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US inflation (Wed, Aug 12) set to dominate market's attention this week
Still, AI watch continues amid ongoing earnings season
Tencent expected to move 3% up/down after earnings release on Wed, Aug 12 (before US markets open)
Cisco expected to move 7.3% up/down after earnings release on Wed, Aug 12 (after US markets close)
Applied Materials expected to move 6.4% up/down after earnings release on Thur, Aug 13 (after US markets close)
Global stocks are at a new record high!
The rebound in Asian stocks, as easing oil prices lower expectations for Fed rate hikes in 2026, has bolstered equity markets worldwide.
Here's how global stock markets are faring, judging by the MSCI All Country World Index:
This week, the incoming US inflation data due Wednesday, August 12th, is set to take centre stage.
And we will preview this tier-1 US economic data release in our regular Market Pulse reports.
Still, the AI watch continues as earnings season rolls along.
3 stocks to watch this week:
1) Tencent to post new August low?
Tencent, the owner of WeChat, is set to unveil its Q2 results before US markets open on Wed, Aug 12th.
Markets predict this stock could move over 3% up/down when US markets open later that day.
Bybit clients have the advantage of 24/7 access to Tencent perpetual contracts - you can offer your live reaction to this earnings results.
Key Themes to Watch
As has been the case for many other tech giants this earnings season ...
Tencent's AI spending plans will be scrutinized, even as its earnings growth is expected to fall to its lowest levels since 2023.
Watch for updates on the Hunyuan 3 AI model and the WorkBuddy enterprise AI agent - these are key signals for future monetization.
Tencent is doubling its AI investment budget to ~CNY 36B (about US$ 5.3 billion) in 2026, with a focus on its AI agent for its WeChat platform - with no notable sales expected from this feature this year.
Potential Scenarios
UPSIDE: Tencent may rebound back to its month-to-date highs around 63.35 if, like Amazon and Microsoft, Tencen'ts core business shows robust earnings that can healthily fund its AI capex.
DOWNSIDE: Tencent may set a new month-to-date low below the psychological $60 level if markets once again doubt that its AI spending plans will produce the desired results eventually.
Over the longer term, Wall Street analysts still predict that Tencent's stocks could climb another 65% from current levels over the next 12 months.
2) Cisco to set new record high?
After US markets close on Wednesday, Aug 12th, Cisco is set to unveil its latest quarterly results (fiscal Q4 2026 quarter ending July 31st).
Markets predict Cisco's share price could move 7.3% up/down when US markets re-open the next day (Thur, Aug 13th).
Key Themes to Watch
Cisco has already raised its FY26 hyperscaler AI order target to ~$9B (up from $5B earlier in the year).
The market will focus heavily on Cisco's initial 2027 financial year (FY27) outlook, with markets expecting at least $6B in orders (50% growth).
Analysts are also looking for ~$68–69B in revenue, implying ~10% growth - any shortfall here could pressure the stock.
Potential Scenarios
UPSIDE: Cisco may set a new record high above $130.32 if its FY27 earnings outlook is revised higher.
DOWNSIDE: Cisco's stocks may test support around the $112.60 region once more if its FY27 outlook disappoints markets, or if its Q4FY26 earnings shows waning momentum.
Over the longer term, Wall Street analysts still predict Cisco could climb another 11% from current levels over the next 12 months.
3) Applied Materials to bolster AI mania?
Applied Materials, the semiconductor manufacturer, is set to unveil its next earnings results after US markets close on Thursday, Aug 13.
Markets predict Applied Material's share price could move 6.4% up/down when US markets re-open the next day (Friday, Aug 14th).
Key Themes to Watch
Applied Materials makes the machines that build chips, and is the #1 DRAM process equipment player.
The company has already said 2027 should be another record year for the industry!
AI is driving massive demand: the company raised its semiconductor systems growth forecast to over 30% for 2026 (up from 20% earlier) - and is expected to announce its fastest earnings growth (adjusted diluted EPS) in over 5 years!
Careful attention will be placed on:
any revisions to its 50% margins
potential price increases - if any
supply chain constraints/trade restrictions to China
Potential Scenarios
UPSIDE: Applied Materials may reach its upside target of $573.35 if it reports better-than-expected results, along with a more robust earnings outlook.
DOWNSIDE: Applied Materials may reach our downside target of $504.37 if its past quarter's results and/or its earnings guidance disappoints markets.
Over the longer term, Wall Street analysts still predict that Applied Materials could climb another 15.5% from current levels over the next 12 months.
DISCLAIMER:
This article is provided for general information and reflects the author’s views only. It does not constitute investment advice, nor an offer or solicitation to buy or sell any financial instruments or digital assets. Your ability to access or use any products or services mentioned may be subject to the laws and regulatory requirements of your jurisdiction.
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