It’s that time of the quarter again

Welcome to AI Collision 💥,

In today’s collision between AI and our world:

• Sitting down?
• Who’s reporting and what to look for
• This week is fun, but the next three weeks will tell the story

If that’s enough to get the hopium flowing, read on…

AI Collision 💥

Are you sitting down…

You might want to be…

It’s…

EARNINGS WEEK(S)!

Yes folks, that’s right it’s the peak week for companies to report their earnings (over in the US mainly). And that means wildly irrational market behaviour, big intraday stock swings, volatility coming out every pore in the market’s body and big, big opportunities for investors to get great stocks at a discount.

What’s great about earnings is that Wall St. is hilariously wrong most of the time and that companies “surprising” earnings expectations are now the norm.

The biggest fear permeating through the market, and expectations is that the huge capital expenditure (capex) from massive tech, hyperscalers and pillars of the world’s internet (i.e. the likes of Microsoft, Meta, Google, Amazon, etc) isn’t going to pay off.

In fact, the fear is that AI spending is going to drain on these big players and they’re not going to get a lift in revenues, profits, or anything really.

Hogwash to that!

You watch as AI segments grow at high double-digit rates. Watch as implementation of AI improves margins, cuts costs, and improves efficiencies.

Watch as the talk particularly in manufacturing moves from AI towards AI and robotics. Watch as every company that reports a dollar of earnings, meaningfully talks about their AI strategy in their earnings calls.

It’s a fun time, so… where should you be looking as earnings drop?

Well, for a start, Apple is reporting on the 30th (Thursday) so that should be fun. You could probably line up some fun options plays around that leading into their announcement, depending on whether you think they’ll beat or miss.

Actually, I know that James Altucher has just seen a Blue Spike signal on his AI indicator that suggests something big could be brewing this week off the back of all this action and volatility, an options play to move on now. Might be something worth checking out here if you’re looking for ways to trade this market.

Note: on Apple’s earnings too, the latest iPhone sales are said to be pretty strong, so my take is that Apple beats expectations. Now that’s no guarantee of a stock rise. In fact, often an earnings beat sees a stock fall, because the beat “isn’t enough”.

Guess you can’t ever please the market.

Others to look out for?

Well, here’s a start…

Visa should be interesting, along with PayPal, Booking should make meaningful commentary around AI, AI agents and what their plans are to use agents in their platform. Meta is a doozy on Wednesday with Google (Alphabet) also shooting their shot.

Amazon, Apple, Coinbase, RIOT, Cloudfare all going to be fun times on Thursday.

But what’s going to really be worth a close look are the “neocloud” providers like Nebius, Corweave, IREN, CleanSpark and others that are now providing compute services to the hige surge in AI demand.

Those, unfortunately aren’t coming this week. Most of those are next week and the week after.

But, what you will be able to get a gauge on is from the big cats in town, Meta, Google, Amazon, Apple all going off this week, we’ve going to really see if fear is on the menu for the next few weeks, or if that surge in AI demand is growing, and if that’s going to spill out into the smaller, more asymmetric upside opportunities that we’re looking at in the AI Factory Fortunes series.

Let’s also not forget all of this is on the backdrop of the US/China trade negotiations, and a market that just wants to pump higher on pure hopium and FOMO. So, if things get spicy and the AI story gets real momentum from the Mag 7 stocks expect this market to rip higher off the back of it all.

Options, underlying stock, even predictions markets are all going to be fun ways to trade this week. But the theme across the board from healthcare to data centres to payments and cloud providers will be AI.

Who’s got it, who’s leasing it, who’s buying it, who’s investing in it, who’s benefitting and profiting from it.

It’s AI earnings week and it’s a great time to invest in the companies that will underpin the AI boom.

#AD

BULLISH ‘BLUE SPIKE’ DETECTED FOR APPLE BUYOUT CANDIDATE

Computer scientist who worked on IBM’s Deep Blue unveils new AI that can predict market moving news events.

It’s had a 74% success rate for his followers in the US since December 2023.
And now, it’s detected a ‘Blue Spike’ ahead on a little-known Apple buyout candidate.

The announcement could be made as soon as October 30th.

Click here to learn how to position yourself.

Capital at risk

Boomers & Busters 💰

AI and AI-related stocks moving and shaking up the markets this week. (All performance data below over the rolling week).

Boom 📈

• Rambus (NASDAQ:RMBS) up 16%
• WhiteFiber (NASDAQ:WYFI) up 15%
• Qualcomm (NASDAQ:QCOM) up 12%

Bust 📉

• CleanSpark (NASDAQ:CLSK) down 1%
• Rigetti (NASDAQ:RGTI) down 7%
• TeraWulf (NASDAQ:WULF) down 2%

From the hive mind 🧠

• Maybe I’m an odd-one out, but my answer here would be a resounding yes. Actually, the more I think about it, the more I’d prefer a robot to do this than a human. And I suspect this will be a fast-growing trend.
• This is certainly confronting. And it also brings back into focus who has or should have the power to “tweak” AI to ensure we’re safe, and even then, is it any safer?
• At least Amazon is leading by example. If they’re going in on AI this hard, then it’s only inevitable they’re going to shed loads of jobs.

Artificial Polltelligence 🗳️

Weirdest AI image of the day

ChatGPT’s random quote of the day

Thanks for reading, and don’t forget to leave comments and questions below,

Sam Volkering

Editor-in-Chief

AI Collision