Market Beats | Qualcomm Enters AI Data Center Market With New Chips; Gold Drops Below $4,000; Amazon to Cut 30,000 Corporate Jobs; Nvidia and Deutsche Telekom to Build €1 Billion AI Data Center in Germany; Wall Street Grows Wary of Mounting Risks; S&P Assigns Junk Rating to Strategy Inc.; Nearly All Wall Street Analysts Rate Microsoft a Buy

—— Qualcomm Enters AI Data Center Market With New Chips; Gold Drops Below $4,000; Amazon to Cut 30,000 Corporate Jobs; Nvidia and Deutsche Telekom to Build €1 Billion AI Data Center in Germany; Wall Street Grows Wary of Mounting Risks; S&P Assigns Junk Rating to Strategy Inc.; Nearly All Wall Street Analysts Rate Microsoft a Buy

1. Qualcomm Enters AI Data Center Market With New Chips

Qualcomm Inc., the leading maker of smartphone processors, is entering the fast-growing AI data center market with a new lineup of chips and servers — a bold move to take on Nvidia Corp.

The new AI200 processor will ship next year and be offered as a standalone chip, an add-in card for existing systems, or as part of a full rack of servers provided by Qualcomm. The first customer will be Saudi Arabia–based AI startup Humain, which plans to deploy 200 megawatts of computing capacity powered by Qualcomm chips beginning in 2026. A successor, the AI250, will follow in 2027, the San Diego–based company said Monday.

When sold as a component, the AI200 can work alongside processors from Nvidia or other competitors; as a full server, it will compete directly with their systems. Qualcomm shares surged as much as 15% in New York — their biggest intraday jump in more than six months — following the announcement.

The company is entering a sector that has transformed the semiconductor industry, with hundreds of billions of dollars being poured into data centers for artificial intelligence software and services. Qualcomm said its new memory capabilities and power-efficient designs — derived from its mobile technology expertise — will attract customers despite its late arrival.

The new systems are built around a neural processing unit (NPU), a chip type first developed for smartphones to accelerate AI workloads without draining battery life. Qualcomm has since refined the design for laptops and now scaled it up for use in high-performance computing servers.

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2. Gold Drops Below $4,000

Gold extended its steepest slide in over a decade, dropping below $4,000 an ounce as signs of progress on a U.S.-China trade deal reduced demand for haven assets.

Spot gold fell as much as 3.1% to $3,985.31 an ounce in New York after losing 3.3% last week. The retreat follows last Monday’s record high above $4,380, when a rapid rally fueled by expectations of Fed rate cuts and retail speculation pushed the metal into overbought territory.

The U.S. and China signaled they are nearing a broad trade agreement as President Donald Trump tours Asia for diplomatic meetings. The prospect of easing economic and geopolitical risks has undermined the case for gold, which remains up more than 50% this year on continued central-bank buying.

“Gold is undergoing a long-overdue correction, driven today by positive news on trade talks,” said Ole Hansen, head of commodity strategy at Saxo Bank. “We may have seen the high for the year, as a deeper correction could take longer to recover from with traders turning cautious and stocks rallying.”

At the London Bullion Market Association conference in Kyoto, attendance hit a record as nearly 1,000 traders, brokers and refiners gathered amid a growing talent war in the gold market. John Reade, market strategist at the World Gold Council, said central bank demand has eased and a deeper correction would be “healthy,” adding that $3,500 an ounce “would still be a ridiculously high price.”

This week, the Federal Reserve, European Central Bank and Bank of Japan are all set to announce policy decisions. The Fed is forecast to cut rates by 25 basis points, while the ECB and BOJ are expected to hold steady. Lower interest rates typically support gold as it yields no income.

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3. Amazon to Cut 30,000 Corporate Jobs

Amazon.com Inc. plans to eliminate 30,000 corporate jobs, according to Reuters — the latest in a series of workforce reductions the company has implemented in recent years. The cuts are expected to begin tomorrow, Reuters reported, citing people familiar with the matter.

Amazon previously carried out major layoffs in late 2022 and early 2023 that ultimately affected more than 27,000 corporate employees as Chief Executive Officer Andy Jassy sought to rein in costs after a pandemic-era hiring surge. Since then, smaller job reductions have continued across individual teams.

In June, Jassy signaled that Amazon’s corporate workforce would likely shrink further as artificial intelligence takes over tasks traditionally handled by humans — comments that triggered anxiety among employees seeking information about possible layoffs through anonymous online forums.

“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy wrote in a memo to employees. “Over time, we expect that this will reduce our total corporate workforce as we gain efficiency from using AI extensively across the company.”

Earlier this year, Bloomberg reported that Amazon ordered some corporate workers to relocate to cities closer to their managers and teams — including Seattle, Arlington, Virginia, and Washington, D.C. — in some cases requiring cross-country moves.

As of June 30, Amazon employed about 1.55 million people globally.

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4. Nvidia and Deutsche Telekom to Build €1 Billion AI Data Center in Germany

Nvidia Corp. and Deutsche Telekom AG are set to announce plans for a €1 billion ($1.2 billion) data center in Germany, part of a broader effort to expand Europe’s AI infrastructure.

According to people familiar with the matter, both companies will provide funding for the project, while SAP SE, Europe’s largest software maker, will be one of its first customers. Deutsche Telekom CEO Tim Höttges, Nvidia CEO Jensen Huang, SAP CEO Christian Klein, and German Digital Minister Karsten Wildberger are expected to unveil the plan at an event in Berlin next month.

