AI Markets: Alphabet and Amazon punished, Intel plunges, SpaceX and Anthropic

Big Tech earnings cooled the markets this week. Alphabet, Amazon and Intel disappointed, while SpaceX revealed how much it depends on one big AI compute customer.

Alphabet and Amazon: AI spending spooks Wall Street

Two cloud giants posted disappointing results 24 hours apart. Both are pouring colossal sums into AI, and the markets are starting to ask when it will pay off.

Key points:

  • Alphabet missed expectations on both earnings and revenue, a first in nearly four years according to CNBC. The stock lost about 12.6% during the October 29 session (Seoul Economic Daily).
  • Amazon reported earnings per share of $1.89 versus $1.96 expected. The stock fell 4.25% during the session, then about 6% after the close.
  • Both companies have negative free cash flow, driven by data center investments.
  • Both are guiding to even higher spending in 2027.

Alphabet: a solid quarter for sales, a heavy one for cash

Third-quarter revenue came in at about $127.6 billion, up roughly 25% year over year. Capital expenditures (capex) climbed to $51.4 billion in the quarter alone. Free cash flow landed around -$9.1 billion. The company is keeping its 2026 capex between $195 billion and $205 billion and warns that 2027 will be significantly higher, with more details in the fourth quarter. A Baird analyst quoted in the press called the market’s reaction harsher than the numbers warranted. The Nasdaq fell about 1.4% that day.

Amazon: the cloud is speeding up, but the coffers are emptying

At Amazon, revenue reached $201.9 billion (+12%). AWS, its cloud unit, grew 39% to about $46 billion, with a backlog of $578 billion. But cash capex hit $75.9 billion in the quarter according to the investor call, for about $220 billion over the year. On a trailing twelve-month basis, free cash flow stands at -$42.4 billion (CNBC). CEO Andy Jassy said 2027 would cost “significantly more.”

The bridge to the markets

When the biggest chip buyers spend more than they earn, the whole supply chain feels it: chipmakers, memory, servers. Asian markets showed it on October 30: SK Hynix lost 8.3% and Samsung 5.9% (Investing.com). For a European saver, these American and Korean stocks are held through a brokerage account or an ETF, not through the PEA. This article is for information only and does not recommend any purchase.

Sources:

Intel collapses despite good numbers: a worrying quarter

Intel beat earnings expectations, then fell more than 15% after the close. The reason: weak guidance for the end of the year.

Key points:

  • Third-quarter revenue: $16.5 billion, up 21% year over year.
  • Adjusted earnings per share: $0.52, versus about $0.41 expected (MarketBeat).
  • Fourth-quarter guidance: $15 billion to $16 billion in sales and $0.25 in earnings per share.
  • The stock fell about 15.7% after the close (Chartmill), and some headlines cite more than 20%.

A fab in Israel and PCs that are selling less

Intel attributes its guidance to two causes. First, a problem at a fab in Israel, with an estimated impact of about $300 million in the fourth quarter. Second, a slowdown in the PC market, which management expects to last at least through the first half of 2027 (Investing.com). The gross margin target is about 38% at the midpoint of the range. Financial media also point to rising component costs, which are weighing on PCs.

Why it matters for the chip supply chain

AI demand is strong, but it isn’t enough to offset a stalled PC market or factory setbacks. The case is a reminder that making chips is still hard: producing enough, at the right cost, at the right time. Intel is also an announced partner in the Terafab project with Tesla and SpaceX, which we covered in previous editions. A struggling fab raises questions about the ability to deliver.

For European investors, Intel is an American stock: it is bought through a brokerage account, not in a PEA. This article is for information only and is not advice.

Sources:

SpaceX: one customer accounts for over a third of sales, likely Anthropic

SpaceX’s quarterly report reveals a heavy dependence on a single AI compute customer. Bloomberg says it’s Anthropic, without official confirmation.

