Wall Street Week Ahead | Seeking Alpha

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Wall Street heads into a consequential week with the U.S. midterm elections and October jobs report likely to dominate attention, while another busy slate of corporate earnings will test investor sentiment.

Voters head to the polls Tuesday with control of both chambers of Congress at stake. Republicans currently hold a narrow House majority and a 53-47 advantage in the Senate, while recent polling has pointed to a strong chance of Democrats taking the House, with the Senate more competitive. A shift in congressional control could have implications for fiscal policy, regulation and sectors including banks, crypto, defense and healthcare.

The economic spotlight then turns to Friday’s October employment report. Economists expect 65K jobs were added during the month, up from 29K in September but below the 10-year average. The jobless rate is expected to stay at 4.2%.

Earnings remain busy, with Apple (AAPL) and Palantir (PLTR) reporting Monday, AMD (AMD) Tuesday, and McDonald’s (MCD), Arm (ARM), Qualcomm (QCOM) and Uber (UBER) on Wednesday. Apple’s report will be its first under CEO John Ternus, with investors watching Apple Intelligence adoption, supply constraints and memory costs.

Earnings spotlight: Monday, Nov. 2: Apple (AAPL), Palantir (PLTR), Realty Income (O), ON Semiconductor (ON). See the full earnings calendar.

Earnings spotlight: Tuesday, Nov. 3: AMD (AMD), Amgen (AMGN), Pfizer (PFE), Block (XYZ). See the full earnings calendar.

Earnings spotlight: Wednesday, Nov. 4: Arm (ARM), Qualcomm (QCOM), McDonald’s (MCD), Uber (UBER). See the full earnings calendar.

Earnings spotlight: Thursday, Nov. 5: Toyota Motors (TM), ConocoPhillips (COP), Airbnb (ABNB). See the full earnings calendar.

Earnings spotlight: Friday, Nov. 6: Moderna (MRNA). See the full earnings calendar.

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The semiconductor industry has become a key beneficiary of the artificial intelligence boom, with rising demand and massive infrastructure investments driving market optimism. However, growing concerns around spending sustainability, profitability and valuations are raising important questions for investors. As expectations continue to evolve, Julian Lin helps understand the risks and opportunities shaping the sector, which is becoming increasingly important.

(Free Full Article) Here’s a brief summary of the article:

Julian downgrades the semiconductor sector to a Sell, arguing that despite recent price declines and potential short-term rebounds, further volatility may lie ahead. Rising interest rates, increasing debt costs and customer concentration pose risks to the AI infrastructure boom, particularly given the industry’s reliance on OpenAI and Anthropic, which have yet to establish consistent profitability.

A key concern is whether massive AI capital expenditures will generate sufficient returns. Julian questions whether AI companies can achieve the estimated $2.5–3 trillion in annual revenue needed by 2030, citing declining model prices, competition from cheaper alternatives and doubts about sustainable enterprise spending. Continued training investments may also deliver diminishing returns without proportionate revenue growth.

These concerns could prompt hyperscalers to reduce spending, weakening semiconductor demand and valuations. While growth may remain strong through 2027 and 2028, Julian believes current infrastructure investments may be excessive. Having exited NVIDIA from the Best of Breed Growth Stocks Portfolio, Julian remains cautious, emphasizing that impressive AI technology does not necessarily translate into attractive investor returns.

If you’re looking for high-quality growth opportunities, Julian Lin’s Best of Breed Growth Stocks offers disciplined research focused on undervalued companies with strong growth potential. Members get access to Julian’s Top 5 high-conviction picks, weekly in-depth reports, real-time buy and sell alerts, a curated high-quality screener, industry analysis, and direct access through live chat. Start with an introductory price of just $40 for the first month, then continue at $499/year. Learn more >>

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Insider Watch

Check out the week’s top insider trades, highlighting significant purchases and sales by investors, directors and executives. Notable transactions took place at Goldman Sachs (GS) and Procter & Gamble (PG).