Investors get defensive as tech trade turns

Investors get defensive as tech trade turns 

Concerns over the sustainability of the artificial intelligence (AI) bull market have triggered a sell-off in global technology shares, nudging investors into defensive stocks. Consumer staples and healthcare have led the shift, with MSCI’s global consumer staples index rising 10.6% in October, its biggest monthly gain since 1998, while its healthcare index advanced 9.8%, the second-largest monthly increase this century, the Financial Times reported. Both sectors have held those gains into November, while global technology stocks have fallen more than 13% since the start of October. 

TSMC logs revenue surge on AI chip demand

Perhaps Taiwan Semiconductor Manufacturing Co [TSM] did not get the memo: the world’s biggest chipmaker reported October revenue of NT$586.89bn, up 59.7% year-on-year, as demand for advanced chips used in AI applications remained strong. Revenue for the first 10 months of the year rose 43.3% to NT$4.49tn. Analysts expect growth of 63% in the final quarter, after TSMC’s September-quarter revenue of $46.72bn beat forecasts of $45.7bn. The company provided no forward guidance in its latest revenue statement.

Rare earths in focus ahead of US-China meet

The global scramble for strategic metals is intensifying ahead of a possible meeting between US and Chinese leaders this month, with rare earths trading at substantial premiums outside China. Beijing’s export restrictions are tightening supplies of critical minerals, according to Bloomberg, putting manufacturers from the US to Japan under pressure. US Trade Representative Jamieson Greer raised the issue in a recent call with Chinese Vice-Premier He Lifeng.

OUST: More than meets the (robotic) eye

Ouster [OUST] posted record Q3 revenue of $59.3m, up 50% year-on-year, extending its run to 15 consecutive quarters of growth and beating analyst expectations. However, following the Stereolabs acquisition, the product mix is shifting from lidar to cameras, with lidar falling to around 27% of units shipped and non-GAAP gross margin slipping to 47% from 53% in Q2. Aureon examines Ouster’s latest financial performance, its evolving business model and its competitive position.

BT cools on Starlink tie-up

BT [BTGOF] has delayed the launch of its partnership with Elon Musk’s Starlink until controversy over recent service disruptions in Ukraine has subsided. Chief executive Allison Kirkby told the Financial Times that the service was ready to launch but that BT was cautious about how Starlink might currently be viewed. Unexplained signal failures last month disrupted Ukrainian frontline communications and military operations, although access has since been fully restored.

ASTS announces new reusable rocket

AST SpaceMobile [ASTS] reported Q3 revenue of $42.3m, below analysts’ expectations of $46m, but reiterated its 2026 revenue guidance of $150m-200m, citing potential upside from recent contract wins. AST also announced Blacklift, a planned 20-tonne reusable rocket targeting its first launches in late 2028, alongside launch agreements with SpaceX [SPCX] and Blue Origin for 2027 and 2028.

Vylor faces its first earnings test

On Wednesday, Corteva’s [CTVA] former seed business [VYLR] reports its first results since listing independently on the NYSE on 1 October. Management is targeting 3-4% annual sales growth and a 30% EBITDA margin by 2029, supported by more than 6,000 patents, licensing income and research into gene editing and hybrid wheat. Aureon analyses the bullish signs – including a $3bn buyback authorisation and a ‘BBB+’ credit rating – though seasonal volatility and execution risk mean the quarter itself may reveal little about the long-term story.