NAS100 rally cools as AMD and SpaceX earnings underwhelm
NAS100 analysis
NAS100 posts a relief rally following its brief correction last week, but momentum cools today as markets reacted poorly to the latest high-profile AI earnings. In its first quarterly report as a publicly traded company, SpaceX posted an 81.75% y/y increase in capital expenditure [1] to fund an ambitious roadmap laced with massive costs and significant execution risks. Chip maker AMD underwhelmed investors with its guidance for the current quarter, expecting a pullback in revenue growth to 41% y/y. [2]
Shares of both SpaceX and AMD were down in pre-market, weighing on NAS100 and reviving concerns over the rising cost of the data centre buildout, increasingly funded by debt issuance, and risks to AI proliferation. This comes against a backdrop of macro-geopolitical uncertainty and expectations for higher Fed rates, with elevated yields pushing the cost of capital higher. On the technical front, the RSI points to overbought conditions, which could spark renewed pressure, keeping the index vulnerable to deeper corrections.
However, the path of least resistance for NAS100 remains clearly toward new all-time highs, as these concerns do not appear sufficient to outweigh the structural drivers. This earnings season has produced mostly strong tech results, with hyperscalers Meta Platforms, Amazon.com, Microsoft and Google, raising their combined capex targets as they stay committed to the physical AI buildout.
AMD directly benefits from these investments and the shift toward inference and Agentic AI. Its guidance still points to solid growth momentum and the results were overall very strong. SpaceX also delivered impressive earnings, with net losses narrowing and revenues jumping 92% y/y, driven by the AI segment thanks to new cloud service deals.
At the same time, markets are hopeful for a US-Iran deal after President Trump said the two sides are talking [3] and Treasury Secretary Bessent told CNBC that a deal could come as early as today [4]. A successful outcome would allow oil flows through the Strait of Hormuz to normalise, which could ease inflationary risks and pressure on the Fed to hike rates.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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