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Jul 2, 2026, 2:16 p.m.

3 min read

Ondo Finance CEO Ian de Bode (Ondo Finance) Summary

Ondo Finance rolls out its first implementation of the SEC's third-party custodial tokenization model that the agency outlined earlier this year.BlackRock's IVV ETF and Micron shares are the first securities being tokenized under U.S. framework instead of an offshore structure.Ondo's transfer agent Oasis Pro handles issuance, while Broadridge provides proxy voting and shareholder communications to token holders.Ondo Finance ONDO$0.3298 launched blockchain-based versions of BlackRock's iShares Core S&P 500 ETF (IVV) and Micron Technology (MU) shares in a structure designed to operate within the existing U.S. securities system, based on the Securities and Exchange Commission's (SEC) staff statement for third-party tokenized securities in the U.S.

The company said Thursday the tokenized securities are issued on Ethereum through Oasis Pro TA, an SEC-registered transfer agent Ondo acquired last year. Financial infrastructure provider Broadridge (BR) will handle proxy voting, regulatory disclosures and shareholder communications, allowing token holders to receive the same governance rights as investors who own the securities through traditional brokerage accounts.

Importantly, the product is not yet available to U.S. investors.

Ondo said it is the first production deployment of the SEC's custodial tokenization model, using two securities to demonstrate that blockchain-based securities can fit within the current U.S. regulatory and custody framework.

"Ondo has built the regulatory, product, and service infrastructure to support all major models within the United States," Ian De Bode, CEO of Ondo Finance, said in a statement.

"Today's milestone shows we can tokenize securities in ways that meet both market and regulatory requirements, for U.S. and global investors and provides a strong foundation for our expanding access to onchain investments for more U.S. investors," he added.

Tokenization, or the process of representing traditional assets as blockchain-based tokens, has emerged as one of the fastest-growing areas blurring digital assets and traditional finance. Supporters say it can modernize capital markets through faster settlement, around-the-clock trading and easier movement of assets across financial platforms. A report by Citi projected that tokenized securities could reach $5.5 trillion market size by 2030.

Debate around tokenization modelsThe launch follows the SEC's January staff statement on tokenized securities, which outlined how a third-party custodial model could comply with existing securities laws. SEC staff statements don't have the full weight of formal guidance approved by the agency's commissioners, but do indicate how the regulator is thinking about issues like tokenization.

Under that approach, a regulated intermediary holds conventional shares in custody and issues blockchain-based tokens representing a holder's entitlement to those assets. That's an alternative approach to the issuer-sponsored tokenization, where the issuer of the underlying security is involved in the process.

The agency's guidance coincided with a growing debate over whether tokenized stocks issued without issuer involvement confer the same rights as traditional shares. The topic drew broader attention when OpenAI said last year it did not authorize Robinhood's tokenized offering tied to its shares and warned the tokens did not represent equity in the company.

Under Ondo's implementation, the underlying IVV and Micron shares remain within the traditional U.S. custody chain while Oasis Pro TA mints one-for-one tokenized entitlements on Ethereum (ETH). Regulated custodians continue to hold the underlying securities, while existing broker-dealer, transfer agent and custody controls enforce transfer restrictions. Broadridge's integration extends shareholder communications, proxy materials and voting rights to token holders through its existing investor services infrastructure.

The move comes as tokenized equities gain momentum across both crypto and traditional finance. Robinhood recently rolled out its own blockchain and expanded tokenized stocks beyond Europe, while the Depository Trust & Clearing Corporation (DTCC) has expanded blockchain-based infrastructure and exchanges including Nasdaq and the New York Stock Exchange (NYSE) have announced tokenization initiatives that would integrate blockchain technology into regulated securities markets.

Ondo emerged as one of the largest tokenized securities platforms outside the U.S., with more than $1 billion in tokenized stocks and ETFs spanning over 430 securities, according to the company.

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Building the Zcash Machine: Tachyon and Quantum Readiness

Building the Zcash Machine: Tachyon and Quantum Readiness

Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.

Jun 30, 2026

Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.

Why it matters:

Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.

Key Takeaways Brazil's FX-neutral GMV growth rose to 38%, while items sold surged 56% in the first quarter.Lower free shipping threshold helped attract new customers and lift purchase frequency in Brazil.Brazil unit shipping costs fell 17% in local currency as same and next-day shipments rose 39%. MercadoLibre, Inc.’s (MELI - Free Report) first-quarter 2026 performance suggests Brazil is becoming one of the important growth engines. While the company continued to deliver healthy momentum across Latin America, Brazil stood out for accelerating growth in both commerce and customer engagement, supported by sustained investments in logistics, pricing and the user experience. The market has evolved beyond being MercadoLibre’s largest contributor by scale and is now driving some of its strongest operating trends.

The clearest evidence came from the marketplace business. Brazil’s FX-neutral gross merchandise volume (GMV) growth accelerated to 38% in the first quarter from 35% in the preceding quarter, while items sold surged 56%, up from 45% in the fourth quarter and 42% in the third quarter of 2025. The company attributed the improvement largely to its lower free-shipping threshold, which continued to attract new customers and encourage higher purchase frequency. Brazil also fueled a record year-over-year increase of 17 million unique active buyers, helping MercadoLibre’s total unique active buyers grow 26%.

The stronger demand is also improving operating efficiency. Same and next-day shipments increased 39% year over year, driven particularly by accelerating volumes in Brazil. At the same time, unit shipping costs in Brazil declined 17% in local currency from the prior year, improving from an 11% reduction in the preceding quarter despite significantly higher shipment volumes. This demonstrates that rising scale is helping offset the costs of MercadoLibre’s free-shipping initiatives.

Brazil is also reinforcing MercadoLibre’s broader ecosystem strategy. The company highlighted continued strength in Mercado Pago, while its credit card business in Brazil has reached a stage where older customer cohorts are maturing as expected, supporting further expansion. Together, these trends suggest Brazil is no longer just MercadoLibre’s biggest market by scale, but one of the clearest drivers behind its accelerating marketplace growth.

What the Latest Metrics Say About MercadoLibreMercadoLibre, which competes with Amazon.com, Inc. (AMZN - Free Report) and Sea Limited (SE - Free Report) , has seen its shares jump 1.6% over the past three months compared with the industry’s 7.3% rise. While shares of Amazon have rallied 15.3%, those of Sea Limited have advanced 24.4% in the aforementioned period.
 

Image Source: Zacks Investment Research

From a valuation standpoint, MercadoLibre's forward 12-month price-to-earnings (P/E) ratio stands at 34.42, higher than the industry’s ratio of 21.07. The stock is trading marginally below its 12-month median level of 34.44.

MercadoLibre is trading at a premium to Amazon (with a forward 12-month P/E ratio of 25.61) and Sea Limited (20.54).

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The Zacks Consensus Estimate for MercadoLibre’s current financial-year sales and earnings per share implies year-over-year growth of 39.7% and 4%, respectively. For the next fiscal year, the consensus estimate indicates a 26.6% rise in sales and 47% growth in earnings.

The consensus estimate for earnings per share for the current and next fiscal year has fallen by $6.87 and $6.95 to $40.97 and $60.22, respectively, over the past 30 days.

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MELI currently carries a Zacks Rank #5 (Strong Sell). The rank reflects near-term earnings pressure despite the company’s strong top-line momentum. Although revenues increased 49% year over year in the first quarter, operating margin fell to 6.9% from 12.9% a year ago, and Net Interest Margin After Losses declined to 17.8% from 22.7% as the credit portfolio expanded. With accelerated investments continuing to weigh on profitability, earnings leverage may remain limited in the near term. The Zacks Consensus Estimate for second-quarter earnings calls for a 15.7% year-over-year decline.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Thermo Fisher To Support Phase 3 DevelopmentThe collaboration brings together Thermo Fisher’s Accelerator Drug Development solutions, which combine manufacturing and clinical research capabilities, to support ARCT-032 through late-stage development and potential commercialization.

Under the agreement, Thermo Fisher will provide Phase 3 manufacturing, clinical research, and related services while Arcturus continues advancing the ARCT-032 program.

The partnership is designed to streamline development by integrating manufacturing, clinical research, and commercial readiness services as the investigational therapy moves toward its next stage.

Commercial Manufacturing Planned If Therapy Wins ApprovalArcturus said it expects to conduct its Phase 3 clinical program through Thermo Fisher’s PPD clinical research business if its ongoing Phase 2 study produces positive results.

The agreement also outlines a potential commercial relationship beyond clinical development. Subject to regulatory approval of ARCT-032, Thermo Fisher will receive exclusive commercial manufacturing rights under a separate commercial agreement.

ARCT-032 is an inhaled mRNA therapeutic candidate for cystic fibrosis, a rare genetic disease.

Arcturus initiated enrollment of a new cohort in March 2026. The open-label Phase 2 clinical study is currently enrolling up to 20 participants.

The study will monitor 10 mg dosing over 12 weeks for safety and evidence of early clinical benefits, including assessment of lung functional improvements, two validated quality‑of‑life outcome measures, and evaluation of any changes in high-resolution computed tomography imaging.

ARCT Stock Price Activity: Arcturus Therapeutics shares were up 12.19% at $7.73 at the time of publication on Thursday, according to Benzinga Pro data.

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Key Takeaways Honeywell Technologies grew Building Automation revenues 11% year over year to $1.88 billion in Q1 2026. HON posted 8% organic sales growth, led by building solutions and building products demand. Building Automation orders rose 9%, driven by projects, services and strong fire products demand. Honeywell Technologies (HON - Free Report) is gaining from continued momentum in its Building Automation segment. Rising demand for its products and solutions, driven by increased building activity, particularly in North America, is fueling the segment’s growth. In the first quarter of 2026, the segment’s revenues rose 11% year over year to $1.88 billion, while organic sales increased 8%.

The segment’s strong performance was driven by sustained momentum across both its building solutions and building products businesses. In the first quarter of 2026, sales from the building solutions business increased 8% year over year, supported by healthy demand for energy-efficient and smart building technologies. Sales from the building products business also rose 8%, reflecting solid demand across residential and commercial construction markets.

Rising order rates and capex investments in data centers and health care projects also bode well for the segment. The Building Automation segment reported strong order growth of 9% in the first quarter, driven by double-digit increases in projects, services and strong demand for fire products.

The Building Automation segment is poised for sustained growth, supported by healthy order trends, solid demand across its key end markets and ongoing investments in data center and healthcare infrastructure.

Segmental Snapshot of HON’s PeersAmong HON’s major peers, 3M Company (MMM - Free Report) is poised to gain from solid momentum in the Safety and Industrial segment, driven by strength in personal safety, industrial adhesives and tapes, abrasives and electrical markets. Stable demand for 3M’s electrical infrastructure products, like medium voltage cable accessories and insulation tapes, augurs well for the segment in the quarters ahead. Revenues from 3M’s Safety and Industrial segment grew 6.8% year over year in the first quarter of 2026.

Honeywell’s another peer, Carlisle Companies Incorporated’s (CSL - Free Report) Carlisle Construction Materials segment, is plagued by lower commercial new construction activity. Volume declines owing to adverse winter weather conditions are also adversely affecting Carlisle’s segment. Revenues from Carlisle’s unit decreased 5.1% year over year in the first quarter of 2026.

HON's Price Performance, Valuation and EstimatesFrom a valuation standpoint, HON is trading at a trailing price-to-earnings ratio of 20.90X. Honeywell carries a Value Score of B.

The Zacks Consensus Estimate for HON’s 2026 earnings has increased a penny over the past 60 days.

Image Source: Zacks Investment Research

Honeywell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways General Dynamics is expanding its submarine role through Electric Boat's U.S. Navy work.Electric Boat builds Virginia-class submarines and leads the Columbia-class replacement program.GD benefits from rising undersea warfare demand, naval modernization and a strong backlog. General Dynamics (GD - Free Report) continues to strengthen its position in the global submarine market through its Electric Boat business, one of the leading designers, builders and sustainment providers of nuclear-powered submarines for the U.S. Navy. The business plays a critical role in supporting the Navy's undersea warfare capabilities by developing advanced submarine platforms equipped with enhanced stealth, survivability and mission effectiveness.

