Track market-moving stories before they get noisy

Key Takeaways OptimizeRx is set to post Q1 results on May 12, with revenues projected to fall 15.9% year over year.OPRX cites weaker managed services demand and conservative pharma spending as key headwinds.The company expects 2026 growth to be backloaded, with stronger performance in the second half. OptimizeRx Corporation (OPRX - Free Report) will report its first-quarter 2026 results on May 12, after the market close.

The Zacks Consensus Estimate for the bottom line in the to-be-reported quarter is pegged at 1 cent, compared with 8 cents reported in the prior-year quarter. The estimate has deteriorated from 2 cents per share over the past 60 days.

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The consensus estimate for total revenues is pinned at $18.45 million, down 15.9% year over year.

OPRX’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 390.29%.

What Our Model Predicts for OPRX’s Q1Our proven model does not predict an earnings beat for OPRX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

OPRX has an Earnings ESP of -500.00% and a Zacks Rank #3.

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

Factors to Focus on Ahead of OPRX’s Q1 EarningsManagement has flagged a slower start to 2026, caused by macro and industry-specific dynamics. Softness in contracted revenues, linked to a broader market shift away from managed services, is an overhang. Management noted that the first half of 2025 saw $9 million higher managed services revenues, which are not expected to repeat this time around.

Moreover, volatility is increasing as pharmaceutical clients adopt a more conservative spending approach amid Most Favored Nation (“MFN”) pricing dynamics.

Management has lowered the revenue outlook for 2026 to $109-$114 million compared with the $118-$124 million provided at the end of the third quarter of 2025. The year is expected to be backloaded, with first-half revenues at 40% and 60% expected for the second half. As a result, the first-quarter performance is expected to have reflected these headwinds.

Coming to margins, while gross margin was 74.8% in the fourth quarter of 2025, OptimizeRx has guided for moderation in 2026, with gross margins expected in the mid-60% range due to normalization in channel mix. The company reiterated its focus on adjusted EBITDA, guiding $21-$25 million for 2026. This is more than the previously mentioned $19-$22 million. In addition to a fixed cost base and scalable operating model, EBITDA is gaining from cost discipline measures (post the Medicx buyout).

Moreover, OptimizeRx emphasized that the pharma marketing spend headwinds appear temporary. Management noted that the company continues to see strong engagement across its network and is confident that the demand trends will cushion the business. It expects normalization over the coming quarters.

Additionally, the expanding adoption of OPRX’s Dynamic Audience Activation Platform (“DAAP”) bodes well. The DAAP platform offers predictive and secure marketing solutions, which connect patients, HCPs and life sciences across a strong network of clinical and personal platforms.

The company has also been seeing momentum across both established pharmaceutical clients and mid-tier/long-tail life science customers.

On the last earnings call, OptimizeRx addressed AI concerns, positioning it as a tailwind rather than a disruption risk, highlighting that AI is expected to free up marketing budgets, which are usually allocated up to 50% to content creation. These could be reallocated toward marketing execution and audience reach, areas where OptimizeRx shines, as highlighted by management.

OPRX Stock PlungesShares of OptimizeRx have lost 60.8% in the past six months compared with the Zacks Computer Software industry’s decline of 19.1%.

Price Performance
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Peers such as GoodRx Holdings, Inc. (GDRX - Free Report) , Phreesia (PHR - Free Report) and Doximity (DOCS - Free Report) have declined 16%, 57.9% and 51.1%, respectively.

GoodRx Holdings is another digital healthcare company focused on medication savings in the United States and used by nearly 25 million consumers. Doximity is a top-tier U.S. medical network, used by more than 85% of physicians and a majority of NPs and PAs. Phreesia offers an automated platform for healthcare organizations to manage patient intake.

Key Valuation Metric for OPRXOPRX is trading at a forward 12-month price-to-sales ratio of 1.05, a discount compared with the Zacks Computer Software industry’s 7.05 and the Zacks Computer & Technology sector’s 6.78.

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In comparison, DOCS, GDRX and PHR are trading at multiples of 6.81X, 1.12X and 1.1X, respectively.

What to Do With OPRX Stock Before Q1Reduced near-term visibility and management’s expectation of a backloaded year, OPRX appears vulnerable to near-term volatility. On the flip side, strong EBITDA guidance and long-term platform traction provide a strong underlying narrative.

Overall, existing investors could wait for commentary at the upcoming earnings call, while new investors would be better off waiting for a favorable entry point. 

Key Takeaways OptimizeRx launched a DSP integration for direct access to authenticated EHR ad inventory.OPRX aims to expand point-of-care targeting within broader omnichannel ad strategies.OptimizeRx sees momentum in its Dynamic Audience Activation Platform and pharma clients. OptimizeRx Corporation (OPRX - Free Report) has launched a new programmatic connection point between its proprietary electronic health record (EHR) network and demand-side platforms (DSPs), enabling life sciences marketers to access authenticated EHR advertising inventory directly through existing programmatic buying workflows.

The launch marks a significant expansion of OptimizeRx’s capabilities, allowing media buyers to combine the efficiency and scalability of programmatic advertising with precise targeting at the point of care, while enabling healthcare professionals to receive relevant brand messaging directly within their clinical workflow at key decision-making moments. Through the new integration, advertisers can now activate EHR campaigns more quickly, manage campaign reach and frequency independently, and seamlessly include EHR placements within broader omnichannel marketing strategies.

The company stated that the initiative also opens OptimizeRx to the broader programmatic advertising ecosystem, which accounts for nearly 90% of total U.S. digital display advertising spend across industries. By integrating its EHR network with DSPs, OptimizeRx aims to provide marketers with authenticated, bot-free inventory that reaches healthcare professionals directly within their clinical workflow.

Management highlighted that the launch addresses a longstanding challenge for life sciences advertisers, who previously had to choose between managed EHR campaigns offering direct clinical engagement and programmatic buying options that often lacked verified access to real-time healthcare decision-making moments. Management also stated that the new offering expands access to critical healthcare engagement opportunities while helping DSPs strengthen their value proposition in the life sciences sector.

OptimizeRx added that DSP partners will now be able to differentiate themselves by offering premium point-of-care advertising inventory within their native platforms. The company believes the integration can help DSPs capture a larger share of the more than $19 billion pharmaceutical digital advertising market by meeting growing demand for scalable and measurable healthcare-focused advertising solutions.

Additionally, the expanding adoption of OPRX’s Dynamic Audience Activation Platform bodes well. The company has also been seeing momentum across both established pharmaceutical clients and mid-tier/long-tail life science customers.

OptimizeRx is slated to report first-quarter 2026 results on May 12, after market close.

Let’s Look at the Strategies of CompetitorsDoximity, Inc. (DOCS - Free Report) continues to expand beyond its core pharma marketing business into hiring, telehealth and workflow solutions, broadening its monetization opportunities across a large U.S. TAM while deepening engagement with health systems and pharma clients. Growth is being supported by strong adoption of high-margin products like point-of-care and formulary alerts, increasing workflow usage among prescribers and rising cross-sell opportunities. At the same time, the company’s AI-driven offerings, including DocsGPT, are enhancing physician engagement and platform stickiness, with growing adoption across clinicians and enterprise health systems, positioning DOCS to strengthen its long-term competitive advantage and future monetization potential.

Veeva Systems Inc. (VEEV - Free Report) remains well-positioned as a long-term winner in life sciences digitalization, supported by strong execution, deep customer trust and a broad, integrated product portfolio. Vault CRM adoption continues to scale, while growth is increasingly driven by newer R&D solutions like RTSM, Safety and LIMS alongside strong Crossix performance. The company is also investing steadily in innovation, embedding AI across applications to enhance automation and long-term value creation. The company is seeing expanding adoption across multiple applications during large migrations, with customers increasingly adding solutions like Network, OpenData, Service Center and Campaign Manager alongside core deployments.

OPRX Price Performance, Valuation & EstimatesShares of OptimizeRx have lost 29% in the past three months against the Computer Software industry’s growth of 4.2%.

Image Source: Zacks Investment Research

Regarding the forward 12-month price/sales ratio, OPRX is trading at 1.01, lower than the sector’s multiple of 7.02.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for OPRX’s earnings for fiscal 2027 has been revised downward over the past 60 days.

Image Source: Zacks Investment Research

OPRX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

OptimizeRx Corp. (OPRX - Free Report) came out with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +1,300.00%. A quarter ago, it was expected that this company would post earnings of $0.23 per share when it actually produced earnings of $0.51, delivering a surprise of +121.74%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

OptimizeRx, which belongs to the Zacks Computer - Software industry, posted revenues of $19.84 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 7.59%. This compares to year-ago revenues of $21.93 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

OptimizeRx shares have lost about 49.4% since the beginning of the year versus the S&P 500's gain of 8.3%.

What's Next for OptimizeRx?While OptimizeRx has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for OptimizeRx was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.15 on $24.63 million in revenues for the coming quarter and $0.93 on $112.39 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Descartes Systems (DSGX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 3.

This logistics provider is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of +29.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Descartes Systems' revenues are expected to be $191.7 million, up 13.6% from the year-ago quarter.

OptimizeRx NASDAQ: OPRX reported first-quarter fiscal 2026 results that topped consensus expectations, while management lowered its full-year revenue outlook, citing continued caution among life sciences customers and shorter contract commitments tied in part to most-favored-nation pricing dynamics and other macroeconomic pressures.

Chief Executive Officer Steve Silvestro said revenue for the quarter was $19.8 million and adjusted EBITDA was $3.3 million. He characterized the quarter as a “solid start to the year,” but said the healthcare technology operating environment remains in flux.

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“We’re seeing ongoing softness in our contracted revenue base relative to prior year levels,” Silvestro said, pointing to “short to intermediate term disruption” from last year’s most-favored-nation pricing dynamics, along with broader macroeconomic factors. He said those factors have led to “more cautious budget allocations, contract durations, and in some cases, the delaying of campaign timing and scope.”

