My Stock Market Stories: PSR Weekly Market Outlook 5 Min Summary

Presentation Summary

Major Technology Earnings

Apple: Reported revenue growth of 17%—its fastest in four years—driven by strong iPhone 17 and MacBook Neo demand. While a $100 billion share repurchase was announced, the outlook remains neutral due to rising memory costs and uncertainty regarding direct AI monetization.
Disney: Streaming revenue grew 13%, with margins reaching double digits for the first time. While linear networks continue to decline, the company is aggressively expanding its experiences segment, including growing its cruise fleet from 8 to 13 ships by 2031.
Grab: Revenue met expectations, and profitability outperformed due to operational leverage in fintech and ads. Despite regulatory headwinds in Indonesia regarding commission caps, Grab is viewed as a long-term structural winner leveraging AI for efficiency.
Palantir: Achieved exceptional growth with revenue up 85%, fueled by US commercial revenue nearly doubling. The company raised its guidance as more enterprises adopt its AI Platform (AIP) to automate operations.
AMD: Data center revenue spiked 57% year-on-year. The firm is reportedly taking market share from Intel in server CPUs, and its target price was raised to $520 due to high visibility in AI-driven structural demand.
Reddit: Earnings were below expectations, but ad performance remained resilient with 74% growth. High-margin data licensing deals with Google and OpenAI are expected to boost future demand.

Singapore Banking Analysis

The outlook for the Singapore banking sector is generally neutral, though high interest rates remain "NIM (Net Interest Margin) supportive".

DBS: remains the most preferred bank due to healthy fee growth, stable margins, and a fixed dividend policy.
OCBC: Reported record total income driven by wealth management and insurance. It is pivoting toward ASEAN growth, highlighted by the acquisition of HSBC Indonesia’s wealth portfolio.
UOB: Viewed as the least preferred among the three due to weak fee momentum and rising non-performing loans (NPLs) in the Greater China region.

Singapore Sector Updates

Construction: The sector has strong visibility through 2030, with 2026 contracts projected to be 61% higher than the 20-year average. While diesel price spikes pose a margin headwind, most players can pass costs to customers.
Sheng Siong: Continues to gain market share as competitors exit the market. It has visibility for four new stores and is exploring private real estate transactions for further expansion.
StarHub: Facing intense competition and revenue contraction across mobile, broadband, and entertainment segments.
Venture: Seeing a lift from the AI wave, particularly in semiconductor equipment and data center networking products.

Market Strategy and Technicals

Global Macro: The US economy appears healthy with strong job growth, particularly in healthcare. AI investment momentum is surging; the source notes SpaceX (likely referring to the broader Musk ecosystem) is investing heavily in computing capacity and wafer fabs.
Technical Analysis: Both the S&P 500 and NASDAQ have hit new all-time highs but are nearing key trendline resistance levels, suggesting a possible near-term pullback. Conversely, the software sector (IGV) shows positive action after breaking out of an inverse head and shoulders formation.

Technology and Semiconductors

Micron: The analyst remains positive with a target price revision expected after upcoming earnings; the stock is currently trading at 12 times forward PE, which is lower than the 30-fold average of its AI chip peers.
ARM: The stock price dropped following results due to supply constraints, as the company can only fulfill 1 billion of its 2 billion order commitments despite huge demand.
Intel and Apple: The chip-making agreement between the two is viewed as positive for Intel because TSMC is at full capacity, and positive for Apple as it provides a secondary manufacturing source and negotiating leverage against TSMC.
Qualcomm: The stock surged following an announcement that it is collaborating with OpenAI to develop an AI chip for smartphones, with mass manufacturing slated for 2028.
Venture: While seeing an AI lift in about 30% to 40% of its portfolio, it is not considered a "pure" semiconductor play like AEM.
Super Micro (SMCI): Technical analysis shows strength following a retest of resistance, with the potential to reach $39 to $40.

Regional Tech and Internet

Grab: The potential merger with GoTo remains highly uncertain and politically sensitive in Indonesia due to concerns over market dominance. Financially, Grab's lending portfolio surged 130% year-on-year, and the company is targeting adjusted EBITDA breakeven in the second half of 2026.

Singapore Banking Sector

DBS: remains the most preferred bank with a target price of $61, favored for its fixed dividend per share, strong wealth management momentum, and stable margins.
OCBC: The acquisition of HSBC Indonesia's wealth portfolio is part of a pivot toward ASEAN growth, with integration expected to complete in 2027.
UOB: The bank's non-performing loan (NPL) ratio rose to 3.5% in Greater China, which is a point of concern compared to its peers.

REITs and Real Estate

Manulife US REIT: Operating performance is showing slight improvement with stabilized rent reversions at 0.3%, and the sale of the Figura asset is a step toward reducing debt.
Prime US REIT: Results are expected to be stable with positive rent reversions and strong leasing momentum.
Thakral: There is significant hidden potential for the company due to its Gurugram land aspirations in India.

Singapore Infrastructure and Industrials

Construction & Materials: Direct beneficiaries of upcoming civil engineering tenders include OKP, Lian Beng, and Ley Choon. Less direct beneficiaries include dormitory operators like Centurion and Wee Hur, and material providers like BRC Asia and Pan United.
SATS: Technical analysis suggests the stock remains weak in the short term, with potential support at $3.22.
SIA Engineering: The chart remains weak, trading below the $2.33 to $2.38 breakdown level.

Other Notable Mentions

IX Biopharma: The company is seeking emergency use authorization for Wafermine from the US Army and plans to monetize its broader portfolio of 40 products through a US-based joint venture.
Geo Energy: Reported positive news regarding a major Czech investment in its infrastructure, though the exact quality of the valuation remains to be seen until specific funding amounts are confirmed.
Riverstone: Results were negatively impacted by currency fluctuations and a margin squeeze in its electronics glove segment.
Singtel: The target price is set at $5.35, though momentum may be dampened by weak economic environments in emerging markets.

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