Electric Boat is responsible for the design, engineering and construction of the Virginia-class fast-attack submarines and serves as the prime contractor for the Columbia-class ballistic missile submarines, which are expected to replace the aging Ohio-class fleet and form the backbone of the United States' sea-based nuclear deterrent. The company also provides lifecycle support, modernization and engineering services to help ensure the long-term operational readiness of these strategic assets.

Growing geopolitical tensions, increasing naval modernization efforts and rising investments in undersea warfare capabilities are driving strong demand for advanced submarines worldwide. Modern submarines are increasingly being equipped with improved stealth technologies, long-range strike capabilities, advanced sonar systems and unmanned underwater vehicle integration, making them a critical component of modern naval defense strategies.

General Dynamics is well-positioned to benefit from these long-term trends through its deep expertise in submarine design, engineering and production, supported by decades of experience and a strong backlog of naval programs. The company's continued investments in advanced manufacturing, digital engineering and workforce expansion further reinforce its ability to support future submarine demand.

Submarine Stocks to Keep on the RadarOther aerospace and defense companies strengthening their presence in the submarine market are discussed below:

Huntington Ingalls Industries (HII - Free Report) : Through its Newport News Shipbuilding division, HII is a key builder of the U.S. Navy's Virginia-class attack submarines and Columbia-class ballistic missile submarines. The company also provides maintenance, modernization and lifecycle sustainment services that support fleet readiness.

BAE Systems (BAESY - Free Report) : The company is a leading participant in the United Kingdom's submarine programs and is the prime contractor for the Royal Navy's Astute-class nuclear-powered attack submarines. It also contributes to the next-generation Dreadnought-class ballistic missile submarine program.

The Zacks Rundown for GDShares of GD have risen 23.5% in the past year compared with the industry’s 8.3% growth.

Image Source: Zacks Investment Research

The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.75X compared with its industry’s average of 2.66X.

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The Zacks Consensus Estimate for GD’s 2026 and 2027 earnings has moved north over the past 60 days.

Image Source: Zacks Investment Research

All financial figures are in Canadian dollars unless otherwise noted. This news release refers to certain financial measures and ratios that are not specified, defined or determined in accordance with Generally Accepted Accounting Principles ("GAAP"), including annual run rate adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA"). For more information see "Non-GAAP and Other Financial Measures" herein.

CALGARY, Alberta--(BUSINESS WIRE)--Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA), Morgan Stanley Infrastructure Partners ("MSIP"), and Kineticor Asset Management ("Kineticor"), partners in the Greenlight Electricity Centre Limited Partnership ("Greenlight") (collectively, the "Partners"), today announced a positive final investment decision on the Greenlight Electricity Centre ("GLEC" or the "Project"). GLEC is a 932 megawatt ("MW") gas-fired combined cycle power generation facility to be located in Sturgeon County, within the Alberta Industrial Heartland, to serve a major data centre development (the "Customer").

Rapid growth in artificial intelligence (AI) and cloud computing is driving durable global demand for data centre capacity and Alberta has positioned itself as an attractive jurisdiction for significant investment. Data centre projects require long-term, reliable power, and natural gas-to-power infrastructure has an important role to play in the success of this growing industry. Pembina and Kineticor have been instrumental in enabling development of the Customer's data centre project, a first of its kind in Canada. The Partners are first movers in responding to Alberta's large-scale data centre power needs and are proud to serve as the Customer's long-term, behind-the-meter power provider.

Highlights

Strategic Fit – The Project fits squarely within Pembina's 3C's Strategy to Capture volumes, Connect them to markets, and Catalyze new demand platforms. Extending its track record of value creation from adjacent new businesses, Pembina will benefit directly from its investment in GLEC through a new long-term, stable cash flow stream, and increased business and customer diversification. Additionally, GLEC will Catalyze intra-basin natural gas demand and provide a valuable new egress option to support Canadian natural gas production growth. This growth is expected to benefit Pembina's existing businesses, including natural gas processing and transportation, and natural gas liquids ("NGL") transportation, fractionation and marketing. Long-term Commercial Support – Consistent with Pembina's fee-based midstream model, GLEC will supply electricity to the Customer's data centre under a long-term tolling agreement. The agreement is a tolling arrangement providing revenues in the form of capacity payments and usage-based payments (e.g. fuel and operations and maintenance costs). The anticipated in-service date for the Project is the second half of 2030. Strong Project Economics – Greenlight has obtained a Class III level capital cost estimate of approximately $4 billion, or approximately $2 billion net to Pembina. Approximately 85 percent of this cost has been secured under fixed price agreements. The total Project cost, including $0.6 billion (gross) of interest during construction and other financing costs is expected to be approximately $4.6 billion, or approximately $2.3 billion, net to Pembina. Inclusive of the proceeds of $190 million, net to Pembina, from the sale of land to the Customer, Pembina's total net investment in GLEC will be approximately $2.1 billion. The Project is expected to generate annual run-rate adjusted EBITDA of approximately $310 million, net to Pembina. Growth Platform – GLEC will provide a meaningful contribution to Pembina's growth in 2030 and beyond, including its recently announced 5-7 percent fee-based adjusted EBITDA per share growth target to 2030. Further, Pembina believes this to be a highly scalable new business line. Pembina and its partners are advancing potential additional power-to-data centre projects, including a second phase of the generation Project, as well as other opportunities that could contribute significantly to Pembina's long-term growth. Greenlight Ownership – Greenlight is owned by Pembina (47.5 percent), MSIP (47.5 percent), and Kineticor (5 percent). "This is a tremendously exciting development within Pembina's growing and increasingly diversified business. Together with Kineticor, we have leveraged our advantaged position within the Canadian midstream energy industry and are proud to be the first mover in responding to the power requirements of Alberta-based data centres, all within Pembina's proven midstream model. Dedicated, contracted gas-to-power infrastructure represents a promising new growth platform, through which we are also helping to catalyze new natural gas demand that will provide additional benefits throughout our business." – Scott Burrows, President and Chief Executive Officer, Pembina

"The GLEC represents a significant investment in Alberta's future and a major step forward in establishing a dynamic new industry. Alberta's strong regulatory framework combined with the Province's commitment to the sustainable growth of the data centre industry has created the conditions necessary to advance this project to a positive final investment decision. We remain committed to developing sustainable infrastructure projects across Alberta that deliver affordable and reliable power while supporting long-term economic growth." – Andrew Plaunt, Chief Executive Officer, Kineticor

"Reliable, dispatchable power is the foundation of the AI and cloud economy and Greenlight will deliver it at scale to one of Canada's most important new data centre developments. We are proud to partner with Pembina and Kineticor to begin construction on this landmark project and look forward to expanding the partnership to support future growth in Alberta." – Chris Ortega, Head of the Americas for MSIP

"Alberta natural gas is powering the digital economy forward with this significant investment in electricity generation. This announcement reflects the positive momentum created by the province's memorandum of understanding with the federal government last fall, including the abeyance of the federal government's Clean Electricity Regulations. Investments like this will lead to thousands of jobs, significant economic growth, and hundreds of millions in provincial revenue that can be reinvested to support the services that matter most to Albertans." – Premier Danielle Smith

"Greenlight is a great addition to our Industrial Heartland and we welcome the opportunities it brings with its development. By building new power generation, this project helps create the reliable energy supply needed to enable future industrial growth, attract investment, and strengthen our region's competitiveness without increasing demand on Alberta's electricity grid. We congratulate Greenlight and its partners on moving forward with this project and the role it plays in supporting Alberta's energy future." – Sturgeon County Mayor Alanna Hnatiw

Greenlight Electricity Centre Overview

The Project will consist of a 932 MW combined cycle gas power plant that will supply power on a dedicated basis to the Customer's data centre. The site has the potential to be expanded to a permitted generation capacity of 1,864 MW.

GLEC will utilize two highly efficient SGT6-8000H gas turbines, two SST6-5000 "KN" Steam Turbines coupled with two SGen6-3000W Generators - all from Siemens Energy. Combining gas and steam power production in this configuration increases energy efficiency compared to traditional simple cycle gas turbine generators. Greenlight has ensured delivery timing and cost certainty through a fixed price agreement with Siemens Energy Inc. as well as a long-term service agreement with Siemens Energy Canada Limited.

GLEC will require approximately 150 million cubic feet per day of natural gas. Through recent open seasons on Pembina's Alliance Heartland Expansion Project and the TC Energy Nova Gas Transmission Ltd. systems, and other commercial arrangements, Greenlight has secured sufficient natural gas transportation capacity on a long-term basis to support the Project. Greenlight's natural gas contracting strategy provides redundancy and operational flexibility.

Greenlight has leveraged the combined experience, strong relationships, and contracting expertise of Pembina and Kineticor to support development of the Project. Kineticor led the origination and development of GLEC as part of a fully integrated offering to the Customer and will be responsible for the ongoing development of future expansion opportunities. Pembina will lead the GLEC construction management workstream, leveraging its track record of building infrastructure on time and on budget. Following construction, GLEC will be operated by a third-party contract operator under a long-term services agreement.

The Project has received all major regulatory approvals and has an anticipated in-service date in the second half of 2030.

Commercial Structure

Greenlight and the Customer have entered into a long-term Electrical Energy Supply Agreement ("EESA") under which Greenlight will provide 932 MW of capacity from GLEC to power the Customer's data centre. The EESA is structured as a tolling agreement, supporting a stable stream of capacity payments and usage-based payments (e.g. fuel and operations and maintenance costs).

GLEC's commercial structure aligns with Pembina's fee-based midstream model and will strengthen the Company's business profile by generating additional low-risk cash flows and diversifying its customer base with a new, global, investment grade counterparty.

Project Economics and Funding

Greenlight has entered into fixed price agreements with a consortium of Aecon Group Inc. (TSX: ARE) and Técnicas Reunidas for the engineering, procurement, and construction ("EPC") of GLEC. Together with the fixed price agreement for the purchase of turbines from Siemens, approximately 85 percent of the Project's cost has been de-risked.

Once operational, GLEC is expected to generate annual run-rate adjusted EBITDA of approximately $310 million, net to Pembina. The Project's economics reflect a prudent risk profile, including a long-term commercial agreement, lump sum EPC agreement, and certain cost protections. Separate from GLEC, Pembina may benefit from additional economics related to gas processing and transportation, liquids transportation, and fractionation.

Greenlight has arranged asset-level debt financing for approximately 60 percent of the Project's cost with the remaining 40 percent to be financed through equity contributions. Pembina's net investment of approximately $2.3 billion represents a requirement whereby each of Pembina and MSIP will fund 50 percent of Greenlight's capital. Pembina's contribution will be financed through a combination of project debt and approximately $1 billion of equity contributions. Capital spending in 2026-2027 will be funded with asset-level debt financing, while capital spending in 2028-2030 will be funded with partner equity contributions.

Integration and Expansion Opportunities

Pembina's advantages include its fully integrated wellhead-to-market infrastructure and ability to service customers across the full hydrocarbon value chain. Through GLEC, Pembina is extending its business into an adjacent opportunity arising from its existing footprint, unique capabilities, and strong relationships.

In addition to the direct benefits of Pembina's investment in the Project, GLEC will create valuable new demand for Canadian natural gas, supporting production growth that is expected to benefit Pembina's existing gas processing and gas transportation businesses, including providing support for a regional expansion of the Canadian segment of the Alliance Pipeline.