Despite those headwinds, Silvestro said the company does not believe the pressures will endure, adding that OptimizeRx has made progress with several large manufacturers in restoring spending levels.

Revenue Declines, Profitability Improves Chief Financial and Strategic Officer Edward Stelmakh said first-quarter revenue fell 10% to $19.8 million from $21.9 million in the same period of 2025. He attributed the decline in part to lower-margin managed services revenue, a revenue reduction on a major client account, and more cautious customer budget allocations and shorter program commitments.

Expenses decreased by $4.6 million year over year, which Stelmakh said was primarily due to lower cost of revenue and general and administrative expenses. He said the lower cost of revenue reflected a more favorable product mix, including no direct-to-consumer managed services revenue in the quarter, as well as favorable channel partner mix.

The company’s GAAP net loss narrowed to $0.5 million, or $0.03 per basic and diluted share, compared with a net loss of $2.2 million, or $0.12 per basic and diluted share, in the year-earlier quarter. On a non-GAAP basis, net income rose to $2.7 million, or $0.14 per diluted share, from $1.5 million, or $0.08 per diluted share, a year earlier. Adjusted EBITDA increased to $3.3 million from $1.5 million in the first quarter of 2025.

Operating cash flow was negative $0.5 million, which Stelmakh said was primarily tied to payouts of 2025 bonuses and fourth-quarter 2025 sales commissions during the first quarter. The company ended the quarter with $20.2 million in cash, down from $23.4 million at the end of 2025, and debt of $23.6 million after paying down $2.7 million of principal during the quarter.

Guidance Lowered for Revenue, EBITDA Outlook Maintained OptimizeRx now expects full-year 2026 revenue of $95 million to $100 million. Management maintained its adjusted EBITDA guidance of $21 million to $25 million and continued to expect revenue to be weighted toward the second half of the year at roughly a 40/60 split.

Silvestro said the revised revenue outlook reflects reduced visibility for the full year, even as the company sees growth in certain parts of the business. Stelmakh said the company expects gross margins to normalize in the high-60% range for the full year, citing margin optimization efforts implemented over the last 12 months.

Silvestro also said the company has taken actions to align its cost structure with the current environment, including prioritizing strategic investments, reducing discretionary spending, deploying new agentic technology tools internally and leveraging the scalability of its largely fixed-cost platform. He said those actions are expected to reduce cash operating expenses by approximately $3 million on an annualized basis, including about $1 million of benefit in 2026, excluding severance-related impacts.

DAAP and Subscription Revenue Continue to Grow Management highlighted growth in OptimizeRx’s AI-enabled DAAP solution, which Silvestro said grew 60% in the first quarter. DAAP subscription revenue rose 45%, according to Silvestro, who said the company continues to shift more revenue toward subscription-based models to improve visibility and predictability over time.

Silvestro said one top pharmaceutical client has expanded its use of point-of-prescribe solutions across multiple oncology brands, moving from targeted engagement within specific indications to a broader multi-brand deployment. He said similar momentum is emerging in med tech, where pilot programs are expanding into multimillion-dollar engagements.

Stelmakh said average revenue per top 20 pharmaceutical manufacturer was approximately $2.8 million, with those top 20 companies representing 52% of first-quarter revenue. Net revenue retention remained at 110%, and revenue per full-time employee rose to $801,000 from $710,000 in the first quarter of 2025.

Programmatic Access Seen as Long-Term Growth Opportunity Silvestro said OptimizeRx is enabling demand-side platforms that control more than 80% of digital promotional dollars to connect directly into its proprietary electronic health record network. He described the move as a significant expansion of the company’s platform and go-to-market strategy.

According to Silvestro, the company currently uses less than 10% of available inventory across its network through traditional healthcare provider marketing initiatives. He said programmatic activation could increase utilization over time and potentially become comparable in size to the current healthcare provider business over the long term.

In response to an analyst question, Silvestro said the company expects early revenue from the DSP connections later in the second half of 2026, with more meaningful flow during the 2027 renewal cycle. He declined to provide revenue projections, saying it was too early to quantify the opportunity.

Management Points to One Major Client as Near-Term Pressure During the question-and-answer session, Silvestro said much of the reduced visibility is tied to shorter contract duration and disruption at one larger client. He said contracted revenue remained about 15% to 20% below prior-year levels, similar to what the company had described on its previous earnings call.

Silvestro said customers are continuing to renew, but shorter commitments require more frequent renewals and reduce visibility. He also acknowledged that OptimizeRx “didn’t execute well” in the affected major account, while saying the company has had constructive conversations with that client’s leadership team and has a plan to get the relationship back on track.

When asked whether the disruption could persist into 2027, Silvestro said management views it as contained to 2026. “There’s nothing mechanical wrong in any of these businesses, and certainly in our business,” he said, adding that the company could see buying from the affected clients later in the third quarter or fourth quarter.

Subsequent to the quarter, OptimizeRx refinanced its term loan with Blue Torch Capital through Fifth Third Bank. Stelmakh said the new arrangement includes a fully drawn $25 million term loan and access to a $10 million revolver. The interest rate on the term loan is SOFR plus 2.25%, compared with SOFR plus 8.5% under the prior facility, representing approximately $1.5 million in annual interest expense savings.

Silvestro closed the call by reiterating confidence in the company’s long-term opportunity, citing the shift in life sciences toward digital, data-driven engagement and the company’s focus on DAAP utilization, subscription revenue and sustainable profitable growth.

About OptimizeRx NASDAQ: OPRXOptimizeRx, Inc is a healthcare technology company that operates a digital health network designed to facilitate communication between pharmaceutical manufacturers, payers and healthcare providers. Through its cloud-based platform, OptimizeRx delivers targeted digital interventions—such as patient savings messages, clinical content and product information—directly into electronic health record (EHR) workflows at the point of care. By integrating with leading EHR systems, the company helps life sciences organizations optimize brand engagement, improve patient adherence and support informed prescribing decisions.

The company's core offerings include digital prescription benefit notifications, co-pay assistance alerts and real-time clinical messaging tailored to specific patient populations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways OptimizeRx launched a DSP connection to expand EHR ad access through programmatic workflows.OPRX said DSPs controlling 80% of healthcare ad spending can now access its EHR network.OPRX cuts 2026 revenue guidance to $95M-$100M amid pricing pressure and delayed campaigns. Healthcare marketing is evolving rapidly as pharmaceutical companies look for smarter, more measurable ways to engage both healthcare professionals (HCPs) and patients. In this transformation, OptimizeRx Corporation (OPRX - Free Report) is positioning itself as a major player by expanding its digital advertising capabilities through deeper integration with Demand-Side Platforms (DSPs). This move is likely to broaden the company’s revenue opportunity, strengthen its competitive positioning and improve long-term growth visibility in the healthcare digital engagement market.

It recently launched a new programmatic connection point between its proprietary electronic health record (EHR) network and DSPs, enabling life sciences marketers to access authenticated EHR advertising inventory directly through existing programmatic buying workflows. OptimizeRx is enabling major DSPs, which control more than 80% of digital healthcare ad spending, to access its proprietary EHR network directly. This platform expansion strengthens its go-to-market strategy, allowing media buyers to run scalable point-of-care and point-of-prescribe campaigns within existing programmatic workflows. The move positions OptimizeRx as a healthcare-focused supply-side platform and is expected to drive strong growth through 2027.

OptimizeRx estimates it currently uses less than 10% of its network inventory through traditional HCP marketing. By enabling programmatic activation — the preferred method for pharma media agencies — the company sees significant potential to increase inventory utilization over time. Management believes this channel could grow substantially and eventually match the size of its existing HCP business. Despite ongoing growth, persistent macroeconomic challenges and limited full-year visibility, OPRX lowered its 2026 outlook, now expecting revenue between $95 million and $100 million. This is the second reduction from its initial 2026 guidance of $118-$124 million issued after third-quarter 2025 results.

OPRX continues to face weakness in its contracted revenue base as healthcare industry pricing pressures and broader macroeconomic uncertainty lead to cautious spending, shorter contract durations and delayed campaign activity. However, management emphasized that these issues are not structural threats to the company’s long-term business model. It noted that customer engagement remains healthy in areas less affected by MFN-related disruptions, especially among mid-tier and emerging pharmaceutical clients, suggesting demand for digital healthcare engagement tools remains intact despite temporary market caution.

How Does OPRX Stack Up Against Competitive Pressures?Veeva Systems (VEEV - Free Report) ended fiscal 2026 with record revenue and operating income, surpassing its $3 billion run-rate target and reaffirming plans for CRM to contribute roughly 10% of revenue by 2030. Ongoing innovation, strong customer trust and AI-driven product expansion in R&D and services support growth, while guidance signals confidence despite macro and migration risks. In March, Veeva acquired Ostro, an AI-driven engagement platform that delivers real-time, compliant answers to patients and doctors via brand websites. Using conversational AI and approved content, it provides trusted responses without hallucinations while generating insights to help life sciences companies improve reach and engagement.

Doximity (DOCS - Free Report) remains a top clinician platform, with network scale and subscription revenue supporting durable profitability. Its early integration of generative AI through Doximity GPT has accelerated product stickiness and physician utility. DOCS is scaling AI usage quickly inside its clinician workflow, which can deepen engagement and strengthen differentiation if it converts into durable products. Its client portal and multi-module campaign capabilities have deepened revenue per client, especially among the top 20 pharma customers. Integrated programs that combine content, AI-driven timing and performance data are driving increased spend. However, pharma spending uncertainty, customer concentration, AI investments and legal risks could pressure visibility, margins and sentiment.

OPRX Price Performance, Valuation & EstimatesShares of OptimizeRx have lost 34.5% in the past three months against the Computer Software industry’s growth of 9.7%.

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Valuation-wise, OPRX seems attractive, as suggested by the Value Score of A. Regarding the forward 12-month price/sales ratio, OPRX is trading at 0.88, lower than the industry’s multiple of 7.

