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1. Leader industry as of 5:25 pm

Business Equip & Supplies related stocks: Zebra Technologies Corporation Class A(ZBRA.US), Pitney Bowes Inc.(PBI.US), ScanSource, Inc.(SCSC.US) , Ennis, Inc.(EBF.US)

Quick Summary and Outlook

Hyperscaler ROI Narrative Fully Activated, PLTR Surges Leading Tech Rally

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Market Overview

U.S. equities closed broadly higher, with the PowerShares QQQ Trust,Series 1(QQQ.US) rising 1.8% in one of the healthiest broad-based rallies seen in recent weeks. Internet, hyperscaler, semiconductor, and software sectors all finished in the green. On the macro front, Trump's softened stance on Iran, U.S. assistance in stabilizing the yen, and better-than-expected ISM manufacturing data provided tailwinds, with Treasury yields declining 3-5 bps across the curve.

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Main Theme: Hyperscalers — ROI Narrative Delivers

Accelerating cloud revenue and early signs of ROI materializing are fueling market conviction that this marks a turning point for the hyperscaler trade.

• Meta Platforms(META.US) +6%, leading the day
• Alphabet Inc. Class A(GOOGL.US)+5% on Friday, sustaining momentum
• Amazon.com, Inc.(AMZN.US) / Microsoft Corporation(MSFT.US) held gains after last week's surge, bolstered by cloud acceleration and ROI commentary
• Institutional preference: AMZN > MSFT > GOOGL > META

Spillover effects were pronounced, with second-order beneficiaries surging: CoreWeave(CRWV.US)+19.5%, NEBIUS(NBIS.US) +11.6%, Oracle Corporation(ORCL.US) +9.2%, VERTIV HOLDINGS LLC(VRT.US) +8.9%.

In Q2, hyperscalers posted combined CapEx of $182 billion, with cloud revenue growth of 48% beating expectations. Analysts project CapEx could exceed $1 trillion by 2027.

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Highlight of the Day: Palantir(PLTR.US) Soars 11% After Hours

Q2 results crushed expectations across the board, with full-year guidance raised significantly — the strongest validation yet of AI commercialization:

 

Metric	Actual	Consensus
Total Revenue	$1.94B, +93% YoY	+80%
U.S. Commercial Revenue	$764M, +150% YoY	+134%
Government Revenue	$990M, +90% YoY	+72%
GAAP EPS	$0.41, +156% YoY	+113%
Rule of 40	155%	—
FY Revenue Guidance Raise	+83% YoY	Street at +69%

U.S. commercial TCV hit a record $2.13 billion (+153% YoY), with 220 deals exceeding $1 million closed in Q2. The company stated that "sovereign AI demand has been unleashed."

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Semiconductors: Dip Bought, Healthy Close

The sector opened lower on news of new open-source models (Qwen and DeepSeek) from China, but recovered impressively throughout the session. The market now sees hyperscalers and semis as able to attract capital simultaneously.

• Semiconductor equipment +1.7%
• Optics +5.2% (sector leader)
• Memory mixed: WDC -3.2%, STX -2.9%
• Analog under pressure: TXN -2.4%, NXPI -2.2%

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Software: Broad Strength

• Software overall +4.2%
• Cybersecurity +2.9%
• AI software +3.1%
• High-priced software +2.1%

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Q2 Earnings Season Snapshot (Goldman Sachs)

61% of S&P 500 companies have reported; 64% beat EPS estimates — among the highest levels on record. Aggregate EPS growth: +26% (ex-tech mega-cap other income) / +45% (including other income). AI infrastructure names contributed roughly one-third of total EPS growth. Median company EPS growth was 12%, above the 9% expected.

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Risks to Watch

• Memory and analog semis remain mixed amid supply-demand uncertainty
• Apple Inc.(AAPL.US) -1.8%, bucking the uptrend
• Hyperscaler Q2 CapEx reached $182B with only $5B in free cash flow; CapEx is expected to exceed operating cash flow in 2026-2028, increasing reliance on debt and equity financing
• AI investment as a share of GDP is projected to rise to 2.8% (U.S.) by 2028, signaling sustained heavy spending

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One-Sentence Summary: The hyperscaler ROI narrative is now delivering, Palantir's blockbuster results reinforce AI commercialization confidence, and tech rallied across the board — but the mounting CapEx burden and reliance on external financing remain medium-term concerns.

2. Breaking Out Today as of 5:25 pm

3. Near Breakouts as of 5:35 pm

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Notable Stock Movers

• U.S. optical communication stocks showed strong early trading, with Applied Optoelectronics, Inc.(AAOI.US) surging over 16%, POET Technologies(POET.US) up over 14%, Coherent rising over 13%, Marvell Technology(MRVL.US) climbing over 12%, Lumentum Holdings, Inc.(LITE.US) nearly 8% higher, and Corning Inc(GLW.US) up nearly 6%.
• Palantir(PLTR.US) soared over 20% post-earnings! Q2 U.S. commercial revenue exceeded expectations, skyrocketing by 149%, with a significant upward revision of its full-year revenue guidance. AI application software stocks rose, with Snap up nearly 12% post-earnings, SoundHound AI up nearly 5%, and Unity and Applovin rising over 3%.
• The Philadelphia Semiconductor Index expanded its gains to over 5%! Marvell Technology(MRVL.US) surged nearly 12%, Intel Corporation(INTC.US) climbed nearly 8%, Advanced Micro Devices, Inc.(AMD.US) rose over 6%, Broadcom increased nearly 5%, and NVIDIA Corporation(NVDA.US) was up over 2%. Storage stocks extended gains, with Sandisk Corporation(SNDK.US) up over 8%, Micron Technology, Inc.(MU.US) nearly 7% higher, and SK hynix Inc. Sponsored ADR(SKHY.US) up over 3%.
• U.S. stocks extended their gains, with all three major indices rising over 1%. The Dow and S&P 500 reached record highs, while the Nasdaq is currently up nearly 1.6%.

Disclaimer: The content is provided as general information only and should not be taken as investment advice. All the contents shall not be taken as a recommendation to buy or sell any security or financial instruments. Any action you take resulting from information, analysis, or commentary on this article is your responsibility. Please consult your investment advisor before making any investments.