Even AI suppliers with good news are being sold

MaxLinear beat expectations and raised its outlook on data-centre demand, yet closed 13.9% lower as networking and optical names fell together.

• 2026-10-23 [MXL, MTSI, VIAV, AXTI, COHR]: MaxLinear beat expectations and raised its outlook on data center demand, yet its shares closed 13.9% lower. Why it matters: Good results did not protect the stock, because networking and optical names fell together. MACOM, Viavi, AXT and Coherent all closed down between 12.5% and 15.9%. The market was marking down the whole group, not judging MaxLinear alone.
• 2026-10-23 [FPS, NVT, ACCV]: Forgent Power Solutions said sales and profit will beat its guidance, but its shares closed 21.5% lower after its finance chief said he was stepping down. Why it matters: Forgent makes electrical equipment for data centers, so a guidance beat points to strong demand for power gear. The shares fell anyway, on the same day as the CFO departure notice. Other data center equipment names, such as nVent and Accelevation, also closed more than 12% lower.

Electricity is increasingly called the limit on building AI, yet no power or data-centre infrastructure stock with a trend reading is in an uptrend.

• Hyperscalers: typical stock down 5.2% over 1 month
• Power: 0 of 11 in an uptrend, 0%
• 2026-10-22: New data center deals and power plans appeared across Asia, led by a 500MW letter of intent in Malaysia. Why it matters: Startup neocloud Aolani signed a letter of intent for 500MW in Malaysia, Duos signed a cloud provider for 20MW, and SC Capital Partners invested in a 40MW site in South Korea. Tata Power is targeting 2.8GW of generation, transmission and distribution for India's data centers. The AI build-out is spreading beyond the US, and the limit on it is increasingly electricity and grid supply, which favors power and site-equipment suppliers.
• 2026-10-26 [CEG, GOOGL]: Constellation Energy pledged 890 MW of added output from its existing plants for Google, citing growing energy needs. Why it matters: Big tech buyers are tying up power supply directly, because electricity is becoming a limit on data center growth. Raising output at existing plants is a faster way to add supply than building new ones. Power stocks have weakened over the week, so the market has not rewarded the theme broadly.

The typical memory stock costs 4.6 times next year's expected profit, and memory behaves like a commodity whose profits fall fast when supply catches up.

• Memory: typical price against next year's expected earnings 4.6x · typical operating margin 52.2%
• Cheapest price against next year's expected earnings, of 83 stocks: Sandisk (SNDK) 4.6x

Amazon dropped four planned Virginia data centres after local opposition, and slower permits can delay orders for power gear and cooling.

• 2026-10-24 [AMZN]: Amazon has dropped plans for four new data centers in Northern Virginia after local opposition. Why it matters: Community pushback is a real limit on where AI capacity can be built, even for the biggest spenders. A cancelled site can mean fewer orders for the builders and equipment makers who would have supplied it. Amazon reports earnings on October 29, when its spending plans will be in focus.
• 2026-10-26: Regulators are pushing back on data center building: Texas suspended 17 construction permits and shut an automated approval portal, and SpaceXAI faces a proposed $6.1 million fine in Mississippi over permits. Why it matters: Permitting is a new source of delay for data center projects. Slower approvals can push back when equipment such as power gear and cooling gets ordered and installed. Data center infrastructure stocks have weakened over the week.
• 2026-10-24, Tom's Hardware: Texas has suspended 17 data center construction permits and shut down automated portal that rubber-stamped projects. Texas suspended 17 data center construction permits and shut down an automated permitting portal. No listed universe tickers are directly tied to this story. Source

Look for next year's data-centre spending, and for signed orders at Vertiv and GE Vernova, which report alongside Microsoft and Alphabet.

• 2026-10-28: Microsoft (MSFT, Hyperscalers) reports earnings.
• 2026-10-28: Alphabet (GOOGL, Hyperscalers) reports earnings.
• 2026-10-29: Amazon (AMZN, Hyperscalers) reports earnings.
• 2026-10-28: Vertiv (VRT, Data-centre infrastructure) reports earnings.
• 2026-10-28: GE Vernova (GEV, Power) reports earnings.