My market observation today: Most technology stocks are under pressure, including NVIDIA (NVDA) and Palantir (PLTR). However, not every part of the market is moving in the same direction. KWEB is showing strength, while defensive stocks such as Hasbro are holding up relatively well.
What I find interesting is that the market is beginning to distinguish between different types of investments. Investors are becoming more selective about expensive technology stocks, while looking for opportunities in beaten-down markets and companies with more defensive business characteristics.
This is an important reminder that when the technology sector falls, it does not automatically mean every stock must fall together.
1️⃣ Why are most technology stocks falling? 💻
The biggest issue is the changing attitude towards artificial intelligence (AI).
For much of 2025 and 2026, investors have been willing to pay increasingly high valuations for companies associated with AI. NVIDIA, Palantir, AMD, Microsoft and other technology companies have benefited from enormous enthusiasm surrounding AI infrastructure, data centres, cloud computing and automation.
However, the market is now asking a different question:
How much money will these companies actually make from all the billions being invested in AI?
This is an important change in sentiment.
Previously, investors were excited about how much companies were spending on AI. Today, they are increasingly interested in whether that spending can generate sufficient returns.
The recent technology sell-off has been driven by concerns about expensive valuations, enormous AI infrastructure expenditure and whether future earnings can justify current share prices. Intel’s disappointing outlook also contributed to pressure across semiconductor stocks. AP News +2
This explains why even companies with strong long-term business prospects can experience significant share-price declines.
The market is not necessarily saying AI is finished. It is questioning how much investors should pay for future AI growth.
2️⃣ NVIDIA: Is the AI trade becoming overcrowded? 🚀
NVIDIA is one of the most important stocks to watch whenever the technology sector experiences a correction.
The company remains a major beneficiary of AI infrastructure spending. Its GPUs are essential for training and running large AI models, and demand for computing power remains an important long-term investment theme.
However, a good company does not automatically mean a good stock price at every valuation.
When investors become worried about the sustainability of AI spending, semiconductor stocks can experience selling pressure together.
Recent market weakness has been particularly noticeable in semiconductor companies. Intel’s disappointing forward outlook triggered a sharp decline, while AMD and NVIDIA were also affected by the broader selling pressure.
On Friday, October 30, NVIDIA fell approximately 4.2%, while AMD declined approximately 10.9%. INDmoney +1
My interpretation is that investors are taking some profits and reducing exposure to crowded AI positions.
I would separate two things:
* Business fundamentals: Is demand for NVIDIA’s chips still growing?
* Stock valuation: Am I paying too much for that future growth?
I remain interested in technology companies, but I do not want to chase prices simply because AI is a popular investment theme.
If NVIDIA continues correcting, I would rather look for attractive entry prices than rush to buy during a volatile session.
3️⃣ Palantir: Excellent earnings, but why is the stock still under pressure? 📊
Palantir is particularly interesting because the earnings figures in the supplied report are exceptionally strong.
Looking at the Q3 2026 results:
Financial metric Q3 2026
Total revenue $2.31 billion
Quarterly revenue growth 19.1%
Year-on-year revenue growth 95.8%
US commercial revenue $984 million
US commercial revenue growth YoY 148%
EBIT margin 61.6%
Net income margin 49.4%
Free cash flow margin 52.6%
Cash and equivalents $10.6 billion
These numbers show a business experiencing extraordinary growth.
Revenue increased from $1.18 billion in Q3 2025 to $2.31 billion in Q3 2026. US commercial revenue also increased from $397 million to $984 million.
That is significant because commercial adoption is an important indicator of whether Palantir can expand beyond its traditional government-related business.
The company also exceeded earnings expectations, reporting adjusted EPS of $0.44 against the $0.41 consensus estimate. Its Q4 revenue guidance was approximately $2.65 billion at the midpoint, above analyst expectations of $2.46 billion. TradingView News
So why would investors still be cautious?
My answer is valuation and expectations.
When a stock has already experienced a substantial rally, investors may have priced in several years of exceptional growth.
Even if Palantir delivers excellent results, the share price can fall if investors believe the valuation is too demanding or if they decide to take profits.
Another interesting observation is that its free cash flow margin declined from 63.1% in Q2 to 52.6% in Q3, although it remains a strong margin.
I would not interpret one quarter of margin compression as a deterioration of the entire business. However, it is something I would monitor.
My takeaway: Palantir’s business performance and its share-price performance are two different things. I can be bullish on the company while remaining disciplined about the price I am willing to pay.