Alliance Pipeline's binding open season for a new proposed short-haul point-to-point transportation service on the Canadian segment of its system concluded on April 20, 2026. The proposed Alliance Heartland Expansion Project would provide natural gas delivery to a new meter station in Fort Saskatchewan with an anticipated in-service date in the fourth quarter of 2029. Successful proponents have been awarded capacity conditional on the project being sanctioned. The Alliance Heartland Expansion Project continues to progress toward a final investment decision, with ongoing workstreams focused on engineering and regulatory activities, including the filing of applications with the Canada Energy Regulator, which is expected to occur in August 2026.

Further, growing natural gas production supports the associated growth of other products in the Western Canadian Sedimentary Basin, including condensate and NGL, providing additional benefits to Pembina from increased liquids transportation, fractionation and marketing services.

Future opportunities associated with GLEC include the potential to support development of the Alberta Carbon Grid and the transportation and sequestration of emissions from the Project.

GLEC is the first project within a scalable new platform. The Partners are aligned in their desire to build a midstream power business and aspire to repeat the success of GLEC with an expansion of the existing project and/or through the development of additional power plants for other data centre customers. A future expansion is expected to align well with the AESO's Phase 2 Large Load Allocation process and the Province of Alberta's 'bring your own power' data centre strategy.

Greenlight LP Ownership Update

MSIP has acquired from OPTrust, Kineticor's majority shareholder, its 50 percent ownership interest in Greenlight. In addition, upon FID, Kineticor was granted a five percent interest in Greenlight. The resulting ownership of Greenlight is Pembina (47.5 percent), MSIP (47.5 percent), and Kineticor (5 percent).

Greenlight's future capital expenditures will be funded equally between Pembina and MSIP.

"Pembina has enjoyed a strong relationship with OPTrust and Kineticor. Together we have supported development of a new data centre industry in Alberta and positioned Greenlight as a dedicated power provider with a scalable, high growth platform," said Scott Burrows, Pembina's President and CEO. "We look forward to working with MSIP given our complementary strengths and mutual desire to invest capital and generate attractive returns. MSIP is well funded and brings valuable expertise in global infrastructure development that will contribute meaningfully to our shared success."

Advisors

Blake, Cassels & Graydon LLP acted as legal counsel to Greenlight with respect to the commercial agreements and project financing.

Norton Rose LLP acted as counsel to Pembina on the joint venture formation and other commercial agreements.

Osler, Hoskin & Harcourt LLP acted as legal counsel with respect to the EPC agreements.

McCarthy Tetrault LLP acted as legal counsel to lenders.

MUFG Bank, Ltd. acted as financial advisor on the project financing.

Santander acted as exclusive M&A and financing advisor to MSIP on the transaction.

Macquarie Capital acted as exclusive financial advisor to OPTrust and Kineticor.

Kirkland & Ellis and Bennett Jones acted as legal counsel to MSIP.

Forward-Looking Information and Statements

This news release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking statements"), including forward-looking statements within the meaning of the "safe harbor" provisions of applicable securities legislation, that are based on Pembina's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as "continue", "anticipate", "schedule", "will", "expects", "estimate", "potential", "planned", "future", "outlook", "strategy", "project", "plan", "commit", "maintain", "focus", "ongoing", "believe" and similar expressions suggesting future events or future performance.

In particular, this news release contains forward-looking statements and financial outlooks pertaining to, without limitation, the following: Pembina's strategy and the development and expected timing of the Project and any expansion thereof, and the expected costs, financing, impacts, and benefits thereof and opportunities therefrom; expectations regarding the Alliance Heartland Expansion Project, including the expected timing, impacts and benefits thereof; expectations regarding existing and future commercial agreements, including the long-term tolling agreement, and the anticipated timing, product volumes, and benefits thereof; the successful completion of related third-party projects; statements regarding Pembina's financial and operational performance; expectations regarding the future performance of the Company's assets, including future pipeline, processing, transportation, fractionation and marketing operations; and expectations and targets regarding annual run rate adjusted EBITDA and fee-based adjusted EBITDA per share growth.

These forward-looking statements are based on certain factors and assumptions that Pembina has made in respect thereof as at the date of this news release, including, among other things: oil and gas industry exploration and development activity levels and the geographic region of such activity; the success of Pembina's operations; prevailing commodity prices (including long-term average historical pricing and frac spreads), interest rates, carbon prices, tax rates, exchange rates and inflation rates; the ability of Pembina to maintain current credit ratings; the availability and cost of capital to fund future capital requirements relating to existing assets, projects and the repayment or refinancing of existing debt as it becomes due; future operating costs; geotechnical and integrity costs; that any required commercial agreements can be entered into and performed in the manner and on the terms expected by Pembina; that all required regulatory and environmental approvals can be obtained on acceptable terms and in a timely manner; that there are no supply chain disruptions impacting Greenlight's or Pembina's ability to obtain required equipment, materials or labour for the Project; that counterparties will comply with contracts in a timely manner; that there are no unforeseen events preventing the performance of contracts or the completion of the relevant projects; prevailing regulatory, tax and environmental laws and regulations; maintenance of operating margins; the amount of future liabilities relating to lawsuits and environmental incidents; and the availability of coverage under Pembina's insurance policies (including in respect of Pembina's business interruption insurance policy).

Although Pembina believes the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties including, but not limited to: risks relating to the development, construction, financing and operation of the Project, including contractor and counterparty performance and the ability to complete the Project on the anticipated timeline, budget and economics; the regulatory environment and decisions, including the outcome of regulatory hearings, and Indigenous and landowner consultation requirements; the impact of competitive entities and pricing; reliance on third parties to successfully operate and maintain certain assets; reliance on key relationships, joint venture partners and agreements; labour and material shortages; the strength and operations of the oil and natural gas production industry and related commodity prices; non-performance or default by contractual counterparties; actions by governmental or regulatory authorities, including changes in laws and treatment, changes in royalty rates, regulatory decisions, changes in regulatory processes or increased environmental regulation; the ability of Pembina to acquire or develop the necessary infrastructure in respect of future development projects; fluctuations in operating results; adverse general economic and market conditions, including potential recessions in Canada, North America and worldwide resulting in changes, or prolonged weaknesses, as applicable, in interest rates, foreign currency exchange rates, inflation, commodity prices, supply/demand trends and overall industry activity levels; new Canadian and/or U.S. trade policies or barriers, including the imposition of new tariffs, duties or other trade restrictions; geopolitical risks; constraints on the, or the unavailability of, adequate supplies, infrastructure or labour; the political environment in North America and elsewhere, including changes in trade relations between Canada and the U.S., and public opinion thereon; the ability to access various sources of debt and equity capital; adverse changes in credit ratings; counterparty credit risk; technology and cyber security risks; natural catastrophes; and certain other risks detailed in Pembina's Annual Information Form and Management's Discussion and Analysis, each dated February 26, 2026 for the year ended December 31, 2025 and from time to time in Pembina's public disclosure documents available at www.sedarplus.ca, www.sec.gov and through Pembina's website at www.pembina.com.

This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected by forward-looking statements contained herein. The forward-looking statements contained in this news release speak only as of the date of this news release. Pembina does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. The forward-looking information and financial outlooks contained in this news release have been approved by management as of the date of this news release. The purpose of these financial outlooks is to assist readers in understanding Pembina's expected and targeted financial results, and this information may not be appropriate for other purposes. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-GAAP and Other Financial Measures

Throughout this news release, Pembina has disclosed certain financial measures and ratios that are not specified, defined or determined in accordance with GAAP and which are not disclosed in Pembina's financial statements. Non-GAAP financial measures either exclude an amount that is included in, or include an amount that is excluded from, the composition of the most directly comparable financial measure specified, defined and determined in accordance with GAAP. These non-GAAP financial measures, together with financial measures specified, defined and determined in accordance with GAAP, are used by management to evaluate the performance and cash flows of Pembina and its businesses and to provide additional useful information respecting Pembina's financial performance and cash flows to investors and analysts.

In this news release, Pembina has disclosed the following non-GAAP financial measures: annual run rate adjusted EBITDA. The non-GAAP financial measures disclosed in this news release do not have any standardized meaning under International Financial Reporting Standards ("IFRS") and may not be comparable to similar financial measures disclosed by other issuers. Such financial measures should not, therefore, be considered in isolation or as a substitute for, or superior to, measures of Pembina's financial performance or cash flows specified, defined or determined in accordance with IFRS, including revenue, earnings and cash flow from operating activities.

Except as otherwise described herein, these non-GAAP financial measures are calculated on a consistent basis from period to period. Specific reconciling items may only be relevant in certain periods.

Adjusted EBITDA from Equity Accounted Investees

In accordance with IFRS, Pembina's joint ventures are accounted for using equity accounting. Under equity accounting, the assets and liabilities of the investment are presented net in a single line item in the Consolidated Statement of Financial Position, "Investments in Equity Accounted Investees". Earnings from investments in equity accounted investees are recognized in a single line item in the Consolidated Statement of Earnings and Comprehensive Income "Share of Profit from Equity Accounted Investees". The adjustments made to earnings, in adjusted EBITDA above, are also made to share of profit from investments in equity accounted investees. Cash contributions and distributions from investments in equity accounted investees represent Pembina's share paid and received in the period to and from the investments in equity accounted investees.

12 Months Ended December 31

Pipelines

Facilities

Marketing &

New Ventures

Total

($ millions)

2025

2024

2025

2024

2025

2024

2025

2024

Share of profit from equity accounted investees

1

42

134

231

74

55

209

328

Adjustments to share of profit (loss) from equity accounted investees:

Net finance costs (income)

1

7

113

175

(16)

(23)

98

159

Income tax expense

—

—

46

73

—

—

46

73

Depreciation and amortization

2

39

254

221

—

7

256

267

Unrealized loss on commodity-related derivative financial instruments

—

—

4

2

—

—

4

2

Gain on disposal of assets

—

—

(2)

—

(62)

—

(64)

—

Impairment expense

—

—

193

—

—

—

193

—

Other non-cash provisions

—

—

2

15

—

—

2

15

Total adjustments to share of profit (loss) from equity accounted investees

3

46

610

486

(78)

(16)

535

516

Adjusted EBITDA from equity accounted investees

4

88

744

717

(4)

39

744

844

Key Takeaways Affirm will offer BNPL across Bed Bath & Beyond, Overstock and buybuy BABY for eligible shoppers.AFRM had about 515,000 active merchants as of March 31, 2026, up 43.8% year over year.AFRM's Q3 FY26 GMV rose 35% and total transactions increased 45% year over year. Affirm Holdings, Inc. (AFRM - Free Report) has entered a new partnership with Bed Bath & Beyond, making its buy now, pay later (BNPL) solution available to eligible shoppers across the retailer's brands, including Bed Bath & Beyond, Overstock and buybuy BABY. Customers can choose to pay for purchases in biweekly or monthly installments with no late or hidden fees, offering greater payment flexibility while shopping for home-related products.

The agreement expands Affirm's presence in the home retail market, where purchases often involve a higher ticket size than everyday discretionary spending. By giving consumers more payment choices at checkout, the company could attract new users and encourage higher transaction activity. The partnership also allows Affirm to reach shoppers during key life events, such as moving into a new home or preparing for a growing family.

The addition further strengthens AFRM's merchant portfolio. As of March 31, 2026, the company’s active merchants were around 515,000, up 43.8% year over year. Expanding relationships with well-known brands enhances the company's reach, increases consumer touchpoints and supports growth in gross merchandise volume (GMV). In the third quarter of fiscal 2026, GMV grew 35% year over year, while total transactions increased 45%, highlighting strong platform engagement.

As demand for flexible payment solutions continues to grow, adding established retailers can support broader platform adoption and higher payment volumes. The Bed Bath & Beyond partnership aligns with Affirm's strategy of expanding its merchant network and should strengthen its long-term growth opportunities in the evolving digital payments landscape.

How Are Competitors Faring?Some of AFRM’s competitors in the BNPL space are PayPal Holdings, Inc. (PYPL - Free Report) and Visa Inc. (V - Free Report) .

