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Singapore investors eye US tech stocks despite Q3 earnings drop
Interest in US tech stocks from Singapore investors jumped last week, with Meta, Amazon, and Microsoft seeing the most trading activity, while investors also raised their holdings in Nvidia.
Meta’s stock fell over 12% to US$648.4 on October 31 after announcing a 26% revenue rise to US$51 billion in Q3, but earnings missed expectations due to a one-time tax charge and concerns over rising costs for AI infrastructure.
Microsoft’s shares also dropped, closing at US$517.8, as the company said AI spending will continue to rise after nearly US$35 billion in capital expenditure for the quarter.
Amazon’s shares climbed more than 9% to US$244.2, hitting a record high after reporting its strongest cloud growth since 2022, and the company also plans to increase capex and cut 14,000 jobs to manage expenses.
Nvidia hit an all-time high just under US$212 on October 29 and became the first company to reach a US$5 trillion market value, driven by demand for its AI chips.
In Singapore, Keppel’s stock rose 4.8% to S$10.19, reaching a 10-year high after announcing plans to reward shareholders using cash from asset sales.
SGX RegCo introduced new rules giving listed companies more discretion over disclosures and removing the financial watch list, with SGX shares ending down 3% at S$16.9 for the week.
🔗 Source: The Straits Times
🧠 Food for thought
Implications, context, and why it matters.
Capital expenditure (capex) opacity clouds AI infrastructure paybacks and timing
- Meta plans $70–$72 billion in 2025, Microsoft spent $64.55 billion last fiscal year, and Amazon raised its outlook to $125 billion 1. None shared AI allocation, payback timing or returns 1.
- Investors sent Meta down 11% after an earnings per share (EPS) miss from a one-time tax charge, as ads are 98% of revenue while AI brings no direct sales 23. Amazon rose on Amazon Web Services (AWS) sales plus savings from AI automation 3.
- With no detailed capex breakdowns, Microsoft capital spending including leases may hit $140 billion this year, up 58% year over year and triple fiscal 2024, raising profit questions 1.
Power shortfalls open doors for energy suppliers and developers
- US AI data center power need could reach 123 gigawatts by 2035 from 4 gigawatts in 2024 4. 72% of surveyed industry executives call power and grid capacity very or extremely challenging 4.
- Virginia, Texas, Oregon see 2025 demand near 12.1, 9.7, above 4 gigawatts 56. Suppliers can pitch gas generation, plan for Small Modular Reactors with earliest US deployment expected in 2030, or add liquid cooling systems that circulate coolant to remove heat for AI loads 56.
- Utilities plan electric and gas capex up 22% to $212 billion in 2025, while eight hyperscalers (the largest cloud providers that operate massive data centers) expect about $371 billion for 2025 AI data centers and computing resources 4.
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