[Good Morning Stock Market] US Tech Earnings Season... "Focus on Impact on Domestic Semiconductor Stocks"

As the earnings season for major U.S. big tech companies continues, investor attention is also focused on the direction of domestic semiconductor-related stocks on the 30th.

Stock brokers are conducting business at the New York Stock Exchange in the United States.
[Photo by Reuters]

On the 29th (local time), the three major indices of the U.S. New York Stock Exchange closed mixed. The Dow Jones Industrial Average, centered on blue-chip stocks, closed at 42,233.05, down 154.52 points (0.36%) from the previous trading day. The S&P 500, focused on large-cap stocks, rose 9.4 points (0.16%) to 5,832.92, and the Nasdaq, centered on tech stocks, closed at a record high of 18,712.75, up 145.56 points (0.78%).

Investor interest was concentrated on this week's earnings announcements from the Magnificent 7 (the seven major Nasdaq tech stocks, M7). Following Alphabet, the earnings of Meta, the parent company of Facebook, Microsoft (MS), and Apple are scheduled to be released this week.

After the market closed, Alphabet, Google's parent company, announced its Q3 earnings, reporting revenue of $88.27 billion and earnings per share (EPS) of $2.12. Alphabet, which rose 1.66% during regular trading, exceeded market expectations and is currently up over 5% in after-hours trading. AMD, considered a rival to Nvidia in the AI accelerator market, reported strong Q3 earnings but disappointed the market with its future profitability outlook, resulting in a decline of over 7% in after-hours trading.

Han Ji-young, a researcher at Kiwoom Securities, said, "The domestic market on this day is expected to continue a differentiated sectoral trend after an initial rise, driven by the Nasdaq's record highs centered on the M7," adding, "While AMD's sharp stock price drop may weigh on domestic semiconductor stocks, Alphabet recorded a surprise earnings beat due to strong performance in its core businesses such as advertising and cloud, leading to a sharp rise."

She further noted, "Alphabet's surprise earnings driven by strong performance in core businesses like cloud, along with its mention of an upward revision in capital expenditures (CAPEX) for Q4 and the possibility of further increases next year, are driving the sharp rise," adding, "This is expected to provide positive momentum to related stocks, including those involved with high-bandwidth memory (HBM)."