PayPal reported 439 million active accounts in the first quarter of 2026, which rose 1% year over year. Its net revenues increased 7% year over year to $8.4 billion in the same quarter. Additionally, PayPal’s total payment volume increased 11% year over year in the first quarter of 2026.

Visa’s processed transactions increased 9% year over year in the second quarter of fiscal 2026. Visa’s payment volume rose 9% year over year in the second quarter of fiscal 2026, along with 17% growth in net revenues.

Affirm’s Price Performance, Valuation & EstimatesOver the past year, AFRM’s shares gained 21.2% against the industry’s fall of 19.5%.

Image Source: Zacks Investment Research

From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 6.66, above the industry average of 3.66.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Affirm’s fiscal 2026 earnings implies 726.7% growth from the year-ago period. The consensus mark for fiscal 2026 revenues indicates 30.6% year-over-year growth.

Image Source: Zacks Investment Research

Affirm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Nvidia and Micron Technology have drawn significant investor attention as they power AI infrastructure, but savvy investors may also want to turn some of that attention to Applied Materials (AMAT 7.82%). Applied Materials doesn't make chips, but it designs vital equipment that chipmakers use to create their chips.

In short, Applied Materials is an enabler of chipmakers, but that's not the only thing you need to know when deciding if the stock is a good buying opportunity.

Image source: Getty Images.

A star-studded customer list Applied Materials isn't the only company that produces equipment chipmakers need to create their chips, but it is the largest semiconductor equipment provider in the U.S.

The company's fiscal 2026 second-quarter results highlighted several customer partnerships that suggest accelerated revenue growth is on the way. In its release, Applied Materials mentioned agreements and partnerships with Taiwan Semiconductor Manufacturing, Micron, and SK Hynix. All of these companies have been working together for years, and the parabolic revenue growth they are seeing should translate into higher revenue growth for Applied Materials.

The company delivered 11% year-over-year revenue growth in its fiscal 2026 second quarter, which ended April 26, but it expects at least 30% revenue growth for its semiconductor business in calendar 2026. Semiconductor revenue made up $5.965 billion of the company's $7.91 billion of its second-quarter revenue, which comes to 75% of total revenue.

That segment only had 10.4% year-over-year revenue growth in the quarter, so guidance for 30% revenue growth throughout calendar 2026 implies substantial acceleration in upcoming quarters.

Today's Change

(

-7.82

%) $

-50.89

Current Price

$

600.02

Applied Materials has an elevated valuation Not every investor is waiting around for Applied Materials to deliver at least 30% revenue growth in calendar 2026. The stock has more than doubled year to date, resulting in a P/E ratio that soared from the mid-teens just a year ago to over 50 right now.

While the current valuation leaves a lower margin of safety, Applied Materials can fit nicely into its new valuation if it delivers on guidance. The company's guidance for 30% revenue growth for its semiconductor segment in calendar 2026 does not mean it will maintain a 30% revenue growth rate for the rest of the year.

Applied Materials has to achieve 40% to 50% revenue growth in future quarters to offset an 11% year-over-year revenue jump in its Q2. The company has maintained high net profit margins, reaching 35.5% in the most recent quarter, so net income should meaningfully advance in calendar 2026.

Applied Materials' fundamentals are set to strengthen thanks to a multiyear AI supercycle. That can address the valuation and make it more attractive in the near future. Investors who buy now, anticipating what the company can become, may be making a wise decision.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Applied Materials, Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Key Takeaways Northrop Grumman is expanding missile capabilities through advanced tactical and defense technologies.NOC's portfolio includes precision-strike weapons, sensors, command-and-control and defense systems.SiAW and AARGM-ER target contested environments and advanced enemy air defense systems. Northrop Grumman (NOC - Free Report) continues to strengthen its position in the missile market through the development of advanced missile systems and precision-strike technologies for the U.S. military and allied nations. The company offers a broad portfolio of missile and missile defense solutions designed to address evolving battlefield requirements and counter increasingly sophisticated threats.

NOC continues to expand its missile capabilities through the development of advanced tactical missiles, missile defense technologies and next-generation munitions. Its portfolio includes precision-strike weapons, advanced sensors, command-and-control systems and integrated air and missile defense solutions that support a wide range of military missions. These capabilities enable the company to help customers detect, track and defeat emerging threats while improving operational effectiveness.

Among its advanced missile programs are the Stand-in Attack Weapon (SiAW) and the Advanced Anti-Radiation Guided Missile Extended Range (AARGM-ER). The SiAW is designed to strike heavily defended and time-sensitive targets in contested environments and features an open-architecture design that allows for rapid upgrades as threats evolve. Meanwhile, the AARGM-ER is a supersonic, air-launched tactical missile developed to destroy advanced enemy air defense systems through improved propulsion, extended range and an enhanced warhead.

With governments around the world continuing to invest in advanced missile systems and strengthen their defense capabilities, demand for modern missile technologies is expected to remain healthy. Northrop Grumman's broad portfolio of missile solutions, combined with its expertise in advanced electronics, sensors and integrated defense systems, positions it well to benefit from long-term growth opportunities in the global missile market.

Other Companies Expanding Their Missile CapabilitiesOther aerospace and defense companies expanding their missile capabilities are discussed below:

RTX Corporation (RTX - Free Report) : The company develops advanced missile systems such as the Patriot air and missile defense system and the SM-6 missile, which continue to witness strong global demand. RTX also provides advanced sensors, interceptors and command-and-control technologies that strengthen layered missile defense capabilities.

Lockheed Martin (LMT - Free Report) : Through its broad missile portfolio, the company manufactures systems such as the Patriot Advanced Capability-3 (PAC-3), Terminal High Altitude Area Defense (THAAD), Joint Air-to-Surface Standoff Missile (JASSM), Multiple Launch Rocket System (MLRS) and Javelin tactical missile, supporting U.S. and allied defense modernization efforts.

The Zacks Rundown for NOCShares of NOC have surged 3.1% in the past year compared with the industry’s 7.1% growth.

Image Source: Zacks Investment Research

The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.63X compared with its industry’s average of 2.66X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NOC’s 2026 and 2027 earnings has moved north over the past 60 days.

Image Source: Zacks Investment Research

Key Takeaways Dycom's backlog hit a record $11.9B in fiscal Q1 2027, up 46.5% year over year.DY raised fiscal 2027 revenue guidance to $7.38B-$7.65B on sustained customer demand and backlog strength.DY's backlog growth spans fiber, building systems and digital infrastructure with broader customer diversity. Dycom Industries, Inc. (DY - Free Report) is strengthening long-term revenue visibility through a growing backlog supported by broad-based demand across communications and digital infrastructure markets. A larger and more diversified project pipeline, combined with longer customer commitments, provides greater confidence in future revenue generation while reinforcing the company's multiyear growth outlook.

In the first quarter of fiscal 2027, total backlog reached a record $11.9 billion, up 46.5% year over year and 25% sequentially, representing a book-to-bill ratio of 2.2x. The backlog became more diversified across customers, demand drivers and geographies, while some customers extended contract durations to secure skilled labor for future projects. These factors improve planning visibility and support efficient resource allocation. The company also raised its fiscal 2027 revenue guidance to $7.38-$7.65 billion, up from the prior guided range of $6.85-$7.15 billion, indicating confidence in sustained customer demand.

The diversified sources of backlog growth further strengthen Dycom's long-term revenue outlook. Communications benefited from expanding fiber-to-the-home deployments, additional geographic expansion and growing long-haul fiber activity. The Building Systems business also gained momentum following the successful integration of Power Solutions, while the pending acquisition of National Technology Integrators is expected to expand the company's data center capabilities and create additional cross-selling opportunities.

Looking ahead, rising investment in fiber networks, data centers and broadband infrastructure is likely to support additional backlog growth. Combined with a diversified project portfolio, longer-duration customer commitments and an expanding digital infrastructure platform, Dycom appears well positioned to convert its growing backlog into sustainable revenue growth over the coming years.

How Dycom Compares With Key Infrastructure RivalsDycom competes closely with MasTec, Inc. (MTZ - Free Report) and EMCOR Group, Inc. (EME - Free Report) in the infrastructure construction market.

EMCOR operates across electrical and mechanical construction, building services and industrial services markets, with strong exposure to mission-critical facilities and data center construction. The company benefits from broad geographic coverage, execution capabilities and a diversified project portfolio across multiple end markets. However, EMCOR’s business remains tied to the pace of large construction projects and customer capital spending across infrastructure sectors.

Meanwhile, MasTec maintains a diversified infrastructure platform spanning communications, power delivery, clean energy, industrial construction and pipeline markets. The company's broad service offering positions it to benefit from long-term investment trends such as AI-driven data centers, grid modernization and energy infrastructure expansion. At the same time, MasTec remains exposed to variability based on project timing and execution across multiple infrastructure segments.

Dycom's specialization in communications infrastructure and fiber network deployment provides a focused advantage as broadband expansion, fiber connectivity and AI-driven data center interconnection projects continue to grow. Long-standing customer relationships and expertise in wireline network construction support its market position. However, the company's performance remains closely linked to telecommunications investment cycles and customer network spending decisions.

DY Stock’s Price Performance & Valuation TrendShares of this North America-based specialty contracting firm have gained 39.2% year to date, outperforming the Zacks Building Products - Heavy Construction industry, the broader Construction sector and the S&P 500 Index.

Image Source: Zacks Investment Research

DY stock is currently trading at a premium compared with the industry, with a forward 12-month price-to-earnings (P/E) ratio of 26.36, as evidenced by the chart below.

Image Source: Zacks Investment Research

Earnings Estimate Revision of DYDycom’s earnings estimates for fiscal 2027 and 2028 have moved upward in the past 30 days to $16.35 and $19.95 per share, respectively. The estimates for fiscal 2027 and 2028 imply year-over-year growth of 36.6% and 22%, respectively.

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Dycom currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Amkor Technology has over a dozen active 2.5D engagements with leading semiconductor customers. AMKR expects advanced packaging revenue from computing applications to triple in 2026 as programs ramp. Amkor Technology reported Q1 2026 revenue of $1.68B, up 27% year over year on AI-driven demand. Amkor Technology's (AMKR - Free Report) expanding 2.5D packaging pipeline is emerging as a key growth lever as AI and high-performance computing customers shift toward chiplet-based architectures. As semiconductor performance gains increasingly depend on package-level integration rather than transistor scaling alone, 2.5D packaging has become central to combining logic chips with high-bandwidth memory. This shift is opening durable opportunities for outsourced assembly and test providers with proven advanced packaging capabilities.

Amkor's expanding pipeline reinforces this opportunity. AMKR maintains over a dozen active 2.5D engagements with leading semiconductor customers and expects several advanced packaging programs to ramp up over the next few years, including high-density fan-out and bridge-based solutions tied to CPU and data center applications. These engagements should deepen customer relationships over multiple product generations and support a richer mix of high-value packaging content as chip complexity continues to rise.

Early financial trends are beginning to reflect the growing contribution of Amkor's 2.5D packaging portfolio. First-quarter 2026 revenues increased 27% year over year to $1.68 billion, supported by growing AI data center demand and higher advanced packaging content. Advanced packaging revenue from computing applications is expected to triple in 2026 as additional 2.5D and high-density fan-out programs ramp, supported by ongoing capacity expansion across Korea, Vietnam and Arizona.

Execution risk remains tied to customer qualification timelines, materials availability and the pace of capacity additions. However, the breadth and depth of Amkor's 2.5D pipeline suggest the platform is well positioned to underpin sustainable long-term growth rather than a single cycle of demand.

How AMKR's Rivals Stack UpAmkor competes with ASE Technology (ASX - Free Report) and Advanced Micro Devices (AMD - Free Report) in the rapidly expanding 2.5D packaging ecosystem. While ASE Technology competes directly with Amkor in outsourced semiconductor assembly and test services, Advanced Micro Devices is driving adoption of 2.5D packaging through its chiplet-based AI accelerators and EPYC processors. Compared with ASE Technology, Amkor is expanding its 2.5D engagement pipeline and manufacturing footprint to capture growing outsourced demand. As Advanced Micro Devices introduces more chiplet-based products, both ASE Technology and Amkor stand to benefit from rising demand for advanced packaging.

