Market Overview - Stocks are declining due to President Trump's announcement to increase tariffs from 10% to 15% [1] - Despite short-term volatility, the overall economy is projected to grow at 3% [2] - Earnings growth is expected to be in the low to mid-teens, with a 13% growth in the fourth quarter [3] Investment Opportunities - Down days in the market present good buying opportunities for long-term investors [4] - The technology sector appears oversold, particularly companies in the AI capital expenditure cycle [5] - Small-cap stocks and banks are favored due to their ties to economic growth and positive interest rate spreads [7][8] Company Insights - Nvidia is highlighted as a key holding, with expectations of strong earnings reflecting the AI capex cycle [11] - Google is also positioned well in the AI race, with strong models and cloud infrastructure [12] - JP Morgan is favored for its strong operational execution and is seen as a bet on the overall economy [14][15] Sector Analysis - The financial sector, particularly banks, is expected to benefit from fiscal and potential monetary stimulus [14] - Shopify is viewed positively despite a 25% decline, due to its capabilities in e-commerce and logistics [18] - Gold (GLD) and Bitcoin (IBIT) are both considered long-term investments, with gold currently trading around $5,200 per ounce and Bitcoin above $65,000 [20][22] Market Sentiment - The market is expected to stabilize despite current headwinds from tariffs [28] - A bullish outlook is maintained for the S&P 500, with a target of 8,000 [32]

The technology sector has been a great place to put your money over the past few years, as artificial intelligence (AI) and other tech stocks mostly soared. But AI is disrupting so many industries that old tech stalwarts, which once seemed impervious to competition, are being disrupted. That can make picking individual tech-stock winners difficult and is why putting your money into a technology exchange-traded fund (ETF) may be a smart move. Doing so allows you to spread your money across many tech stocks ...

Market Overview - The S&P 500 Index is near record highs, while the Dow Jones Industrial Average Index closed above 50,000 for the first time [1] - Tech stocks, particularly the Magnificent 7, are experiencing significant declines, with Microsoft leading the drop at 25% from its peak [2] Company Performance - Apple is down about 5% from its all-time highs and did not participate in the AI rally, which explains its relative stability [2] - Alphabet has seen a 9% decline from its record highs, while other Magnificent 7 stocks are down in double digits [2] Capital Expenditure Trends - Hyperscalers' capital expenditure is projected to reach $700 billion this year, raising concerns about cash flow and balance sheet pressures for tech companies [4] - Tech giants are shifting from buybacks to raising debt capital for funding capex, with Alphabet recently issuing over $30 billion in bonds, including a 100-year bond [5] Sector Outlook - UBS downgraded the tech sector to "Neutral" from "Attractive," citing concerns over expected capex slowdown, AI-led disruptions, and stretched valuations in tech hardware [6][7] - Despite the downgrade, UBS remains optimistic about AI's potential to create efficiencies in sectors like healthcare and finance [6]

February 10, 2026 09:00 PM GMT China Equity Strategy | Asia Pacific 4Q25 Pre-Announcements: A- share Deterioration Driven by Mid- and Small-Caps, While MSCI China Remained Resilient As of February 6, 2026, 2,834 A-share companies (~55% of all A-share listings, ~38% by market cap) had released 4Q25 pre-announcements, with a major deterioration, marking the worst quarter in 2025, mainly dragged by mid- and small- cap names: For MSCI China universe (based on 131 alerts, representing 23% by number of companies ...

Core Insights - Fidelity Growth Strategies Fund's fourth-quarter 2025 investor letter highlights a diversified equity strategy focused on domestic midcap growth stocks, emphasizing quality companies with steady above-average growth potential [1] Fund Performance - The Fund (Retail Class shares) returned -3.44% in Q4 2025, outperforming the benchmark Russell Midcap® Growth Index, which returned -3.70% [1] - The U.S. stock market experienced a rapid rebound in Q4, driven by strong corporate fundamentals and significant spending on artificial intelligence [1] Company Highlights: ATI Inc. - ATI Inc. (NYSE:ATI) was noted as a leading contributor to the Fund's performance, with its stock gaining 7.51% over the past month and 100.76% over the last 52 weeks, closing at $127.50 per share on February 4, 2026, with a market capitalization of $17.574 billion [2] - ATI primarily operates in the aerospace and defense sectors, which account for about two-thirds of its business, and reported solid revenue growth and improved profitability in Q3, driven by high-margin aerospace product sales [3] - The company projected strong earnings growth for 2025 and Q1 2026 [3] Hedge Fund Interest - ATI Inc. was held by 58 hedge fund portfolios at the end of Q3 2025, an increase from 57 in the previous quarter [4] - The company's 2025 revenue increased by 5% year-over-year, reaching $4.6 billion [4]

Fidelity Investments, an investment management company, recently released its “Fidelity Growth Strategies Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fidelity Growth Strategy is a diversified equity strategy aimed at domestic midcap growth stocks. The approach focuses on identifying quality companies that deliver steady above-average growth and can outperform over time. The Fund (Retail Class shares) returned -3.44% in the quarter compared to the benchmark Ru ...

