Closelook@Hypergrowth
AI Stocks — The Suppliers Get Paid, the Spenders Get Sold
Last week the security layer led and the builders looked for a floor. This week the market chose by invoice. The suppliers that beat were paid — Vertiv +19.6%, Entegris +14.8%, Aixtron +13.7%, Quanta +13.6%, Lumentum +11.2%, SK Hynix +11.0% in Seoul — and the companies that spend on AI, or sell software on top of it, were sold: Reddit −36.4%, ServiceNow −33.9%, Fortinet −24.4%, Twilio −21.7%, Alphabet −12.6%. Intel fell 24.4% on its outlook. The build-out index ended the week up 0.6% after a 6.1% fall on Friday; the operators and the applications fell 5.3% and 5.4% — while the flow board still counts most of their members as gaining strength. The users of AI held flat, 1.4% under a new high.
Current edition · 2026-11-01
1 · This Week's Action
The selection, first — the suppliers at the top, the spenders at the bottom. The best names of the week across the four AI indices: Vertiv +19.6%, Entegris +14.8%, SoFi +14.7%, Aixtron +13.7%, Quanta Services +13.6%, Lilly +11.3%, Lumentum +11.2%, SK Hynix +11.0% in Seoul, freee +10.8%, Prysmian +10.7%. The worst: Reddit −36.4%, ServiceNow −33.9%, Fortinet −24.4%, Intel −24.4%, Nubank −23.4%, Twilio −21.7%, Roblox −18.7%, Sangfor −16.3%, Delta Electronics −14.4%, Marvell −14.1%.
The pattern under the names. The winners sell something the AI build-out needs and reported that they are selling more of it: power and cooling (Vertiv, Quanta), materials and equipment (Entegris, Aixtron, KLA), memory (SK Hynix), optics (Lumentum). The losers either spend heavily on AI and were asked about the return (Alphabet), or sell software on top of it and missed by a little (ServiceNow by two cents), or saw users and advertising slow (Reddit, Roblox). The market paid the invoice and sold the bill.
The medians tell it in four numbers. The builders' median member rose 0.8%, with 76 of 130 up. The operators' median fell 3.8%, with 6 of 34 up. The applications' median fell 3.1%, 9 of 40 up. And the growth index with no AI thesis rose 2.0% at the median, 66 of 99 up. Last week the median builder fell 6.3% and the median operator rose 7.1%. The ladder turned over in one week.
The four indices. Capex (Rubin Build-Out) +0.6% to 1,713.44; opex (Agentic Ecosystem) −5.3% to 1,540.57; applications (Agentic Winners 40) −5.4% to 913.38; AI Users 0.0% to 1,004.88. On Friday alone: −6.1%, −6.1%, −1.4%, −0.3%. The US letter reads the shapes these lines are drawing — a double bottom in the builders, double tops in the operators and applications. This letter reads the names and the flow under them.
The software that led last week, sold. Last week's leaders were the security and governance layer. This week: Fortinet −24.4%, Twilio −21.7%, Sangfor −16.3%, Cloudflare −13.8%, Datadog −12.7%, Atlassian −14.0%, HubSpot −12.6%. The cloud fund CLOU fell 7.6%, the software fund IGV 5.7%. The only operators that rose were the ones that rent out computing: OVHcloud +6.9%, Sakura Internet +6.7%, Equinix +6.1% — the rung that fell hardest a week ago.