European policymakers and tech leaders have been urging the region to build its own AI ecosystem to catch up with the U.S. and China. In the U.S. alone, companies such as Microsoft Corp. and Alphabet Inc.’s Google are investing hundreds of billions of dollars to expand AI computing capacity.

Huang has previously criticized Europe for moving too slowly in developing its AI infrastructure and supporting companies that want to use the technology while keeping their data within the region.

Shares of Deutsche Telekom’s American depositary receipts jumped as much as 2.2% on the news, reaching a session high.

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5. Wall Street Grows Wary of Mounting Risks

Friday’s delayed inflation report solidified Wall Street’s conviction that the Federal Reserve will cut rates at this week’s policy meeting. But despite the optimism, equity investors remain on edge as the S&P 500 trades near record highs.

A derivatives-market measure tracking the cost gap between bearish and bullish bets has widened, suggesting investors are turning cautious after watching the S&P 500 add $16 trillion in market value over the past six months. Market participants remain wary of President Donald Trump’s unpredictable trade-war rhetoric, even as U.S. and Chinese negotiators prepare diplomatic wins to unveil during meetings in Asia this week.

At the same time, credit strains among regional banks have rekindled memories of Silicon Valley Bank’s collapse, and the sustainability of the market’s AI-fueled optimism will be tested with five megacap tech firms reporting earnings in the coming days.

The Fed, too, faces challenges amid the ongoing government shutdown that began Oct. 1, leaving officials largely without official data to guide decisions. Private-sector reports indicate a weakening economy and slowing hiring, with major companies including Target Corp., General Motors Co., and Amazon.com Inc. announcing layoffs.

“Cracks in the rally are starting to emerge,” said Stefano Pascale, head of derivatives at Barclays Plc. “At the macro level, markets are becoming more concerned amid the re-emergence of tariff risks and the potential for an SVB-style crisis redux.”

Still, stocks have held up well: the S&P 500 rose nearly 1% Friday to close a second straight week of gains. Trump’s tariff threats on Oct. 10 briefly triggered a 2.7% selloff that was quickly reversed, with equities on pace for a sixth consecutive monthly advance.

Volatility, however, is climbing. The VVIX Index — which measures the volatility of the Cboe Volatility Index — sits about 5% above its 20-year average despite easing from its October peak. Meanwhile, the Cboe SKEW Index, which gauges demand for downside protection, is near a two-month high, signaling increased implied volatility for bearish S&P 500 put options.

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6. S&P Assigns Junk Rating to Strategy Inc.

S&P Global Ratings has assigned a junk-level credit rating to Strategy Inc. — the enterprise software maker formerly known as MicroStrategy — citing the company’s heavy concentration in Bitcoin, narrow business focus, weak risk-adjusted capitalization, and low U.S. dollar liquidity.

The firm received a B- rating, two notches below investment grade, with a stable outlook, S&P said Monday. Co-founder Michael Saylor noted on X that it marked the first-ever credit rating for a Bitcoin treasury company.

S&P analysts highlighted that Strategy holds approximately $74 billion in Bitcoin at fair value, funded largely through debt and equity issuance. While the company has managed its convertible debt “prudently,” analysts expressed concern over liquidity risks tied to its debt structure.

Strategy has issued nearly $15 billion in combined convertible debt and preferred equity, including $5 billion in out-of-the-money convertible bonds maturing in 2028. It also owes more than $640 million in annual preferred dividends as of October 2025. S&P warned that if Bitcoin prices come under pressure near debt maturities, the company may be forced to liquidate its holdings at “depressed prices” or restructure its obligations — an outcome the agency “would consider tantamount to default.”

S&P added that Strategy faces a “currency mismatch”: while holding billions in Bitcoin, it must pay debt, interest, and dividends in U.S. dollars. The company has been selling common shares to raise cash for these payments.

The agency noted that the risks are partly offset by Strategy’s strong access to capital markets and careful capital management — with no major maturities in the next 12 months and a reliance on equity financing.

The rating could be raised if Strategy reduces its use of convertible debt, strengthens U.S. dollar liquidity, and proves it can maintain market access even during Bitcoin price stress, S&P said.

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7. Nearly All Wall Street Analysts Rate Microsoft a Buy

Wall Street analysts are now almost unanimously bullish on Microsoft Corp., after Guggenheim upgraded the software giant to a “buy” rating from “hold” ahead of its upcoming quarterly results.

The move means that roughly 99% of analysts tracked by Bloomberg now recommend buying the stock. Of the 73 covering Microsoft, only Hedgeye Risk Management maintains a neutral rating, and none advise selling.

Guggenheim’s upgrade reflects confidence in Microsoft’s strong position to benefit from artificial intelligence breakthroughs. Analyst John DiFucci wrote, “At a time when investors struggle to separate AI beneficiaries from AI casualties, it’s clear to us that Microsoft, along with other hyperscalers, is a beneficiary.” He added that Microsoft’s near-monopoly in productivity software through its Office suite allows it to directly monetize AI products like Copilot.

Guggenheim set a price target of $586 per share, implying about 12% upside from the latest close. The upgrade comes ahead of Microsoft’s fiscal first-quarter results, scheduled for release on Oct. 29, with investors watching for signs of AI-driven growth and updates on spending plans.

Microsoft shares rose 1.5% on Monday, extending their winning streak to seven sessions. The stock is up 26% so far this year, outperforming the Nasdaq 100’s roughly 22% gain.

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