AMKR’s Share Price Performance, Valuation & EstimatesAmkor shares have surged 103.2% in the year to date period compared with the Zacks Electronics - Semiconductors industry’s appreciation of 59.5% and the Zacks Computer and Technology sector’s return of 18.2%.

AMKR’s Price Performance
Image Source: Zacks Investment Research

Amkor's stock is trading at a forward 12-month price/sales of 2.5X compared with the industry’s 10.13X. AMKR has a Value Score of C.

AMKR’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AMKR’s second-quarter 2026 earnings is pegged at 47 cents per share, indicating growth of 113.64% year over year.

AMKR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AeroVironment Inc. AVAV shares rose 4% in premarket trading on Thursday after the US Department of War awarded the defense contractor a $500 million contract for counter-unmanned aerial systems.

The Simi Valley, California-based company received a firm-fixed-price contract to procure commercial counter-unmanned aerial systems and counter small-unmanned aerial systems capabilities.

According to the Department of War, work locations and funding will be determined with each order placed under the agreement, which is expected to run through June 29, 2029.

Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity for the agreement, which carries contract number W912CH-26-D-A073.

The contract announcement added to investor optimism following AeroVironment's strong fiscal fourth-quarter earnings report earlier this week.

The company specializes in unmanned aircraft systems and tactical missile systems for military and commercial applications.

AeroVironment reported record fiscal fourth-quarter revenue of $641.6 million for the period ended April 30, 2026, up 133% from a year earlier.

The sharp increase was aided by the acquisitions of defense technology companies BlueHalo and Empirical Systems Aerospace. Excluding those acquisitions, organic revenue growth was approximately 31%.

Profitability also improved significantly.

Non-GAAP adjusted EBITDA more than doubled to $140.1 million, lifting the adjusted EBITDA margin to 22%. Adjusted earnings per share increased to $1.84 from $1.61 in the prior-year quarter.

The company's funded backlog reached $1.2 billion at the end of fiscal 2026, compared with $726.6 million a year earlier, while full-year bookings totaled $2.7 billion against approximately $2 billion in revenue.

That resulted in a book-to-bill ratio of 1.4, indicating orders continued to outpace shipments and providing greater visibility into future demand.

While AeroVironment is widely known for its Switchblade loitering munitions, management believes its counter-drone business could become an increasingly important contributor over the coming years.

Counter-unmanned aircraft systems generated about $200 million in revenue during fiscal 2026.

The company is expanding the business through a three-layered approach that includes the Titan family of radio-frequency jamming systems, the LOCUST directed-energy weapon under development, and the Freedom Eagle-1 kinetic interceptor designed to destroy incoming drones.

Discussing the long-term opportunity, CEO Wahid Nawabi said, "It will not surprise me in the next 3-5 years that our directed energy and our counter-UAS business would be equally as large, if not 2-3 times bigger."

Management also cited "unprecedented" demand across its markets and projected fiscal 2027 revenue of $2.1 billion to $2.2 billion, with the midpoint implying roughly 10% growth.

Despite the recent gains, AeroVironment shares trade at about 54 times the midpoint of management's fiscal 2027 adjusted earnings guidance and remain well below their 52-week high of nearly $420.

Jim Cramer urged investors to remain cautious because of negative sentiment surrounding the stock.

“The short sellers in this thing are so powerful,” he said on CNBC, adding they're fully convinced that AeroVironment “paid too much” for BlueHalo.

According to Cramer, AVAV is trading near a bottom and a strong fourth-quarter report could help keep it in the “green”, but he warned of possible short-term volatility due to what he described as "a coordinated assault by institutional bears."

He also said investors should be cautious because the “lies that have been told about this company and shading of the truth” are extraordinary.

Wall Street, however, continues to rate AeroVironment a "Strong Buy," with a mean price target of about $295 over the next 12 months.

Key Takeaways Onto Innovation is gaining from AI demand, advanced packaging and HBM manufacturing growth.ONTO sees growth from Dragonfly G5, Atlas G6 and expanding advanced packaging applications.ONTO trades above industry valuation, while estimates for 2026 and 2027 have moved higher. Shares of Onto Innovation, Inc. (ONTO - Free Report) have surged 25.5% over the past month compared with the Zacks Nanotechnology industry’s growth of 24.7%. The company has outpaced the Zacks Computer and Technology sector and the S&P 500 composite’s plunge of 4.3% and 0.9%, respectively. The rally reflects growing investor optimism surrounding the company's exposure to AI, advanced semiconductor packaging and HBM manufacturing. As chipmakers continue to invest aggressively to meet demand for AI infrastructure, Onto Innovation has emerged as one of the beneficiaries of this trend.

Image Source: Zacks Investment Research

ONTO’s key competitors include KLA Corporation (KLAC - Free Report) , Camtek Ltd (CAMT - Free Report) and Nova Ltd. (NVMI - Free Report) . KLAC has grown 25.3%, while CAMT and NVMI plummeted 15.2% and 5.2%, respectively, in the same time frame.  

After such a sharp move, however, investors naturally face an important question: Is it still worth buying ONTO, or has the rally already priced in most of the good news? Let's examine what's driving the stock higher, the company's long-term prospects and whether investors should buy, hold, or wait for a better entry point.

Advanced Packaging Becomes a Major Growth Driver for ONTOThe company sees high growth potential in advanced packaging, silicon photonics, panel-level packaging and related applications. Advanced packaging is expected to grow more than 50% in 2026, driven by the rapid expansion of AI and next-generation semiconductor technologies. Silicon photonics is already moving into volume production as AI servers require faster data transfer and lower power consumption. The panel-level packaging market, currently valued at roughly $200 million, also has significant room for expansion as the industry increasingly adopts panel-based manufacturing and chiplet architectures.

At the same time, demand for smaller and denser interconnects, with bump sizes below 6 microns, continues to rise, creating additional opportunities across the advanced packaging ecosystem. Despite ongoing supply chain headwinds, lead times remain well-managed, and companies have reported no major impact on customer commitments or delivery schedules. Onto Innovation sees a strong growth runway in the 2.5D logic market, supported by deeper engagement with a key customer and an expanding set of applications. Previous system limitations have been removed, enabling the company to pursue more than 15 applications that were previously out of reach, expanding its serviceable addressable market.

Management also indicated that its current outlook may be conservative, leaving room for upside in the second half of the year, with the momentum expected to extend into 2027 as customer adoption broadens. At the same time, the company is benefiting from a more diversified customer base, as advanced packaging customers increasingly outsource high-value process steps. By strengthening its position with outsourced manufacturing partners, ONTO is reducing customer concentration, expanding its market reach and building a more diversified and sustainable long-term revenue base.

ONTO continues strengthening its competitive edge through multiple product wins and market expansion efforts. Its Dragonfly G5 inspection system has been qualified by a top 2.5D logic customer, with shipments already ahead of schedule and demand expected to grow through 2026. Further, the Atlas G6 platform is gaining momentum in advanced-node manufacturing, with management predicting 25% growth in 2026. A new through-silicon via metrology application is set for initial shipments in the second half of 2026.

Image Source: Zacks Investment Research

For 2027, it anticipates outpacing wafer fab equipment industry growth through ongoing market share gains, driven by Dragonfly G5's nearly $1 billion addressable market, the continued expansion of Atlas G6 in gate-all-around applications, new surface charge metrology and panel-level packaging offerings and a strong pipeline of new applications for a wider customer base.

Risks Faced By ONTODespite its strong long-term prospects, Onto Innovation faces several risks. The semiconductor equipment industry remains highly cyclical, making customer spending vulnerable to shifts in inventory levels and end-market demand. The company also relies on a handful of large semiconductor customers, leaving results exposed to delays in capital spending. In addition, export controls and geopolitical tensions continue to create uncertainty for semiconductor equipment suppliers, potentially limiting future growth opportunities. Intense competition from larger industry players further pressures Onto Innovation to continue heavy R&D investments to maintain its technological edge.

Favorable Estimate Revision Trend for ONTOEarnings estimates for ONTO have moved up for both 2026 and 2027 over the past 60 days.

Image Source: Zacks Investment Research

Is ONTO’s Valuation Becoming Stretched?Valuation is the primary concern after ONTO's 26% rally, with semiconductor equipment stocks typically trading at rich multiples during upcycles. In terms of forward price/earnings, ONTO’s shares are trading at 41X, higher than the industry’s 8.05X.

Image Source: Zacks Investment Research

KLAC, CAMT and NVMI are trading at multiples of 71.69X, 43.13X and 47.12X, respectively.

Should Investors Buy, Hold or Fold ONTO Stock?Onto Innovation has become one of the more compelling semiconductor equipment companies benefiting from the AI boom. The recent rally reflects investors' growing confidence in these opportunities, but it also raises valuation expectations. While the stock may experience near-term volatility after such a sharp advance, the company's long-term fundamentals remain solid.

For existing shareholders, the recent surge reinforces the strength of Onto Innovation's business model and supports a hold stance, particularly for those with a multi-year investment horizon. For prospective investors, the company remains attractive, but initiating a position gradually or waiting for a pullback could offer a more balanced entry point.

ONTO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Key Takeaways Sterling's Transportation Solutions revenues rose 10% and adjusted operating income increased 26% in Q1 2026.STRL's Transportation Solutions backlog reached $1.04 billion, up 20% year over year.Sterling is shifting resources to higher-return E-Infrastructure projects to improve efficiency. Sterling Infrastructure, Inc. (STRL - Free Report) has built a diversified business across multiple infrastructure markets, with Transportation Solutions remaining an important contributor to its long-term strategy. While the segment may not attract as much attention as the company's faster-growing businesses, it plays a meaningful role by generating stable earnings, supporting efficient resource allocation and strengthening the overall operating model.

In the first quarter of 2026, Transportation Solutions generated revenue growth of 10%, while adjusted operating income increased 26% due to strong execution and a favorable mix of higher-margin projects. Segment backlog reached $1.04 billion, up 20% year over year, providing healthy revenue visibility. Sterling expects Transportation Solutions to deliver low to mid-single-digit revenue growth in 2026, although growth is likely to moderate following an unusually strong first quarter that benefited from favorable weather and earlier-than-expected project starts.

Another factor enhancing the segment's value is its evolving role within Sterling's operating model. Sterling is reducing exposure to lower-margin highway work in Texas while redeploying equipment and operational resources to higher-return projects. This approach improves asset utilization, supports stronger capital efficiency and allows the segment to play a broader role in Sterling's long-term growth strategy. Transportation Solutions also serves as a reliable cash-generating business, providing financial flexibility to support investment across other growth initiatives.

Transportation Solutions may not be the primary growth engine, but the ability to generate consistent cash flow, improve resource utilization and support expansion across the broader business makes it an increasingly valuable part of Sterling's long-term growth strategy.

How Sterling Compares With Key Infrastructure RivalsSterling operates in attractive infrastructure markets supported by data center expansion and broader investment in digital and industrial infrastructure. Two notable competitors are MasTec, Inc. (MTZ - Free Report) and EMCOR Group, Inc. (EME - Free Report) , both of which have established positions across large-scale engineering and construction projects.

MasTec has built a diversified infrastructure platform spanning communications, power delivery, clean energy, pipeline and civil construction. The company is benefiting from rising investments in AI-driven data centers, grid modernization and connectivity infrastructure, while also expanding its turnkey capabilities for mission-critical projects. These strengths position MasTec as a significant competitor in infrastructure projects linked to data center growth.

EMCOR is another major competitor with strong capabilities in electrical and mechanical construction and building services. The company continues to see robust demand from data centers, manufacturing, healthcare, institutional and water infrastructure markets, supported by expertise in complex mission-critical projects and long-standing customer relationships. While EMCOR serves a broader mix of end markets, the growing exposure to data center construction places it in direct competition for large infrastructure opportunities.

