Lumentum

I guess I need to start calling $Sandisk(SNDK.US) or $Lumentum(LITE.US) Super Intelligence stocks.

Qualcomm's Snapdragon Summit opens today in Maui and runs through Sept 24. The company is expected to formally unveil the Snapdragon 8 Elite Gen 6, its next flagship mobile chip, alongside updates on the AI optical interconnect silicon it revealed with Lumentum and Corning for data center use. That data center push is the more interesting story for me. Qualcomm has spent two decades as a mobile first supplier and the market has never really priced in a credible AI infrastructure business. If this event produces concrete design wins rather than just roadmap talk, the multiple deserves to move. If it's just another mobile refresh, I'd expect the stock to give back some of this week's gains.

The Fed has decided to increase the interest rate after all. For the time being, the risk of USD debasement trade will retreat. The next question is how many more rate hikes are on the horizon?

Singapore stocks took a breather as Bank shares and even reits rose slightly after the official rate hike by the FED last night. I think Reits will start to stabilise for some time, but the worst is yet to be over as officials still want a consensus 1 more rate hike by this year.

So the FED does indeed raise its interest rate by 25basis points, looks like I was wrong about Warsh taking the risky stance of maintaining position. However, as expected, Trump took to social media to continue to pile pressure and express his desire for lower interest rate; this is the first time Warsh and Co took a decisive decision, let's see if they would continue Powell's legacy of maintaining independence or eventually succumbing to Trump's political will.

One rate hke decided unanimously is highly anticipated by the market. Dot plot with 16 out of 18, expectations of further monetary tightening, sending a very hawkish signal. Revaluation of AI companies and rate sensitive sectors like property and bond markets may take the hit. So sit tight, buckle up your safety belt, and bumpy ride ahead.

Personally, I didn’t thought that the stocks fell that much (yet) after the rates announcement. I guess most people are bracing for further hikes too

It looks like the Fed has decided to listen to the market and give them what they want. The Fed is not ‘independent’ after all! If they don’t listen to the president, they listen to the market.

Well looks like it is the same old Fed after all! Haha…..for all the chest pumping and assertions that ‘this Fed’ is different from its predecessors, they are still following what ‘the market’ wants.