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The Zacks Consensus Estimate for OPRX’s earnings for fiscal 2027 has been revised downward over the past 60 days.

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OPRX currently has a Zacks Rank #4 (Sell).

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

Powered by OptimizeRx’s new programmatic infrastructure, collaboration expands access to premium point of care inventory for life sciences marketers May 21, 2026 07:30 ET  | Source: OptimizeRx Corporation

WALTHAM, Mass., May 21, 2026 (GLOBE NEWSWIRE) -- OptimizeRx Corp. (Nasdaq: OPRX), a leading provider of healthcare technology solutions helping life sciences companies reach and engage healthcare providers (HCPs) and patients at the most important decision points, today announced that DeepIntent, the leading healthcare demand-side platform (DSP), will be the first DSP to integrate OptimizeRx’s proprietary electronic health record (EHR) network into its healthcare advertising platform.

By combining OptimizeRx’s authenticated EHR network with DeepIntent’s healthcare-first DSP capabilities, this collaboration gives life sciences marketers an easier way to activate advertising within HCP workflows, using the same programmatic tools they already rely on for digital media buying. This collaboration also reflects the growing demand for privacy-safe advertising solutions tied to real clinical workflows.

“Our integration with DeepIntent makes validated EHR inventory easier to activate within a platform our clients already trust and value,” said Steve Silvestro, Chief Executive Officer at OptimizeRx. “As we expand programmatic access to our authenticated EHR network, our focus is helping more brands deliver measurable point of care engagement.”

Bringing Programmatic Buying into the Clinical Workflow

As healthcare marketers navigate growing signal loss, tighter privacy standards, and other limitations across traditional open-web advertising, demand is growing for more deterministic, measurable ways to reach providers at clinically relevant moments.

Building on DeepIntent’s existing point of care and omnichannel capabilities, the OptimizeRx integration enables life science marketers to:

Access OptimizeRx’s authenticated EHR inventory directly within DeepIntent’s platformExtend omnichannel campaigns into point of care environmentsReach providers closer to clinical decision momentsActivate scalable point of care campaigns with the speed, control, and flexibility of programmatic buying
DeepIntent is widely recognized for its healthcare-focused DSP capabilities, including audience targeting, activation, optimization, and measurement solutions designed specifically for life sciences brands. Adding reach within OptimizeRx’s proprietary EHR network helps marketers better align media activation with provider engagement across the care journey.

“We’re excited to bring OptimizeRx’s industry-leading EHR network to our established client base of pharmaceutical brands, healthcare agencies, and enterprise marketers,” said Lisa Kopp Johnson, Chief Revenue Officer, DeepIntent. “By offering scalable access to providers directly within their clinical workflows, we can help deliver more timely and relevant information that supports informed care decisions and better patient outcomes. This partnership comes as DeepIntent is building the richest marketplace of vital inventory relevant to our clients.”

Expanding Access to Point of Care Media

The DeepIntent collaboration reflects OptimizeRx’s broader strategy to expand programmatic access to its authenticated EHR network through select DSP partnerships. By opening its infrastructure to additional demand-side integrations over time, the company aims to make clinically aligned point of care media more accessible within modern healthcare advertising workflows.

Availability

OptimizeRx’s authenticated EHR network is expected to be available on the DeepIntent platform in Q3 2026. For more information about availability or to inquire about DSP integration opportunities, please contact us at https://www.optimizerx.com/contact-us.

About OptimizeRx

OptimizeRx is a leading healthcare technology company that’s redefining how life sciences brands connect with patients and healthcare providers. Our platform combines innovative, AI-driven tools like the Dynamic Audience Activation Platform (DAAP) and Micro-Neighborhood® Targeting (MNT) to deliver timely, relevant, and hyper-local engagement. By bridging the gap between HCP and DTC strategies, we empower brands to create synchronized marketing solutions that drive faster treatment decisions and improved patient outcomes. 

Our commitment to privacy-safe, patient-centric technology ensures that every interaction is designed to make a meaningful impact, delivering life-changing therapies to the right patients at the right time. Headquartered in Waltham, Massachusetts, OptimizeRx partners with some of the world’s leading pharmaceutical and life sciences companies to transform the healthcare landscape and create a healthier future for all. 

For more information, follow the Company on LinkedIn or X, or visit www.optimizerx.com.

About DeepIntent

DeepIntent is the leading healthcare demand-side platform (DSP), purpose-built to help marketers plan, activate, and optimize data-driven campaigns with speed and precision. Trusted by the world’s top healthcare brands and their agencies, DeepIntent uniquely unites media, identity, and real-world clinical data to power privacy-safe, omnichannel marketing across every screen. Backed by patented technology and proven outcomes, DeepIntent’s platform delivers measurable audience quality and script lift at scale. Learn more at www.deepintent.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "will", "can", "activate", “access”, “expanding", "incorporate", "connecting" or other similar words and expressions are intended to identify these forward-looking statements. All statements in this press release that reflect the Company's expectations, assumptions, projections, beliefs or opinions about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements relating to the availability of OptimizeRx’s EHR inventory on the DeepIntent DSP, the growing demand for privacy-safe advertising solutions tied to real clinical workflows, the success of pharmaceutical brands to deliver measurable point of care management, the ability of healthcare marketers to activate point of care campaigns at scale, expansion of programmatic access to the Company’s EHR network, and the accessibility of clinically aligned point of care media within healthcare advertising workflows. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon the Company’s current expectations and involve assumptions regarding the Company's business, the economy, and other future conditions that may never materialize or may prove to be incorrect. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties including, but not limited to the effect of government regulation, seasonal trends, dependence on a concentrated group of customers, cybersecurity incidents that could disrupt operations, the ability to keep pace with growing and evolving technology, the ability to maintain contracts with eRx platforms and EHR networks, competition, and other factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and in other filings the Company has made and may make with the SEC in the future. One should not place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. The Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as may be required by law. 

OptimizeRx Contact
Jennifer Dinkel, VP Marketing 
[email protected]

OptimizeRx Investor Relations Contact
Douglas Farrell 
LifeSci Advisors, LLC 
[email protected]

OptimizeRx Press Inquiries
Matter Communications
[email protected] 

DeepIntent Press Inquiries
[email protected]

OptimizeRx Partnership Inquiries
Louis Trivento, SVP Strategic Partnerships 
[email protected] 

June 01, 2026 07:30 ET  | Source: OptimizeRx Corporation

WALTHAM, Mass., June 01, 2026 (GLOBE NEWSWIRE) -- OptimizeRx Corp. (the “Company”) (Nasdaq: OPRX), a leading provider of healthcare solutions helping life sciences companies reach and engage healthcare professionals (HCPs) and patients, today announced that management will participate in the following upcoming investor conferences:

Stifel 2026 Boston Cross Sector 1x1 Conference, Boston, June 2 – 3, 202646th Annual William Blair Growth Stock Conference, Chicago, June 2 – 4, 2026 Stifel 2026 Boston Cross Sector 1x1 ConferenceDate:  Tuesday, June 2, 2026 Format: 1x1 Meetings Location: InterContinental Boston   William Blair & Company’s 46th Annual Growth Stock ConferenceDate:  Wednesday, June 3, 2026 Format: 1x1 Meetings and Corporate PresentationLocation: Loews Hotel Chicago Presentation Time: 8-8:30 am CDT To request a meeting or for more details about the conferences please reach out to your institutional contact.

About OptimizeRx

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It’s a good day to be an American quantum computing company—well, as long as you’re willing to give up some equity. 

Nine major firms are splitting $2 billion in grants from the Trump administration, the Wall Street Journal reports. In return, the government will take varying equity stakes in each of the companies.

IBM will receive half the award, putting it toward a new IBM company called Anderon. IBM will match the grant with another $1 billion in cash for the Albany, New York-based standalone company. 

It’s an investment that IBM predicts will pay off in spades.

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“Anderon will operate as a state-of-the-art 300-millimeter quantum wafer foundry,” IBM stated in an announcement. “It will help the nation solidify its leadership at the center of a thriving new quantum industry that is estimated to generate up to $850 billion in economic value by 2040 and spur American economic growth while also bolstering national security.” 

Alongside IBM, GlobalFoundries is set to receive $375 million from the grant, while companies such as D-Wave Quantum, Inc., Infleqtion Inc., and Rigetti Computing Inc. should get $100 million each. 

Diraq, a private startup, is expected to receive $38 million. 

Explore Topicsmarketsquantum computingstocks

© Canva: golubovy from Getty Images and Bigc Studio

Quantum computing stocks are flying again, lifted by a wave of policy enthusiasm after reports that the Trump administration is taking stakes in select quantum names. Quantum Computing (NASDAQ:QUBT) has joined the parade, jumping 19.35% on May 21 and another 15.64% intraday on May 22 to $13.20. The problem: QUBT was not one of the companies receiving an investment, and the fundamentals make the move difficult to defend.

Riding Coattails It Did Not Earn Rigetti Computing (NASDAQ:RGTI) was a named beneficiary of the federal push and is up 48% on the week with another 20% session today. IonQ (NYSE:IONQ | IONQ Price Prediction), the sector revenue leader, is up 46.71% over the past month and remains a plausible future recipient of similar support. QUBT, by contrast, was not on the list and is unlikely to be added.

Reddit captured the mood with a top post noting, “The Trump administration just announced it is buying in quantum stocks. Bullish activity picked up 2 days prior.” That reflects sector momentum rather than a QUBT-specific thesis.

The Numbers Do Not Support the Stock QUBT carries a market capitalization near $2.99 billion against Q1 2026 revenue of just $3.691 million, which itself missed estimates by 24.77%. The price-to-sales ratio sits at 497. Gross profit was negative $721,000, meaning cost of revenue exceeded revenue. Operating loss came in at $20.55 million, with contract backlog of only $16 million.

