Why Retail Traders Couldn’t Take Their Eyes Off These Stocks Last Week: IBM, PYPL, TSM, NOK, SPCX

• IBM suffered its worst week on record, falling 26% after weak preliminary second-quarter results.
• PayPal surged after reports of a potential $53 billion takeover by Stripe and Advent International. 
• SpaceX shares faced heat after the Starship test flight was aborted due to engine issues. 

Artificial intelligence remained the driving force behind the technology sector last week as companies unveiled earnings, dealmaking, infrastructure expansions and product initiatives that underscored intensifying competition across software, chips and advanced computing. 

A shift in corporate technology spending defined the week's market action, with AI infrastructure emerging as the biggest beneficiary. As companies prioritized investments in semiconductors, data center equipment and computing capacity, hardware and chip suppliers outperformed while many software companies came under renewed pressure.

IBM Suffers Historic Selloff

IBM posted its worst week in history, plunging 26% after its preliminary second-quarter results came in below Wall Street expectations. The company attributed part of the slowdown to customers prioritizing investments in AI infrastructure over software-related spending. 

The drop raised concerns about enterprise software companies, leading investors to rethink the sector’s outlook. However, on Stocktwits, retail sentiment around IBM remained in ‘extremely bullish’ territory. 

PayPal Becomes An M&A Favorite

PayPal Holdings (PYPL) emerged as one of the strongest performers after reports that Stripe and Advent International were pursuing an acquisition valued at more than $53 billion. 

The news triggered a sharp rally and fueled speculation among retail traders over whether competing bids could emerge following years of underperformance in the payments company's shares.

“The Big Short” investor Michael Burry supported this theory, saying the proposed $53 billion takeover offer for PayPal is too low and added that the $60.50-per-share bid from Stripe and Advent International undervalues PayPal and is likely just the first offer, with a higher bid potentially coming later.

PayPal stock gained 22% over the week with retail sentiment remaining in ‘extremely bullish’ territory. 

Chipmakers Continue To Attract Capital

Taiwan Semiconductor Manufacturing Co.(TSM) reported robust fiscal second-quarter revenue growth and expanded its long-term U.S. manufacturing plans. During the Q2 earnings call, CFO Wendell Huang said the company is raising its 2026 capital expenditure forecast to $60 billion to $64 billion, up from a prior range of $52 billion to $56 billion.

The increased spending fears sparked an 8% fall for the stock during the week, with sentiment remaining in ‘extremely bullish’ territory. 

ASML Holding (ASML) raised its fiscal outlook following strong demand for advanced chipmaking equipment. CEO Christophe Fouquet also said Intel (INTC) has begun commercial production using the company's newest lithography technology. 

Nokia Slumps Despite AI-RAN Platform Launch 

Nokia Corp (NOK) clocked its worst week in over five years after concerns mounted that rising component costs tied to AI demand could pressure margins across the networking industry. 

However, Nokia’s hAI-RAN platform, designed to help mobile operators improve network performance using AI instead of relying only on hardware upgrades found support among retail investors.  

The platform combines Nokia’s AI software with Nvidia’s advanced computing technology to make wireless networks faster and more efficient. The stock declined 18% over the week. 

SpaceX Delays Starship Test Flight After Engine Failure 

Space Exploration Technologies Corp. (SPCX) stock suffered a 14% fall last week after the 13th Starship test flight, which was planned for July 16, was called off after some engines failed to start, causing an automatic shutdown. 

The launch was planned from SpaceX’s Texas site, but the company canceled the mission soon after the countdown started. The test was meant to be the first flight of an upgraded Starship rocket built to support future Starlink and NASA moon missions. 

According to a Reuters report, SpaceX now plans to make another attempt to launch its Starship rocket on July 23. 

Other AI Developments

Oracle Corp (ORCL) is reportedly the leading candidate to deliver highly secure cloud services for Japan's government, while Meta Platforms (META) faces a lawsuit alleging AI-assisted layoff decisions disproportionately affected certain employees. Separately, Meta increased planned spending on its Hyperion data center project to more than $50 billion.

Alphabet (GOOG, GOOGL) has delayed the launch of Gemini 3.5 Pro by several months while engineers continue refining the model.

Also See: KO Stock In Focus: Coca-Cola’s Fairlife Halts US Production After Ransomware Attack

For updates and corrections, email newsroom[at]stocktwits[dot]com.