Core Insights - Amazon announced a significant capital expenditure guidance of $200 billion for 2026, which has captured Wall Street's attention [1] Company Summary - The focus of Wall Street is primarily on Amazon's capital expenditure plans, indicating a strong investment strategy moving forward [1]

Investment Rating - The report suggests a focus on companies such as SanDisk (SNDK.O), SK Hynix (000660.KS), Samsung Electronics (005930.KS), and Micron Technology (MU.O) due to their potential in the AI-driven storage market [4]. Core Insights - The industry is transitioning from traditional cycles to AI-driven technological premiums and high growth, with storage becoming a critical bottleneck for AI computing efficiency [5]. - AI is driving exponential growth in storage demand, with significant increases in requirements for high-bandwidth memory (HBM) and solid-state drives (SSD) due to the scaling laws of model parameters [5]. - The valuation framework is being reshaped, with revenue growth and net profit margin expansion occurring simultaneously, indicating a period of high operational leverage in the storage sector [5]. Summary by Sections AI Value Chain - The AI value chain includes components such as computing chips (GPUs, CPUs, ASICs), storage (DRAM, SSD, HDD), networking, and energy solutions, highlighting the interconnectedness of these sectors [10][12]. - The storage segment is characterized by oligopolistic features, with high barriers to entry supporting high profitability [12]. Storage Demand and Hardware Architecture - Storage demand is categorized into cold, warm, and hot data, with different storage solutions (HDD, SSD, DRAM) tailored to each category's speed and capacity requirements [20]. - The architecture is structured in layers, with HBM for high-speed access, SSD for intermediate storage, and HDD for large capacity [29]. Large Language Model Storage Requirements - The report details the storage needs of large language models, emphasizing the importance of storage capacity and bandwidth in both training and inference phases [42][47]. - The growth in model parameters necessitates increased storage capacity, with significant implications for the demand for NAND and DRAM technologies [59]. Company-Specific Insights - Micron Technology (MU.O) is focusing on data centers and has made significant advancements in HBM3E technology, with a strong market demand for its products [64][70]. - SanDisk (SNDK.O) has undergone a restructuring, achieving notable revenue growth and improving profit margins through a focus on high-value enterprise SSDs [72][78]. - SK Hynix is benefiting from its early entry into the AI storage market, while Samsung is striving to catch up [79][81].

Market Overview - The U.S. stock market experienced a significant recovery, with the S&P 500 rising by 2%, marking its best day since May. The Dow Jones Industrial Average increased by 1,206 points, or 2.5%, surpassing the 50,000 level for the first time, while the Nasdaq composite rose by 2.2% [1]. Technology Sector - Chip companies were pivotal in driving the market rally, with Nvidia's stock jumping by 7.8% and Broadcom climbing by 7.1%, helping to recover from earlier losses [2]. - The optimism surrounding continued spending on artificial intelligence technology contributed to the gains, with Amazon's CEO announcing an expected investment of approximately $200 billion this year in AI, chips, robotics, and low earth orbit satellites [3]. Concerns in the Market - Despite the surge, the S&P 500 faced its third losing week in four, driven by concerns over Big Tech spending and the potential impact of AI on software companies, particularly after AI firm Anthropic released free automation tools [4]. - Amazon's stock fell by 5.6% amid doubts about whether the substantial investments would yield sufficient profits [3]. Cryptocurrency Market - Bitcoin stabilized after a significant decline, rising back above $70,000 after dipping close to $60,000 [5]. - The recovery in Bitcoin prices positively affected stocks of companies involved in the crypto economy, with Robinhood Markets increasing by 14%, Coinbase Global rising by 13%, and Strategy, a company focused on Bitcoin investments, soaring by 26.1% [7]. Metals Market - Prices in the metals market showed signs of stabilization, with gold rising by 1.8% to settle at $4,979.80 per ounce and silver increasing by 0.2% [5].

Alphabet Trade - Alphabet purchased 67,630 shares valued at approximately $22.4 million, based on a closing price of $331.33 [1] - The purchase follows strong fourth-quarter earnings, particularly in Google Search and Cloud segments [1] - Growth in these segments was driven by the strength of Gemini, as highlighted in the report [1] AMD Trade - ARK Next Generation Internet ETF acquired 20,189 shares of AMD, valued at approximately $3.9 million at a closing price of $192.50 [2] - This acquisition occurred amid a recent stock decline for AMD, attributed to high expectations and a one-time sales surge to China [2] - Despite record fourth-quarter revenue, AMD's forward guidance has made some investors cautious [2] Broadcom Trade - ARKQ and ARKW acquired a combined 87,148 shares of Broadcom, valued at approximately $27.06 million at a closing price of $310.51 [3] - Broadcom's stock rose due to optimism around AI infrastructure spending [3] - Increased capital expenditure outlook from Alphabet further fueled this optimism [3] Qualcomm Trade - ARKQ and ARKW sold a total of 228,943 shares of Qualcomm, valued at approximately $31.2 million based on a closing price of $136.30 [4] Other Key Trades - Google's Class C stock has a Value in the 27th percentile and a Momentum in the 93rd percentile according to Benzinga Edge Stock Rankings [5]

Google plans to spend up to $185 billion this year, and analysts say its data-center suppliers stand to benefit. ...