4️⃣ KWEB: Why is Chinese technology showing strength? 🇨🇳
One of the more interesting developments today is the relative strength in KWEB.
While American technology stocks are experiencing selling pressure, KWEB is showing a different pattern.
Why?
I think there are several possible explanations.
First, Chinese technology has already experienced a difficult period.
Chinese internet companies have faced concerns about economic growth, weak consumption, property-sector problems, competition and investor confidence.
When a market has already experienced substantial weakness, expectations may be lower.
This creates the possibility of a recovery when new positive catalysts emerge.
Second, Beijing is introducing measures to support the stock market.
This is particularly important.
On November 2, Chinese authorities announced measures to stabilise the equity market. The People’s Bank of China planned liquidity-supporting swap operations potentially exceeding 100 billion yuan, while the buyback lending rate was reduced from 1.25% to 1%.
Regulators also encouraged major companies to conduct share buybacks and urged fund managers to increase purchases during market weakness. Reuters +1
These measures can improve liquidity and investor confidence.
They do not guarantee that Chinese stocks will rise, but they provide a potential short-term catalyst.
Third, valuation differences matter.
American AI companies have enjoyed considerable investor enthusiasm. Chinese internet companies, meanwhile, have experienced a much more difficult valuation environment.
Some investors may see an opportunity to diversify away from expensive American technology shares.
This could help explain why KWEB behaves differently from NVIDIA and Palantir.
However, I would not assume that KWEB is automatically safer. Chinese technology stocks carry their own risks, including regulatory uncertainty, economic weakness and geopolitical developments.
For me, KWEB is an interesting recovery opportunity, but I would still respect technical support and resistance levels rather than chase a sudden rally.
5️⃣ Hasbro: Why are defensive stocks holding up? 🎲
Hasbro is another stock I am watching closely.
What I find interesting is that while technology stocks are experiencing volatility, Hasbro has maintained relative strength.
This is a good example of why I like having different types of companies in an investment portfolio.
Hasbro is not a traditional defensive stock like a utility company or a consumer staples business. Toys and games belong to the consumer discretionary sector.
However, its established brands, entertainment franchises and recurring gaming demand can provide different sources of earnings compared with technology companies.
Its recent Q3 2026 results were encouraging.
Hasbro reported approximately $1.595 billion in quarterly revenue, representing 15% year-on-year growth. Wizards of the Coast and Digital Gaming revenue increased 31%, with Magic: The Gathering contributing significantly to the results.
The company also raised its full-year outlook. tradingkey.com +1
I think this is important.
Hasbro is not simply depending on people buying traditional toys. It also has valuable intellectual property, gaming franchises and digital entertainment opportunities.
These businesses can attract customers through different economic environments.
There is also an important portfolio lesson here.
When investors reduce exposure to expensive growth stocks, companies with more predictable earnings, established brands and improving cash generation can become relatively attractive.
I would not call Hasbro immune to a recession. Families can reduce discretionary spending, and toy demand can be seasonal.
But its recent earnings improvement gives investors something more substantial to evaluate than simply market sentiment.
For me, Hasbro represents a different type of investment from NVIDIA and Palantir.
I do not need every holding to be an AI growth stock.
Sometimes I want businesses with established customers, recognisable products and different earnings drivers.
6️⃣ Is this a technology correction or a wider market sell-off? 📉
This is probably the most important question for investors today.
Looking at Monday’s US market close on November 2:
Index Daily movement
Nasdaq Composite -1.1%
S&P 500 -0.5%
Dow Jones +0.4%
Russell 2000 -0.2%
Source: Associated Press and market reporting. AP News +1
Notice something interesting?
The Dow Jones actually finished higher even though the Nasdaq declined.
This tells me that the market is experiencing some degree of sector rotation rather than an indiscriminate sell-off.
Technology stocks are under pressure, but other parts of the market are finding buyers.
According to AP, nearly 70% of S&P 500 stocks advanced on Monday despite the index finishing lower.
This is an important distinction.
If the Nasdaq falls because investors are selling expensive technology shares, that does not necessarily mean the entire economy is deteriorating.
I would be more concerned if selling started spreading aggressively into banks, consumer businesses, healthcare, industrial companies and other sectors.
For now, I want to watch whether the weakness remains concentrated in technology.
7️⃣ What else should investors watch this week? 🌍
There are several catalysts that could influence market sentiment.
🇺🇸 US midterm elections
November 3 is US Election Day for the midterm elections. Investors may become more cautious as they assess the potential political implications for taxation, regulation, government spending and economic policy.
