Quick Summary Earnings beats and upgrades are driving sharp upside gaps Weak guidance and regulatory risk are triggering heavy sell-offs Tech, healthcare and AI-linked names dominate volatility Gapping Up Quince Therapeutics +81.7% Appointed LifeSci Capital to explore strategic alternatives and restructuring Credo Technology +14.5% Issued preliminary Q3 revenue well above guidance Ferrari +10.8% Q4 earnings beat and order book now stretches to end-2027 Entegris +9.5% Beat Q4 results and guided Q1 above consensus Spotify Technology +8.5% Earnings beat , strong premium subscriber growth, and margin improvement Datadog +7.0% Q4 beat and Q1 revenue guidance topped estimates Oscar Health +6.6% Issued strong FY26 revenue and operating earnings outlook Vistra Energy +4.2% Upgraded to Buy by Jefferies Unity Software +3.6% Oppenheimer upgrade to Outperform Astera Labs +3.5% Ahead of earnings and announced new AI design...
Quick Summary
TSMC’s January revenue surged past NT$400 billion, beating expectations
US payrolls data delayed to Feb 11 due to government shutdown
Microsoft now trades cheaper than IBM on forward P/E for the first time in 10 years
AI capex remains the market’s key pressure point
Before the Bell: Futures Check
US stock futures were steady after the Dow hit another record high:
Nasdaq 100 futures: +0.03%
S&P 500 futures: +0.09%
Dow futures: +0.05%
TSMC Leads the AI Supply Chain
Taiwan Semiconductor Manufacturing Co reported January revenue of NT$401.26 billion, up:
+36.8% year-on-year
+19.8% month-on-month
Key takeaway: AI-driven demand continues to flow straight into foundry earnings, reinforcing TSMC’s position at the core of the global AI buildout.
Jobs Data Delay Adds Uncertainty
The January Nonfarm Payrolls report has been pushed to Feb 11 due to the partial US government shutdown.
Report will include annual benchmark revisions
Could remove up to 900,000 jobs from the 2025 employment tally
Market risk: Labour data revisions could reshape rate-cut expectations.
Microsoft vs IBM: A Valuation Signal
For the first time in a decade, Microsoft is trading below IBM on a forward P/E basis.
Why?
Massive AI infrastructure spending
Microsoft’s 2026 capex may reach US$115 billion
Investors reassessing profitability vs growth trade-offs
Signal: AI leadership no longer guarantees premium valuations.
Other Corporate Highlights
AstraZeneca advanced its oral weight-loss drug into late-stage trials
Reinforces Big Pharma’s push into obesity treatments
Crypto Check
Bitcoin: -1.78% to US$68,892
Ethereum: -4.43% to US$2,011
A large ETH holder partially closed long positions after ETH briefly fell below US$2,000, highlighting fragile sentiment.
What to Watch Today
Economic Data
Retail Sales (MoM)
Core Retail Sales (MoM)
Earnings
Before market: Coca-Cola, Spotify Technology
After market: Robinhood
Bottom Line
AI demand remains powerful, but its cost is reshaping market valuations.
TSMC’s blockbuster revenue underscores hardware strength, while Microsoft’s valuation compression shows investors are becoming more selective about who truly benefits from the AI boom.
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