Alphabet ( NASDAQ:GOOG )( NASDAQ:GOOGL ) reported fourth-quarter earnings that exceeded analyst estimates, with full-year revenue exceeding $400 billion for the first time ever. ...

Core Insights - Google is planning a significant investment in artificial intelligence (AI) data centers and the associated chips necessary for their operation [1] Group 1: Investment Plans - The company aims to enhance its AI capabilities through a substantial financial commitment to build new data centers [1] - This investment will also focus on developing advanced chips to support the increased demand for AI processing power [1] Group 2: Industry Implications - The move is expected to strengthen Google's position in the competitive AI landscape, potentially leading to increased market share [1] - By investing in both infrastructure and hardware, Google is positioning itself to better meet the growing needs of AI applications across various sectors [1]

February 4, 2026 08:00 PM GMT Greater China Semiconductors | Asia Pacific Investor Feedback on Semi Distribution Morgan Stanley Asia Limited+ Daisy Dai, CFA Equity Analyst Daisy.Dai@morganstanley.com +852 2848-7310 Investors broadly agree with our thesis that semi distribution is entering a new phase of relevance driven by AI ASIC adoption and supply-chain complexity. Questions remain around margins, cyclicality, and relative positioning. Following our Semi Distribution – An Overlooked Segment to Play AI in ...

Market Overview - US stock futures declined, with S&P 500 futures down approximately 0.3% and Nasdaq 100 futures down 0.4%, as investors awaited Amazon's earnings and assessed Alphabet's AI spending plans [1][3] - The market is attempting to recover from a significant tech sell-off, with concerns about AI disruption affecting software stocks [2] Corporate Earnings and Forecasts - Alphabet plans to increase its AI investment to as high as $185 billion, which negatively impacted its stock price [3] - Amazon's quarterly report is anticipated, particularly focusing on its AWS cloud unit, which is expected to see a 21% increase in sales [3] - Qualcomm reported a 5% year-over-year revenue increase to $12.3 billion and earnings per share of $2.78, but its forecast for the second quarter is lower than expected due to a memory chip shortage [26][27] - Estée Lauder's shares fell 10% despite beating earnings estimates, as tariff concerns overshadowed strong Q2 results [6] - Snap reported a strong fourth quarter with revenue of $1.71 billion, exceeding Wall Street estimates, leading to a 6% increase in its stock [12][16] - E.l.f. Beauty raised its full-year sales outlook to $1.6 billion to $1.61 billion and reported better-than-expected earnings per share of $0.65 [14][16] Market Reactions - Silver prices plunged by as much as 17%, erasing previous gains, as market sentiment turned negative across various asset classes [4][21] - Bitcoin fell below $70,000 after Treasury Secretary Scott Bessent ruled out a government bailout for cryptocurrencies, leading to a crisis of confidence in the crypto market [5][11] - Broadcom's stock rose 5% following Alphabet's announcement of increased capital expenditures, which exceeded analysts' expectations [19][20] - Baidu's US-listed shares increased by 5% after announcing a $5 billion stock buyback program and its first dividend issuance [8]

Market Overview - US stock futures showed stability after a two-day tech sell-off, with S&P 500 futures up 0.1% and Nasdaq 100 futures up 0.3% as investors awaited Amazon's earnings and assessed Alphabet's AI spending plans [1][3] - The tech sector experienced a significant decline, with nearly $1 trillion wiped off the value of software stocks tracked in an iShares ETF over the past week [2][7] Company Earnings and Forecasts - Alphabet announced a substantial increase in AI investment, projecting up to $185 billion, which led to a decline in its shares [3] - Amazon's AWS cloud unit is expected to report a 21% increase in sales in its upcoming quarterly report [3] - Snap reported a strong fourth quarter with revenue of $1.71 billion, exceeding Wall Street estimates of $1.7 billion, and earnings per share of $0.03 [12][16] - E.l.f. Beauty raised its full-year 2026 sales outlook to between $1.6 billion and $1.61 billion, up from a previous range of $1.55 billion to $1.57 billion, and reported a 38% increase in net sales to $489.5 million [14][16] - Qualcomm's stock fell around 11% after reporting a revenue increase of 5% year over year to $12.3 billion, but provided a dim outlook for the second quarter due to a memory chip shortage [26][28] Market Sentiment and Trends - The recent tech sell-off was driven by concerns over AI potentially disrupting existing business models, rather than fears of a bubble [8][9] - Silver prices plunged by as much as 17%, erasing previous gains, as market sentiment turned negative across various asset classes [4][22] - Bitcoin fell significantly after Treasury Secretary Scott Bessent ruled out a government bailout for the cryptocurrency, with prices nearing the critical $70,000 level [5][11] Capital Expenditure and Partnerships - Alphabet's forecast for capital expenditures in 2026 reached $180 billion, positively impacting partners like Broadcom, which saw its stock rise by 5% [20][21] - Oracle also increased its capital expenditure forecast to around $50 billion, indicating a broader trend among tech companies investing heavily in AI infrastructure [21]