The headline revenue growth of 5,950.8% year over year is misleading. Nearly all of it traces to the $110 million Luminar Semiconductor acquisition closed in February and the smaller $5 million NuCrypt deal in March. The reported $0.02 EPS loss was cushioned by $13.5 million in interest income and a $3.2 million non-cash derivative gain.

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

A Different Risk Profile From Its Peers CEO Yuping Huang framed the quarter as progress toward “accessible, scalable, and affordable quantum machines and photonic solutions.” Compare that to IonQ CEO Niccolo de Masi describing “the biggest quarter in our company’s history” on $64.67 million in revenue and raised guidance of $260M to $270M for the year.

QUBT also carries baggage its peers do not: a history of securities fraud allegations tied to claims about technology capabilities, contracts, and revenue sources, plus a long-running reputation as a serial promoter. CFO Christopher Roberts disposed of 78,262 shares in early March at around $7.85, well below current prices.

Analyst targets average $17.83, but that consensus was set against a different fundamental backdrop. The sector rally is real. QUBT’s participation in it rests on association rather than fundamental results.

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

The quantum computing race is heating up, but choosing a winner involves navigating significant financial losses. Will you favor Rigetti Computing (RGTI +0.69%) or the smaller Quantum Computing (QUBT 0.32%) today?

Rigetti builds quantum devices using superconducting technology while Quantum Computing focuses on photonics as its approach. Both companies are early-stage players in a field that could redefine computing power. This comparison evaluates their financials and business models to see which is better positioned for your portfolio.

The case for Rigetti ComputingRigetti Computing builds superconducting quantum processors and offers access through its own cloud platform. It serves national laboratories and research centers within the tech stocks landscape, with a heavy reliance on the U.S. government. Sales to government entities comprised roughly 90.2% of total revenue in its 2025 fiscal year, which adds a layer of risk to the business.

In its 2025 fiscal year, revenue reached $7.1 million, representing a decrease of nearly 34.3% from the prior year. The company reported a net loss of $216.2 million for the period. The net margin reached approximately -3,050.4%, indicating that losses were significantly larger than the total revenue generated.

As of its December 2025 balance sheet, the debt-to-equity ratio is zero. This indicates that the company has no total debt relative to its shareholder equity. The current ratio, which measures the ability to cover short-term liabilities with current assets, is very high at nearly 37.4x. Free cash flow, which is cash from operations minus capital expenditures, was negative $77.2 million.

The case for Quantum ComputingQuantum Computing develops integrated photonics and quantum optics products for high-performance computing. The company says its technologies serve diverse markets, and it has operations in Arizona, California, and Massachusetts. It operates a specialized foundry for integrated photonics to support its machine development.

In its 2025 fiscal year, revenue reached roughly $682,000, indicating an 82.8% increase compared to the previous fiscal year. Despite this growth, the company reported a net loss of $18.7 million. The net margin was approximately -2,738.1%, which highlights the fact that the company is currently spending much more on research than it earns.

As of its December 2025 balance sheet, the debt-to-equity ratio is zero. The current ratio is roughly 102.4x, which suggests a high level of liquid assets relative to upcoming bills. Free cash flow was approximately negative $37 million, and investors should monitor how quickly the company uses its cash reserves.

Risk profile comparisonRigetti Computing faces significant revenue concentration, as most of its business comes from U.S. government contracts. This creates high exposure to budget cuts or changes in federal fiscal policy. The company also faces intense competition from massive tech firms such as Alphabet and IBM., which also use superconducting technology.

Quantum Computing relies heavily on chip manufacturers in East Asia, which exposes it to geopolitical instability and trade restrictions. The company has limited experience in large-scale manufacturing, making the transition from research to commercial production difficult. It also competes for talent and market share against established giants like IBM.

Valuation comparisonBoth companies lack a Forward P/E due to negative earnings estimates, and they carry a high P/S ratio.

MetricRigetti ComputingQuantum ComputingSector BenchmarkForward P/En/an/a40.4xP/S ratio848x530xSector benchmark uses the SPDR XLK sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Having studied and invested in the quantum computing sector for a few years, my choice between investing in Rigetti Computing or Quantum Computing Inc., which refers to itself as QCi, is Rigetti. That said, quantum computer technology is still in its early days, and the long-term winner will be the one with the approach that captures widespread commercial adoption. At this stage, both companies offer viable solutions.

My preference for Rigetti over QCi involves several factors. Its revenue is larger, which suggests its technology is capturing more customers. While 2025 sales were down year over year, that appears to be changing in 2026. Its first-quarter revenue totaled $4.4 million, up from 2025’s $1.5 million. It was also awarded a contract with the U.S. government worth up to $100 million in May. Moreover, superconducting quantum tech is more widely adopted as a promising methodology, which is why IBM and Google use it.

QCi shows some traction in gaining customers. Its Q1 sales were $3.7 million compared to just $39,000 in 2025. However, it was not among the companies that received the government award in May.

While neither stock is particularly cheap from a valuation perspective, investing in Rigetti is about its likelihood for long-term success. Thanks to its higher revenue and quantum computing approach, which is more widely-adopted in the industry, it looks like the better investment compared to QCi.

Listen to the audio version of this article (generated by AI).

Editor’s Note: Chegg and Fiverr have both lost nearly 100% of their value since their 2021 highs. Teleperformance — once a $25 billion company — has been cut to pieces.

None of them saw it coming.

Jonathan Rose spent months studying the wreckage — and found four repeating signals the market missed every time. And those same signals are now stacking up in 12 names that still look fine today…

He and Marc Chaikin broke it all down at their Convergence event earlier this week.

You can catch the replay here — and read on for more.

I did some research recently that I can’t stop thinking about.

I went back and studied the companies that AI has already destroyed: 

Chegg Inc. (CHGG) Fiverr International Ltd. (FVRR) Teleperformance SE (TLPFY)  I looked at what they all had in common — not after the AI trend has destroyed them, but before. When the stock was still holding up and nobody was really worried yet.

I found four specific tells. Four characteristics that showed up, in some combination, in every single company before the fall.

Once I had the framework, I started running it forward and applied it to companies that by most measures look fine today. I found 12 names with multiple tells stacking up right now.

Some of them will upset you. You might own a few of them. Someone you respect probably recommended them.

But here’s the important point.

The same four signals that show me where smart money is quietly leaving also show me where it’s quietly arriving. 

Institutional capital doesn’t sit in cash. When it rotates out of one place, it shows up somewhere else. It is ebb and flow, tidal gravity. It is ecological balance.

And right now, the somewhere else that smart money is flowing is getting very interesting.

In today’s piece, let’s take a walk through these three things: 

The four tells – the warning signs I found in every AI casualty before the market caught on – and the 12 stocks those signals are flashing on right now.

Where the big money rotation is going right now, with some proof from our own track record to back it up. 

A stock that sits directly in the path of that rotation. It’s one of the names where both a big trend and the smart money activity are pointing in the same direction at the same time.

Let’s get into it.

The Four Warning Signs Before AI Breaks a Stock I want to be clear: I didn’t start this research by looking for specific companies. I started by asking what the pattern was. Then I let the pattern find the names.

Here’s what I found.

Tell #1: Coordinated Insider Selling Not one executive trimming a position for tax reasons. Multiple senior people selling at the same time, across different titles, in size. When the people who know the business best are quietly getting out together, that’s not a coincidence.

Tell #2: Senior Talent Leaves for AI Companies Top engineers. Product leads. Salespeople who know where the customers are going. When they start moving to OpenAI, Anthropic, or the hyperscalers, they’re not leaving for the money alone. They’re leaving because they can see the trajectory from the inside.

Tell #3: Pricing Models Start to Change When a software company suddenly pivots from per-seat to consumption-based pricing, they’ll call it “innovation.” It isn’t. It’s a response to AI undercutting their model. Companies that are genuinely winning don’t restructure their pricing under pressure.

Tell #4: CEOs Start Denying the Threat This one is almost a perfect inverse signal. The earnings call where the CEO says, “AI cannot disrupt our business — our moat is too wide.” Real moats don’t require that kind of reassurance. When you hear it, pay attention to what’s happening underneath the surface.

12 Stocks Flashing Multiple AI Warning Signs The 12 names where I’m seeing multiple tells stack up: 

Salesforce Inc. (CRM) Adobe Inc. (ADBE) Workday Inc. (WDAY) Gartner Inc. (IT) Atlassian Corp. (TEAM) HubSpot Inc. (HUBS) EPAM Systems Inc. (EPAM) DXC Technology Co. (DXC) Palantir Technologies Inc. (PLTR) ServiceNow Inc. (NOW) Cognizant Technology Solutions Corp. (CTSH) CoStar Group Inc. (CSGP) I’m not saying they all collapse tomorrow. I’m saying the smart money is repositioning out of them – and historically, price follows positioning. These are names I’m watching carefully, not holding.

Where Smart Money Is Rotating Next The flip side is more interesting.

Everything that AI is dismantling in software is simultaneously creating demand somewhere else. The infrastructure has to exist before the disruption can happen. The hardware. The computing power. The specialized applications that replace what’s being disrupted.

That’s where the smart money is building right now. And one of the clearest areas of concentration I’m tracking is quantum computing.

Why Quantum Computing Is Getting Attention Again I know what you’re thinking: Isn’t quantum just the next hype cycle?

Fair question. But let me tell you what the data actually shows—not the hype narrative, but the smart money activity.

The stock I want to share with you today is Quantum Computing Inc. (QUBT). 

This is a small-cap company working on quantum hardware, photonics, and cybersecurity applications. It’s speculative. I’ll say that plainly. But there’s a significant difference between speculation with a defined opinion and proof of big money moving in… and speculation on a story alone.

What’s catching my attention in QUBT isn’t the quantum narrative — it’s the activity. Unusual, concentrated positioning building around this ticker at a time when money is rotating hard out of legacy software and into the infrastructure layer underneath it. 

QUBT recently reported a sharp jump in revenue following acquisitions tied to photonics and cybersecurity technologies. And the positioning we’re seeing has the same character as names we’ve caught early before.

