gross profit

It sits above other costs like sales and R&D spending, so it shows how much a company keeps on the product itself before anything else is subtracted. In cyclical industries like chips, a move of just a few percentage points in the gross margin is often the earliest sign of which way the cycle is turning.

Predictions & track record (4)

• Awaiting grading Chip stocks fell together. Why did Kioxia fall harder than the rest?To be scored on whether Kioxia's July 30 earnings meet guidance (1.75 trillion yen revenue) and recover together with Samsung and SK hynix, and on when the Viasat patent appeal ruling or settlement lands.
• Awaiting grading Intel posts Q2 revenue up 25% and its best quarterly growth in over 15 years, as shares surge more than 11% on AI data center demandCheck Intel's next quarterly report, expected around late October 2026, to see whether revenue lands in the guided $15.8 billion to $16.8 billion range and whether the AI data center segment keeps growing at a similar pace.
• Awaiting grading Supermicro shares jump 20% on record $60 billion order backlog despite soft revenueCheck Supermicro's audited fourth quarter and fiscal 2026 results on August 11, 2026, to see if the 60 billion dollar backlog and 15 to 17 percent margin guidance hold up.
• Hit Meru: Alphabet's Wednesday earnings are the first stress test of the AI capex cycle, watch the CAPEX line, not the profitAlphabet's Q2 2026 earnings (reported July 22, 2026) beat revenue and profit estimates, but the company raised its 2026 capex guidance to $195-205B from the prior $180-190B, and GOOGL shares fell about 5-7% on the capex hike despite the beat -- confirming Meru's call that the capex line, not profit, would drive the market reaction.

4 related posts

• Watch Chip stocks fell together. Why did Kioxia fall harder than the rest? 後藤達也 (Tatsuya Goto) · 2026-07-28
• Bull Intel posts Q2 revenue up 25% and its best quarterly growth in over 15 years, as shares surge more than 11% on AI data center demand The Kobeissi Letter (@KobeissiLetter) · 2026-07-23
• Bull Supermicro shares jump 20% on record $60 billion order backlog despite soft revenue The Kobeissi Letter (@KobeissiLetter) · 2026-07-21
• Watch Meru: Alphabet's Wednesday earnings are the first stress test of the AI capex cycle, watch the CAPEX line, not the profit 메르 (ranto28) · 2026-07-20