Tech's AI Bet and Geopolitical Gains Lift Stocks, Cryptocurrencies

Meta's third-quarter earnings report, coupled with strategic moves by tech giants and geopolitical developments, have sent ripples through global markets, with cryptocurrencies and equities both seeing gains. The social media behemoth reported record revenue of $51.2 billion, surpassing analyst estimates, though its adjusted EPS fell short due to tax reserves. Despite the earnings miss, Wall Street analysts remain optimistic, citing Meta's aggressive investments in AI and cloud infrastructure as key drivers for future growth, according to USA Today. The stock, up 27% in 2025, is seen as a cornerstone of the "Magnificent Seven" megacap group, which now accounts for 34% of the S&P 500's total value.

Meanwhile, Intel's reported attempt to recruit TSMC veteran Wei-Jen Lo has sparked speculation about a potential shift in semiconductor dynamics. While industry insiders question the likelihood of Lo's return due to TSMC's non-compete clauses and his age, the mere possibility has pushed Intel shares to double in three months, fueled by U.S. government support and partnerships with NVIDIA and SoftBank. This aligns with broader trends of tech firms securing talent and resources to bolster AI capabilities, a sector projected to drive significant revenue growth despite slowing demand in traditional cloud computing, according to a StockTwits analysis.

Nokia's recent partnership with NVIDIA further underscores the AI-driven market surge. The Finnish firm agreed to a $1 billion investment from NVIDIA, acquiring a 2.9% stake and collaborating on AI networking solutions. Nokia's stock soared over 20% following the announcement, highlighting investor enthusiasm for companies pivoting toward data center and AI infrastructure. Such deals reflect a broader industry shift, with hyperscalers like Meta and Microsoft racing to secure dominance in AI-driven computing.

Geopolitical developments also played a role in market sentiment. Bitcoin rose 1.6% to $111,390 as the Trump administration confirmed a high-stakes meeting with Chinese President Xi Jinping on October 30, raising hopes for de-escalation in trade tensions, Fox News reports. The meeting, part of Trump's Asia tour, has already yielded trillions in U.S. investment commitments, including a $36.2 billion Boeing deal with South Korea and expanded AI and energy cooperation with Japan. Retail traders and institutional investors alike are watching these talks closely, as eased tensions could stabilize cryptocurrency markets that had faltered following Trump's earlier tariff threats, as CoinDesk reported.

The interplay of corporate earnings, strategic partnerships, and geopolitical diplomacy underscores the interconnectedness of today's markets. As tech firms continue to pour billions into AI and infrastructure, and as global leaders navigate trade complexities, the Magnificent Seven's performance will likely remain a barometer for broader economic and technological trends.