Earnings Season: Stock Roundup - The Good, the Bad, and the Ugly

Tesla Surges on Forecast

The electric vehicle (EV) giant’s [TSLA] share price popped after it reported higher-than-expected quarterly profit while forecasting “slight growth” in deliveries this year, followed by a significant jump in 2025. This marks a turnaround after a few disappointing quarters, amid concerns about slowing global EV demand, CEO Elon Musk’s political activism and a court battle to restore his $56bn share options package. Musk predicted vehicle sales could rise 20–30% next year, driven by price cuts. 

Record Profit for SK Hynix

The South Korean chipmaker [000660:KS] posted record quarterly profit and revenue, driven by strong demand for memory chips used with Nvidia [NVDA] processors in artificial intelligence (AI) development. SK Hynix expects demand for DRAM and NAND flash memory chips to grow in the mid- to high-teens in 2025, signaling optimism for market recovery. Its shares rose 3.1% to a two-month high, extending this year’s gains to over 40%, as it outpaced Samsung Electronics [SSNLF] and Micron [MU] in AI chip supply.

ServiceNow: Strong Quarter, Fails to Wow

ServiceNow [NOW] reported good Q3 results, with subscription sales up 23% to $2.7bn and a 26% rise in its current remaining performance obligation, both surpassing analysts’ estimates. However, despite the solid figures, the company’s shares fell 1.3% in after-hours trading; investors had seemingly hoped for a more significant boost from AI. Prior to the dip, ServiceNow’s stock had surged 28% this year, Bloomberg reported, outpacing the iShares Expanded Tech-Software Sector ETF [IGV], a sector benchmark. 

Hyundai: High and Dry?

Hyundai [HYMTF] reported a 6.5% drop in Q3 operating profit, totaling ₩3.58trn, falling short of analysts’ expectations of ₩3.9trn. Despite a 4.7% increase in sales, the automaker cited a one-off ₩320bn expense for preemptive warranty extensions. Hyundai plans to boost hybrid production as the demand for EVs remains weak amid high interest rates and economic uncertainty, compounded by potential shifts in US policy in the lead-up to the presidential election.

Big Intel Win in EU Case

Intel [INTC] secured a major victory in its long-running legal battle with the EU, as the EU’s Court of Justice ruled in its favor, overturning a €1.06bn antitrust fine. The court found that regulators failed to prove Intel provided illegal rebates to PC manufacturers for favoring its chips over competitors, such as Advanced Micro Devices [AMD]. This decision follows a similar 2022 ruling that had annulled parts of the European Commission’s 2009 decision accusing Intel of abusing its market dominance. 

Where Next for NOK Stock After Earnings Miss?

Amid a macro slowdown in the telecoms industry, Nokia’s [NOK] earnings miss has analysts downbeat about the stock’s prospects. While it is struggling to keep pace with the global AI boom, the company is seeking expansion into the semiconductors and defense themes to diversify its revenue flow. OPTO unpacks how these moves are central to the prospects of NOK stock. 

Will AI Exposure Boost this Nuclear Stock?

On October 16, Amazon [AMZN] signed a deal with Dominion Energy [D] to explore the development of a small modular nuclear reactor to power the company’s AI operations. Dominion’s stock — and that of fellow nuclear companies — surged on the news. In the Foresight Substack channel, OPTO explores how Dominion offers defensive exposure to the AI theme and examines what its fundamentals mean for long-term growth.