Big Tech AI Bets, Global Risks, and Upcoming Bank Earnings
Weekly Breakdown for the Week of July 6-10, 2026
Meta Doubles Down on the AI Race
Meta (META) dominated headlines this week after unveiling a new frontier AI model alongside fresh details about its rapidly expanding AI infrastructure strategy.
The company confirmed plans to begin production of its custom in-house AI chip, code-named Iris, in September as it works to reduce reliance on third-party suppliers like Nvidia (NVDA) for portions of its AI workloads.
At the same time, management reaffirmed its aggressive AI spending plans, targeting roughly 14 gigawatts of computing capacity by next year, reinforcing the view that AI capital expenditures remain a top priority despite recent investor concerns.
The announcements helped calm fears that hyperscalers were pulling back on AI infrastructure investment and reinforced Meta’s commitment to remaining one of the industry’s biggest AI spenders.
SK Hynix’s Historic U.S. Debut
SK Hynix (SKHYV) completed one of the largest IPOs in U.S. market history this week, raising roughly $26.5 billion through its Nasdaq listing as investor demand for AI infrastructure companies remained exceptionally strong.
The offering was reportedly more than seven times oversubscribed, and the shares surged in their trading debut, highlighting continued enthusiasm for the leading supplier of high-bandwidth memory used in Nvidia’s AI GPUs.
The listing also led to the creation of new trading products, such as GraniteShares’ leveraged ETFs, with SKUU offering 2x daily long exposure and SKDD providing 2x daily inverse exposure for traders looking to express bullish or bearish views on the stock’s volatility.
Iran Tensions Return but Oil Stays Calm
Geopolitical tensions between the United States and Iran escalated again this week following new military actions and retaliatory threats.
Despite the renewed headlines, crude oil prices remained surprisingly restrained, with traders appearing confident that global supply disruptions remain unlikely for now.
The muted reaction in energy markets suggested investors believe the conflict is still unlikely to significantly impact oil production or shipping routes.
Nvidia Gets a China Boost
Nvidia (NVDA) rallied after reports indicated that some of its H200 AI accelerators could soon become available to Chinese customers under updated export arrangements.
The news eased concerns that Nvidia would remain largely shut out of one of the world’s biggest AI markets and raised expectations that sales into China could improve after months of regulatory restrictions.
Investors viewed the development as another positive step toward expanding Nvidia’s addressable market, while the company continues to balance U.S. export rules with strong global demand for its AI hardware.
FuelCell Energy Slides on Capital Raise
FuelCell Energy (FCEL) came under heavy selling pressure after announcing a public stock offering, with investors reacting negatively to the prospect of shareholder dilution.
While the company intends to use the proceeds to strengthen its balance sheet and support future growth initiatives, equity offerings often weigh on companies due to the increased number of outstanding shares.
The financing overshadowed the company’s recent momentum, making the stock one of the week’s weakest performers.
Palo Alto Networks Pushes for Cheaper AI
Palo Alto Networks (PANW) CEO Nikesh Arora argued this week that AI token costs still need to decline significantly before enterprises can fully scale AI adoption.
He noted that while demand for AI applications remains strong, many businesses continue to face economic hurdles because inference costs remain too high for widespread deployment.
His comments reinforced a growing industry view that lowering AI operating costs, rather than simply building larger models, will be one of the next major drivers of AI adoption across enterprise software.
Earnings Season Kicks Off with the Banks
Second-quarter earnings season officially begins next week with the major U.S. banks reporting results, including JPMorgan Chase (JPM), Citigroup (C), Wells Fargo (WFC), Goldman Sachs (GS), Bank of America (BAC), and Morgan Stanley (MS).
Investors will be watching closely for commentary on loan growth, credit quality, investment banking activity, trading revenue, and the broader economic outlook.
With markets trading near record highs and expectations for the Federal Reserve still evolving, management commentary may prove just as important as the earnings numbers themselves in setting the tone for the rest of reporting season.
Sector Weekly Performance
Current Themes & Volatile Movers
Headline Reactions
News catalysts of all types caused sharp reactions in many stocks this week.
BE saw volatile trading after recently announcing a $25B AI infrastructure framework with Brookfield. Shares later fell 13% following a short report focused on the company’s Chinese supply chain exposure.
AMD up 2% after Goldman Sachs raised its price target to $640.
RKLB down 18% as space-related stocks traded broadly lower.
DELL up 7% after positive comments from President Trump encouraged consumers to purchase the company’s products.
