The S&P 500 closed up 0.10% at 7,337 on Thursday (May 7) in New York, while the Nasdaq slipped 0.13% to 25,806, and the Dow rose 0.30% to 49,596. The headline tape was nearly flat, but the action underneath stayed lit.
The lead story is still AI semis. Taiwan Semiconductor (TSM) reported sales growth of 17.5%, driven by AI infrastructure spend that has not slowed. DataDog spiked 31% after profit more than doubled, and Baidu (BIDU) is preparing a dual IPO of its AI chip unit on the Shanghai and Hong Kong exchanges.
The backdrop is not entirely calm. Brent crude is back above $101 a barrel as Hormuz headlines flip-flop, Toyota and Sony cut guidance citing Iran impact, and Pakistan paused LNG spot buying. Tonight's tape sits at a fork: extend the AI-semis rotation, or get cautious heading into the weekend.
Tonight's Watchlist 📈
| Ticker | Name | Why It Matters | Action |
|---|---|---|---|
| TSM | Taiwan Semiconductor | Sales up 17.5%, a clean signal that AI chip demand has not peaked. | Add |
| NVDA | NVIDIA | Still the anchor of the AI infrastructure narrative; watch the pre-market reaction. | Hold |
| BIDU | Baidu | AI chip unit dual IPO on Shanghai and Hong Kong is in the pipeline. | Watch |
| AVGO | Broadcom | Core hyperscaler capex play; AI chip rotations usually pull AVGO along. | Add |
| AMD | Advanced Micro Devices | Positive read-across from TSM and DataDog ahead of AMD-specific catalysts next week. | Hold |
Tonight's Catalysts 🧨
Three things drive the tape tonight:
- First, whether the AI chip momentum from TSM and DataDog can carry NVDA and AVGO to fresh levels.
- Second, whether Hormuz headlines cool down or escalate, since crude at $101 is starting to squeeze auto and consumer-goods margins.
- Third, the Friday earnings reaction set: ENB pre-market for mainline volumes and dividend outlook, then Veeco, NICE, Klaviyo, and Veracyte as semicap, AI cloud, and SaaS SMB tells.
Pre-market Pulse 📊
S&P 500 and Nasdaq futures are flat heading into the New York open. TSM is the cleanest pre-market mover on the sales print, while BIDU's reaction will hinge on the IPO filing details.
Levels worth watching: the S&P 500 record near 7,350 and Nasdaq support at 25,700. If futures break above the record before the open, the small-cap rotation likely keeps running.
Macro Notes 📝
Brent sits near $101.65 and WTI at $96.50, both bid as the Hormuz risk premium creeps back in. The 10-year Treasury yield is at 4.34%, down 2 bps.
The rupiah firmed slightly to around 17,305 per USD. Macquarie posted a record FY profit on commodities, while Trump's reportedly leaner CEO delegation to Beijing keeps the US-China framing on a "steady" note.
Anthropic is said to be eyeing a $1 trillion valuation in a $50B funding round, which could lift sentiment for backers GOOGL and AMZN.
Tonight's setup boils down to one question: are AI chips strong enough to keep the tape near records through the Iran noise. TSM and DataDog gave us two new data points that support the narrative, and today's watchlist follows that flow.
If you hold TSM, NVDA, AVGO, or AMD, tonight is about discipline: keep the core, add on a healthy pre-market dip, and avoid chasing a spike without volume confirmation. If you're on the sidelines, BIDU and the AI chip IPO filing belong on your watchlist.
Which AI chip name are you watching tonight?