Key points:

  • “Customer B” accounts for 34.5% of SpaceX’s third-quarter revenue, in the AI division (10-Q filed with the SEC).
  • A “Customer A” accounts for 16.6%.
  • According to Bloomberg, citing a person familiar with the matter, Customer B is Anthropic. Neither SpaceX nor Anthropic has confirmed it.
  • Over nine months, this customer accounts for 24.2% of sales, versus less than 10% a year earlier.

What has changed since our last edition

We had reported that Anthropic’s IPO filing mentioned contracts with SpaceX worth up to $120.5 billion through 2029. SpaceX’s report adds the actual figure: on quarterly revenue of $14.6 billion, 34.5% comes to about $5 billion (Five Minute AI calculation, based on the two figures). The contracts can be terminated with 90 days’ notice starting in early 2027, according to Anthropic’s filing.

What it means for an investor

A customer that big brings growth, but it also creates risk: if it cuts back its purchases, SpaceX’s sales drop fast. The same link runs the other way, since Anthropic is preparing its own IPO. The two stories are now tied together, and what hits one can hit the other. SpaceX lost about 5% in October according to BigGo Finance.

SpaceX (SPCX) is not eligible for the PEA: you need a brokerage account. Informational content, no recommendation.

Sources:

Nvidia: the Megaspeed affair and the link to Jensen Huang

The New York Times has published an investigation into Megaspeed, a Singapore-based Nvidia customer. It revives the question of chips that could end up in China.

Key points:

  • The New York Times reports that Alice Huang, an executive at Megaspeed, is close to Nvidia CEO Jensen Huang. The two are not related.
  • The Times writes that U.S. officials suspect her of passing information to Beijing, and that Donald Trump was briefed but took no action. The White House, the CIA and the NSA did not comment.
  • Nvidia says Megaspeed is an ordinary regional customer and that these allegations had already been reviewed.
  • Jensen Huang told Bloomberg that Nvidia had “counted every GPU” deployed at Megaspeed.

What we know about the investigation

According to the Times, the U.S. investigation began in late 2024, when a Commerce Department official saw Nvidia chips still in their boxes at a Megaspeed data center in Malaysia. The Justice Department took over the case this year. Megaspeed reportedly bought about $2 billion worth of Nvidia chips, according to reports from October 2025. Megaspeed says it takes the allegations “extremely seriously” and has hired outside counsel. Alice Huang did not respond to requests for comment.

The bridge to the markets

This case proves no wrongdoing: the investigation is ongoing and Nvidia disputes the claims. But it feeds a risk the market is already watching, that of new controls on chip sales. We’ve already covered the discussions around chips bound for China, and Taiwan’s rules. A crackdown could weigh on Nvidia’s sales in Asia.

Nvidia is not eligible for the PEA as a direct holding. Informational content, no advice.

Sources:

A UCITS ETF on Chinese robotics arrives in Europe

HSBC Asset Management is offering a European ETF on Chinese robotics companies, according to L’Agefi. It’s a small fund with no track record.

Key points:

  • The fund is called HSBC MSCI China Robotics UCITS ETF (ISIN IE000TMA3NX9, ticker BOTS).
  • It tracks the MSCI China All Shares IMI Robotics Select index, which groups Chinese companies in robotics and key technologies.
  • Annual fees of 0.50%, domiciled in Ireland, denominated in dollars, accumulating (justETF).
  • Assets of about €8 million and a launch date of October 14, 2026 (justETF).

What we know about the product

Replication is physical: the fund buys the securities in the index (justETF). It is very new. Performance data covers only about one week, so there is no track record to speak of. We have not verified the detailed list of holdings or the countries where it is marketed.

The tech-to-markets bridge, European side

Humanoid robotics is a theme we follow: China is a major player, with companies like Unitree. A UCITS ETF provides access through a product regulated in Europe, without buying Chinese stocks one by one. Chinese stocks are not European companies, so such a fund does not qualify for the PEA, which mainly targets companies from the EU or the EEA (check with your broker). It remains exposed to dollar currency risk and Chinese political risk.

This content is for information only and does not recommend this product.

Sources:

Edition prepared by our monitoring agent (data and sources as of Friday, October 30, 2026), reviewed according to our editorial policy. General information, not investment advice: investing carries a risk of capital loss.