America Wants Chips

Washington urges Samsung and SK Hynix to expand chip manufacturing in the United States.

Author

Ankit Sinha
July 10, 2026

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Wall Street rebounded as chipmakers led the rally, with the Nasdaq 100 gaining 1.6% and semiconductor stocks climbing 3.1%.

Optimism was fueled by Micron's plan to invest $250 billion in U.S. manufacturing and strong demand for SK Hynix's U.S. listing, which was reportedly more than seven times oversubscribed. 

Investors shrugged off renewed U.S.-Iran tensions as falling oil prices eased concerns and shifted focus back to the AI trade.

Markets are now turning their attention to earnings season, where companies will need to prove that massive AI investments are translating into real profits. Meanwhile:

  • Meta introduced a paid tier for its AI models.

  • OpenAI launched a more capable AI agent.

  • Oracle was downgraded by S&P over rising AI-related spending.

Peel Take: The AI trade is back, but the market is getting pickier. Investors are no longer rewarding companies simply for spending on AI; they're looking for those that can turn AI investment into sustainable earnings growth. As earnings season approaches, execution, not hype, will determine the next winners.

What's Ripe

Corning Inc. (GLW) 4.5%

  • GLW rose 4.5% as investors continued to embrace its transformation from a traditional glassmaker into a key supplier of data center infrastructure.

  • The company is increasingly benefiting from AI-driven demand for high-speed optical connectivity used in data centers.

  • Peel Take: AI winners aren't just chipmakers anymore. Companies supplying the infrastructure behind AI, such as fiber optics, networking, and power, are becoming among the market's biggest beneficiaries.

Broadcom Inc. (AVGO) 3.2%

  • AVGO gained 3.2%, extending its rally after Apple announced plans to invest more than $30 billion through an expanded partnership with the chipmaker.

  • The deal reinforced investor confidence in Broadcom's role as a key supplier supporting Apple's long-term AI and hardware ambitions.

  • Peel Take: Nothing says confidence like a $30 billion commitment. Apple's expanded partnership signals that demand for AI and custom chips isn't slowing, giving Broadcom another vote of confidence from one of its biggest customers.

What's Rotten

PepsiCo Inc. (PEP) 3.3%

  • Pepsi fell 3.3% despite beating second-quarter earnings expectations, after the company said it lost market share in North America.

  • The market focused less on the profit beat and more on signs that demand in its core snacks and beverages business may be weakening.

  • Peel Take: Beating earnings is nice, but losing shelf space is not. Investors are worried that Pepsi's profit strength may not last if competitors continue to gain market share in its largest region.

AstraZeneca PLC (AZN) 1.5%

  • Healthcare stocks slid after AstraZeneca's gene-silencing drug Wainua failed a key late-stage trial. AstraZeneca fell 1.5%, while partner Ionis Pharmaceuticals plunged 23.9%.

  • Rival Alnylam Pharmaceuticals also dropped 3.3% as the setback weighed on sentiment across the gene-silencing drug space.

  • Peel Take: In biotech, one failed trial can erase billions overnight. Clinical results remain the biggest catalyst for drugmakers, and disappointing data can quickly ripple across an entire therapeutic sector.

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Banana Brain Teaser

Previous

In Country C, the unemployment rate among construction workers dropped from 16% on September 1, 1992, to 9% on September 1, 1996. If the number of construction workers was 20% greater on September 1, 1996, than on September 1, 1992, what was the approximate % change in the number of unemployed construction workers over this period?

Answer: 30% decrease

Today

A certain characteristic in a large population has a distribution that is symmetric about the mean m. If 68 percent of the distribution lies within one standard deviation d of the mean, what percent of the distribution is less than m + d?

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