STRL Stock’s Price Performance & Valuation TrendShares of this Texas-based infrastructure services provider have gained 153.6% year to date, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 Index.

STRL’s Price Performance (YTD)
Image Source: Zacks Investment Research

STRL stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 34.54, as shown in the chart below.

STRL's P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

Earnings Estimate Revision of STRLSTRL’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $19.12 and $25.83 per share, respectively, as shown below. The revised estimates for 2026 and 2027 imply year-over-year growth of 75.7% and 35.1%, respectively.

Image Source: Zacks Investment Research

Sterling currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Cohu's outlook rests on turning AI, HPC and HBM opportunities into durable revenue growth.Cohu sees a $750M HPC pipeline and expects $80M-$100M in HPC-related revenues in 2026.Cohu expects HBM revenue to rise about 80% to roughly $20M in 2026, supported by repeat orders. Cohu, Inc. (COHU - Free Report) is drawing more attention as AI infrastructure spending raises the need for advanced semiconductor test, inspection and thermal-control equipment.

The investment case now rests on whether Cohu can convert its AI, high-performance computing and HBM opportunities into durable revenue growth while repairing profitability.

How Cohu Makes Money TodayCohu supplies semiconductor test and inspection equipment, software analytics, interface products, spares and services that help chipmakers improve yield and productivity.

Its business is split between systems revenue and recurring revenue. In 2025, semiconductor test and inspection systems accounted for 40% of net sales, while recurring revenues made up 60%.

That recurring base includes interface products, software, spares and services. It gives Cohu a steadier revenue stream than equipment orders alone, which remain tied to customer capital-spending cycles.

Cohu serves IDMs, OSATs and fabless chip companies across automotive, industrial, mobile, consumer, HPC and AI applications.

COHU Finds a New AI Growth LaneThe biggest change in Cohu’s story is its growing exposure to AI processors and high-performance computing. Management now sees an HPC opportunity pipeline of about $750 million, including roughly $650 million in test handlers and $100 million in HBM inspection.

The opportunity is tied to higher chip complexity. AI accelerators, GPUs and xPUs generate intense heat, making precise thermal control during testing more important for yield, performance validation and reliability.

Cohu expects $80 million to $100 million in HPC-related revenues in 2026. The Eclipse handler platform, supported by active thermal control, is central to that push.

Teradyne (TER - Free Report) is a relevant peer because it designs and manufactures automated test equipment for semiconductor and electronics products. KLA Corporation (KLAC - Free Report) also frames the competitive backdrop, given its role in process control, inspection, metrology and yield-management systems.

Cohu Sees HBM Demand Add Another CatalystHBM inspection gives Cohu another AI-linked growth channel. The company’s Neon inspection platform supports demand tied to AI workloads and advanced memory requirements.

Cohu expects HBM-related revenue to rise about 80% year over year to roughly $20 million in 2026. Repeat orders from major customers support the view that the platform is gaining traction.

The company is also investing for next-generation HBM requirements. That matters because HBM3, HBM4 and future memory architectures require tighter inspection and metrology as performance and package complexity rise.

Why COHU Still Carries Real RiskThe bullish case is not without limits. Much of Cohu’s AI and HPC pipeline remains in qualification or early engagement, so customer traction has not fully translated into booked, recurring revenue.

The company also operates in a cyclical semiconductor equipment market. Demand can shift quickly with utilization rates, customer inventory cycles and capital spending.

Competition remains another risk. Larger rivals have deeper scale, broader customer reach and significant R&D budgets.

Profitability is also still a work in progress. Cohu reported a GAAP loss in the first quarter of 2026, while operating expenses rose as the company increased spending to support HPC opportunities.

What COHU Signals Say Right NowThe bottom line is that Cohu’s business momentum is improving, but the stock still carries a mixed fundamental profile. AI processor testing, HBM inspection and recurring revenue provide credible growth levers, while execution risk and weak profitability keep the outlook balanced.

COHU currently carries a Zacks Rank #2 (Buy), which points to a favorable short-term earnings-estimate setup. That supports investor interest in the stock over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, the Zacks Style Scores are less clean. COHU has a VGM Score of F, with a Value Score of F, Growth Score of B and Momentum Score of F.

The Growth Score of B highlights better growth characteristics, but the weak Value, Momentum and VGM readings suggest the stock does not yet offer an all-around attractive profile across those style categories. For now, COHU looks like a recovery-and-AI growth story that still needs stronger profitability follow-through.

Key Takeaways Alto Ingredients is expanding Pekin dry mill capacity by about 8%, adding roughly 5 million gallons annually.ALTO expects higher production from Q4 2026, increasing gallons eligible for Section 45Z tax credits.Alto Ingredients is adding logistics infrastructure to improve shipment flexibility and plant efficiency. Alto Ingredients, Inc. (ALTO - Free Report) is investing in additional production capacity at the Pekin dry mill as it looks to improve operational efficiency while capturing greater value from favorable industry incentives. Rather than building new facilities, the company is focusing on debottlenecking its most efficient plant, a move designed to increase output with relatively modest capital investment while strengthening profitability.

The project will be completed during a planned outage in June and is expected to increase the Pekin dry mill's annual production capacity by about 8%, or roughly 5 million gallons. Alto Ingredients expects the higher production rates to begin contributing from the fourth quarter of 2026. The additional volumes are expected to do more than boost production. These are expected to help improve plant utilization and create additional margin opportunities by increasing the number of gallons eligible for Section 45Z clean fuel production tax credits.

The company is also investing in supporting infrastructure at Pekin. In the first quarter, Alto Ingredients started repairs on its original dock and began construction of a second alcohol loadout facility, which is expected to improve logistics and provide added flexibility for shipments.

The expansion highlights Alto Ingredients’ strategy of generating more value from existing assets rather than pursuing large-scale expansion projects. With higher output, better logistics and greater access to clean fuel incentives, Pekin is becoming a central part of the company's operational improvement efforts in 2026.

How ALTO's Strategy Compares With PeersGreen Plains Inc. (GPRE - Free Report) has been prioritizing efficiency and carbon-intensity reduction projects across its ethanol network. In the first quarter of 2026, Green Plains highlighted investments in grain storage, low-energy distillation and other upgrades aimed at improving plant economics and lowering operating costs. Green Plains also expects these projects to increase eligibility for 45Z-related benefits over time.

MGP Ingredients, Inc. (MGPI - Free Report) has also been focused on improving asset utilization and operational efficiency across its production network. In the first quarter of 2026, MGP Ingredients highlighted initiatives to improve reliability, throughput and production efficiency while reducing waste and disposal costs. MGP Ingredients is also undertaking targeted maintenance and capital projects designed to enhance operational performance and generate better returns from existing assets.

ALTO Stock Price Performance, Valuation & EstimatesShares of Alto Ingredients have surged 415.5% over the past year compared with the industry’s growth of 5.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, ALTO trades at a forward price-to-sales ratio of 0.46, lower than the industry’s average of 3.14.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Alto Ingredients’ 2026 and 2027 earnings per share implies a year-over-year rise of 671.4% and 53.7%, respectively.

Image Source: Zacks Investment Research

Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

HomeStock IdeasLong IdeasTech 

SummaryCoreWeave, Inc. maintains a Strong Buy rating, supported by a $99.4 billion backlog and sold-out 2026 capacity.CRWV trades at a forward sales multiple far below peers Nebius and IREN, despite triple-digit revenue growth and rising pricing power.Backlog quality has improved, with investment-grade customers now comprising over 70% of future commitments and robust pricing momentum across its fleet.Balance sheet risk exists due to high capex and negative free cash flow, but contracted demand and margin expansion potential outweigh near-term CRWV funding concerns. quantic69/iStock via Getty Images

CoreWeave, Inc. (CRWV) just posted its strongest bookings in history. Backlog climbed to $99.4 billion, the company sold out of its 2026 capacity, and it even raised its prices across its fleet. Then the stock sold off with every

4.22K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Employees work at the Tesla Gigafactory during a government-organised media trip in Shanghai, China, April 14, 2026. REUTERS/Go Nakamura Purchase Licensing Rights, opens new tab

CompaniesBEIJING, July 2 (Reuters) - Tesla's (TSLA.O), opens new tab China-made electric vehicle sales rose for an eighth month in June, supported by an extended ​recovery in the U.S. automaker's European sales.

Deliveries of Model ‌3 and Model Y vehicles made in its Shanghai plant, which is also an export hub for Europe, grew 24.4% from a year ​earlier to 89,091 units, data from the China Passenger ​Car Association showed on Thursday. The increase followed ⁠a 39.4% gain in May.

Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here.

For the second quarter, Tesla's combined ​China sales and exports from the Shanghai factory were up ​32.8% year-on-year.

Later on Thursday, the EV specialist is expected to report a 5% year-over-year increase in global vehicle deliveries to 402,780 vehicles over the past ​quarter, buoyed by stronger demand in Europe where a ​spike in fuel prices following the U.S.-Israel conflict with Iran has prompted ‌more ⁠consumers to turn to EVs.

The recovery in Europe and resilient demand in China are expected to help offset declining sales in North America.

Even so, the results could leave the door for ​its biggest ​Chinese rival, BYD (002594.SZ), opens new tab, ⁠to retake the title of the world's top EV seller after briefly ceding it to ​Tesla in the first quarter.

BYD, which posted a ​second ⁠consecutive month of sales growth in June, sold 557,090 battery-electric vehicles globally in the second quarter, underlining the strength of its ⁠overseas ​expansion, particularly in Europe, as it ​seeks to diversify beyond China's fiercely competitive domestic market.

Reporting by Qiaoyi Li, Zhang ​Yan and Ju-min Park; editing by Barbara Lewis and Louise Heavens

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Google logo is seen on a building during the opening of Google new office space in Krakow, Poland on June 22, 2026. Located in Tertium Business Park building, the offICE is a second location for Google in the city. (Photo by Beata Zawrzel/NurPhoto via Getty Images)

NurPhoto via Getty Images

This article was written by Doug Nathman, with research by his team at Trefis.

Behind the "AI" excitement lies the underlying narrative: a growing order book that indicates demand is surpassing the company's capabilities.

Alphabet (GOOGL) shares have exhibited outstanding performance, achieving a gain of 104% over the last year. Following such a notable increase, a crucial inquiry arises regarding what could facilitate further advancement. The straightforward answer is "AI," but that has morphed into a catchphrase. The genuine story is more detailed, more concrete, and it comes with a significant figure attached.

Where Is The Expansion Concealed? In A $462 Billion Order Book.Beyond the lofty assertions of artificial intelligence, it is beneficial to examine the foundational infrastructure. Alphabet's genuine engine of surprise currently is Google Cloud. In the most recent quarter, Cloud revenue surged to a 63% increase, surpassing $20 billion for the first time. This stands impressive by itself. Yet the real narrative lies within the backlog, the quantity of future business commitments made by customers. It nearly doubled within a single quarter, soaring to $462 billion. For reference, that exceeds the company's total revenue from the past year. This is not mere hype; it reflects a substantial backlog of signed agreements, driven by what management identifies as their "primary growth driver for cloud for the first time": enterprise AI solutions.

But Is This A Beneficial Issue Or Just A Dilemma?Despite all this growth, management made a significant acknowledgment: "we are compute constrained in the near term." They noted that "cloud revenue would have been higher had we been able to meet the demand." In essence, demand is so robust that they are unable to fulfill it all at present. This type of challenge is a dream for most companies. It affirms the exceedingly strong demand but also introduces a vital tension: the company must now enhance its capacity before this remarkable demand becomes a limiting ceiling on growth.

Why The Investment Surge Is The Bull Scenario.Alphabet's countermeasure is to expand. Rapidly. The company is projecting $180 billion to $190 billion in capital expenditures for 2026 and anticipates a "significant increase" in spending for 2027 from that point onward. This expenditure is not aimless spending. It represents a direct, calculated endeavor to develop the capacity necessary to cater to the $462 billion backlog and seize the demand that is currently being overlooked. They are laying foundations and installing servers with a clear vision of who will finance it.

