Crucial Fed decision looms as stocks fly high near records: What to watch this week

🤖 BlackRock bets on ‘pick and shovel’ trade, singling out clear winners in AI spending spree

The wave of capital pouring into artificial intelligence infrastructure is far from peaking, said Ben Powell, chief investment strategist for APAC at BlackRock, arguing the sector’s “picks and shovels” suppliers - from chipmakers to energy producers and copper-wire manufacturers - remain the clearest winners as hyperscalers race to outspend one another.

The surge in AI-related capital expenditure shows no sign of slowing as tech giants push aggressively to secure an edge in what they see as a winner-takes-all contest, Powell told CNBC Monday on the sidelines of the Abu Dhabi Finance Week.

“The capex deluge continues. The money is very, very clear,” he said, adding that BlackRock is focused on what he called a “traditional picks and shovels capex super boom, which still feels like it’s got more to go.”

AI infrastructure has been one of the biggest drivers of global investment this year, fueling a broader market rally, even as some investors question how long the boom can last. CNBC reports.


📊 TSMC stock target raised to $330 on capacity increase

Taiwan Semiconductor Manufacturing's stock (NYSE:TSM) is trading 1.45% higher in the pre-market, following a series of upward revisions to its price targets, the latest of which came with a healthy $330 PT.

This bullish trend is largely attributed to TSMC's strategic capacity expansions, particularly in chip-on-wafer-on-substrate (CoWoS) technology, and the escalating demand for AI and high-performance computing chips.

TSMC's stock has been delivering a solid year of outperformance, with a year-to-date increase of 46.2%, and the Street continues to support higher moves. AskTraders reports.


🚙 Tesla stock downgraded at Morgan Stanley: here’s why

Tesla's stock (NASDAQ: TSLA) experienced a notable shift in analyst sentiment as Morgan Stanley downgraded the electric vehicle giant, with the stock price 0.84% lower in overnight trading.

The downgrade reflects concerns over near-term growth prospects and competitive pressures.

Tesla shares are facing increased scrutiny after Morgan Stanley's adjustment. The stock's performance is closely tied to broader market perceptions of the EV sector, and any revisions in analyst outlooks can trigger immediate price reactions.

The recent downgrade to “Equal Weight” from “Overweight” suggests a more neutral stance on Tesla's potential for outperformance in the near term. AskTraders reports.


📊 Carvana, Comfort Systems, CRH to join S&P 500 Index. The stocks are jumping

Carvana, AI cooling play Comfort Systems, and cement giant CRH will join the S&P 500 index, S&P Global announced late Friday as part of its quarterly rebalancing.

Carvana stock jumped 9% before the open in Monday's stock market trading, with CRH up 7%, both breaking out. Comfort Systems rose nearly 2%, right around a buy point.

Among the notable snubs: Vertiv and SoFi Technologies. Both stocks edged lower early Friday. Investors reports.


💊 Eli Lilly's Mounjaro added to China's state insurance list for diabetes treatment

Eli Lilly's popular drug Mounjaro will be added to China's state-run health insurance scheme from January 1 for patients with type 2 diabetes, the National Healthcare Security Administration said in a website notice on Sunday, a move which analysts say could put pressure on competitors.

Inclusion in the national reimbursement list makes drugs more widely available to the public in a country with a population of 1.4 billion, but an increase in sales volume is often mitigated by lower prices. Reuters reports.

*Estimate and Actual numbers represent Earnings Per Share in US Dollars


TOL: Toll Brothers
Q4 2025
After Market Close
Estimate: 4.870
Actual: N/A

ELWT: Elauwit Connection
Q3 2025
After Market Close
Estimate: -0.010
Actual: N/A

OOMA: Ooma
Q3 2026
After Market Close
Estimate: 0.170
Actual: N/A

“Stock market is the only place where the inexperienced meet the experienced, and the inexperienced pay.”

– Vijay Kedia

Sourced in: Vijay Kedia Interview – Economic Times.

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