Market Overview - The global tech sell-off is impacting markets worldwide, with the KOSPI index in Korea, heavily influenced by companies like Samsung and SK Hynix, experiencing significant declines [1][3] - There is a shift in market sentiment, with investors moving from AI software stocks to hardware plays, indicating a potential unhealthy rotation in the market [2] Investor Behavior - A capitulation is observed in Korea, affecting even previously resilient stocks, suggesting a broader market downturn that may extend globally [3] - Investors are now focused on profit and loss management, leading to position cuts across various sectors, including Chinese tech, which is also facing heavy losses [4] Market Sentiment - Current market conditions have led investors to prioritize squaring up positions over concerns about the tech sector's future, reflecting increased volatility and uncertainty [5]

Summary of Greater China Technology Hardware Conference Call Industry Overview - The conference focused on the Greater China Technology Hardware sector, specifically addressing the impact of input cost hikes on profit outlook for 2026 [4][8]. Core Insights - **Opportunities in AI and Server Upgrades**: There are significant opportunities in AI GPU and ASIC server/rack design upgrades, particularly with the upcoming Vera Rubin platform and Kyber architecture [8][8]. - **AI ASIC Server Expansion**: The magnitude of AI ASIC server upgrades and volume expansion is primarily centered around TPU and Trainium platforms [8][8]. - **Share Price Upside Potential**: Analysts see potential for share price upside in the near term due to various factors including AI server power solutions and capacity expansion across the tech hardware supply chain [8][8]. - **Risks Identified**: - Consumer electronics demand, particularly for smartphones and PCs, is being negatively impacted by rising memory costs [8][8]. - Anticipated lower business momentum in the second half of 2026 due to pull-forward builds in the first half [8][8]. - Raw material price hikes (copper, nickel) and supply tightness are expected to create margin headwinds [8][8]. - Supply shortages may delay shipment pace, affecting overall market performance [8][8]. Key Stock Ideas - **AI Server Hardware**: Recommended stocks include Wistron, FII/Hon Hai, Wiwynn, Delta Electronics, AVC, BizLink, King Slide, Accton, Chenbro, Gold Circuit, Innolight, FIT, and Fositek [8][8]. - **Edge AI Companies**: Notable mentions include Xiaomi, Luxshare, and Lenovo [8][8]. Valuation Comparison - A detailed valuation comparison of various companies within the Greater China Technology Hardware sector was provided, including metrics such as market cap, EPS estimates, P/E ratios, and target prices [10][10]. - Companies highlighted include Lite-On Tech, Delta, Hon Hai, Foxconn Tech, and others, with specific price targets and ratings [10][10]. Additional Considerations - The report emphasizes the importance of considering Morgan Stanley Research as one of several factors in investment decision-making, acknowledging potential conflicts of interest [4][5]. This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future outlook of the Greater China Technology Hardware industry.

Tech stocks have been a big story over the past year. Many are benefiting from monster AI tailwinds as demand for tech-related hardware, such as chips, accelerates. As a result, many investors have piled into the tech sector, overallocating their portfolios to the industry. With many tech companies trading at a premium valuation these days, investors might want to forget about the sector until prices come down. However, they can still benefit from AI-driven tailwinds in other sectors, such as energy. Brook ...

Core Insights - Dell Technologies is undergoing a significant transformation, moving from a traditional PC-centric business to a key player in the AI infrastructure market, attracting investor interest [3][16] - The company has reported substantial revenue growth, particularly in its Infrastructure Solutions Group, which includes servers and networking, driven by the demand for AI-optimized solutions [6][8] - Dell's earnings per share have increased nearly 40% year over year, reflecting improved pricing and a more profitable product mix, which is unusual for a company historically associated with office PCs [10][12] Revenue and Growth - In the latest fiscal year, Dell generated approximately $95–96 billion in revenue, with significant growth coming from servers and networking, indicating a robust demand for AI infrastructure [8] - The company has a multi-billion-dollar backlog of AI servers, suggesting strong future revenue potential as customers have already placed orders [9] Market Position and Valuation - Dell is benefiting from increased AI spending without being valued as a speculative tech stock, maintaining a valuation that reflects its traditional business model while transitioning to higher-value infrastructure [12] - The company is committed to returning capital to shareholders through dividends and share repurchases, which is a rare combination in the tech hardware sector [13] Long-term Outlook - The current AI infrastructure spending cycle is expected to be a multi-year trend, with Dell positioned to provide comprehensive solutions at scale, making it a key player in this evolving market [14][15] - The PC business now serves to stabilize Dell's overall operations, while the real growth opportunities lie in infrastructure and enterprise services [15][16]