Why Past Trades Matter We saw similar activity in Rigetti Computing Inc. (RGTI) before our trade on it ran 234% in five days . In MP Materials Corp. (MP) before a 700%-plus gain on our bullish trade. In Albemarle Corp. (ALB) before a 959% gain on a lithium trade.

None of those came from following a story or making a prediction. They came from watching where serious money was moving — and following it before the broader market figured out why.

That’s the setup in QUBT today.

Which brings me to what Marc Chaikin and I have been working on. 

The Convergence Trigger: When Positioning and Money Flow Agree Marc has spent 60 years in markets. He created the Money Flow indicator — it’s now in Bloomberg terminals and virtually every major trading platform on the planet. For decades he built research tools for the world’s biggest hedge funds, then walked away to give regular investors access to the same analysis. 

Marc can tell you where institutional money is flowing. I can tell you where the highest-conviction positioning is building. We both thought those two things were built to work together.

And so, we’ve spent the last few months putting them together to see what happens.

We backtested the combination against nearly 200 of my real trade recommendations. The results surprised even me. Confirmed setups produced 45% higher average gains than unconfirmed ones. Win rate jumped 17 percentage points. And the filter would have kept us out of two-thirds of losing trades.

We’re calling it the Convergence Trigger. And we just showed it off for the first time ever at a free event earlier this week.

QUBT is one of five stocks where that Convergence Trigger is flashing right now. You’ll get all five when you sign up for the event’s VIP list.

Click here to watch the replay. 

The rotation is already underway. The question is which side of it you’re on.

Quantum Computing Inc.: A Sudden Jump in RevenueQuantum Computing Inc. (QUBT 0.32%) primarily generates revenue by providing specialized software tools and application accelerators for quantum computers, focusing heavily on serving large commercial and government entities through its quantum optics and integrated photonics technology.

While it completed the acquisition of NuCrypt and introduced its new deployment-ready computing architecture, it reported a net income margin of negative 110% for the quarter ended March 31, 2026.

IonQ: Steadily Climbing RevenueIonQ (IONQ 1.75%) primarily develops general-purpose quantum computing systems and generates revenue by selling computational access through major cloud platforms and proprietary networks using ion-based technology.

It commercially launched new Earth monitoring capabilities and secured an advanced defense research contract, and it reported a gross margin of about 24% for the quarter ended March 31, 2026.

Why Revenue Matters for Retail InvestorsRevenue represents the total amount of money a business brings in from its core operations before any expenses are subtracted, serving as a fundamental baseline measure of overall consumer demand and business growth.

Image source: The Motley Fool.

Quarterly Revenue for Quantum Computing and IonQQuarter (Period End)Quantum Computing RevenueIonQ RevenueQ2 2024 (June 2024)$183.0K$11.4 millionQ3 2024 (Sept. 2024)$101.0K$12.4 millionQ4 2024 (Dec. 2024)$62.0K$11.7 millionQ1 2025 (March 2025)$39.0K$7.6 millionQ2 2025 (June 2025)$61.0K$20.7 millionQ3 2025 (Sept. 2025)$384.0K$39.9 millionQ4 2025 (Dec. 2025)$198.0K$61.9 millionQ1 2026 (March 2026)$3.7 million$64.7 millionData source: Company filings. Data as of May 28, 2026.

Foolish TakeExamining the revenue trends between IonQ and Quantum Computing Inc., which refers to itself as QCi, shows a stark contrast, and provides meaningful insights to investors. Not only is IonQ’s sales consistently larger than QCi’s, its revenue growth rate is spectacular.

For example, IonQ reported record revenue of $64.7 million in the first quarter, representing jaw-dropping 755% year-over-year growth. This indicates the company’s ion-based quantum computing technology is capturing customers.

Meanwhile, QCi’s sales trend shows anemic and inconsistent revenue, revealing its photonic technology hasn’t been able to gain traction with customers. That finally seemed to change in Q1 with sales of $3.7 million compared to just $39,000 in the previous year. However, that dramatic boost came from its acquisition of NuCrypt and Luminar Semiconductor.

Given what the revenue numbers between these two companies reveal, IonQ looks like a solid business to invest in for those who want exposure to the quantum computing sector. Its technology is winning customers, as its strong growth rate and consistency in rising revenue over recent quarters indicates.

QCi has not proven its technology can generate meaningful sales, and its Q1 year-over-year increase was due to acquisitions, not customer growth. This trend is concerning, unless the acquired businesses can help to ignite sales.

Shares of Quantum Computing Inc. (QUBT - Free Report) have gained 29.9% over the past four weeks to close the last trading session at $11.96, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $17.83 indicates a potential upside of 49.1%.

The mean estimate comprises six short-term price targets with a standard deviation of $6.4. While the lowest estimate of $10.00 indicates a 16.4% decline from the current price level, the most optimistic analyst expects the stock to surge 125.8% to reach $27.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

However, an impressive consensus price target is not the only factor that indicates a potential upside in QUBT. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why QUBT Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 43.2%, as three estimates have moved higher compared to no negative revision.

Moreover, QUBT currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much QUBT could gain, the direction of price movement it implies does appear to be a good guide.

Quantum Computing shares surge 19.4% year to date as the company boosts revenues, completes two acquisitions and expands DIRAC commercialization despite margin pressures.

Key Takeaways Quantum Computing exited Q1 2026 with about $1.4 billion in cash, cash equivalents and investments. QUBT reported about $1.6 billion in assets and equity, while liabilities totaled $23.4 million. Quantum Computing generated $13.5 million in interest income and reported a $16 million backlog. Quantum Computing Inc. (QUBT - Free Report) or “QCi” exited the first quarter of 2026 with a strong balance sheet, providing the company with financial flexibility to carry out its growth strategy. QCi ended the quarter with cash, cash equivalents and investments of about $1.4 billion, demonstrating that the company maintained a substantial liquidity position despite completing the acquisitions of Luminar Semiconductor (“LSI”) and NuCrypt.

QCi’s financial strength is further reflected in its total assets of about $1.6 billion and stockholders' equity of approximately $1.6 billion. Meanwhile, total liabilities accounted for $23.4 million, much lower than the cash level.

The company generated $13.5 million in interest income during the first quarter, highlighting the earnings potential of its sizable cash reserves. QCi also reported a contract backlog of $16 million, providing visibility into future revenue opportunities and supporting the company's growth outlook.

Overall, QCi's substantial cash reserves, strong equity base and healthy backlog position the company to fund organic growth initiatives, pursue strategic acquisitions and invest in manufacturing scale-up efforts without near-term financing concerns. This financial flexibility is a valuable cushion in an industry where research and development costs remain high.

Peer UpdateRigetti (RGTI - Free Report) exited the first quarter of 2026 with cash, cash equivalents and short-term available-for-sale investments of $418.2 million. The company ended the quarter with no debt on its balance sheet, underscoring a solid solvency position. This means Rigetti has ample liquidity to fund its operations and roadmap execution without near-term financing pressure. 

D-Wave Quantum (QBTS - Free Report) exited first-quarter 2026 with cash and cash equivalents of $338.2 million and marketable investment securities were $250.2 million. Operating cash outflow was $45 million in the first quarter, while investing cash outflow included $250.8 million of cash consideration for the Quantum Circuits acquisition. Even after that step-down, the balance sheet supports continued investment in R&D, sales coverage and system installations. Entering 2026, Leap Cloud utilization remained below 50%, providing ample capacity headroom, and allowing additional annealing systems to be deployed within months at modest cost.

QUBT’s Stock Price PerformanceOver the past year, QCi’s shares have plunged 5.4%, outperforming the industry’s 11.3% decline. 

Image Source: Zacks Investment Research

QUBT’s Expensive ValuationQUBT currently trades at a forward 12-month Price-to-Sales (P/S) of 95.27X compared with the industry median of 4.97X.

Image Source: Zacks Investment Research

QUBT Stock Estimate TrendIn the past 30 days, QCi’s loss per share estimate for 2026 has moved north to 14 cents. 

Image Source: Zacks Investment Research

QUBT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways OpenAI, SpaceX and Anthropic IPO filings may boost investor interest in QUBT and QBTS.QUBT posted $3.7M in Q1 2026 revenues and highlighted photonics foundry capabilities.QBTS cited proposed CHIPS Act funding, strong bookings growth and a new roadmap. The quantum computing industry may not be a direct participant in the upcoming AI IPO wave, but it could still be one of its biggest beneficiaries. Following confidential IPO filings by Anthropic on June 1 and OpenAI on June 8, the stage is set for what could become two of the largest AI listings in history.

Meanwhile, SpaceX is expected to go public this week in a blockbuster offering that could further fuel enthusiasm for frontier technologies. As investors evaluate these potential trillion-dollar-valued listings, attention is increasingly shifting to how they could reshape capital flows across emerging technologies, including quantum computing.

Here, we have picked two pure-play quantum computing stocks, Quantum Computing Inc. (QUBT - Free Report) and D-Wave Quantum (QBTS - Free Report) , with more than 40% short-term price upside potential. These two stocks are well-positioned to capitalize on the increased capital flows and growing investor attention likely to accompany the upcoming AI IPO wave.

AI IPOs Could Unlock Fresh CapitalThe impact on quantum computing is likely to be felt first through capital markets. Successful AI IPOs can strengthen investor appetite for emerging technologies, potentially making it easier for quantum companies to raise equity, attract strategic partners and secure long-term funding. This comes at a time when governments and corporations are already increasing their commitment to the sector. In June, the U.S. government unveiled a more than $2 billion quantum investment initiative, while major technology companies continue to expand spending on advanced computing infrastructure. Meanwhile, major technology companies continue to invest heavily in advanced computing infrastructure, creating a favorable backdrop for emerging computing platforms.

