Market Overview
The S&P 500 and Nasdaq reversed course after opening higher, as semiconductor stocks came under heavy selling pressure [4]. The VanEck Semiconductor ETF (SMH) tumbled 3.7%, extending Friday’s losses. Chipmakers led the retreat, with AMD and Teradyne each falling more than 3%. The market is awaiting the Fed's next policy rate decision and AI earnings test.
Earnings Preview
Meta Platforms, Inc. stock looks undervalued ahead of Q2 earnings, with a strong beat history and ad growth [2]. In contrast, Tesla, Inc.'s Q2 deliveries rebounded, but margins fell to 16.8% and FCF -$1.1B amid AI CapEx [3]. Amazon.com, Inc. is rated Buy ahead of Q2, with AWS growth supporting margins, but AI capex pressures free cash flow [5].
Stock Analysis
Alphabet delivered robust Q2 FY26 results, with 24% top-line growth and strong momentum in AI-driven Cloud and Services segments [10]. SpaceX shares have fallen significantly, nearing a valuation that ignores its artificial intelligence business, presenting an attractive entry point for investors [11]. GOOGL and TSLA are worth watching ahead of their earnings reports.