Micron Technology shares MU rose on Monday as semiconductor stocks rebounded from a broad selloff driven by concerns over the sustainability of artificial intelligence spending and the valuations of companies linked to the AI boom.

Micron shares gained 2.85% during the session, recovering some of the losses from the previous week, when the memory-chip maker’s stock fell 11%.

Other semiconductor stocks also advanced as investors reassessed the outlook for AI-related demand.

The Nasdaq Composite rose 1.17%, while Nvidia, Advanced Micro Devices, Intel and SanDisk also moved higher.

Micron received additional attention after China’s ChangXin Memory Technologies (CXMT) forecast a sharp increase in revenue for the first nine months of 2026, highlighting the strength of demand in the memory-chip market while renewing questions about competition.

Semiconductor stocks recover as AI concerns ease

The rebound followed an eight-session decline across the semiconductor sector as investors questioned whether spending on AI infrastructure could continue growing at its recent pace.

Concerns surrounding the financial progress of privately held AI companies OpenAI and Anthropic contributed to the selloff.

Rising inflation also raised concerns that the Federal Reserve could need to increase interest rates more aggressively, potentially increasing financing costs for companies borrowing to build data centres.

However, the recovery on Monday suggested that investors were becoming more willing to buy semiconductor stocks after their recent declines.

Brian Mulberry, chief market strategist at Zacks Investment Management, said in a MarketWatch report that the sector’s rebound reflected confidence in AI spending and companies’ ability to monetise their AI offerings.

As third-quarter earnings season begins, Mulberry said investors would look for evidence across other industries that demand remained strong and adoption of AI technology was continuing.

Luke Rahbari, chief executive of Equity Armor Investments, said in the MarketWatch report that the selloff showed that the initial enthusiasm surrounding AI stocks might be fading as investors scrutinise valuations more closely.

He said investors were increasingly focusing on companies with stronger market positions and technological innovation.

CXMT revenue forecast highlights memory-chip demand

China’s CXMT expects revenue of between 265 billion yuan and 270 billion yuan ($39.6 billion to $40.4 billion) for the first nine months of 2026, according to a filing. That compares with 32 billion yuan a year earlier.

Despite the revenue forecast, CXMT shares fell 7.77% on Monday as concerns over AI-related valuations also affected Chinese technology stocks.

The development presents competing implications for Micron.

Strong revenue growth at CXMT could indicate that demand for memory chips remains robust as AI infrastructure expands.

However, CXMT’s progress also raises concerns about competition and the possibility that the Chinese manufacturer could take market share from established suppliers such as Micron.

Investors have recently focused on CXMT’s advances in developing memory chips capable of storing more data, adding to pressure on Micron shares.

For now, the broader recovery in semiconductor stocks has helped investors look beyond those competitive concerns, although the longer-term implications remain uncertain.

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Investors looking beyond artificial intelligence (AI) should closely watch two healthcare names – Thermo Fisher Scientific (TMO) and Waters (WAT) – according to Josh Brown.

In his latest report, the Ritholtz’ chief executive highlighted laboratory equipment suppliers whose improving businesses are attracting buyers as tech stocks face pressure.

According to him, the opportunity is exposure to different earnings drivers, although both stocks have already rallied substantially.

Waters stock: a recovery with clear levels to watch

Waters offers exposure to spending on laboratory instruments, consumables and diagnostic tools –  with a recent combination with BD’s Biosciences and Diagnostic Solutions businesses expanding its operations.

Q2 sales reached $1.645 billion, including $817 million from the acquired businesses.

Importantly, the legacy operation also strengthened: its $828 million in revenue represented 7% reported growth and 9% growth at constant exchange rates.

That distinction matters because the investment case extends beyond acquisition-driven expansion. Waters raised its full-year organic growth forecast to 7%-9% and adjusted earnings guidance to $14.55 per share.

Brown’s chart analysis suggests investors are recognizing that improvement.

Using Friday’s $437 close, he identified the record near $455 as the next hurdle, with the rising 50-day moving average around $421 providing nearby support.

At about 30x the midpoint of annual adjusted earnings guidance, however, Waters already carries meaningful expectations.

Further gains will likely require evidence that solid demand and acquisition integration can keep supporting earnings, rather than relying entirely on money rotating into healthcare.

Wall Street analysts currently have a consensus Overweight rating on Waters Corp.

Thermo Fisher: earnings will test the breakout

Thermo Fisher stock offers a broader route into the same investment theme, supplying laboratory equipment and consumables while also serving drugmakers through clinical research and pharma services.

Its latest results show why buyers have returned. Q2 sales went up 10% to $11.99 billion, including 5% organic growth, while adjusted earnings climbed 13% to $6.03 per share.

Adjusted operating margin expanded to 22.8%, signaling improving sales are translating into stronger profitability.

Brown highlighted a different technical setup here: Thermo Fisher had already broken above its early October high, reaching a record near $703 before finishing Friday around $690.

He viewed the recovery in momentum following its pullback as supportive of another advance.

The immediate test is its October 21 earnings release.

A strong report could reinforce confidence that demand is catching up with the biotech stock’s advance; disappointing guidance could quickly challenge that optimism.