Quantum's Path to Commercialization May ShortenAside from this, the pace of commercialization may also gain traction within the quantum computing niche. Over the past three years, massive investment in AI has fueled spending on data centers, specialized chips and software platforms, creating clear winners across the value chain. Quantum investors are hoping for a similar trajectory. Other than QUBT and QBTS, companies such as IonQ (IONQ - Free Report) and Rigetti Computing (RGTI - Free Report) are pursuing commercial opportunities in optimization, cybersecurity, networking and AI-related applications. At the same time, IBM and Microsoft continue to advance quantum hardware and software development. A strong AI IPO cycle could make it easier for quantum firms to attract strategic partnerships and fund expensive initiatives such as error correction, scalable hardware and quantum networking.

2 Quantum Stocks with 45%+ Price Target to Benefit From This TrendQuantum Computing Inc. or QCi: It appears well-positioned to benefit from any potential increase in investor interest toward frontier technologies following the OpenAI and Anthropic IPOs. QCi is differentiating itself through quantum photonics rather than traditional superconducting architectures, with applications spanning AI, cybersecurity and high-performance computing. QUBT reported first-quarter 2026 revenues of $3.7 million, up from just $39,000 a year earlier. It ended the quarter with approximately $1.4 billion in cash and investments. The company has also been highlighting its photonics foundry capabilities and room-temperature systems, which could become increasingly attractive as capital flows toward next-generation computing infrastructure.

QUBT currently holds a Zacks Rank #2 (Buy). Based on short-term price targets offered by six analysts, the average price target for Quantum Computing represents an increase of 70.62% from the last closing price of $10.45.

Image Source: Zacks Investment Research

D-Wave Quantum: It is among the most direct beneficiaries of the U.S. government’s recently announced $2 billion quantum initiative. In May, D-Wave signed a Letter of Intent for $100 million in proposed CHIPS Act funding, validating its annealing and gate-model quantum technologies. D-Wave also reported a 2,000% year-over-year improvement in first-quarter bookings and recently unveiled a roadmap targeting fault-tolerant quantum systems. Capitalizing on the AI IPO cycle and with federal funds accelerating quantum development, D-Wave's growing commercial traction and government backing could strengthen its position in the race toward large-scale commercialization.

QBTS currently has a Zacks Rank #3 (Hold). Based on short-term price targets offered by 13 analysts, the average price target for D-Wave Quantum represents an increase of 46.54% from the last closing price.

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

Image Source: Zacks Investment Research

Shares in IP Group PLC (LSE:IPO) rose 9% to 53.5p on Tuesday after the company reported net asset value per share climbing to 110.4p, with total NAV reaching £975.1 million.

The recovery was driven largely by Pfizer's acquisition of Metsera, a biotechnology company developing obesity treatments.

The deal brought £128.2 million in discounted future royalty and milestone income onto IP Group's balance sheet, giving it direct financial exposure to Pfizer's obesity drug programme, including a phase III trial of PF'3944, a GLP-1 therapy.

Portfolio companies raised a combined £914 million during the year, up 17%, with notable rounds including $115 million for DNA repair drug developer Artios and $103 million for autonomous vehicle software company Oxa.

Cash proceeds from exits fell to £68.1 million, down from £183.4 million in 2024.

The group completed a £75 million buyback, retiring roughly 9% of its share capital, and is targeting more than £250 million in portfolio exits by end-2027.

Key Takeaways Navitas unveiled 20kW 800V-to-6V and 10kW DC-DC boards for higher-density AI data centers.Navitas' AI infrastructure revenue surged 50% sequentially in Q1 2026 as evaluations advance.NVTS demoed a 250kW GeneSiC solid-state transformer and 2.3kV/3.3kV SiC modules for grid upgrades. Navitas Semiconductor Corporation (NVTS - Free Report) is reshaping its story around power conversion, where artificial intelligence (AI) workloads are forcing new architectures in the data center and beyond. Higher power density, tighter efficiency targets and new distribution approaches are lifting demand for wide-bandgap devices, particularly gallium nitride and silicon carbide.

That backdrop matters because Navitas is pushing designs that span both sides of the power chain, from rack-level conversion to higher-voltage modules positioned for the supporting grid. The opportunity is real, but so are the execution and scaling hurdles.

NVTS Tracks the Move to High-Voltage AI PowerAI data centers are migrating toward higher power density and higher-voltage direct-current architectures. That shift expands wide-bandgap content across both alternating-current to direct-current and direct-current to direct-current conversion, where efficiency gains translate into lower energy loss and reduced cooling needs.

Navitas is positioning its portfolio to capture more of that power chain. The company’s view is that high-voltage distribution and rising power-supply demands should broaden its content opportunity as conversion moves closer to the rack and power-density requirements rise.

Navitas Product Demos Point to Future DesignsTwo recent proof points offer clear “what to watch” signals for the next design cycle. Navitas introduced a 20-kilowatt 800-volt to 6-volt direct-current to direct-current power delivery board using GaNFast technology. The platform is designed to support higher-density data center architectures and is cited with up to 97.5% peak efficiency at a 1 megahertz switching frequency.

Separately, the company unveiled a 10-kilowatt direct-current to direct-current power platform aimed at next-generation AI data centers. Navitas cited up to 98.5% peak efficiency and a 1-megahertz switching frequency, framing it as a path to unprecedented power density for large-scale deployments.

NVTS AI Infrastructure Momentum Is Early but ImprovingThe commercialization path in AI power is still defined by evaluations, qualification programs and system-level validation. Navitas has emphasized progress moving from device-level testing to system and board-level evaluation, along with delivered “final samples” intended to support production ramps and customer validation work.

That language points to an adoption curve that is building, not finished. The encouraging part is that engagement is translating into better mix and sequential growth. Management noted that “AI infrastructure,” which combines data center and grid efforts, grew 50% sequentially from the fourth quarter of 2025 to the first quarter of 2026.

Navitas’ SiC Pitch Expands Beyond the Data CenterThe grid side can become the other half of the AI power narrative. Navitas has linked rising AI-driven electricity demand to upgrades in power grids and energy infrastructure, where higher-voltage silicon carbide devices can enable new distribution concepts and more compact, efficient systems.

A key example is the company’s demonstration of a 250-kilowatt solid-state transformer solution using its GeneSiC technology to enable scalable 800-volt direct-current distribution. Navitas has also positioned its 2.3-kilovolt and 3.3-kilovolt silicon carbide modules for energy infrastructure applications such as battery energy storage systems, utility solar projects and solid-state transformers.

NVTS News Flow That Can Shift SentimentThe near-term catalyst list is tied to both leadership moves and product cadence. Navitas announced two board appointments, adding Davin Lee effective immediately and Gregory M. Fischer effective immediately.

On the operating side, the company named Tonya Stevens as chief financial officer, effective March 30. The same update cycle included new GeneSiC form factors, including a top-side cooled QDPAK and a low-profile TO-247-4L with asymmetrical leads, and a fifth-generation GeneSiC technology platform launch.

Navitas Supply Chain Choices Can Become a ThemeNavitas operates a fabless model, which supports scaling without the burden of building capital-intensive manufacturing facilities. The structure can also sharpen speed of execution by leaning on established foundry partners for wafer fabrication and related steps.

That model comes with dependency risk because external partners ultimately control capacity and production continuity. The company’s manufacturing relationships include Taiwan Semiconductor Manufacturing Company for gallium nitride products and X-Fab for silicon carbide manufacturing, with other partnerships that include GlobalFoundries. This blend can feed a supply-chain “security” narrative around U.S.-based partners, while still leaving Navitas exposed to third-party operational realities.

NVTS: What Could Derail the Trend TradeThe biggest fundamental risk is that Navitas remains deeply unprofitable with limited revenue scale. In the first quarter of 2026, the company generated $8.6 million in revenue and reported a non-GAAP net loss of $13.8 million, underscoring how far this Zacks Rank #4 (Sell) company must go before sustained profitability becomes realistic.

Timing risk is also material. AI and industrial projects can involve long design and qualification cycles, and management has stressed engagements and qualification programs rather than large production wins.

Competition is the final pressure point. Larger power and semiconductor players are investing aggressively, including Infineon Technologies AG, Texas Instruments Incorporated and ON Semiconductor Corporation, which can pressure pricing and slow share capture.

Investors looking for a cleaner near-term earnings backdrop may prefer established equipment names tied to the same AI buildout, such as Applied Materials (AMAT - Free Report) and Lam Research (LRCX - Free Report) , both carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Navitas' 250% YTD surge has it trading at 104.75x forward P/S. AI infrastructure momentum is real, but shares look priced for perfection.

Navitas Semiconductor (NVTS 0.58%) shares rose by a remarkable 61.2% in May, according to data from S&P Global Market Intelligence. The move comes due to a confluence of positive events for the company of the month that helped confirm Navitas as one of the most highly sensitive stocks to the AI infrastructure boom.

Navitas' stock is battleground for AI bulls and bears It's a company that Wall Street analysts don't expect to generate earnings until 2030. The bears argue that the AI spending "bubble" will burst by then, while the bulls argue that AI infrastructure is only in its early innings and point to continually rising expectations as a sign of growing momentum. The bulls won the argument in May.

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Navitas' exposure to the high-power end markets, most notably AI data centers (it's an Nvidia partner in developing power chips for the next generation of high-voltage data centers), and including energy/grid infrastructure and industrial electrification, puts it at the forefront of the debate. That's why some bears tend to take short positions in the stock, hoping to inordinately benefit from an AI stock correction.

What went right for Navitas in May However, when the stock has positive catalysts, short sellers are often forced to close their positions aggressively. And Navitas had plenty of catalysts in May.

The first-quarter earnings, released in early May, saw the company beat estimates for revenue, loss per share, and cash outflows. A slew of Wall Street analysts rushed to upgrade their price targets following the earnings report Wall Street analysts also updated their models, and according to S&P Global Market Intelligence, the Wall Street consensus for revenue is now 12%, 10%, and 20% higher for 2026, 2027, and 2028 Other AI-focused companies, such as Nvidia and power components and systems company Vicor, gave strong outlooks for spending in Navitas' end markets.

