Data center darlings took a sharp haircut, ServiceNow quietly stole the show, and we're all just killing time until Wednesday's Nvidia print decides our fate
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Morning brief: Gravity finally caught up to chips, Trump bought ServiceNow, and we're all staring at Wednesday's Nvidia earnings with mild existential dread
Semiconductors are facing heavy profit-taking today as capital aggressively rotates out of high-flying chip names and back into beaten-down SaaS plays. ServiceNow popped 5% overnight after Donald Trump disclosed a stake, triggering intense retail enthusiasm and fueling the broader software sector rotation. IREN plunged 9% despite a 490MW Spanish data center acquisition, as investors remain spooked by dilution risks from its massive convertible debt offering. Applied Digital shed 9% as gravity finally hit, with traders locking in profits following the stock's monstrous 60% surge on a recent hyperscaler deal. Nvidia reports earnings Wednesday. With semiconductors already bleeding today, any weakness in forward guidance could trigger a massive, sector-wide liquidation event.
Posture: Defensive/Building Cash. Semis face heavy profit-taking. Raising cash to protect against a potential NVDA earnings liquidation event.
Tickers in focus: NOW, NVDA, SMH
Upcoming earnings
Evening brief: Data center darlings took a sharp haircut, ServiceNow quietly stole the show, and we're all just killing time until Wednesday's Nvidia print decides our fate
AI hardware suffered a sharp pullback today as rising Treasury yields and geopolitical fears sparked a sector rotation ahead of Nvidia's critical Wednesday earnings. ServiceNow surged nearly 9% after Bank of America reinstated a Buy rating, predicting the workflow giant will dominate enterprise AI monetization and governance. Data center darlings Vertiv and Applied Digital crashed over 8% as investors locked in profits amid rich AI valuations and heavy insider selling. Micron tumbled 6% as reports of a potential Samsung strike and rare earth supply chain fears compounded the broader memory chip sell-off. All eyes are on Nvidia's earnings this Wednesday; any weakness in forward demand guidance could aggressively accelerate today's rotation out of AI hardware.
Posture: Defensive. Building cash reserves ahead of NVDA's critical Wednesday earnings due to sharp rotation out of AI hardware and rising yields.
Tickers in focus: NOW, NVDA, VRT
Upcoming earnings
The day's moves on the ledger
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