All in all, healthcare rotation may bring fresh buyers, but Thermo Fisher’s ability to sustain its breakout ultimately depends on delivering the growth those buyers now expect.

Note that Wall Street also currently rates TMO shares at Overweight on average, and they currently pay a small dividend yield of 0.28% as well.

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Medical Properties Trust stock continued its strong downward trend, reaching its lowest level since February 2024. MPT has slipped by 53% from the year-to-date high, even as the company has made efforts to extend its maturities. Over time, its market capitalization has slumped from over $15 billion to $1.68 billion, and technicals suggest that it has more downside.

Medical Properties Trust stock has formed risky technicals

Technical analysis suggests that the MPT stock has more downside to go in the near term. It dropped below the important support level of $3.0, its lowest level in January last year, and the lower side of the inverted cup-and-handle pattern. Inverted C&H is one of the most accurate continuation signs in technical analysis.

The stock has remained below the 50-week Exponential Moving Average (EMA). It is also along the lower side of the Bollinger Bands, while the Average Directional Index (ADX) has jumped to 33, its highest point since March, a sign that the downward trend is gaining momentum.

These technicals suggest that the stock has more downside to go, potentially to the psychological level of $2. A drop below that price will point to more downside, potentially to $2.50. 

MPT stock chart | Source: TradingView

Medical Properties Trust is facing major challenges

MPT stock is facing some major challenges. One of them is the fact that interest rates and bond yields are rising. The Federal Reserve hiked interest rates by 0.25% in the last meeting, and analysts expect the bank to hike again later this year. US bond yields are hovering near their highest levels in years. 

REITs tend to underperform the market whenever the Fed is hiking interest rates. This partly explains why investors have continued shorting the company. Its short interest jumped to 24%, making it one of the most heavily shorted companies in the US.

Medical Properties has worked hard to improve its business and boost its balance sheet. In September, it completed the sale of two hospitals in a $371 million deal. Before that, in August, it announced a $2.4 billion private refinancing transaction to extend its debt maturities to 2032. 

The challenge, however, is that the refinancing was quite expensive, as the new Senior Secured Notes have a 9.25% rate. It used the new funds to pay its notes due 2026 and some of those due in 2027. The company also received $100 million in cash after the IPO of Infracore SA. 

Still, analysts have remained highly skeptical about Medical Properties Trust, with Wells Fargo slashing its target from $5 to $3.80. Royal Bank of Canada (RBC) also slashed its target from $5 to $4.50. 

These analysts believe that, while the refinancing is good, the company faces other challenges. Years after Steward and Prospect filed for bankruptcy, HSA and NOR, its other top tenants, are struggling to pay their rent. HSA is paying about 75% of its contractual rent. While NOR is paying, there is a risk that its crisis will resume. 

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SpaceX shares gained after Elon Musk proposed giving a share to every American child next year, while oil prices surged above $110 a barrel following reports of a US attack on an Iranian naval base.

CoreWeave rebounded after analyst upgrades, and Amazon received a higher price target from Morgan Stanley on its AI and cloud growth prospects.

SpaceX: Musk proposes giving shares to every American child

SpaceX shares rose on Monday after CEO Elon Musk said he planned to give one share of the company to every American child next year.

“There are roughly 70 million Americans below the age of 18,” Musk wrote on X. At current prices, distributing that many shares would represent approximately $10 billion in value and slightly more than 1% of the six billion-plus shares he controls.

The proposal follows Anthropic’s plan to allocate 5% of its stock to a public benefit fund, as companies explore ways to address public concerns about artificial intelligence safety.

However, details of Musk’s proposed distribution remain unclear, including the timing and type of shares involved. SpaceX did not respond to a request for comment.

The company’s shares had fallen more than 10% last week amid a broader technology sell-off.

Investors were also preparing for its third-quarter earnings report on Tuesday.

Analysts surveyed by FactSet expected earnings per share of $0.14 on revenue of $12.9 billion.

Brent crude rises above $110 after Iran attack report

Oil prices rose above $110 after Al Jazeera reported a US attack on Iran’s Konarak naval base, raising concerns about further disruption to Middle Eastern energy supplies.

Brent crude futures traded near $109 per barrel after rising above $110 in the session, while West Texas Intermediate traded above $103.

The reported attack renewed concerns about escalation in a conflict that has already disrupted shipping through the Strait of Hormuz.

Al Jazeera, citing Iran’s navy, reported that two light projectiles struck the naval complex, injuring two soldiers, and that a 35-millimetre cannon was targeted.

Supply concerns had already intensified, with Kpler data showing average crude flows through the Gulf falling to approximately 8.5 million barrels per day last week, based on a seven-day average, compared with more than 20 million barrels per day in the preceding week.

Oil had initially declined after the US moved to ease restrictions on Russian oil.

However, the latest reports shifted market attention back towards geopolitical risks and the possibility of further supply disruptions.

US Treasury yields also moved higher, with the 10-year yield rising five basis points to 5.148% and the 30-year yield reaching 5.48%.

