elon-muskTesla Steers Profit; Stock Accelerates

Embattled Tesla CEO Elon Musk got some excellent news this week. Tesla reported a profit and its shares climbed, sending a clear signal to investors and markets worldwide.

"Musk had said that Tesla would generate positive cash flow in the second half of this year, though some investors had expressed doubts, pointing to a tumultuous few months in which the billionaire's use of Twitter led to legal trouble," writes David Ingram of NBC News. "Tesla reported profit, or net income, of $312 million in the three months that ended Sept. 30, compared with a loss of $619 million in the same quarter a year earlier." 

Doubts had been raised about Musk's ability to run the company after he posted a series of confusing tweets, but nothing makes investors happier than seeing strong earnings reports. After this week's good news, it seems like Musk is firmly in the driver's seat again.

chipChip Makers Hammered as Share Prices Fall

It's been a harsh week for Wall Street in general, and the last couple of days have been especially difficult for digital chip makers. Chip stocks took a beating, driven downward by earning reports and widespread perceptions of softening markets. 

As noted in a report by CNBC's Rebecca Ungarino, chip makers such as AMD, NVIDIA, Micron and Texas Instruments are all facing pressure. As one of her sources notes, it's a bear market for chip stocks.

Frankly, however, I don't see a long-term downturn for chip stocks. There's just too much global demand for chips and microprocessors for investors to worry about the long-term prospects for companies like AMD and NVIDIA. But that won't stop traders from selling off chip stocks this week -- and that's exactly what they're doing.

tech-newsMicrosoft Stock Surges After Robust Earnings

Microsoft shares rose after posting higher-than-expected earnings. Most of the lift was generated by Microsoft's cloud offerings. From my perspective, Microsoft's performance truly reveals the power of the "cloud economy" in today's digital technology landscape.

"The Redmond, Wash.-based company reported profit well above what Wall Street had expected, posting a net income jump of 34% to $8.8 billion, which amounts to earnings of $1.14 a share. Analysts polled by FactSet had expected net income of $7.46 billion, or 94 cents a share. Sales also topped expectations, up 19% to $29.08 billion compared with the year-earlier period," writes Max A. Cherney in MarketWatch.

Back in 2011, I wrote On Top of the Cloud and predicted that cloud computing would play a definitive role in the information technology sector. I'm delighted to see my prediction proven correct!