Image source: Getty Images.

Where next for Navitas History suggests that an AI bubble will form, and loss-making stocks like Navitas will be badly exposed in the fallout. However, history also suggests that many bears are too early to the bubble-bursting afterparty. History also suggests that even if a bubble bursts, it can leave the industry trending at a baseline growth rate far higher than it was in the early innings of a long-term spending boom.

For now, the bulls are winning the argument, and as long as AI-focused companies are raising growth expectations, that's likely to continue.

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

TORRANCE, Calif., June 03, 2026 (GLOBE NEWSWIRE) -- Navitas Semiconductor (Nasdaq: NVTS), an industry leader in next-generation GaNFast™ gallium nitride (GaN) and GeneSiC™ silicon carbide (SiC) power semiconductors, was honored to participate in NVIDIA's Partner Ceremony held on May 29th, 2026, at the Taipei Nangang Exhibition Center. The event brought together key ecosystem partners supporting the NVIDIA AI Factory MGX™ platform, highlighting industry collaboration to accelerate the development of next-generation AI data centers powered by emerging 800 VDC rack architectures.

Navitas’ 800 V-to-6 V DC-DC power delivery board (PDB) is being shown at NVIDIA's AI Factory MGX™ Ecosystem Showcase at COMPUTEX 2026 in Taipei, June 2nd–June 5th. Powered by Navitas GaNFast technology, the PDB eliminates the need for a traditional 48 V intermediate bus converter (IBC) stage within the compute server trays, maximizing system efficiency, reliability, and valuable real estate.

The PDB features 16 GaNFast FETs rated at 650 V, 11 mOhms, in the latest DFN8×8 dual-cooled package, aiming 97.5% peak efficiency, operating at 1 MHz switching frequency, and enabling a power density of 2100 W/in³. Approximately 20% thinner than a mobile phone, its ultra-low profile allows for extremely close integration with the GPU board, maximizing transient performance and enhancing power distribution efficiency.

“As AI workloads continue to scale and drive unprecedented demand for compute, power delivery has become one of the most critical challenges in enabling next-generation gigawatt AI factories,” said Chris Allexandre, President and CEO of Navitas. “Through our collaboration with NVIDIA within the MGX™ ecosystem, Navitas is delivering GaN and SiC power technologies that enable megawatt-scale AI server racks with higher power density, a smaller system footprint, and improved thermal performance, helping accelerate the transition to more efficient and scalable AI infrastructure.”

Navitas provides a comprehensive portfolio of wide-bandgap (WBG) power technologies that form the foundation of next-generation AI factory infrastructure. Its GeneSiC silicon carbide (SiC) solutions enable efficient power delivery from the grid to the AI compute rack, supporting critical applications such as solid-state transformers (SSTs) with ultra-high-voltage 2300 V and 3300 V SiC power modules, and high-power three-phase power supply units (PSUs), powered by the latest Generation 5 technology 1200 V SiC MOSFETs. Together, these technologies help AI data centers achieve higher efficiency, greater power density, and enhanced system reliability at scale.

Navitas' GaNFast™ technology delivers high-frequency, high-efficiency DC-DC power conversion required to support the rapidly growing power demands of AI GPUs. Leveraging the superior switching performance of GaN, Navitas solutions enable MHz-frequency operation, higher power density, and faster transient response, allowing power to be delivered more efficiently from the rack level directly to the GPU.

Through its comprehensive portfolio of GaN and SiC technologies, Navitas continues to collaborate closely with NVIDIA within the MGX™ ecosystem, helping enable open, modular AI infrastructure architectures and accelerating the industry's transition toward next-generation AI factories.

Two pictures:

Navitas TW Country Manager Stacey Cho with NV executive team.Navitas 800 V-6 V PDB board on MGX Ecosystem display. About Navitas

Navitas Semiconductor (Nasdaq: NVTS) is a next-generation power semiconductor leader in gallium nitride (GaN) and IC integrated devices, and high-voltage silicon carbide (SiC) technology, driving innovation across AI data centers, energy and grid infrastructure, performance computing, and industrial electrification. With more than 30 years of combined expertise in wide bandgap technologies, GaNFast™ power ICs integrate GaN power, drive, control, sensing, and protection, delivering faster power delivery, higher system density, and greater efficiency. GeneSiC™  high-voltage SiC devices leverage patented trench-assisted planar technology to provide industry-leading voltage capability, efficiency, and reliability for medium-voltage grid and infrastructure applications. Navitas has over 300 patents issued or pending and is the world’s first semiconductor company to be CarbonNeutral®-certified.

Navitas Semiconductor, GaNFast, GaNSense, GeneSiC, and the Navitas logo are trademarks or registered trademarks of Navitas Semiconductor Limited and affiliates. All other brands, product names, and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners.

Contact Information
Navitas Semiconductor
Vipin Bothra
[email protected]

Navitas Investor Contacts
Leanne Sievers | Brett Perry
Shelton Group
[email protected]

Cautionary Statement Regarding Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are attempts to predict or indicate future events or trends or similar statements that are not a reflection of historical fact. Forward-looking statements may be identified by the use of words such as “we expect” or “are expected to be,” “estimate,” “plan,” “project,” “forecast,” “intend,” “anticipate,” “believe,” “seek,” or other similar expressions. Forward-looking statements are made based on estimates and forecasts of financial and performance metrics, projections of market opportunity and market share and current indications of customer interest, all of which are based on various assumptions, whether or not identified in this press release. All such statements are based on current expectations of the management of Navitas and are not predictions of actual future performance. Forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions and expectations. Many actual events and circumstances that affect performance are beyond the control of Navitas and, forward-looking statements are subject to a number of uncertainties. Our businesses are subject to certain risks that could materially and adversely affect our respective business, financial condition, results of operations, or the value of our securities. For Navitas, these and other risk factors are discussed in the Risk Factors section of our most recent annual report on Form 10-K, as updated in the Risk Factors section of our most recent quarterly report on Form 10-Q, and in other documents we file with the SEC. If any of these risks, as discussed in more detail in our SEC reports, materialize or if our assumptions underlying forward-looking statements prove to be incorrect, actual results could differ materially from the results implied by these forward-looking statements.

Photos accompanying this announcement are available at 

https://www.globenewswire.com/NewsRoom/AttachmentNg/7be05833-6d8e-4343-a221-1385f46ec7bf

https://www.globenewswire.com/NewsRoom/AttachmentNg/a9760d40-62a8-4f9a-8c19-e28d678e1854

Navitas Semiconductor stock is surging to new heights today. Why are NVTS shares rallying? What’s Driving Navitas Semiconductor’s Collaboration With Nvidia?Navitas said it is collaborating with NVIDIA within the NVIDIA MGX ecosystem to accelerate 800 VDC AI infrastructure, positioning its GaNFast technology around the fast-rising power demands of AI GPUs.

The company highlighted an 800 V-to-6 V power distribution board design that uses 16 GaNFast FETs (650 V, 11 mOhms) and targets 97.5% peak efficiency at 1 MHz switching frequency with a stated power density of 2100 W/in³.

Navitas' 800 VDC pitch is landing as investors broaden "picks-and-shovels" AI infrastructure exposure beyond just Nvidia and hyperscalers.

Critical Technical Levels For NVTS Stock To WatchFrom a trend perspective, NVTS is extended but still firmly in an uptrend: it's trading 34.1% above its 20-day SMA ($22.86) and 187% above its 200-day SMA ($10.68), which tells you buyers have controlled the intermediate and long-term tape. The 20-day SMA is above the 50-day SMA, and the 50-day SMA is above the 200-day SMA (a golden cross that occurred in June 2025), keeping the bigger-picture structure bullish.

For momentum, MACD is the cleaner lens right now because it's flagging a potential cooldown even as price pushes higher: MACD is below its signal line and the histogram is negative, which suggests upside pressure is fading versus the prior upswing unless it can re-accelerate. In plain English, MACD compares faster and slower trend forces—when it's below the signal line, it often means the move is losing steam even if price hasn't broken down yet.

Key Resistance: $34.00 — a nearby round-number area just above the current price and close to the 52-week high zone ($33.82), where breakouts can stall on first test Navitas Semiconductor Stock Price Action On WednesdayNVTS Stock Price Activity: Navitas Semiconductor shares were up 22.12% at $31.58 at the time of publication on Wednesday, according to Benzinga Pro data.

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Key Takeaways NVIDIA shout-outs sent MRVL and NVTS soaring yesterday, up over 250% and 330%, respectively, year to date.Marvell's AI networking business is booming, with fiscal 2027 revenues projected near $11.5 billion.Navitas remains loss-making and trades at 129x forward sales, leaving little room for execution missteps. NVIDIA’s (NVDA - Free Report) endorsement sent shares of Marvell Technology (MRVL - Free Report) and Navitas Semiconductor (NVTS - Free Report) soaring yesterday. Marvell stock surged after NVIDIA CEO Jensen Huang called the company the "next trillion-dollar company" at the Computex conference in Taipei. Meanwhile, Navitas received a major boost after NVIDIA showcased its power-delivery technology as part of the AI Factory MGX Ecosystem.

Investors have rushed into both names, pushing MRVL and NVTS up more than 250% and 330%, respectively, year to date. But after such spectacular gains, do the stocks’ fundamentals justify the hype? And which stock has more going for it now?

Image Source: Zacks Investment Research

Marvell's AI Infrastructure Story Looks CompellingHuang highlighted Marvell's growing importance in artificial intelligence (AI) infrastructure, particularly its networking and connectivity solutions that help power next-generation AI data centers. As AI models become larger and more complex, moving data quickly between thousands of chips has become just as important as computing power itself. Marvell sits at the center of this trend.

The company has been strengthening its position in AI networking, optical interconnects, and custom silicon solutions. Earlier this year, NVIDIA validated Marvell's strategic importance through a $2 billion investment, deepening the relationship between the two companies.

