11-10-26: Great Earnings Will Keep Fueling Market (and Economic) Growth

by Louis Navellier

November 10, 2026

The market went on a wild roller-coaster ride after the election results last week – first, by rising in giant steps (+1,570 Dow) on Wednesday, then falling below pre-election levels on Thursday. After the election results came in, semiconductor and memory stocks came under pressure, while large hyperscale stocks with massive cloud computing operations, like Apple, Amazon, Google and Microsoft, rallied.

Before the election, the data center narrative was dominated by 200+ Chinese bots striving to plant false stories designed to hinder America, since the U.S. is currently winning the AI race, and China is a distant second. States like Texas, Georgia, North Carolina, Ohio, Pennsylvania, Virginia and others with existing or incoming Democratic governors will remain data center powerhouses. It makes no sense for hyperscale stocks to rally, while semiconductor and memory stocks sell off, so I expect a big reversal in chip stocks.

After the Big Blue Wave hit Texas, some investors feared the leading data centers may leave Texas for other states, but that was a gross overreaction. While the incoming Texas governor could end that state’s current 20-year tax exemption for data-centers, these centers will continue to be attracted to states with cheap electricity, cold nights to vent data center heat and fast fiber optic transmission lines.

Turning to the latest earnings announcements, Apple announced its latest quarterly revenue rose 12% to $114.48 billion, and its operating earnings rose 14% to $2.10 per share. The analyst community was expecting revenue of $113.46 billion and earnings of $2 per share, so Apple posted a small (1%) revenue surprise a 5% earnings surprise, but the big news is that Apple’s free cash flow rose by $136 billion in its fiscal year, so it obviously has plenty of money to spend on AI, potential acquisitions, etc.

Also, Palantir Technologies announced its third-quarter revenue surged 96% to $2.31 billion and its operating earnings rose 95% to 44 cents per share. The analyst community was expecting revenue of $2.17 billion and operating earnings of 41 cents per share, so Palantir Technologies posted a 6.5% revenue surprise and a 7.3% earnings surprise. The good news is Palantir Technologies’ commercial revenue rose 148% to $984 million, so it is becoming less dependent on government contracts.

Any dips in Apple and Palantir Technologies stock on this good news make them great near-term buys!

We also had incredible earnings announcements from Advanced Micro Devices and Super Micro Computer on Tuesday, causing both stocks to surge. Advanced Micro Devices announced third-quarter sales up 44.6% to $13.38 billion compared to $9.25 billion in the same quarter a year ago. During the same period, the company’s earnings rose 94.7% to $2.83 billion, or $1.46 per share compared to $1.27 billion or 75 cents per share. Excluding extraordinary items, AMD’s operating earnings were $2.09 per share. The analyst community was expecting sales of $13.13 billion and operating earnings of $1.94 per share, so AMD posted a 1.9% sales surprise and a 7.7% earnings surprise. What got investors most excited is AMD’s data center business surged 97% to a record $8.5 billion. Even better, AMD forecasts fourth-quarter revenue of $17 billion, well above the analysts’ consensus estimate of $16.29 billion!

Super Micro Computer announced its latest quarterly sales surged 297.5% to $19.946 billion compared with $5.018 billion in the same quarter a year ago. During the same period, the company’s earnings soared 573% to $1.594 billion or $1.75 per share compared to $168.3 million or 26 cents per share. Excluding extraordinary items, Super Micro Computer’s operating earnings were $1.81 per share. The analyst community was expecting sales of $15.77 billion and operating earnings of $1.24 per share, so the company posted a whopping 26.5% sales surprise and a 46% earnings surprise. Naturally, Super Micro Computer also raised its guidance above the previous analyst consensus estimates!

What rattled some investors (before the election) was that Amazon, Google and Meta all reported declining cash flow in the third-quarter of $42.4 billion, $9.1 billion and $2.12 billion, respectively, due to higher AI spending. While many on Wall Street see this as a negative, in my opinion, heavy AI spending is incredible news for AMD, Nvidia, Micron Technology and all the memory companies, plus data center related companies!  Furthermore, Google’s cloud business surged 103% last quarter, while Amazon’s much larger AWS cloud business rose 39.3%, so data centers feeding cloud computing are expanding.

I fully expect we will see an “early January effect” in November that will set the stage for a potentially stronger January effect in the new year. Another Russell re-alignment to its 1000 and 2000 indices this month will also help create buying pressure under many stocks. And, since 2027 is the third year of a presidential cycle – the best performing year during the presidential cycle – I expect that in the wake of the Conference Board’s strong report on consumer confidence that investor confidence will improve.

