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1. Leader industry as of 5:22 pm

Telecom - Equipment related stocks: Lumentum Holdings, Inc.(LITE.US), Ciena Corporation(CIEN.US), EchoStar Corporation Class A(ECHO.US), Applied Optoelectronics, Inc.(AAOI.US), Viavi Solutions Inc(VIAV.US), Belden Inc.(BDC.US), Preformed Line Products Company(PLPC.US), Harmonic Inc.(HLIT.US), Gilat Satellite Networks Ltd.(GILT.US).

Quick Summary and Outlook

Market Snapshot — U.S. equities rallied on with tech leading gains, driven by Sandisk Corporation(SNDK.US)'s Analyst Day and strong earnings from neocloud providers, while concerns over AI margin compression and capex efficiency persisted.

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Market Overview: The Nasdaq 100 (PowerShares QQQ Trust,Series 1(QQQ.US)) rose 1.1%, the S&P 500 gained 0.73%, and the Russell 2000 added 0.30%. Treasury yields fell 4-7bps across the curve. The S&P 500 index(SPX.US) 500 is up 13.9% YTD, but BofA's private client equity allocation hit a record 66.4%, signaling extreme bullish positioning.

 

Sector & Stock Movers: Memory surged 6.3%, AI software rose 5.6%, and security software gained 4.1%. Sandisk Corporation(SNDK.US) jumped 14% after its Analyst Day, targeting ~80% gross margin and 75% operating margin by FY30. Workday(WDAY.US) rallied ~18% on Silverlake acquisition rumors. MongoDB, Inc. Class A(MDB.US) hit a new 52-week high, up 7.87%. Netflix(NFLX.US) added 5% after Ackman disclosed a 5% stake. Reddit, Inc. Class A(RDDT.US) rose 12% after-hours on S&P 500 inclusion news.

 

Lagging Stocks: Cisco Systems, Inc.(CSCO.US) fell 6-8% despite record AI orders of $40B, as gross margin guidance of 65-66% missed expectations. Coherent Corp.(COHR.US) declined 6-8% on overly high market expectations. Cerebras Systems(CBRS.US) dropped 15% post-earnings. Applied Materials, Inc.(AMAT.US) slipped 4.5% after-hours as buy-side expectations had already been elevated by Lam Research Corporation(LRCX.US)'s prior guidance.

 

Key Earnings Highlights: Sandisk Corporation(SNDK.US)'s Analyst Day was the event of the day, with long-term targets of ~80% gross margin and ~75% operating margin by FY30, plus its HBF technology (HBM-level bandwidth at 1/8 the cost) set for 2028 volume production. Applied Materials, Inc.(AMAT.US) reported F3Q26 revenue of $9.12B (+25% YoY), beating estimates. Cisco Systems, Inc.(CSCO.US) posted $17.25B in FQ4 revenue with $4B in AI orders, but margin pressure on rising AI hardware mix weighed on sentiment. Coherent Corp.(COHR.US) delivered $2.05B in revenue (+34% YoY), with InP laser output up ~80% YoY.

 

Neoclouds Steal the Spotlight: NEBIUS(NBIS.US) surged 34% on Q2 revenue of $582M (+454% YoY), with AI cloud revenue up 514%. CoreWeave(CRWV.US) rose 19% on Q2 revenue of $2.575B (+112% YoY) and a backlog of $104.2B. GPU short-term contract pricing has reached $40-50M per MW. The narrative has shifted from "does AI demand exist" to "can orders be delivered on time and when will capex convert to cash flow".

 

Flows & Macro: U.S. equities saw $15.6B in inflows over the past 3 weeks, with hedge funds buying $6.8B in a single week — the largest in 18 years. However, tech saw its largest outflow in 7 weeks at -$1.2B, rotating into materials (+$2.5B). BofA's Bull & Bear Indicator remains in extreme bullish territory at 9.3. The report outlined four key 2020s allocation rules: ABB (Anything But Bonds), ABD (Anything But the US Dollar), and AI (All-in on AI). Key risks include U.S. debt approaching $40T and the November midterm elections.

 

Looking Ahead (Aug 14): S&P 500 futures are flat to slightly positive (+0.15%), while Nasdaq futures are marginally lower (-0.05%). Overnight in Asia, the KOSPI surged 3.56%, with Samsung +2% and SK hynix Inc. Sponsored ADR(SKHY.US) +3.5%. The rotation into semiconductors and software remains constructive, with focus on AI margin trends, hyperscaler capex, and neocloud execution in the weeks ahead .

2. Breaking Out Today as of 5:22 pm

3. Near Breakouts as of 5:22 pm

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