Goldman Sachs upgrades CoreWeave

CoreWeave shares rebounded on Monday after a steep sell-off, supported by positive analyst commentary and a broader recovery in technology stocks.

Goldman Sachs upgraded the AI-focused cloud computing company to Buy from Neutral, although it lowered its price target to $106 from $139.

Analyst Gabriela Borges argued that investor concerns about the company’s risks may have become overstated.

Cantor Fitzgerald maintained its Overweight rating and $176 price target, while Evercore ISI and Deutsche Bank retained positive ratings with $150 targets.

The recovery followed a 24% decline over the five sessions through the previous week.

Investors have become increasingly concerned about CoreWeave’s debt-funded expansion and the cost of financing its data-centre infrastructure.

The company rents computing capacity powered by Nvidia graphics processing units to AI developers, including OpenAI, and major technology companies such as Meta Platforms.

Despite strong demand for AI computing capacity, investors are assessing whether future revenue and profits can justify the company’s substantial borrowing and infrastructure commitments.

Amazon stock surges 5% after Morgan Stanley upgrade

Amazon shares advanced 5% after Morgan Stanley raised its price target to $350 from $335 and reiterated an Overweight rating, identifying the company as one of its top picks.

The new target implies approximately 40% upside from Friday’s closing price of $250.

Analyst Brian Nowak expects Amazon Web Services (AWS) to remain a major growth driver, forecasting year-over-year growth of 47% in 2027.

Nowak also highlighted opportunities in agentic AI, which allows systems to perform tasks on users’ behalf, and in robotic fulfilment operations.

“We continue to think AWS’s growth and profit runway is under-appreciated,” Nowak wrote in a research note.

Amazon’s cloud business could benefit from expanding demand for AI computing, while its established e-commerce infrastructure may help it participate in AI-powered shopping.

Morgan Stanley also sees potential for Amazon to expand its use of robotics through new fulfilment centres and upgrades to existing facilities in 2027.

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The Nasdaq Composite rose on Monday as investors returned to technology and artificial intelligence-related stocks following last week’s sharp selloff, while markets looked ahead to earnings from major US companies.

The tech-heavy index gained 1.1%, while the S&P 500 advanced 0.4%. The Dow Jones Industrial Average finished slightly below the flatline.

The rebound followed a difficult week for US equities, with the S&P 500 falling nearly 2% and the Nasdaq declining 4.5%.

Both indexes recorded their biggest weekly losses since late June.

The information technology sector also posted its worst weekly performance since April 2025.

Investors have become increasingly concerned about the cost of financing AI infrastructure and whether future earnings growth will justify the substantial investments being made across the sector.

Chip stocks recover as semiconductor index ends losing streak

Semiconductor stocks helped support the market recovery.

Intel shares climbed around 2% after JPMorgan upgraded the stock to neutral from underweight. Advanced Micro Devices gained 1%, while Micron Technology rose 2%.

The Philadelphia Semiconductor Index ended an eight-session losing streak during which it had fallen approximately 15.7%, marking its longest run of declines since October 2008.

The recovery followed heavy selling in technology stocks last week, when investors reassessed the financial risks associated with the AI investment boom.

The technology sector was the most net-sold global sector, according to Goldman Sachs, with hedge funds selling a record proportion of their technology holdings.

However, the rebound was uneven. CoreWeave shares fell around 0.44%, reversing earlier gains despite Goldman Sachs upgrading the cloud computing company to buy from neutral.

CoreWeave’s stock plunged more than 25% last week amid concerns about its debt burden, reported at around $50 billion.

The company’s credit default swaps also reached distressed levels, reflecting growing unease in the corporate bond market.

AI financing concerns remain a key market risk

Investor concerns intensified after reports that Anthropic generated $16.8 billion in third-quarter revenue, up from $11.6 billion in the second quarter.

Although revenue increased, the figures prompted questions about the pace of growth relative to the scale of investment in AI infrastructure.

Market participants are increasingly assessing whether AI-related companies can generate sufficient returns on capital to justify their borrowing and infrastructure spending.

The recent pressure on CoreWeave has also raised questions about the resilience of AI investments in an environment of higher interest rates.

If earnings growth moderates, concerns about debt financing could leave the broader market more vulnerable to further volatility.

Other cloud computing companies, including Nebius and Iren, outperformed CoreWeave on Monday.

Oil prices and corporate earnings remain in focus

Developments in energy markets added another source of uncertainty for investors. Attacks on shipping and energy infrastructure in the Persian Gulf, alongside continued strikes involving Russia and Ukraine, have raised concerns about prolonged supply disruptions.

US West Texas Intermediate crude futures settled 2.06% higher at $103.50 a barrel. Brent crude futures, meanwhile, fell 0.41% to $109.41 a barrel.

Higher oil prices can add to inflationary pressures and complicate the outlook for interest rates.

Investors are also preparing for a busy week of corporate earnings.

Meta Platforms and Tesla are scheduled to report results on Wednesday, while SpaceX is due to report on Tuesday.

The results could help investors assess the outlook for technology spending, AI-related investment, and corporate profitability as markets attempt to recover from last week’s losses.

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