AI Megacap Momentum
AI demand continued to lift the valuation of the sector’s largest players. Nvidia’s ecosystem partner Foxconn posted a sales beat, underscoring server demand for AI accelerators [10]. Analysts highlighted that both Microsoft and Alphabet remain undervalued relative to their AI growth prospects, with calls for further upside [7][9]. Tesla also entered the AI conversation, with projections that its stock could double before year‑end [13]. Overall, the megacap rally was the dominant driver of Nasdaq‑100 performance.
Chip Sector Slump
The pre‑holiday week saw a sharp pullback in pure‑play chip names, a pattern Jim Cramer likened to a “horror movie” repeat [1]. Despite the dip, memory makers such as Micron benefited from rising DRAM prices, fueling a bullish case for its stock [4]. South Korea’s SK Hynix is pursuing a $29 billion U.S. listing to tap AI‑focused investors, reflecting continued capital appetite for memory chips [11]. The juxtaposition of short‑term weakness and long‑term demand created a mixed tone for the semiconductor sector.
Broad Market View
Broad‑based indices hovered near record levels, with the S&P 500 (SPY) approaching all‑time highs despite timing concerns [5]. Leveraged exposure via TQQQ was flagged for hidden costs, as its three‑year return lagged the underlying QQQ by roughly 145 percentage points [3]. Nonetheless, the Nasdaq‑100’s strong AI exposure kept the overall market bias positive.
Supply Chain & Tokenization
Foxconn’s earnings beat highlighted its pivotal role assembling AI servers for Nvidia, reinforcing the supply‑chain link to AI growth [10]. Meanwhile, Kraken’s launch of tokenized Apple, Nvidia and Tesla shares as collateral expands crypto‑based access to equity exposure [16]. These developments illustrate the convergence of traditional tech hardware and emerging digital‑asset infrastructure.
Outlook Next Week
Looking ahead, the Federal Reserve’s minutes due Wednesday will be closely watched for clues on monetary policy trajectory [15]. The week also kicks off the second‑half earnings wave, with Apple, Microsoft and Nvidia slated to report Thursday‑Friday, potentially resetting sector momentum. SpaceX’s Nasdaq‑100 rating and upcoming energy market data add additional catalysts to monitor.