AI Is Now Carrying Wall Street's Profit Growth, and a 5% Treasury Yield Is Testing How Much It Can Hold
Stocks are near record highs with the 10-year Treasury yield above 5%, and one source of profit explains it. AI is expected to supply roughly two-thirds of the S&P 500's 30% earnings growth this quarter, with semiconductor profits projected up 136%. That support comes with a higher bar, and the first real test lands Thursday when Taiwan Semiconductor reports.
Samsung Forecast an $80 Billion Quarter and Its Stock Still Fell: Why the AI Trade Is Now About Margin Durability
Samsung just guided to roughly $80 billion in operating profit for a single quarter, a record for any technology company, and its stock closed lower. The market is no longer asking whether AI demand is real. It is asking how long a 55% margin can last in a business famous for boom and bust. Here is the mechanism behind the reaction, 3 scenarios for memory margins, and the numbers that will settle the debate on October 29.
Nvidia Hits a Record While the 10-Year Treasury Yield Hits a 24-Year High: Decoding the Contradiction
Nvidia and the Nasdaq closed at records on Monday. The 10-year Treasury yield hit its highest level since 2002 on the same day, and it did so after a weak jobs report that should have pushed it lower. That is the detail most headlines missed. Stock prices are a race between growing profits and a rising discount rate, and right now AI profits are winning. Earnings season starts next week. Here is what has to go right for that to continue, and the 1 thing that only has to go wrong.