The AI 'arms race' triggers a semiconductor rally,$NVIDIA (NVDA.US)$with gains nearing 8%, marking the strongest upward momentum in nearly 10 months.

Previously, six of the Mag 7 tech giants had already announced their earnings. The most noteworthy aspect is:$Alphabet-C (GOOG.US)$、$Microsoft (MSFT.US)$、$Amazon (AMZN.US)$and$Meta Platforms (META.US)$Their combined capital expenditure by 2026 will reach approximately $650 billion.

Last week, Meta announced that its full-year capital expenditure could rise to as much as USD 135 billion, representing a potential increase of 87%. Meanwhile, Microsoft reported a 66% year-over-year increase in capital expenditure for the second fiscal quarter, with analysts expecting its capital expenditure for the fiscal year ending June to approach USD 105 billion.

Huang particularly praised OpenAI and Anthropic, two leading AI labs, stating that they are both 'making big money.' NVIDIA invested $10 billion in Anthropic last year, and earlier this week, Huang also indicated plans for a significant investment in OpenAI’s next funding round. He said, 'If they can have twice the computing power, their revenue will grow fourfold.'

Earlier, Taiwan Semiconductor, the leader in wafer foundry services,$Taiwan Semiconductor (TSM.US)$Set a new performance record and plans to significantly increase capital expenditure to $52-56 billion by 2026, far exceeding market expectations, with the aim of accelerating the expansion of advanced process capacity to address the ongoing global shortage of AI computing chips.

Progress in the CPO industry accelerates,$Lumentum (LITE.US)$With gains exceeding 9%. The primary drivers of continuous performance growth include cloud optical modules, OCS, and CPO.

NVIDIA recently announced three partners during a webinar:$CoreWeave (CRWV.US)$CoreWeave, Lambda, and TACC will deploy IB CPO systems in the first half of 2026, with Ethernet CPO products also scheduled for shipment in the second half of 2026. The bank believes that progress in the CPO industry has accelerated compared to earlier expectations. It will initially be implemented in Scale-out scenarios before expanding further into the larger market space of Scale-up. As a next-generation optical interconnect solution, its commercial value continues to become clearer, and its addressable market space is expected to expand further.

Michael Hurlston, President and CEO of Lumentum, stated during the company’s quarterly earnings call that the driving force behind this$Lumentum (LITE.US)$The main drivers of continuous performance growth are cloud optical modules, OCS, and CPO.

The development of the OCS business has outpaced expectations. The initial target of achieving the first $10 million in quarterly revenue, originally planned for the third fiscal quarter, was reached one quarter ahead of schedule. Demand for OCS from three key customers has surged significantly. Michael Hurlston revealed that the backlog of OCS-related orders has exceeded $400 million, with most scheduled for delivery in the second half of 2026. Entering 2027, related orders and revenues are expected to grow further.

The company’s subsidiary demonstrated improvement in dermatological conditions in a Phase 2 study of Brepocitinib.$Roivant Sciences (ROIV.US)$Increased by over 22%.

$Roivant Sciences (ROIV.US)$Priovant Therapeutics, a subsidiary, announced on Friday that its experimental drug Brepocitinib showed improvement in cutaneous sarcoidosis activity at higher doses in a Phase 2 study. Meanwhile, another subsidiary, Pulmovant, stated that it had completed the recruitment of approximately 120 patients for a Phase 2 trial involving its experimental drug Mosliciguat, intended for treating pulmonary arterial hypertension associated with lung diseases.

Priovant reported that patients taking a 45-milligram dose improved by 22.3 points on a key skin scoring system at week 16, compared to only a 0.7-point improvement in the placebo group. The company noted that all patients in the 45-milligram group achieved meaningful improvements, with 62% reaching near-complete skin clearance and 69% of patients in the 45-milligram group achieving complete or near-complete clearance, while no patients in the placebo group reached this outcome.

Priovant plans to initiate Phase 3 trials in 2026 following consultations with the U.S. Food and Drug Administration (FDA).

1. U.S. Equity Giants Hitting New Highs

Among companies hitting new highs, Sumitomo Mitsui Financial Group rose 7.97%, leading the rankings, followed by Caterpillar with a 7.06% increase and Mizuho Financial with a 6.78% rise.

2. Individual U.S. Stocks Hitting New Highs

In terms of individual stocks reaching new highs, Roivant Sciences led the rankings with a 22.14% increase, followed by Forgent Power Solutions with a 16.41% rise and Teradyne with a 10.69% increase.

3. Ranking of Gainers and Losers in Popular U.S. Stocks

On the gainers list, Strategy topped the chart with a 26.11% increase, followed by Roivant Sciences with a 22.14% rise and CoreWeave with a 20.5% increase. On the downside, Stellantis NV, Illumina, and VeriSign underperformed.

Editor/Joe Liang