ST Engineering’s Satellite Writedown, Seatrium’s Order Wins, AMD’s AI Surge

This week saw contrasting fortunes as Singapore’s engineering giants faced different trajectories, while US tech stocks surged on renewed confidence in artificial intelligence infrastructure spending.

From significant writedowns to record order books and AI-driven revenue growth, these developments underscore the rapidly evolving landscape across both traditional engineering and cutting-edge technology sectors.

Welcome to this week’s edition of top stock market highlights.

Singapore Technologies Engineering (SGX: S63) announced a significant S$667 million non-cash impairment on its iDirect satellite communications subsidiary on 12 November 2025, reducing the unit’s carrying value to just S$170 million from S$837 million.

The massive writedown reflects the rapidly evolving satellite industry, where Non-geostationary Satellite Orbit (NGSO) operators like Starlink and Kuiper are disrupting traditional players.

These newcomers have deployed over 2,600 and 150 satellites respectively, introducing proprietary ground systems that reduce reliance on third-party equipment providers like iDirect.

Revenue for the unit declined 9% year on year in the first nine months of 2025, while EBITDA fell 22%.

Despite the impairment, partially offset by S$258 million in divestment gains from CityCab, LeeBoy and SPTel, ST Engineering expects to remain profitable for fiscal 2025 and plans to pay a total dividend of S$0.23 per share for the year.

Offshore and marine engineering giant Seatrium (SGX: 5E2) maintained strong momentum with its net order book standing at S$16.6 billion in the third quarter of 2025.

The company continues to eye more new order wins after securing significant contracts throughout the year, including floating production units for major oil companies.

Management remains optimistic about converting its robust pipeline of opportunities, particularly in the oil and gas sector where customer final investment decisions are progressing despite some delays from geopolitical uncertainties.

The order book provides revenue visibility through 2031, spanning 25 projects with approximately 34% anchored in renewables and cleaner energy solutions.

Seatrium’s diversified portfolio across traditional offshore projects and green energy initiatives positions it well for sustained growth, with analysts maintaining buy ratings and target prices ranging from S$2.76 to S$3.05 per share.

Advanced Micro Devices (NASDAQ: AMD) saw its stock soar 9% on 12 November after CEO Lisa Su dismissed concerns about excessive AI spending, calling it “the right gamble” during a CNBC interview.

Su projected AMD’s revenue to grow 35% annually over the next three to five years, driven by what she termed “insatiable” AI chip demand.

The company’s data centre segment could grow an astounding 60% annually through 2030, with AMD targeting a double-digit market share.

Many of AMD’s hyperscaler customers have increased spending over the past year as AI reaches an inflection point where companies can see tangible returns.

Wells Fargo responded by raising its price target to US$345 from US$300, citing AMD’s market share gains in server chips and expanding datacenter GPU presence.

Su emphasised that the pace of AI innovation justifies current investment levels, with the overall AI infrastructure market potentially reaching US$1 trillion by 2030.

Cisco Systems (NASDAQ: CSCO) shares jumped over 7% in extended trading after reporting fiscal first quarter 2026 results that exceeded expectations.

The networking giant posted adjusted earnings of US$1 per share versus US$0.98 expected, while revenue rose 8% year on year to US$14.88 billion, beating estimates of US$14.77 billion.

The standout metric was AI infrastructure orders from hyperscaler customers reaching US$1.3 billion during the quarter, a significant acceleration from US$800 million in the prior quarter.

CEO Chuck Robbins expects to recognise approximately US$3 billion in AI infrastructure revenue from hyperscalers in fiscal 2026, triple the previous year’s US$1 billion.

Cisco raised its full-year guidance to US$60.2-61 billion in revenue and US$4.08-4.14 in adjusted earnings per share, both above consensus.

The company’s new N9100 network switch, built with Nvidia‘s technology and launching in the second half of fiscal 2026, positions Cisco to capture more of the rapidly growing AI infrastructure market.

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The post Top Stock Market Highlights of the Week: ST Engineering’s Satellite Writedown, Seatrium’s Order Wins, AMD’s AI Surge and Cisco’s Earnings Beat appeared first on The Smart Investor.