisation after the initial reaction to the election results.

My Biggest Takeaway

The AI investment story is not necessarily over, but the market is becoming more demanding.

Investors are beginning to differentiate between companies that benefit from AI spending and those that can actually turn that spending into sustainable earnings.

For November, I would rather focus on revenue growth, margins and cash flow than simply buying stocks because they have an AI label.

There are still opportunities in technology, but selectivity and entry price will matter.

For discussion purposes only. Sharing my investment watchlist and market perspective, not financial advice or a recommendation to buy or sell securities.