AMD’s ‘Very High’ Chip Demand Sets Up Marvell’s Investor Day: 8 Key Items Shaping the Stock Market Tuesday

These are the early headlines and other items poised to influence the market at the start of trading Tuesday. As we share this collection of market drivers, U.S. equity futures point to a positive start to the trading day.

1. A sliding euro is the latest alarm bell for policymakers facing a surge in French borrowing costs that has started to spill over into the broader euro area. At stake is feeble economic expansion in a bloc rocked by political uncertainty. Chancellor Friedrich Merz’s party last month suffered the worst regional election defeat in postwar Germany. And on Monday, Spanish Prime Minister Pedro Sanchez called a snap election. Italy also holds elections next year. With inflation already rising on soaring energy costs and higher yields increasing ⁠household and corporate borrowing costs, further euro weakening could leave the European Central Bank caught between fighting inflation and calming bond markets. (Reuters)

A reminder that rising yields are unfolding in markets outside the U.S. even as the 10-year Treasury yield closed yesterday at 5.307%, its highest level since April 2002. We attribute that in part to the inflation and job creation learnings from Monday’s ISM September Service PMI data. While we wait for the Fed to publish its latest FOMC meeting minutes Wednesday afternoon, we and other market watchers will be parsing comments today from three Fed speakers. As we do that, we’ll keep in mind those September inflation indicators and be sure to revisit CME’s Fed Watch Tool rate-hike probabilities.

A falling euro relative to the U.S. dollar is a positive for international travel, and will have us listening to what Delta Air Lines (DAL) has to say about that later this week.

2. Advanced Micro Devices Inc.’s Lisa Su predicted “very high” chip demand continuing for the next few years, even as the industry faces challenges such as concerns over AI’s safety… “We have also increased our own supply and capacity in 2026, but I can say that the demand is even higher than our supply,” Su said during her trip to visit supply chain partners including Taiwan Semiconductor Manufacturing Co. “We are going to substantially increase our supply in 2027, but we can definitely use more.” (Bloomberg)

If you’re thinking that sounds rather close to what Nvidia (NVDA) CEO Jensen Huang said several weeks back about the company’s 2027 prospects, we are right there with you. The added comments above from Advanced Micro Devices (AMD) Lisa Su reinforce tight chip industry capacity, which keeps us bullish on the Portfolio’s position in Applied Materials (AMAT).

Su’s comment also sets up Marvell’s (MRVL) Investor Day being held today. The event kicks off at 9 AM ET this morning, and if management is upsizing its outlook, odds are we’ll see a press release before the event.

3. Zscaler, Inc. the cybersecurity platform for the AI era, is hosting its 2026 Investor Day today in New York City. In conjunction with its Investor Day, Zscaler reaffirmed its financial guidance for the first quarter and full fiscal year 2027… “The agentic AI era is quickly becoming the most significant opportunity in our company’s history. Our Zero Trust platform was purpose-built to solve the challenges customers face today — protecting against AI-driven threats, securing data everywhere, and enabling the secure deployment of AI — by hiding the attack surface and preventing lateral movement. (Barron’s)

Marvell isn’t the only company holding an investor day, and ahead of one being conducted by Zscaler (ZS), the management team reiterated the 2026 and 2027 guidance it issued in early September. With SecurityWeek’s 25th Anniversary Industrial Control Systems (ICS) Cybersecurity Conference kicking off today, we expect to hear much more about how AI is changing the cyberattack landscape. Companies expected to present at the three-day event include NXP Semiconductors (NXPI), Estee Lauder (EL), Microsoft (MSFT), Exxon Mobil (XOM), United Parcel Service (UPS), and Palo Alto Networks (PANW).

