Singapore Investors Flock to US Tech Stocks Amid Mixed Earnings

Singaporean investors showed heightened interest in US technology stocks last week, with Meta Platforms, Amazon, and Microsoft driving significant activity on trading platforms. While Meta and Microsoft faced selling pressure despite strong revenue growth, Amazon and Nvidia reached new highs on robust cloud performance and AI demand.

Key Market Movements

• Meta Platforms: Shares plunged over 12% despite 26% revenue growth due to tax charges and rising AI costs
• Amazon: Jumped 9% to record high on strongest cloud growth since 2022
• Nvidia: Hit all-time high after reaching $5 trillion market value milestone
• Microsoft: Declined despite record AI investments

US Tech Stocks: Winners and Losers

Meta Platforms (META) closed at US$648.35 on October 31, down over 12% despite reporting US$51 billion in quarterly revenue. The company faced investor concerns over rising capital expenditure for AI infrastructure and higher talent compensation costs.

Amazon (AMZN) reached a new high of US$244.22, climbing more than 9% during the week. The company reported 20.2% growth in its cloud unit, beating Wall Street estimates. However, Amazon announced 14,000 job cuts globally to manage costs amid increasing capital expenditure.

Nvidia (NVDA) made history as the first company to reach US$5 trillion in market value. CEO Jensen Huang announced US$500 billion in AI chip orders and described AI reaching a “virtuous cycle” where improvements spur more investment. Since ChatGPT’s 2022 launch, Nvidia shares have risen twelvefold.

Microsoft (MSFT) closed the week at US$517.81 as the company signaled continued increases in AI spending following record-high quarterly capex of nearly US$35 billion.

Singapore Market Highlights

Keppel Hits 10-Year High

Keppel Corporation rose 4.8% to close at S$10.19, breaching the S$10 mark for the first time in a decade. The company announced plans to reward shareholders with cash from asset monetization efforts and promised sustainable dividends from core business earnings.

Analysts remain bullish on Keppel’s prospects:

• CGS International: Targets S$12.71 share price within 12 months
• UOB Kay Hian: Forecasts potential 32 cents per share special dividend

SGX Regulatory Overhaul

Singapore Exchange Regulation introduced significant changes to boost market competitiveness:

• Removed financial watch list and public trading queries
• Reduced mainboard listing profit threshold from S$30M to S$10M
• Allowed pre-revenue companies with growth potential to list
• Shortened operating record requirement for life science firms

Despite these market-friendly measures, SGX shares fell 3% to S$16.93.

Other Notable Movers

China Aviation Oil surged 13.4% to S$1.52 after announcing corporate restructuring plans by its controlling shareholder.

Raffles Education gained over 7% to 7.4 cents following a debt-to-equity conversion proposal and special dividend announcement.

Upcoming Listings to Watch

Coliwoo Holdings begins trading on SGX mainboard November 6 with IPO price of 60 cents per share.

Yangzijiang Maritime Development received conditional eligibility for November 18 listing, targeting S$2.04 billion market capitalization.

The Singapore market continues to show dynamic activity across both local and international investment opportunities, with AI and regulatory changes driving significant investor interest.