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Foxconn is working on another partnership with OpenAI, Chairman Young Liu said Friday at the company’s Hon Hai Tech Day in Taipei.
He gave no terms and said an announcement will follow once details are confirmed. Liu also met Sam Altman earlier that day and rejected the idea that AI is in a bubble.
He said Foxconn expects double-digit growth next year. The deal would build on the companies’ November 2025 agreement to co-design AI data-center racks and hardware.
Nasdaq futures fell more than 2% in premarket trading Friday after Amazon and Intel gave investors fresh reasons to worry about the cost of the AI buildout.
Amazon shares dropped about 6% to 7% before the bell, and Intel fell roughly 25%. Reuters reported that the two stocks were on track to lose around $300 billion in combined market value if the declines held.
Amazon cited a sharp third-quarter cash outflow and signaled that capital spending will rise again next year. Intel warned it would burn cash this year, blaming weak PC demand, manufacturing bottlenecks, and heavy spending to expand production.
Chip stocks fell too, with Nvidia down about 2.5% and AMD about 7%. Fed rate-hike expectations added to the pressure.
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More than $2 trillion in market value is on track to disappear from the Nasdaq 100 this month, as Big Tech earnings sharpened questions about whether heavy AI investment can pay off fast enough.
The index is down more than 5.8% in October. Meta, Alphabet and Amazon have all raised their spending forecasts.
Rising borrowing costs are making debt-funded buildouts harder to justify. Microsoft and SpaceX reported results suggesting the spending is starting to pay off.
A sharp selloff in technology stocks is exposing investor anxiety over the cost and returns of the artificial-intelligence boom.
Intel shares plunged after forecasting fourth-quarter revenue of $15 billion to $16 billion, well below Wall Street’s $17 billion estimate, while warning that PC-market weakness will persist into 2027.
Alphabet faced pressure after reporting $9.07 billion in quarterly negative free cash flow as AI investment accelerated. Amazon’s AWS revenue grew 39.3%, but trailing-12-month free cash flow fell to negative $42.4 billion; the company expects about $220 billion in 2026 capital spending.
Investors are questioning whether infrastructure bills will deliver adequate returns.
The AI infrastructure market is sending mixed signals. AWS reportedly has capacity commitments extending through 2027, while Anthropic continues to face compute constraints.
Intel's data center revenue growth highlights strong demand, but cautious guidance raises concerns. Meanwhile, Kioxia's modest revenue outlook contrasts with the broader NAND supercycle.
Samsung and SK Hynix are delivering strong earnings, although long-term agreement terms create pricing uncertainty.
Cloud growth remains impressive, with Google Cloud, Azure, and AWS expanding rapidly, but heavy infrastructure spending pressures free cash flow.
Rising memory prices are also hurting consumer electronics demand, while tighter financing complicates neocloud expansion.
Buildout forecasts remain aggressive.
China’s leading optical suppliers reported strong profit growth in the first nine months of 2026, but cash flow performance varied significantly.
Operating cash flow as a percentage of attributable net profit reached 12.9% at Eoptolink, 36% at Zhongji Innolight, and 84.3% at Yuanjie.
Eoptolink cited higher payments for materials and taxes, while Innolight pointed to inventory preparation and advance payments for upstream supplies.
These differences highlight the importance of working capital. The next challenge is converting inventory, customer orders, and reported profits into actual cash.
Blackstone has reportedly warned investors that Anthropic may receive a high-yield, or “junk,” credit rating after its planned IPO, rather than the investment-grade status previously anticipated.
The Financial Times report, citing people familiar with the matter, links the assessment to Anthropic’s substantial infrastructure commitments and financing needs.
A speculative-grade rating could limit access to institutional lenders and increase borrowing costs. However, Moody’s, S&P Global Ratings and Fitch have not announced a final post-IPO rating.
The report may have added to pressure on technology shares, but it does not establish that FT coverage caused the semiconductor selloff or specific chip-stock losses alone.
Samsung Electronics and SK hynix are facing renewed stock market pressure as investors question whether massive AI infrastructure investments can deliver sustainable returns.
Both companies reported record third-quarter 2026 results. Samsung generated 195.3 trillion won in revenue and 107.4 trillion won in operating profit, while SK hynix recorded 104.6 trillion won in revenue.
However, concerns about Big Tech spending and rising borrowing costs continue to weigh on semiconductor stocks. Reuters reported mounting Wall Street concerns about AI profitability.
Anthropic's reported $100 billion IPO ambitions could further influence investor sentiment, although funding expectations remain uncertain.
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Samsung Electronics CEO Jun Young-hyun urged caution during the company's 57th anniversary, warning that the artificial intelligence boom could be temporary.
Despite record third-quarter revenue of approximately 195 trillion won and operating profit of 107 trillion won, semiconductor operations generated nearly all operating earnings.
Meanwhile, Samsung's smartphone and consumer electronics division reported an operating loss. The company plans substantial capital expenditure and research investment to strengthen its competitiveness.
Jun emphasized the importance of securing next-generation technologies, improving manufacturing capabilities, and maintaining customer trust.
His warning also reflects South Korea's broader economic challenge: reducing dependence on semiconductor exports to sustain long-term growth.
SK Group has announced its 2027 executive appointments, retaining key CEOs while reshaping leadership across its energy and semiconductor businesses.
The changes were approved on October 30 following an extraordinary SUPEX Council meeting.
SK Innovation appointed Chung Seung-il and Kang Dong-soo as co-CEOs, effective November 1.
Chung will lead power business expansion and future growth, while Kang will focus on operational efficiency and energy portfolio improvements. Jang Yong-ho will remain CEO of SK Inc.
SK hynix also retained CEO Kwak Noh-jung, while establishing a new Americas headquarters led by Ahn Hyun to strengthen relationships with major technology customers.
SK also reassigned executives across its energy and chemical subsidiaries, including SK Geo Centric, SK Earthon and SK Gas.
It created a Southeast Asia regional headquarters led by Choo Hyeong-wook to support regional business expansion.
The appointments highlight SK Group’s strategy of maintaining leadership stability while strengthening AI, semiconductor, and energy investments.
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$INTC just posted its worst day in over 50 years.
Operating profit is still projected to swing from an $11.7B loss to nearly $20B by 2028.
Data center margins hit 42%. Cost of the newest chips is down ~40% since Q1.
The market is reacting to the near-term pain. The chart is showing the recovery.
South Korea’s KONEX market is seeing a sharp decline in transfers to KOSDAQ, with only one company completing the move so far this year.
Companies blame securities firms for imposing stricter requirements beyond the official Fast Track rules, including higher profit targets and IPO valuations.
Some firms reportedly demand operating profits to triple before approving transfers.
The Korea Exchange says Fast Track requirements differ from its actual listing eligibility review.
Meanwhile, tighter delisting rules and weaker IPO conditions are increasing pressure on KONEX companies, leaving some considering delisting altogether.
