All three major indices ended the week lower, with the tech-heavy Nasdaq leading the decline. Despite solid tech company earnings, massive AI infra spending and a wave of OpenAI partnerships are fuelling bubble concerns. Investors are also fretting over a weakening job market, dominated by weekly layoff announcements from firms. Meanwhile, Bitcoin teetered on the edge of a bear market, and gold held steady.

An intraday recovery during Friday’s trading session pushed the S&P 500 and Nasdaq 100 back above their 50-day moving averages, a key technical level. The coming week will be key in seeing if a rebound back to highs can continue, or if we drop below this level and see further downside. With the US government shutdown updates, labor market developments, earnings, and Fed commentary all on deck, we could have a number of catalysts moving markets in either direction next week.

Medtronic is one of the world’s largest medical technology companies, specializing in devices and therapies for cardiovascular, diabetes, neurological, and surgical conditions. With operations across 150+ countries, Medtronic serves hospitals and clinics worldwide through innovation-driven products like pacemakers, insulin pumps, and robotic-assisted surgery systems. As a Dividend Aristocrat, it has raised its dividend for 48 consecutive years, reflecting a strong commitment to shareholder returns and consistent cash generation.

Medtronic’s growth has faced challenges in recent years due to slower procedure volumes and regulatory delays, but performance has improved in recent quarters thanks to steady demand recovery and new product launches. The company generates over $33B in annual revenue with non-GAAP operating margins near 25%, supported by robust free cash flow of ~$5B annually. Its balance sheet is healthy, providing flexibility for R&D and acquisitions. However, ongoing margin pressure from higher input costs and product mix, coupled with foreign exchange headwinds, continues to weigh on results.

Medtronic’s chart is an interesting bullish set up for a confluence of three reasons.

A medium-term target is in the $100–$105 range if bullish momentum continues

Astera Labs is an AI infrastructure semiconductor company specializing in high-speed connectivity solutions that link GPUs, CPUs, and accelerators inside data centers. Founded in 2017, it designs critical components for cloud and AI systems such as PCIe retimers, Ethernet connectivity chips, and CXL-based memory solutions. The company is benefiting from the rapid global build-out of data centers, positioning itself as a key enabler of next-gen computing performance.

Astera’s strength lies in its deep integration with hyperscalers and chipmakers like AMD, Intel, and NVIDIA. Its products address bottlenecks in AI workloads by improving bandwidth efficiency and latency across servers. With gross margins near 76% and a growing portfolio of connectivity solutions under its Leo, Taurus, and Aries platforms, Astera has established a reputation for innovation in a niche but expanding segment. Its fabless model allows it to remain asset-light while scaling rapidly with partners in the semiconductor supply chain.

Astera has shown impressive growth since going public, with FY2025 revenue now projected to exceed $780M. Profitability has improved rapidly, with non-GAAP operating margins hitting ~42% in Q3 2025. Its balance sheet is strong, holding ~$1B in cash and minimal debt, giving it flexibility to invest in R&D and aquisitions such as its recent agreement to acquire aiXscale Photonics, which will expand its reach into optical interconnects. However, while growth is robust, its elevated earnings multiple gives it very little margin for error.

The company’s heavy exposure to a few hyperscale clients poses the threat of concentration risk if AI capital expenditures slow. It also faces competition from both established chipmakers like Marvell, Broadcom, and Nvidia, and emerging CXL and interconnect specialists such as Rambus and Alphawave. While Astera has proven itself a high-quality player in the AI ecosystem, its ability to sustain execution and deliver strong earnings growth in the coming quarters will need to be exceptional for the company to grow into its current valuation.

Ali is a full-time equity trader and investor based in Dubai, and the founder of First Mile Investing. He left his corporate career in 2024 to pursue his passion for the markets. He founded First Mile Investing to help beginners take their first confident steps into investing, with the goal of making the process less intimidating, more accessible, and empowering for everyone.