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The market has valued Alphabet for its advancements in AI. However, the sheer, contractual volume of activities within Google Cloud indicates that the upcoming chapter may focus less on clever demonstrations and more on the straightforward economics of fulfilling an extraordinary influx of orders. The demand is no longer a projection; it is a reality, firmly displayed in the backlog. Investors should now observe how swiftly that capital expenditure is translated into recognized Cloud revenue.

Where Should You Look For The Next Narrative Like This?An opportunity of this nature only becomes significant once it manifests in the numbers, and the first solid indication appears in management’s guidance. Once a company can genuinely foresee the new revenue, it elevates its forecast, and an improved forecast that the market is already rewarding represents one of the clearest pieces of evidence that such a story is materializing. F5 (FFIV), Flex (FLEX), and Federal Realty Investment Trust (FRT) are currently signaling precisely that. Our Guidance Momentum screen monitors every S&P 500 entity where a rising forecast correlates with real price momentum, allowing you to seek out the next opportunity like this one while it is still in its infancy. Additionally, if you prefer to invest in the entire theme rather than wager on a single entity, a communication services ETF such as XLC encompasses the full spectrum.

Where Should A Stock Like This Reside In Your Portfolio?A compelling growth narrative is an excellent beginning. A well-organized collection of such narratives forms a strategy. An engine like this is important because it can continue to compound subtly over the years, and a stock that compounds is worthwhile to own, but focusing on any single entity is where well-conceived ideas can be penalized. A diversified assortment of equally well-researched stocks mitigates the risk associated with single-stock concentration. The challenging aspect is determining which stories truly deliver, and that ranking forms the core of the Trefis methodology.

The Trefis High Quality (HQ) Portfolio assesses the overall quality across thousands of equities, not just one catalyst, incorporates the 30 strongest stocks, and rebalances them with rigor. It has a proven record of surpassing a benchmark that merges the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000.

Here is a breakdown of what is driving Thursday’s market action.

Nokia shares are showing limited movement. What should traders watch with NOK? What Is Driving Nokia’s Recent Collaborations?Nokia’s latest headline is an expanded collaboration with Amazon to run its Autonomous Networks Fabric on AWS, positioning the offering around "Level 4" autonomy for telecom operators and targeting product availability later this year.

In parallel, the company is also building six Gemini-powered agents with Alphabet aimed at telecom workflows, with an efficiency claim that troubleshooting time can drop 50% to 80%.

With futures green, Nokia’s slightly red print reads more like a pause after a big move than a risk-off wave, especially as traders wait to see whether the AI-automation narrative translates into sustained orders and margin mix. In that setup, the chart tends to matter more than the headline, because it defines where dip-buyers are likely to defend the trend.

Nokia Stock: Key Technical Levels to WatchThe longer-term trend still leans bullish, with the stock up 148.27% over the past 12 months and still trading 17.1% above its 100-day SMA ($11.00) and 50.6% above its 200-day SMA ($8.56). The golden cross from October 2025 (50-day SMA above the 200-day SMA) remains intact, which often keeps buyers interested on pullbacks as long as price holds well above those longer baselines.

Near-term, the stock is in a cooling phase: it’s trading 8.8% below the 20-day SMA ($14.14) and 6% below the 50-day SMA ($13.71), even though the 20-day SMA is still above the 50-day SMA (a constructive alignment). That combination usually says "trend up, momentum cooling," and it puts extra focus on whether price can reclaim the 50-day area to signal demand is returning.

For momentum, MACD is the cleaner read right now: it’s below its signal line and the histogram is negative, which points to upside pressure fading versus the prior upswing. In plain terms, MACD compares faster and slower trend momentum, and being below the signal line often means rallies can struggle until momentum improves.

Key Resistance: $15.00 — a round-number ceiling where rebounds can stall, especially after the stock has been trading below its 20-day and 50-day averages What Does Nokia Corporation Do?Nokia is a networking equipment vendor focused primarily on supporting wireless networks and, to a growing extent, Internet Protocol and optical systems. It operates across mobile infrastructure (wireless core and related software), network infrastructure (IP routing/switching, optical, and fixed-network gear), and a portfolio business that houses areas the company views as less central long term.

That business mix is why the AWS and Google Cloud angles matter: pushing autonomous networking and AI-driven operations deeper into carrier workflows can shift the story toward more software-led efficiency and services pull-through, not just hardware cycles. For the stock, the key question is whether these partnerships drive durable operator adoption quickly enough to re-accelerate momentum after the recent digestion.

Nokia Earnings Preview: What Analysts ExpectLooking further out, the next major catalyst for the stock arrives with the July 23, 2026 (confirmed) earnings report.

EPS Estimate: 7 cents (Up from 4 cents YoY) Revenue Estimate: $5.59 Billion (Up from $5.15 Billion YoY) Valuation: P/E of 81.0x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $14.67. Recent analyst moves include:

JP Morgan: Overweight (Raises Target to $21.00) (June 12) Argus Research: Upgraded to Buy (Target $15.00) (April 27) Morgan Stanley: Initiated with Overweight (Target $8.00) (Feb. 9) How $1,000 in Nokia Would Have GrownA $1,000 investment in Nokia Corporation on July 2, 2021, would have grown to $2,404 by July 1, 2026 — a 140.4% return over the period, excluding dividends. The stake swung between $559 and more than $3,000, ending well below its 2026 peak.

The ride included a deep slump before the rebound: the position hit its period low on December 5, 2023, and later reached its period high on June 2, 2026. From peak to trough, the maximum drawdown over the five-year holding period was -52.7%. Along the way, the $1,000 stake was $847 on July 5, 2022, $790 on July 3, 2023, $724 on July 2, 2024, and $968 on July 2, 2025.

On an annualized basis, Nokia Corporation returned 19.2% over the period, ahead of the S&P 500’s 11.6% annualized gain. It also outpaced the Nasdaq 100, which returned 15.3% annualized.

Today, Nokia Corporation has a market capitalization of about $71.4 billion. The stock’s P/E ratio is 81.0, and it offers a dividend yield of 1.27%.

Nokia Benzinga Edge Rankings OverviewBelow is the Benzinga Edge scorecard for Nokia, highlighting its strengths and weaknesses compared to the broader market:

The Verdict: Nokia’s Benzinga Edge signal reveals a momentum-led profile with supportive quality, which fits a stock that’s still in a longer-term uptrend but cooling in the short term. If momentum reasserts and price can work back toward key moving averages, the setup improves; if not, traders may keep treating rallies as sellable until the trend firms up again.

Nokia Stock Price Movement in Premarket TradingNOK Stock Price Activity: Nokia shares were down 0.31% at $12.87 during premarket trading on Thursday, according to Benzinga Pro data.

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DETROIT — Ford Motor on Thursday reported a 10.3% decline in its second-quarter U.S. new vehicle sales as the company battled a supplier issue for its F-Series pickup trucks and a significant decline in all-electric vehicles.

The Detroit automaker said its pure EV sales fell by 40.7% during the quarter compared with a year earlier. Sales of its F-Series trucks, including the F-150, fell 11% as Ford began ramping up production after its top aluminum supplier restarted production following two fires late last year.

"Although customer demand remains high, first-half F-Series sales reflect a retiming of commercial production following last year's aluminum supply shortages. Ford expects supply to recover more fully in the second half of the year," Ford said in a release.

Ford sold 549,200 vehicles during the second quarter compared to 612,095 units a year earlier. While that's among the largest expected industry declines, the results slightly beat Cox Automotive's expectations for Ford sales to fall 11.5%.

Read more CNBC auto newsFord CEO wants level playing field with Toyota, GM imports as USMCA trade talks reopenTesla reports 480,126 vehicle deliveries for second quarter, topping expectationAutomakers report mixed U.S. sales results as hybrid vehicles drive marketU.S. auto industry faces increased uncertainty without extension of USMCA trade dealThe automaker has sold 1 million vehicles year-to-date through June, down 9.6% from 1.1 million during the first half of last year.

Ford noted that despite the declines, the F-Series remained America's top-selling truck. The company also estimates its U.S. retail market share to end the quarter was up 0.2 percent points compared with a year earlier, to 12.3%.

Ford's sales come a day after most major automakers reported second-quarter numbers that were better than expected, largely driven by increased demand for hybrid vehicles. Cross-town rival General Motors saw its sales fall 4.2%, however, as its EV sales dropped.

Automotive data firm Motor Intelligence on Wednesday estimated U.S. industry sales for June were up 7.5% compared to a year ago, leading to a monthly adjusted selling pace of 16.67 million units, which was higher than many forecasters had expected.

As of last week, Cox Automotive expected U.S. auto sales to be down 2.9% to 15.8 million vehicles, including a 3.4% decline in retail sales. That included a 16.1 adjusted selling rate forecast for June.

Shopify stock has rebounded in the past few weeks, moving from the year-to-date low of $94.47 to the current $121.63. This rebound may continue, helped by its modest revenue growth and encouraging technicals.

Shopify, the operator of the biggest e-commerce software, soared after reaching a settlement with Shopline, a company owned by Joyy, a publicly-traded company. 

The two companies asked a judge to bar Shopline from distributing its software. In a statement, Shopify said that Shopline had copied its Dawn theme, rebranded it, and sold it against it. Its chief counsel said:

"We took them to court and ​they've been ordered to stop and to pay us. Open source is built on trust and we'll defend that every time someone treats it as a ​free pass to steal."

The terms of the deal were confidential, but it is estimated that Joyy, which is valued at over $3.3 billion paid millions of dollars. Its stock jumped by 1.38% after the filing. 

While Shopify jumped on Wednesday, it remains 35% below its highest level last year, mirroring the performance of most software companies. The general view is that e-commerce companies will start abandoning Shopify and build their websites using AI. Indeed, it is now possible to build advanced e-commerce stores using tools like Lovable and Cursor.

However, there is a likelihood that the company’s business will continue doing well in the long term because of the value it gives its customers. The most recent results shows that it continues to add more costumers to its ecosystem. It added firms like Balmain Paris, Rag & Bone, Mulberry, and The Outnet.

The numbers also showed that its revenue growth jumped by 34% to $3.17 billion, a great number for a company that has been in the industry for years. Its gross profit rose to over $1.56 billion, while its free cash flow rose to $476 million. 

The management also boosted its forward guidance and now expects revenue to grow in the high-twenties in the second quarter. The consensus among analysts is that its revenue growth will be 28% to $3.4 billion, while its annual figure will grow by 28% to $14.8 billion. 

These numbers mean that the company is a bargain on a rule-of-40 metric. It has a forward revenue growth rate of 28% and a profit margin of 14%, giving it a multiple of 42%. 

SHOP stock chart | Source: TradingView

The daily chart shows that the SHOP stock price has rebounded in the past few weeks, moving from a low of $94.47 in March to $121.63 today. It has formed an inverted head-and-shoulders pattern, a common bullish reversal sign in technical analysis. 

The stock has also jumped above the 50-day and 100-day moving averages, a sign that bulls are in control. Therefore, the path of the least resistance for the stock is bullish, with the next key target to watch being at $150.

READ MORE: Wall Street experts are bullish on Shopify stock: should you?

Oracle (ORCL +2.39%) is set to be a major beneficiary of the AI infrastructure boom. The company has accumulated a $638 billion backlog of business, which is equal to about eight years of revenue at the current annual run rate. In the most recent quarter alone, $67 billion in new AI infrastructure contracts were signed.

However, it's fair to say that many investors are a little skeptical, with the stock down by more than 55% from its 52-week high. There are two main unanswered questions that seem to be weighing on Oracle's stock price. First, can the companies committing to spend billions with Oracle actually meet these obligations? Second, can Oracle deliver on its backlog while balancing the need to raise capital to do so?