4. The United Nations Food and Agriculture Organization’s Food Price Index, which tracks international commodity or export prices for cereals, vegetable oils, dairy, meat, and sugar averaged 136 points in September, up 1.5% from a revised 134 points in August and 5.8% from a year earlier… sustained increases in costs can eventually squeeze manufacturers. If productivity boost and other offsets fall short, companies may ultimately have to absorb more of the costs in their margins or pass them on to consumers through higher prices, potentially hurting volumes. (Barron’s) Cocoa prices rallied sharply for a second session on Monday and posted 2-week highs. Supply concerns are underpinning cocoa prices on reports that excessive rainfall in the Ivory Coast has cut off roads and damaged bridges, slowing cocoa deliveries to ports. Cocoa prices also have underlying medium-term support from future weather concerns. The US Climate Prediction Center said the El Niño weather pattern that emerged across the equatorial Pacific last month will likely be one of the strongest in more than 75 years. An El Niño typically brings warmer, drier conditions to West Africa, reducing soil moisture, stressing cocoa trees, and lowering yields. (Barchart)

This is another reminder of inflation pressures and ones that may be passed along to consumers as consumer-packaged goods (CPG) and food companies look to protect margins and their bottom lines. During McCormick’s (MKC) recent earnings call, management discussed how pricing action was the result of increased commodity and freight costs. The UN’s Food Price Index and McCormick’s comments set the table for quarterly results on Thursday from PepsiCo (PEP) as well as Albertsons (ACI) and Domino’s Pizza (DPZ) next week.

5. ChatGPT is getting more ads. Specifically, OpenAI is adding visual display ads to its ad product line-up so that ads will appear alongside images that users ask ChatGPT to generate. In addition, the company is expanding its ad measurement tools and partnerships, and developing new ways to determine brand suitability. The new ads will begin to appear later this month in the U.S. only for now, and will feature products and services from an initial test group of advertisers. The ads will also be clearly labeled and won’t influence the answers ChatGPT provides, the company notes. (TechCrunch)

Earlier this year, OpenAI introduced ads to support its free and low-cost subscription tiers, and this past August it expanded that effort to India. Odds are OpenAI is looking to leverage visual imagery to win advertisers so they can target ChatGPT’s 1.2 billion weekly users. As OpenAI moves beyond text-based ads to images and perhaps video one day, the move should increase its advertising rates and related revenue. When we get the eventual OpenAI S-1 filing, we’ll look to see what is said about advertising revenue and its potential.

Our view is this move by OpenAI and any competitive response from Meta (META), Anthropic, (GOOGL) or others is likely to accelerate the advertising spending shift away from legacy media. It also has the potential to further pressure companies like Trade Desk (TTD).

And while we’re chatting about OpenAI, the company is reportedly in talks with multiple investment funds from the United Arab Emirates, including Abu Dhabi-based MGX, to help anchor a $30 billion round of financing with a valuation of ~$1.4 trillion. Back in March the company closed a $122 billion round at an $852 billion valuation.

6. Boeing was awarded an undefinitized contract action worth approximately $14.7B by Lockheed Martin to scale production and deliver PAC-3 Missile Segment Enhancement seekers, the company announced. “The contract award enables Boeing to triple PAC-3 MSE seeker production under the previously announced seven-year framework agreement with the U.S. Department of War in support of its Acquisition Transformation Strategy and to strengthen the nation’s Arsenal of Freedom. (TipRanks)

This marks the third major win for Boeing’s Defense, Space & Security (BDS) segment in the last two weeks. We see this latest win further extending the visibility for this more steady and less cyclical business. We recognize the market remains focused on Boeing’s Commercial Aircraft (CA) business, especially after the favorable ruling from the FAA received late last week. That decision suggests the Max 10 can be certified prior to year-end with first delivery in 2027.

7. Economic data today per TipRanks: Imports/Exports (August), RCM/TIPP Economic Optimism Index (October).

8. Companies reporting today per TipRanks: AM – Apogee Enterprises (APOG), Lamb Weston (LW), RPM Inc. (RPM). PM – Constellation Brands (STZ), Penguin Solutions (PENG), Worthington Steel (WS).

More Pro Portfolio:

At the time of publication, TheStreet Pro Portfolio was long AMAT, AMD, GOOGL, META, MRVL, MSFT, and NVDA.