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🗞️ Google Takes on Nvidia
Big Moves Decoded: EXPE, TTWO, PTON
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Market Performance
S&P 500: 6,728.80 ⬆️ 0.13%
Nasdaq: 23,004.54 ⬇️ 0.21%
Dow Jones: 46,987.10 ⬆️ 0.16%
Google’s New AI Chip
Google is making its most powerful chip yet widely available, as the search giant aims to try and win business from artificial intelligence companies by offering custom silicon.
The company announced that the seventh generation of its Tensor Processing Unit (TPU), called Ironwood, will be available to the public in the coming weeks.
The chip, built in-house, is designed to handle everything from training large models to powering real-time chatbots and AI agents.
By connecting up to 9,216 chips in a single pod, Google says the new Ironwood TPUs eliminate data bottlenecks for the most demanding models.
Google is in the midst of an ultra-high-stakes race alongside its rivals, Microsoft, Amazon, and Meta, to build the AI infrastructure of the future.
While the majority of large language models have relied on Nvidia's graphics processing units, Google's TPUs fall into the category of custom silicon, which can offer advantages on price, performance, and efficiency.
Ironwood is more than four times faster than its predecessor, and major customers are already lining up.
AI startup Anthropic plans to use up to 1 million of the new TPUs to run its Claude model.
In its earnings report last week, Google reported third-quarter cloud revenue of $15.15 billion, a 34% increase from the same period a year earlier, and has signed more billion-dollar cloud deals in the first nine months of 2025 than in the previous two years combined.
Alphabet stock has a Ziggma score of 88 and ranks highly in terms of profitability and financial health.
However, the tech stock has surged over 50% in the past year and trades at a premium multiple.
Our Takeaway
Google's aggressive push with Ironwood signals a significant challenge to Nvidia's dominance in AI chips.
With custom silicon offering potential cost and efficiency advantages, and heavyweight customers like Anthropic already committed, the AI infrastructure battlefield is heating up.
This diversification of chip providers could ultimately benefit the entire AI ecosystem by driving innovation and reducing dependency on a single supplier.
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Market Overview 📈
The Nasdaq closed lower on Friday, pressured by continued losses in artificial intelligence stocks, to post a losing week as new economic data stoked investors' fears of an economic slowdown.
Stocks came off their lows after Senate Minority Leader Chuck Schumer offered Republicans a new plan to end the record-breaking U.S. government shutdown.
Under the proposal, short-term funding would be provided for federal operations in exchange for a one-year extension of enhanced Affordable Care Act tax credits.
Moreover, a University of Michigan survey released on Friday revealed that consumer sentiment has neared its lowest level ever, posting a reading of 50.3 for November—a decline of 6.2% month-over-month and approximately 30% from a year ago.
The data comes just a day after Challenger, Gray & Christmas reported that layoff announcements in October reached their highest level for the month in 22 years.
Investors have been operating in the dark due to the ongoing shutdown, relying on incomplete economic data.
The Bureau of Labor Statistics was unable to release the nonfarm payrolls report for the second consecutive month.
Economists surveyed by Dow Jones had been expecting a decline of 60,000 jobs and an increase in the unemployment rate to 4.5%.
The three benchmark indexes closed in the red for the week, with the Nasdaq down around 3%—its worst performance in five days since early April when it dropped 10%.
The S&P 500 and Dow each lost more than 1% on the week.
Stock Moves Deciphered 📈
🛫 Expedia Group (EXPE)
Expedia shares surged over 17% to an all-time high after reporting blowout third-quarter earnings.
The online travel giant significantly exceeded analyst expectations, reporting a 9% year-over-year revenue increase to $4.4 billion and a 12% rise in gross bookings.
This growth was driven by strong travel demand and AI-powered product enhancements that improved customer experience and conversion rates.
🛜 Akamai Technologies (AKAM)
Akamai's stock climbed more than 14% following a robust third-quarter earnings report that surpassed Wall Street estimates.
The company posted a 17% rise in earnings per share and raised its full-year guidance, citing strong demand for its cloud computing and cybersecurity services.
The edge computing pioneer is benefiting from increased enterprise spending on security solutions amid rising cyber threats.
🧪 Celanese Corporation (CE)
Celanese saw its stock rise by over 14% as investors cheered an unexpected earnings beat.
Although the chemical company's revenue fell short of forecasts, its adjusted earnings per share of $1.34 surpassed consensus estimates of $1.15, signaling effective cost management through operational efficiency improvements and strategic portfolio optimization.
🕹️ Take-Two Interactive Software (TTWO)
Take-Two Interactive's stock fell nearly 8% despite reporting strong quarterly earnings that beat expectations, with revenue up 33% to $1.96 billion.
The decline was triggered by Rockstar Games' announcement that the highly anticipated Grand Theft Auto VI would be delayed again from May 2026 to November 2026, marking the second postponement for the blockbuster title.
Headlines You Can't Miss 👀
📊 Bank of America named Morgan Stanley's top stock pick with a $70 price target, implying 31% upside from current levels on expectations of sustained positive operating leverage.
🔋 NuScale Power shares plummeted over 16% after the company posted a $273 million quarterly loss and announced a $750 million share offering, which would dilute existing shareholders.
₿ Bitcoin dipped below $100,000 for the second time in a week, down more than 20% from its October record high amid broader crypto market weakness.
🥩 JBS shares fell almost 4% after President Trump ordered the DOJ to investigate the majority foreign-owned meat packers for possible price fixing and collusion.
⚡ Constellation Energy dropped nearly 5% after third-quarter earnings missed estimates and the nuclear power generator lowered its full-year guidance below consensus.
💰 Tesla shareholders approved Elon Musk's nearly $1 trillion pay package with 75% support, which would increase his ownership from 13% to 25% over the next decade.
📈 The S&P 500 fell below its 50-day moving average for the first time since April 30, ending the longest streak without breaching this technical level since 2007.
Trending Stocks 📊
✈️ Archer Aviation (ACHR)
The air taxi maker's stock plummeted 7.88% despite posting a narrower-than-expected third-quarter loss of $129.9 million, compared to estimates of $178.6 million.
The company announced a $650 million stock offering for 81.25 million shares to support its $126 million acquisition of Hawthorne Airport in Los Angeles, positioning it as a hub for operations ahead of the 2028 Olympics, which is expected to significantly dilute existing shareholders' stakes.
🛍️ Affirm (AFRM)
The fintech stock soared more than 12% in extended trading after crushing third-quarter expectations.
Affirm earned $0.23 per share on $933 million in revenue, beating estimates of $0.11 per share and $883 million, respectively.
The buy-now-pay-later provider's quarterly gross merchandise volume also topped Street forecasts, signaling strong consumer adoption of its payment solutions.
🚀 Peloton (PTON)
The connected fitness company's stock jumped 14.16% after posting its second consecutive profitable quarter with net income of $13.9 million and issuing strong holiday guidance.
Peloton expects fourth-quarter revenue between $665 million and $685 million, ahead of the $665 million consensus, and raised its full-year adjusted EBITDA outlook by $25 million to $425-$475 million.
What’s Next?
Key market and macro news 👇
💰 While the bulk of earnings season will be over, major companies like Cisco Systems and Walt Disney are expected to report their results during the week of November 10th.
🇨🇳 China is expected to release its year-to-date foreign direct investment figures. This data offers a glimpse into the health of the Chinese economy and foreign investor confidence, which can have ripple effects on global markets.
🏴 A speech by a Bank of England official could provide clues about the future direction of UK monetary policy.
Chart of the Day
Source: The Future Investors
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