Nasdaq Falls 1.07%, SOX Drops Over 3%; AI-Related Stocks Extend Losses, Marvell Falls Over 12%, Oracle Drops Over 8%

Marvell Technology (MRVL) fell 12.72%, while Lumentum (LITE) dropped 18.59%.

The two companies announced that day that Marvell will acquire Lumentum in an all-stock transaction with an enterprise value of approximately $115 billion. Under the terms, Lumentum shareholders will receive 4.5 shares of Marvell stock for each share held. Upon completion of the transaction, legacy Marvell shareholders will hold approximately 67% of the combined company, and Lumentum shareholders will hold about 33%.

Oracle (ORCL) fell 8.85% to $119.1.

The company announced the launch of a $10 billion bond offering to raise funds for AI infrastructure investments and other general corporate purposes. According to people familiar with the matter, the offering is divided into six tranches with a maximum maturity of 20 years, and initial price guidance for that tranche is set at around 360 basis points above U.S. Treasury yields.

The performance of mega-cap tech stocks today is shown in the chart below:

The Philadelphia Semiconductor Index fell 3.37% to 10,328.33 points. Among its 30 constituents, 27 rose and 3 fell.

Meta Reportedly Plans Debt Issuance of at Least $20 Billion, Marking First Foray into Eurobond Market

Meta (META) is considering issuing at least $20 billion in cross-border investment-grade bonds, entering both the U.S. dollar and euro markets, Bloomberg reported, citing people familiar with the matter. The exact size has not been finalized and could be expanded based on subscription demand. Citigroup and Morgan Stanley have been hired to arrange investor call conferences. If completed, this will mark Meta's first euro bond issuance. Previously, Meta announced equity financing arrangements including a $25 billion common stock offering, a $12.5 billion mandatory convertible preferred stock offering, and an intended at-the-market equity offering program of up to approximately $60 billion. Among these, the common stock offering utilizes a forward sale agreement structure, meaning the funds raised will not all be received immediately.

Oracle Launches $10 Billion Bond Sale to Support AI Infrastructure Investment

Oracle (ORCL) announced on Monday the launch of a $10 billion U.S. dollar bond issuance to raise funds for AI infrastructure investments and general corporate purposes. The offering is divided into six tranches, with the longest maturity being 20 years, for which initial price guidance is set at about 360 basis points over U.S. Treasuries, according to people familiar with the matter. Offering documents list expected ratings of Baa2 by Moody's, BBB- by S&P, and BBB by Fitch, with S&P's BBB- rating sitting at the lowest tier of investment grade. The proceeds will be used for capital expenditures, debt repayment, future investments or acquisitions, dividend payments, and share repurchases.

Anthropic Reports Quarterly Revenue Close to $17 Billion, Future Spending Commitments Totaling Around $895 Billion

An updated IPO filing by Anthropic on Monday showed that revenue for the third quarter ended September 30 approached $17 billion, approximately 12 times that of the same period last year; net loss was $23.3 billion, compared to $12.1 billion in the prior-year period. Despite rapid revenue growth, the company continues to face heavy losses. The filing disclosed that Anthropic's total contractual and other future spending commitments stand at about $895 billion, mostly related to computing power and infrastructure. Of this amount, approximately $448 billion is expected to occur before the end of 2030, and about $70 billion will be paid in the 12 months ending September 2027. The company submitted its IPO application on October 26 and plans to go public before the U.S. Thanksgiving holiday. People familiar with the matter previously said Anthropic hopes to match or exceed the $86.2 billion raised by SpaceX in its listing, though the final offering size remains undecided.

Marvell Reaches Deal to Acquire Lumentum in Transaction Valued at Enterprise Value of $115 Billion

Marvell Technology (MRVL) and Lumentum (LITE) announced an all-stock acquisition agreement, with the transaction representing an enterprise value of approximately $115 billion. Under the terms, Lumentum shareholders will receive 4.5 Marvell shares for each share held. Upon completion of the transaction, legacy Marvell shareholders will hold approximately 67% of the combined company, while Lumentum shareholders will hold approximately 33%. The acquisition will integrate Marvell's silicon and electrical connectivity technologies with Lumentum's optical products, expanding its footprint in high-speed interconnects for AI data centers. The transaction remains subject to shareholder and regulatory approvals.

Morgan Stanley: Midterm Elections May Yield a Divided Government, Market Still Looks to Fundamentals

The U.S. will hold midterm elections on November 3. Morgan Stanley Wealth Management expects the Democrats to have a better chance of retaking the House of Representatives, where a net gain of just 3 seats is currently required to reach the 218-seat majority threshold. The firm adjusted its assessment of the Senate from Republicans retaining control to a toss-up with a slight edge for Democrats. If Democrats retake the House, the U.S. will enter a divided government, which could make major adjustments to tax, regulatory legislation, and government spending policies more difficult. However, executive actions and congressional investigations could still impact individual sectors. Regarding historical data, the firm noted that under a Republican president, when Democrats control both houses of Congress or when the two parties each control one house following the midterms, the S&P 500 Index has averaged gains of approximately 16% and 23%, respectively, in the subsequent calendar year. Morgan Stanley believes that inflation, economic growth, and corporate earnings will remain the primary drivers of broader market performance.

Iranian President Says Authorized by Supreme Leader to Advance Talks, Market Focuses on Plan to Reopen Strait of Hormuz

According to IRNA, Iranian President Pezeshkian stated that the Supreme Leader has authorized the government to advance negotiations. Relevant reports indicate that he did not elaborate on the specific scope of the authorization. Following the news, international oil prices pulled back, while gold and silver prices moved higher. Iran previously proposed that once its demands are met, it could reopen the Strait of Hormuz and resume nuclear talks within two days. Its conditions include lifting the blockade on Iranian ports, releasing frozen funds, and easing sanctions. The "two days" here refers to the implementation timeframe of the plan, not the validity period of the agreement.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.