To The Moon

The US stock market is entering another important trading session, but investors have more than corporate earnings to consider.

Tuesday’s session ended with the Nasdaq gaining 0.83% and the S&P 500 rising 0.36%, while the Dow slipped 0.38%. Technology and semiconductor stocks provided some support, although market participation remained uneven. 

The latest US midterm election results have introduced another source of uncertainty. Democrats have secured control of both chambers of Congress, raising questions about potential changes to technology regulation, AI policy and government spending. Markets will need time to assess the implications. 

Here are five stocks I would put on my watchlist today.

1. $Advanced Micro Devices(AMD)$ - Can Earnings Momentum Continue?

AMD remains one of the most interesting semiconductor stocks to watch.

Its latest results showed record data centre revenue of $8.5 billion, up 97% year over year, while next-quarter revenue guidance came in at approximately $17 billion.

The numbers demonstrate that demand for AI computing remains strong. However, after the earnings-driven rally, I would be watching whether investors continue to support the higher valuation.

My focus is on data centre growth, gross margins and the company’s ability to deliver its next generation of AI accelerators.

2. $ARM Holdings(ARM)$ - An Important Test for AI Chip Demand

Arm reports earnings after Wednesday’s market close.

Arm is an interesting company because its chip architecture is used across smartphones, data centres and increasingly AI-related computing applications.

I will be looking for evidence that data centre demand is becoming a meaningful growth driver rather than relying too heavily on the smartphone market.

Strong guidance could improve sentiment towards semiconductor stocks, but expectations and valuation remain important risks.

3. $Qualcomm(QCOM)$ – Can Diversification Drive Growth?

Qualcomm also reports after the close.

While investors often associate Qualcomm with smartphones, its longer-term opportunities include automotive technology, connected devices and edge AI.

I think its ability to diversify revenue beyond traditional handset markets deserves attention.

If automotive and other emerging businesses continue expanding, Qualcomm could offer a different exposure to the AI and technology theme compared with companies focused primarily on data centre infrastructure.

4. $Uber(UBER)$ – Watching Growth and Profitability

Uber is another stock worth monitoring following its latest earnings report.

The important question is whether its mobility and delivery businesses can maintain growth while improving profitability.

I particularly want to see how bookings, operating margins and cash generation develop.

Unlike semiconductor stocks, Uber offers exposure to consumer spending and the digital services economy. This makes it an interesting way to assess whether opportunities are broadening beyond the AI trade.

5. $Invesco QQQ(QQQ)$ - The Broader Technology Market

Rather than focusing entirely on individual companies, I would also watch QQQ.

The recent market correction has highlighted concerns about expensive technology valuations and the enormous capital expenditure required to build AI infrastructure.

The latest political developments add another uncertainty, particularly around potential AI regulation and data centre expansion.

I would watch whether technology earnings can remain resilient despite these concerns.

My Trading Strategy Today

I would avoid chasing the first move after the market opens.

There are several important developments to digest, including the election results, corporate earnings and economic data.

Today’s ADP employment report and ISM services data will provide additional clues about economic strength and the direction of interest rates. Arm and Qualcomm earnings after the close could also influence semiconductor sentiment. 

My approach would be:

• Bullish scenario: Strong earnings, resilient economic data and stabilising technology stocks could support a recovery.

• Bearish scenario: Regulatory concerns, weaker economic indicators or disappointing guidance could trigger further selling in high-valuation growth stocks.

• My preference: Watch for quality companies pulling back to more attractive valuations rather than buying simply because a stock has rallied.

The Bigger Picture

I still see AI infrastructure as an important long-term investment theme, but the market is becoming more selective.

The next phase may reward companies that demonstrate actual revenue growth, sustainable margins and strong cash generation rather than those benefiting mainly from AI enthusiasm.

For today, AMD, ARM and QCOM are my semiconductor watchlist, while UBER provides exposure to a different part of the market.

I would rather be patient and wait for confirmation than force a trade in an uncertain market.

For discussion purposes only. Sharing my market observations and watchlist, not financial advice or a recommendation to buy or sell securities.