WULF down 11% after signing a 20-year lease with Anthropic at its Kentucky data campus and agreeing to sell a 50.1% stake in the Abernathy joint venture to an investor group.
SPCX remained volatile after joining the Nasdaq-100, receiving widely varying analyst price targets, and experiencing large sell imbalances into Friday’s close.
FCEL fell 23% after announcing a $225 million public stock offering.
INTC down 12% as AI semiconductor stocks broadly weakened on Tuesday.
OXY up 8% as oil prices rallied following renewed Iranian strikes on commercial shipping vessels.
ALAB down 6% as AI infrastructure and equipment stocks sold off sharply.
CRNX up 97% after Vertex Pharmaceuticals agreed to acquire the company for $85 per share in cash.
NVDA gained 8% throughout the week after reports that China may allow leading AI companies, including Alibaba, ByteDance, and DeepSeek, to purchase limited quantities of Nvidia H200 chips.
BABA up 15% following a positive pre-earnings update showing steady profitability and narrowing commerce losses.
AAL down 7% as rising oil prices pressured airline stocks following renewed Middle East tensions.
NBIS up 4% as AI compute stocks rallied after renewed confidence in Meta’s long-term AI capital expenditure plans.
MRNA fell 12% throughout the week after Morgan Stanley initiated coverage with a $39 price target and biotech momentum weakened into Friday.
SMCI up 4% on renewed optimism surrounding AI data center construction.
SYF down 6% as financial stocks broadly weakened on Wednesday.
LITE up 10% after positive analyst commentary lifted optics sector stocks.
PANW down 8% after CEO comments highlighted the importance of declining AI token costs for the cybersecurity industry.
PEP down 4% after reporting mixed earnings, missing adjusted EPS expectations while beating on revenue.
HPE up 14% amid strength across PC and AI infrastructure hardware stocks.
COST down 4% after reporting June sales results and receiving a price target cut from JPMorgan.
CRWD down 6% after receiving several analyst price target cuts during the week.
RIVN down 7% as buying momentum faded into Friday.
RXT down 10% on a relief rally following a recent offering-driven selloff.
EQPT up 16% after reporting financial results and authorizing a $500 million share repurchase program.
Market & Economic News
Bitcoin rose to nearly $64K on Monday after Trump made positive comments on crypto.
Semiconductor stocks rallied after a nearly two-week slump.
The U.S. revoked a license allowing Iranian oil sales after three ships were recently attacked.
Global chip stocks fell in response to a drop in Samsung shares on quarterly results.
Oil prices gained as Iranian-U.S. strikes escalated on Wednesday.
Fed meeting minutes showed high uncertainty and evenly divided debate over the rate outlook.
SK Hynix priced its U.S. IPO share offering at $149 on Friday.
Oil prices fell after Trump stated that Iran wants to make a deal.
The FDA proposed a rule to streamline drug manufacturing registration.
The U.S. stated that talks with Iran continue despite Hormuz skirmishes.
Upcoming Earnings
Monday 7/13/26
AERO, FBK
Tuesday 7/14/26
C, GS, JPM, BAC, WFC, FAST, ERIC, ANGO, AEHR, EQBK, PXED, KMTS, LOOP
Wednesday 7/15/26
ASML, UAL, PGR, JBHT, BLK, HOMB, CAG, MS, JNJ, ELV, PNC, MTB
Thursday 7/16/26
NFLX, UNH, USB, ISRG, CNS, GE, FNB, STT, WSE
Friday 7/17/26
RF, TFC, FITB, ALV, SPFI, TRV, SDKY, VLVLY
Upcoming Economic Events & Data
Monday 7/13/26
Fed Waller Speech
Monthly Budget Statement
Tuesday 7/14/26
NFIB Business Optimism Index
ADP Employment Change Weekly
Core Inflation Rate
Inflation Rate
CPI
Redbook
Fed Chair Warsh Testimony
Fed Cook Speech
API Crude Oil Stock Change
Wednesday 7/15/26
MBA 30-Year Mortgage Rate
MBA Purchase Index
PPI
Core PPI
NY Empire State Manufacturing Index
Fed Chair Warsh Testimony
EIA Crude Oil Stocks Change
Thursday 7/16/26
Retail Sales
Initial Jobless Claims
Philly Fed Manufacturing Index
NY Fed Services Activity Index
Retail Sales
NAHB Housing Market Index
Fed Logan Speech
Friday 7/17/26
Building Permits
Housing Starts
Industrial Production
Manufacturing Production
Michigan Consumer Sentiment
Baker Hughes Oil Rig Count