Political uncertainty can increase short-term volatility.
🍎 Apple earnings
Apple’s earnings and forward guidance are important because investors want to understand consumer demand, AI developments and the potential impact of rising memory-chip costs.
🏦 Central banks and interest rates
Interest rates remain important for growth stocks.
Technology companies with valuations based on future earnings can be particularly sensitive to changes in interest-rate expectations.
💰 AI infrastructure expenditure
This is the bigger long-term issue.
Reuters reported that Goldman Sachs analysts expect hyperscaler capital expenditure to approach $800 billion in 2026 and increase further in 2027.
The market increasingly wants to know which companies can convert this enormous investment into actual profits and cash flow. Reuters +1
I believe this will become one of the most important investment themes going forward.
8️⃣ My investment strategy: I want to buy quality at better prices 🐱
I am not interested in selling everything simply because technology stocks are declining.
I also do not want to buy every dip blindly.
My strategy is to separate my investments into different categories.
Stock / ETF My investment view
NVIDIA Long-term AI growth, wait for attractive entry prices
Palantir Strong growth, but valuation discipline is important
KWEB Watch for a Chinese technology recovery
Hasbro Established brands and improving earnings
AMD Monitor semiconductor sector recovery
Microsoft Watch AI monetisation and cloud growth
QQQM Long-term technology exposure through diversification
For NVIDIA and Palantir, I would monitor whether selling pressure begins to ease before adding more exposure.
For KWEB, I would watch whether the Chinese government’s support measures translate into sustained buying rather than a temporary rebound.
For Hasbro, I would monitor earnings, cash generation and consumer demand.
I also want to avoid concentrating all my capital in the same investment theme.
If my entire portfolio consists of AI and semiconductor stocks, I will naturally experience greater volatility when investors reduce their technology exposure.
Having different sectors can help balance that risk.
9️⃣ Why am I making this trade now?
My investment approach today is based on the changing market environment.
Technology stocks have experienced significant selling pressure, but I do not believe the long-term AI investment story has disappeared.
I am more cautious about valuations and would rather accumulate quality companies when prices become more attractive.
At the same time, I am paying attention to KWEB because Chinese authorities are introducing measures to support their equity market.
Hasbro is another company I find interesting because its recent earnings demonstrate that opportunities exist outside the technology sector.
I want to take advantage of market differences rather than simply follow whatever sector is currently popular.
🔟 What’s my plan from here?
My plan is to remain selective.
* NVIDIA: Watch whether buyers return and whether semiconductor weakness stabilises.
* Palantir: Monitor revenue growth, US commercial demand and free cash flow margins.
* KWEB: Watch Chinese policy support, trading volume and technical resistance.
* Hasbro: Monitor whether recent earnings strength can continue into the next quarter.
* QQQM: Consider gradual accumulation if the broader technology market corrects further.
I will also keep some cash available rather than fully deploying my capital during the first stage of a correction.
I do not need to catch the exact bottom.
I would rather buy in stages and allow the market to show me where buyers are returning.
🐱 My final thoughts: Not every red market is a bad market
Today’s market provides an interesting lesson.
NVIDIA and Palantir represent the growth and AI investment theme. KWEB represents Chinese internet companies with potential recovery catalysts. Hasbro represents established consumer brands and gaming franchises.
They have different business models, valuations and market drivers.
When technology stocks fall, I do not automatically assume that every investment opportunity has disappeared.
Sometimes the best opportunities emerge when investors begin rotating away from the most crowded trades.
I am watching three things particularly closely:
* Whether the AI and semiconductor correction becomes deeper or begins stabilising.
* Whether China’s policy support can sustain the recovery in KWEB.
* Whether companies such as Hasbro can continue delivering earnings growth despite economic uncertainty.
My biggest takeaway is that I want a portfolio that can survive different market conditions.
I enjoy investing in growth stocks, but I also appreciate businesses with established brands, cash generation and different sources of revenue.
I do not need to own only NVIDIA when I can also look at Palantir, KWEB, Hasbro and other opportunities.
The market changes every day. My job is to remain patient, manage my capital and wait for attractive prices.
Sometimes the smartest move is not chasing the strongest stock. It is identifying which quality businesses are temporarily being overlooked.
This is my personal market observation and investment strategy, not a recommendation to buy or sell any particular security.
@AI_FocusedTrader @TigerStars $KraneShares CSI China Internet ETF(KWEB)$
Comments
What I find interesting is that the market is beginning to distinguish between different t
What I find interesting is that the market is beginning to distinguish between different t