It is now time to focus on the holidays, which is a positive time of year for most folks. As we focus on family, friends, football and food, all the bogus narratives about AI and data center stocks should largely disappear. We are also in the midst of robust GDP growth as companies announce rising order backlogs!

Most Economic Indicators Point to Rising Growth Ahead

There is plenty of evidence of strong GDP growth. First, the Institute of Supply Management (ISM) reported its manufacturing index rising to 55.5 in October, up from 54.5 in September. This was the second highest monthly reading in the past four years and the 10^th straight month of expansion (over 50) in the manufacturing sector. Also, 80% (12 of 15) industries surveyed by ISM expanded in October.

The Institute of Supply Management (ISM) also announced that its non-manufacturing (service) index came in at 54.5 in October, down from 54.9 in September. This remains positive, since any reading above 50 signals an expansion – and the ISM service index has remained over 50 for 28 consecutive months now. The good news is that in October, 15 of 17 industries surveyed reported an expansion, while in September only 13 of the 17 industries surveyed expanded, so more industries are expanding now.

The Commerce Department announced on Wednesday that the U.S. trade deficit plunged by $105 billion in September as exports rose 1.9% to $321.5 billion and imports rose 1.2% to $426.6 billion. This means that the preliminary third-quarter GDP estimate of 3.4% will likely be revised higher. Boosting third-quarter GDP further, productivity soared 3.6%, well above economist’s expectation of a 2.7% increase. In fact, third-quarter productivity gains were so massive that unit labor costs declined by 0.7%, well below the economists’ consensus expectation of a 0.4% increase. This bodes well for potential wage increases.

Jobs are also expanding. ADP announced on Wednesday that private payroll jobs rose 86,000 in October, which was above economists’ consensus estimate of a 67,000 increase. All four regions that ADP surveyed reported job growth, led by the South and West with 47,000 and 28,000 jobs, respectively. Small (under 50), mid-sized (50 to 499) and large business (500+) all created new jobs. Goods producing jobs rose by 4,000, while service jobs rose by a whopping 86,000. Overall, the ADP report was positive.

The Labor Department on Friday published an even more positive jobs survey, announcing 165,000 net new payroll jobs were created in October, substantially better than economists’ consensus estimate of 70,000. August and September payrolls were revised up by a cumulative 84,000. The unemployment rate declined to 4.1% in October, down from 4.2% in September. Average hourly earnings rose 0.4% (14 cents an hour) to $38 per hour in October and these earnings have now risen 3.1% in the past 12-months.

Manufacturing jobs rose by a healthy 19,000 in October and have increased 101,000 since December 2025. Since transportation and warehousing jobs rose by 25,000 jobs in October, it appears that seasonal hiring for the upcoming holiday shopping season is underway. This was a very positive payroll report.

Look For Fireworks at the Next G-20 Meeting

The upcoming G-20 meeting in Doral, Florida is shaping up to be very tense. At a preliminary meeting in Atlanta, top diplomats and envoys from China and Russia were not able to agree on much of anything. For example, delegates apparently scrapped plans for a group photo, since European diplomats objected to being photographed with Sergey Lavrov, Russia’s top diplomat. It will be interesting to see what, if anything, the G-20 will be able to agree on or if there will be a joint statement. Marco Rubio is a skilled negotiator, but European funding to Ukraine to bomb Russian energy facilities is a rift that may not be resolved soon.

In conclusion, the stock market will likely celebrate 2027’s Congressional gridlock and President Trump’s willingness to work with the new Congress will also help smooth the markets. The earnings environment is simply stunning, so I recommend investors control their own destiny, since our best defense remains a strong offense of fundamentally superior growth stocks, as recent earnings announcements demonstrated.

Navellier & Associates; own Super Micro Computer, Inc. (SMCI), Advanced Micro Devices, Inc. (AMD), Apple (AAPL) and Alphabet Inc. Class A (GOOGL) in managed accounts. A few accounts own Microsoft Corporation (MSFT), Meta Platforms Inc Class A (META) and Amazon (AMZN) per client request. Louis Navellier and his family own Super Micro Computer, Inc. (SMCI), Advanced Micro Devices, Inc. (AMD), Apple (AAPL) and Alphabet Inc. Class A (GOOGL) via a Navellier managed account and Amazon (AMZN) and Apple (AAPL) in a personal account. They do not own Microsoft Corporation (MSFT) or Meta Platforms Inc Class A (META) personally.