CognitMarket market news, portfolio research, and investor insights

InvestingPro's ProPicks AI model maintains GlobalFoundries (GFS) in its 'Tech Titans' strategy, signaling confidence in the specialty foundry. GFS, a key player in essential silicon for automotive, aerospace, and data centers, recently slipped 7.8% during a broader semiconductor pullback. The company benefits from long-term supply agreements and its strategic position in diversifying the global chip supply chain away from advanced node concentration [1].

Federal Reserve Governor Christopher Waller indicated a December rate hike is likely, even if October inflation data is softer. He suggested a 50 basis point increase should be considered if inflation readings come in higher than forecast, emphasizing the need to follow through on market expectations to maintain Fed credibility. Waller stated that delaying promised hikes could lead to an undesirable loosening of monetary policy [1].

Rocket Lab (RKLB) announced Q3 2026 results, posting record revenue of $268M, beating estimates by $10.83M, and a record $3.6B backlog [1] [2]. However, the company missed EPS estimates, reporting a loss of $0.12 per share against an expected loss of $0.07 [1] [2]. Shares initially surged 10.91% before retreating 7.1% in after-hours trading, reflecting mixed investor reaction to strong top-line growth versus higher costs and a wider quarterly loss [1].

Key points:

• Revenue: $268M, up 73% YoY, driven by Space Systems ($214.8M) and Launch Services ($53.1M) [1].
• Gross Margins: Above guidance at 33.6% GAAP and 38.4% non-GAAP [1].
• Q4 2026 Outlook: Revenue guidance of $270M-$290M, above consensus [2].

Boeing Commercial Airplanes plans to cut 5% of its workforce as it struggles to increase jetliner production. The division cited the need to 'reset the pace of our production rate ramps' due to factory and supply chain instability [1].

Key impacts:

• Workforce Reduction: 5% cut through attrition and layoffs, notices starting December [1].
• Production Delays: 737 production target of 47 jets/month now expected early 2027, delayed from summer 2026 [1].
• Financial Outlook: Free cash flow target of $10 billion pushed to 2029, a year later than analysts expected [1].

This signals ongoing operational challenges for the aerospace giant.

Nvidia (NVDA) shares fell 5% today, extending recent losses, as the company confirmed an internal investigation into CEO Jensen Huang. The probe follows media reports alleging Huang's ties to a Chinese businesswoman who may have passed information to Beijing [1]. Huang reportedly addressed employees, admitting infidelity but not detailing the relationship [1].

The investigation raises questions about the future of the 63-year-old CEO, who holds a 3.6% stake and maintains a tight grip on the world's most valuable chipmaker. The board has expressed confidence in Huang, but succession uncertainty remains [1]. The news also led to the cancellation of his daughter's planned visit to Seoul for an Nvidia conference [1].

Taiwan's Financial Supervisory Commission enacted emergency short-selling curbs, slashing the cap on intraday short-sell orders from 30% to 3% and raising margin requirements to 130% [1]. This regulatory action, a direct response to a semiconductor selloff, propelled Taiwan Semiconductor Manufacturing Co Ltd (TSMC) BDR up 6.6% [1].

Adding to TSMC's momentum are reports of its potential entry into the advanced memory chip market at Nvidia's request, and a NT$500 billion stabilization fund confirmation from Taiwan's Finance Ministry [1].

Meanwhile, Nvidia shares fell 4.5% premarket due to an internal investigation into CEO Jensen Huang's future, raising concerns about leadership uncertainty and the broader AI boom's sustainability [2]. This dynamic led to rotation into TSMC, seen as insulated from Nvidia's reputational risk [1].

Bernstein highlights High-Bandwidth Flash (HBF) as a potential game-changer for AI infrastructure, addressing memory capacity and bandwidth constraints [1].

Key takeaways:

• HBF combines HBM-like read bandwidth with 8-16x greater capacity at lower cost per gigabyte, making AI inference more efficient [1].
• Could reduce GPU memory needs and allow larger AI models with fewer GPUs, cutting computing and power costs [1].
• Significant opportunity for NAND manufacturers: HBF could consume ~6.5x more NAND wafer capacity per bit than conventional TLC NAND due to higher-performance SLC flash and advanced packaging [1].

This signals a new demand vector for the NAND sector amid expanding AI workloads.

Hims & Hers Health (HIMS) shares are up over 7% premarket after striking a deal with Eli Lilly (LLY) to directly sell obesity drugs Zepbound and Foundayo on its platform [1].

Key points:

• HIMS now offers direct access to both leading GLP-1 drugmakers, Lilly and Novo Nordisk.
• The partnership removes friction for consumers, as Lilly's drugs were previously only available via LillyDirect after leaving the HIMS site.
• HIMS has agreed not to sell compounded versions of Lilly's obesity medications.
• Self-pay pricing for Lilly's drugs on HIMS matches LillyDirect, starting at $149/month for Foundayo and $299/month for Zepbound [1].

Tesla (TSLA) plans to wind down Cybertruck production at its Texas gigafactory by mid-2027, according to CEO Elon Musk [1]. This strategic shift aims to accommodate increased output for the new Cybercab model, central to Tesla’s robotaxi ambitions [1]. The Cybertruck has struggled with mass-market appeal, regulatory hurdles in Europe, and quality control issues [1]. Deliveries for "Other Models" (including Cybertruck) declined to 8,295 in Q3 from 12,364 in Q2 [1]. While the future of Cybertruck production at other facilities is unclear, this signals a significant strategic pivot for Tesla.

Major market indices plunged Thursday as investor concerns over a potential slowdown in AI buildout intensified.

• Nasdaq Composite fell >5%, entering correction territory.
• S&P 500 dropped >4%, Dow Jones >3%.
• The 'Magnificent 7' tech giants collectively lost $1 trillion in market value.

This marks a significant reversal, erasing recent gains and signaling a shift in AI sector sentiment [1].