The financial outlook also supports much of the optimism. Marvell recently raised its fiscal 2027 revenue guidance and now expects sales to grow approximately 40% year over year to nearly $11.5 billion. AI demand remains the primary growth driver, with management reporting exceptionally strong AI-related bookings.

One of Marvell's most attractive businesses is its interconnect segment, which the company expects to grow more than 70% in fiscal 2027. As hyperscalers build larger AI clusters, demand for high-speed, low-latency networking solutions is increasing rapidly.

Navitas Is a Higher-Risk AI Infrastructure BetNVIDIA’s showcase of Navitas' 800V-to-6V DC-DC power delivery platform at Computex strengthens the company's credibility within the AI ecosystem.

Navitas is also benefiting from the rapid buildout of AI infrastructure.  The company is undergoing a transformation through its "Navitas 2.0" strategy, shifting away from slower-growing consumer and mobile markets toward AI data centers, grid infrastructure, industrial electrification and high-performance computing.

This strategic pivot has resonated strongly with investors, particularly as power efficiency becomes a critical challenge for AI data centers. Navitas believes the AI data-center market alone could represent a $1.4 billion to $2.5 billion serviceable market opportunity by 2030. Adoption of gallium nitride (GaN) and silicon carbide (SiC) technologies is expected to grow at an impressive pace throughout the decade.

What makes Navitas particularly interesting is its exposure to both GaN and SiC technologies. These advanced power semiconductors are increasingly being used to improve efficiency and reduce energy losses in data centers, electric grids, renewable energy systems and industrial applications.

NVTS vs. MRVL: Scale, Profitability and ValuationBoth Marvell and Navitas are positioned to benefit from the massive wave of AI infrastructure spending. However, there is a significant difference between the two when it comes to scale, profitability and valuation.

Marvell already has an established business generating billions of dollars in annual revenues. MRVL’s data center revenues came in at $1.83 billion in the last reported quarter. It is also profitable and has clear visibility into future growth as hyperscalers continue expanding AI data centers. That said, Marvell's profitability remains sensitive to product mix as newer data-center platforms ramp up.

Navitas, by contrast, is still in the early stages of its growth story. While the company is targeting large opportunities in AI data centers, grid modernization, renewable energy, and industrial electrification, its current revenue base remains too small. For the second quarter of 2026, Navitas expects revenues of just $10 million. NVTS continues to operate at a loss as it invests aggressively in product development and customer acquisition. Management has indicated that quarterly revenues likely need to reach the high-$30 million range before the business can achieve operating profitability or break even.

Valuation further highlights the contrast. Navitas currently trades at roughly 129 times forward 12-month sales, far above Marvell's multiple of around 20. While both stocks are trading at a premium to the industry’s P/S of 10X, Navitas’ insane premium suggests investors are pricing in years of rapid growth and successful execution with no missteps.

Image Source: Zacks Investment Research

Marvell's valuation is also elevated, but it is backed by a much larger revenue base, stronger earnings profile and a more established position within the AI ecosystem. While the stock is not cheap, investors are paying for a business that is already benefiting meaningfully from AI spending rather than one that is still working to fully commercialize its opportunity.

Last WordBetween the two, Marvell clearly has the stronger investment case today. The company already occupies a critical position in the AI infrastructure stack and is generating the revenue growth needed to support its premium valuation. Navitas undoubtedly has exciting long-term potential, but its stock price appears to be running far ahead of the business itself. At current levels, investors are paying for a best-case scenario. Marvell also carries some valuation risk, but unlike Navitas, it has the scale, earnings power and execution track record to justify investor confidence.

While NVTS stock carries a Zacks Rank #4 (Sell), MRVL carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A month has gone by since the last earnings report for Navitas Semiconductor Corporation (NVTS - Free Report) . Shares have added about 84.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Navitas Semiconductor due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Navita Loss Narrows in Q1, Revenues Down Y/YNavitas reported a narrower first-quarter 2026 loss than expected, supported by continued progress in its shift toward higher-value, high-power end markets. The company reported a loss of 4 cents per share, which beat the Zacks Consensus Estimate by 20%. NVTS reported a loss of 6 cents in the year-ago quarter and a loss of 5 cents in the previous quarter.

Revenues were $8.6 million, down 38.7% year over year, but beat the consensus mark by 7.5%. Management said that the high-power markets represented a large majority of sales and surged about 35% year over year, lifting mix and supporting margin expansion.

NVTS Returns to Sequential Growth as Mix ImprovesNavitas posted 18% sequential revenue growth that was attributed to the rebound to higher demand across its targeted high-power markets, including AI data centers and grid and energy infrastructure, as the company continues to reduce reliance on mobile and low-end consumer.

Navitas is positioning its GaN and high-voltage silicon carbide SiC portfolio for AI-driven power needs across data centers and the supporting grid infrastructure. Management highlighted recent customer and technology activity tied to next-generation power delivery, including an 800V-to-6V DC-DC board designed for higher-density AI data center architectures, and a 250-kW solid-state transformer demonstration that leverages SiC devices.

On the earnings call, management also pointed to momentum within “AI infrastructure,” which combines data center and grid efforts. The company said that the category grew 50% sequentially from the fourth quarter of 2025 to the first quarter of 2026, underscoring the pace of engagement as AI-related power requirements rise.

Navitas continues to frame AI data center power as a multi-step architecture transition that expands content opportunity for wide bandgap semiconductors. Management emphasized that higher-power AC-DC power supply units and evolving high-voltage DC distribution are driving interest in both SiC and GaN, with GaN expected to be increasingly important as conversion moves closer to the rack and power density requirements rise.

The company also discussed progress moving from device-level testing to system and board-level evaluation with customers for its newest GaN and SiC products. Management indicated that it has delivered “final samples” intended to support production ramps and is working closely with customers on system optimization and validation.

NVTS Keeps Costs Disciplined While Funding Key ProgramsThe improving mix showed up in profitability metrics. Non-GAAP gross margin expanded 30 basis points (bps) sequentially and 90 bps year over year to 39%, reflecting a greater contribution from higher-value, high-power programs and a smaller contribution from the lower-margin legacy business.

On the expense front, non-GAAP operating expenses were $15 million, essentially flat sequentially. Management said that cost discipline, particularly in selling, general and administrative (down 31.3% year over year to $5.7 million), helped create room to prioritize research and development (up 6.8% year over year to $9.4 million) tied to its high-power roadmap without driving a step-up in the overall operating cost base.

Non-GAAP operating loss was $11.7 million, improving from a loss of $12.1 million in the prior quarter and a loss of $11.8 million in the year-ago quarter.

Navitas’ Balance Sheet Remains a Key SupportNVTS ended the first quarter of 2026 with $221 million in cash and cash equivalents and no outstanding debt, providing the flexibility to support working capital and product roadmaps. The company exited fourth-quarter 2025 with a cash balance of $236.9 million.

Inventory was $14.9 million, up from $13.3 million at 2025-end, which management said reflects measured investment to support anticipated growth. With channel inventories described as healthier following prior streamlining actions, Navitas emphasized disciplined monitoring going forward. The company’s balance sheet strength remains a notable element of its strategy as it pursues expansion in high-power markets tied to AI infrastructure and industrial electrification.

NVTS’ Outlook Calls for Continued Sequential Growth in Q2For the second quarter of 2026, Navitas expects revenues of $10 million, plus or minus $0.5 million, which implies continued sequential growth. Non-GAAP gross margin is projected at 39.25%, plus or minus 75 bps, suggesting continuation of incremental mix-driven expansion.

Non-GAAP operating expenses are expected to remain roughly flat at $14.5 million to $15.5 million. Management said that it may selectively invest to accelerate growth, but it is aiming to keep spending disciplined as it scales the high-power business.

How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.

The consensus estimate has shifted -57.9% due to these changes.

VGM ScoresAt this time, Navitas Semiconductor has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Navitas Semiconductor has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry PlayerNavitas Semiconductor belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Qualcomm (QCOM - Free Report) , has gained 29.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Qualcomm reported revenues of $10.6 billion in the last reported quarter, representing a year-over-year change of -2.2%. EPS of $2.65 for the same period compares with $2.85 a year ago.

Qualcomm is expected to post earnings of $2.27 per share for the current quarter, representing a year-over-year change of -18.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Qualcomm. Also, the stock has a VGM Score of D.

Navitas Semiconductor (NVTS 0.58%) stock got hit with a sharp sell-off in Friday's daily trading. The chip company's share price closed out the day down 18.2% in a session that saw the S&P 500 decline 2.6% and the Nasdaq Composite sink 4.8%.

The broader stock market got hit with a wave of powerful selling action today as investors reacted to fears that the Federal Reserve is on course to hike interest rates. Despite a huge pullback today, Navitas stock is still up 251% across 2026's trading.

Image source: Getty Images.

Navitas sank in response to macroeconomic concerns The Bureau of Labor Statistics (BLS) published its May jobs report this morning, and the market had a staunchly negative reaction to the print. While investors could be forgiven for thinking that today's big market sell-off was caused by weaker-than-expected jobs numbers, employment growth for May actually came in significantly stronger than anticipated. The May jobs report showed that the U.S. economy added 172,000 jobs in May -- breezing past economists' forecast for 80,000 nonfarm payroll additions in the period. Stronger-than-expected payroll growth can be viewed as a positive in some respects, but there's a big catch.

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Growth investors are worried the Federal Reserve will raise rates Even though the BLS's May jobs report suggests that economic activity was more robust than expected last month, the data is spurring fears among investors. Inflation has been accelerating recently, and that has raised concerns that the Federal Reserve will hike interest rates.

If the economy is continuing to add new jobs at a relatively healthy pace, that makes it far more likely that the Fed will prioritize attacking inflation by raising interest rates. Higher rates pose a significant risk to the near-term bull cases for growth-dependent artificial intelligence stocks, and Navitas and other names in the category could continue to face pressures if it becomes clear that the Fed is adopting more hawkish positioning.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.