Image source: Getty Images.

Oracle's massive backlog Oracle reported $638 billion in remaining performance obligations, or RPO, in its most recent quarterly report. RPO is Oracle's term for contracted future revenue, or backlog, and this figure is 363% higher than it was a year ago. For context, this is now larger than the backlog of much larger tech company Microsoft (MSFT +0.94%).

Now, over half of this is reportedly from OpenAI. The AI company behind ChatGPT has signed a contract worth more than $300 billion over a five-year period starting in 2027, according to multiple reports, which is by far the largest individual cloud deal ever signed. Other major customers contributing to the backlog include Meta Platforms (META 3.56%), SpaceX (SPCX +1.51%) through its xAI subsidiary, Nvidia (NVDA +0.61%), and other tech heavyweights.

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It's also important to clarify what "AI contracts" include. The primary product is OCI (Oracle Cloud Infrastructure) compute capacity, which essentially refers to rented data center capacity and GPUs. Most contracts are multi-year, and only about 12% of the backlog is expected to convert to revenue over the next year.

The unanswered questions investors need to consider As mentioned, there are two big unanswered questions.

First, can Oracle's customers reasonably fulfill their contracted obligations, especially when it comes to OpenAI? So far, OpenAI hasn't had much trouble raising capital, but it is still a private, cash-burning company, and the $300 billion or so it has committed to spend with Oracle isn't its only large obligation. The AI company has committed to about $350 billion in spending with Broadcom (AVGO +0.99%), $250 billion with Microsoft (Azure), about $100 billion on Nvidia systems, as well as deals with AMD (AMD 0.12%), Amazon (AMZN +0.78%), and others. In all, OpenAI is estimated to have committed well over $1 trillion in hardware and cloud infrastructure spending.

With spending commitments like that, it's not surprising that the market is a little skeptical. In fact, it was reported last week that OpenAI plans to delay its IPO, and this was a big reason why Oracle's stock has had its worst week in many years.

The second question is how much Oracle will need to erode its financial condition to deliver on these orders. In the current fiscal year, Oracle's estimated $95 billion in capex will require it to raise $40 billion in new capital, pushing its long-term debt above $100 billion. Free cash flow turned negative in the company's most recent fiscal year for the first time in a while, and this is likely to be the case for the foreseeable future. Plus, Oracle's gross margins could come under pressure as infrastructure costs rise, and there's always the longer-term risk of AI disrupting the enterprise software industry.

Is Oracle stock a bargain or a trap? Let's be clear. If Oracle can successfully deliver on its obligations and get a strong ROI on its capex, the company's stock could be an absolute bargain at the current level. And to be fair, the company has a long track record of solid execution.

At its current price, Oracle stock trades for just over 18 times forward earnings estimates. The last time Oracle had a price-to-sales ratio at its current level was in early 2024, largely before the AI infrastructure spending wave began. And this is for a company that not only has a massive backlog but is also growing its actual revenue at 21% year-over-year. It's also worth noting that Oracle's guidance for the current quarter calls for 28% revenue growth (at the midpoint), which would represent a significant acceleration.

In a nutshell, Oracle has some major risk factors, but the price is right, and the risk-reward dynamics look attractive at these levels. In fact, I recently opened a small position in Oracle, and plan to add more if the stock remains at or near these levels.

Realty Income (NYSE:O | O Price Prediction) just paid investors again. The monthly check dividend landed on schedule, the streak extended and the market continued treating shares like a melting ice cube. That disconnect is the opportunity.

Realty Income declared its latest monthly dividend of 27 cents per share with an ex-dividend date of June 30 and a payment date of July 15. That is the 670th consecutive monthly dividend and follows the 114th consecutive quarterly increase. The stock currently yields roughly 5%. The story the market is telling with that yield (retail REITs are toxic, net lease is broken, e-commerce wins) is the wrong story.

The 5% Yield Is a Verdict Income investors get conditioned to celebrate fat yields. They should not. A high yield is the market discounting the future cash stream, and for most of the past two years that discount has been aimed squarely at retail-anchored landlords. The 10-Year Treasury currently sits at 4%, leaving Realty Income’s payout at roughly a 1% spread over the risk-free rate.

That is a tight cushion for a company whose tenants the market apparently believes are one recession away from going dark. But the operating data does not support that thesis.

What the Operating Data Actually Says Q1 2026 AFFO per share came in at $1.13, up 7% year over year. Portfolio occupancy stood at 99%. The lease recapture rate hit 103%, meaning the company re-leased space at higher rents than it was getting before. Realty Income invested $2.8 billion in the quarter at a 7% initial cash yield, and management raised full-year investment guidance to $9.5 billion from $8.0 billion.

Those are the operating metrics of a healthy, productive asset class. The macro backdrop agrees: U.S. retail sales hit $763.7 billion in May 2026, the highest reading of the trailing 12 months and the 92nd percentile of the period. Consumers are spending. Realty Income’s tenants — including Dollar General, 7-Eleven, Walgreens and Wawa — sit on the receiving end of that spending.

The Payout Math the Doomsayers Ignore Detractors point to a P/E ratio of 52 and argue the dividend is uncovered. That is a misread of how REITs work. The relevant denominator is AFFO, not GAAP EPS. 2026 AFFO guidance of $4.41 to $4.44 against an annualized dividend of $3.246 works out to a payout ratio in the low 70s. That is comfortable. The forward P/E of 40 also accounts for the depreciation distortion that always inflates REIT trailing earnings multiples.

Net debt to annualized pro forma adjusted EBITDAre fell to 5.2x from 5.4x. Credit ratings sit at A3 from Moody’s and A- from S&P. The company just priced $800 million of 4.750% notes due 2033 and a €600 million Eurobond at 4%. Toxic borrowers do not get that paper at those prices.

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The Market Is Already Quietly Reversing While the “retail REITs are dead” narrative persists in headlines, the stock is voting differently. Realty Income is up 17% over the past year and 14% year to date. That outpaces the Real Estate Select Sector SPDR ETF (NYSEARCA:XLRE), which gained 13% over the same one-year window. Shares closed at $63.04 on June 29, 2026, after a 4% one-week move.

News sentiment is also turning. Of 50 recent articles, 48% scored somewhat-bullish and only 2% somewhat-bearish. Wall Street currently holds three Strong Buy ratings, five Buy ratings and 15 Hold ratings alongside an average price target of $67.90.

The Dividend Scorecard Grading this dividend the way an income investor should:

Yield: ~5%, with a 1% spread over the 10-Year Treasury. Adequate. Coverage: AFFO payout ratio in the low 70s against $4.41 to $4.44 guided AFFO. Strong. Growth streak: 114 consecutive quarterly increases and 670 consecutive monthly payments. Best in class. Growth rate: Monthly payout rose from 26 cents in June 2025 to 27 cents in June 2026. Modest but positive. Balance sheet: 5.2x net debt to EBITDAre, A-rated credit. Strong. Composite grade: A-

The only deduction is the modest dividend growth rate, which reflects deliberate capital allocation discipline rather than weakness.

What CEO Sumit Roy Is Actually Building CEO Sumit Roy used the Q1 call to reframe the business as a private-capital aggregator with a public dividend wrapper. The Apollo partnership put $1.0 billion of insurance capital into 492 retail properties. The GIC partnership added construction financing capacity. The U.S. Core Plus fund closed a $1.7 billion cornerstone capital raise.

Roy’s own framing: “Several years ago, we identified a potential concentration risk in relying primarily on public equity markets, where pricing, at times, can become disconnected from underlying operating performance and this discrepancy persists for prolonged periods.” Translation: management knows the stock is mispriced and is building around the public market rather than waiting for it to catch up.

What to Watch Next The next dividend declaration will likely tick higher again. The next earnings report will test whether the $9.5 billion investment pace is holding and whether the lease recapture rate stays above 100%. If 10-Year Treasury yields keep drifting lower from the recent 5% May peak, the discount the market applied to retail REITs starts to look even more anachronistic. The market called this dividend stream toxic. The check that just cleared says otherwise.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Realty Income didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

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Morningstar is warning investors to brace for a reckoning in AI stocks, with memory-chip names sitting on the biggest gains facing the most downside. In a Bloomberg TV segment, Morningstar director of research Lorraine Tan warned that a large slice of AI names could give back 20% to 30% before they become buyable again. For holders of Micron Technology (NASDAQ:MU | MU Price Prediction), the poster child of the rally, that raises an obvious question: is it time to lighten up?

The rally that scared Morningstar Memory has been the runaway trade of 2026. Micron is up 304.62% year to date and 838.82% over the past year, while SanDisk (NASDAQ:SNDK) has surged 857.84% YTD and Western Digital (NASDAQ:WDC) 271.05%. Semiconductor equipment maker Lam Research (Nasdaq: LRCX) has doubled, up 153.61%. Even AI bellwether NVIDIA (NASDAQ:NVDA), tame by comparison at 7.42% YTD, has ridden a 26.81% gain over the past year.

Tan told Bloomberg that “stocks are priced for perfection. Although valuations seem stretched, people are buying into the optimism.” Her sharper concern was the pace of the move: “The explosiveness of the returns you saw in the second quarter it is a bit scary in that sense because the market is extrapolating for the strong growth to continue through 2028. We have our doubts there. We expect spending to taper off.” Asian equities had reversed early Q3 gains, with the MSCI Asia index down slightly after posting its strongest quarter in 17 years.

The memory reckoning Tan’s case rests on capacity. “The announcements from Samsung and SK Hynix, that will lead to what we think will be softer pricing. Essentially, the supply will catch up with demand. You will not see the same loftiness in growth rate on the pricing of memory chips, for example,” AI capex growth is expected to peak in 2026, with spending increases slowing materially through 2029.

That thesis hits Micron squarely. The company reported Q3 FY26 revenue of $41.46 billion, up 345.7% year over year, with non-GAAP EPS of $25.11 and GAAP gross margin of 84.6%. CEO Sanjay Mehrotra guided Q4 revenue to $50.0 billion and EPS to $31.00, framing multi-year Strategic Customer Agreements as cycle insulation (see the press release). SanDisk logged Datacenter revenue up 645% YoY to $1.47B, and Western Digital cleared 50% non-GAAP gross margin for the first time. Those are peak-cycle results, exactly the kind of loftiness Tan expects to normalize.

Micron currently trades at a trailing P/E of 26 and a forward P/E of 7. The consensus analyst target is $1,410.45, with 39 buy or strong-buy ratings against just 1 sell. Sell-side positioning runs directly counter to Tan’s caution.

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Equipment, foundries, and the consumer risk Lam Research is the pick-and-shovel play most levered to Samsung and SK Hynix capex. Q3 FY26 revenue reached $5.84 billion (+23.8% YoY), though shares trade at a trailing P/E of 82 and forward P/E of 55. If capex tapers after 2026, the multiple has room to compress.

Tan named Taiwan Semiconductor (NYSE:TSM) among quality survivors she remains constructive on. TSMC reported May revenue of NT$416.98B, up 30.1% YoY, and CEO C.C. Wei is targeting more than 30% full-year revenue growth. Shares are up 57.94% YTD, a fraction of the memory move.

Tan flagged a second risk: consumer demand destruction feeding back into chips. “If you are in consumer or what I’m saying is, I think the demand for AI Services will remain relatively strong. At the end of the day, if the consumer says I’m not going to buy this or that good, I think that will blow through to the other segments of the industries that rely on chips.”

So is it time to sell Micron? Tan did not name Micron on Bloomberg, but her framing fits: “It could be big for some stocks that have gone up double, triple, whatever in the past couple months. We expect 20, 30% correction for a good percentage of the names we cover before they come into areas we think would be worth buying again.” She sees opportunity on the other side of that reset, and Micron’s forward P/E of 7 assumes current earnings power holds. Investors weighing that call should watch Samsung and SK Hynix supply additions, HBM4 pricing, and hyperscaler capex guidance into 2027.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.