Track market-moving stories before they get noisy

Jabil (JBL - Free Report) closed the most recent trading day at $371.38, moving -2.33% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.02%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.07%.

Heading into today, shares of the electronics manufacturer had gained 14.94% over the past month, outpacing the Computer and Technology sector's gain of 9.97% and the S&P 500's gain of 5.12%.

The upcoming earnings release of Jabil will be of great interest to investors. On that day, Jabil is projected to report earnings of $3.08 per share, which would represent year-over-year growth of 20.78%. Our most recent consensus estimate is calling for quarterly revenue of $8.53 billion, up 8.95% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.3 per share and a revenue of $34.02 billion, representing changes of +26.15% and +14.15%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Jabil. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Jabil is currently a Zacks Rank #3 (Hold).

Investors should also note Jabil's current valuation metrics, including its Forward P/E ratio of 30.92. This signifies a discount in comparison to the average Forward P/E of 32.15 for its industry.

Investors should also note that JBL has a PEG ratio of 1.81 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Manufacturing Services industry had an average PEG ratio of 0.83 as trading concluded yesterday.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 33, finds itself in the top 14% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Jabil Inc. (NYSE: JBL) today announced it will release its third quarter of fiscal year 2026 financials on Wednesday, June 17, 2026, before the market opens. The company will host a conference call and webcast to review the results. What: Jabil's Third Quarter of Fiscal Year 2026 Conference Call and Webcast When: Wednesday, June 17, 2026 – 8:30 a.m. ET Dial-in: U.S. (877) 407-6184 or International (201) 389-0877 To access the live audio webcast and the acc.

Jabil Inc. (NYSE:JBL) will release earnings for its third quarter before the opening bell on Wednesday, June 17.

Analysts expect the Florida-based manufacturer to report quarterly earnings of $3.10 per share. That’s up from $2.55 per share in the year-ago period. The consensus estimate for Jabil's quarterly revenue is $8.61 billion (it reported $7.83 billion last year), according to Benzinga Pro.

Jabil investors may be eyeing potential dividend gains. As of now, the company has an annual dividend yield of 0.09%, which translates to a quarterly dividend of 8 cents per share (32 cents per year).  

So, how can investors use its dividend yield to pocket a regular $500 per month?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $6,606,750 or around 18,750 shares. For a more modest $100 per month or $1,200 per year, you would need $1,321,350 or around 3,750 shares.

To CalculateDivide the desired annual income ($6,000 or $1,200) by the dividend ($0.32 in this case). So, $6,000 / $0.32 = 18,750 ($500 per month), and $1,200 / $0.32 = 3,750 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: Compute the dividend yield by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

JBL Price ActionShares of Jabil fell 2.8% to close at $352.36 on Wednesday.

Ahead of quarterly earnings, UBS analyst David Vogt, on Tuesday, maintained Jabil with a Neutral and raised the price target from $273 to $380.

Photo via Shutterstock

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onsemi (NASDAQ:ON | ON Price Prediction) has staged a remarkable comeback in the semiconductor sector this year, and our proprietary model says the rally has room to run. After bottoming below $41 last spring, the stock has reclaimed the $100 handle as investors price in a cyclical recovery and AI data center power demand.

Our 24/7 Wall St. Price Target for onsemi The stock trades at $106.02 as of May 19, 2026. Our 24/7 Wall St. price target for onsemi is $133.41, implying 25.84% upside over the next 12 months. We rate shares a buy with 90% confidence.

Metric Value Current Price $106.02 24/7 Wall St. Price Target $133.41 Upside 25.84% Recommendation BUY Confidence Level 90% From $44 to $106 in a Year Shares are up 141.83% over the past year and 95.79% year to date, with a 27.72% one-month surge powering the move. The stock sits roughly 13% below its 52-week high of $119.10, well above the $40.62 low.

Q4 2025 delivered non-GAAP EPS of $0.64 on revenue of $1,530.1M, beating EPS estimates while narrowly missing expectations on the top line. Full-year free cash flow hit a record $1,418.6M, and management authorized a new $6B buyback over three years.

The Case for $148 and Beyond Bulls see onsemi as a leveraged play on vehicle electrification, AI data center power, and industrial automation. The launch of vertical GaN (vGaN) power semiconductors, the MoU with Innoscience for 200mm GaN-on-silicon, and the GlobalFoundries collaboration on 650V GaN position the company at the cutting edge of next-generation power. The EliteSiC M3e design win inside Xiaomi’s EV SUV underscores automotive traction.

The bull scenario points to $148.38 over the next year, a 39.95% total return, if gross margins re-expand toward 42% and Power Solutions returns to growth.

What Could Go Wrong The bear case starts with valuation. The P/E sits at 340, and implied forward P/E is 45. FY2025 net income collapsed 92.31% to $121M, and all three segments declined double digits in Q4. Barclays initiated coverage at equal-weight with a $75 price target, citing automotive and China exposure.

GAAP earnings were distorted by $666.9M in restructuring and impairment charges tied to manufacturing right-sizing. Bulls argue these one-time hits mask underlying cash generation, evidenced by FCF margin expanding to 23.6% of revenue. The bear scenario sees shares fading to $104.35 if cyclical recovery slips.

I’d Buy It Here The 24/7 Wall St. price target of $133.41 reflects a buy with 90% confidence. Record free cash flow funding a $6B buyback while the cycle inflects upward supports the thesis.

I would be a buyer if Q1 2026 lands inside the guided $1.435B to $1.535B revenue range with gross margins above 38%. I would stay sidelined if automotive bookings weaken or China demand rolls over. The risk-reward leans constructive.

Here is where our model projects onsemi could trade, assuming current growth trajectories hold.

Year 24/7 Wall St. Price Target 2026 $133.41 2027 $152.00 2028 $172.50 2029 $189.00 2030 $207.98 These projections assume onsemi continues executing on GaN and SiC leadership. Significant upside or downside could come from AI data center power adoption rates and the depth of any renewed automotive softness.

Key Takeaways NXP is benefiting from demand for software-defined vehicles and advanced networking solutions.NXPI expects 2026 sales and EPS growth of 14.3% and 25.1%, outpacing ON forecasts.ON is gaining traction in EV power solutions, AI data centers and zonal vehicle platforms. As the automotive industry accelerates toward electric vehicles, advanced driver-assistance systems and smarter in-car technologies, semiconductor companies supplying these critical components are gaining increased investor attention.

ON Semiconductor Corporation (ON - Free Report) and NXP Semiconductors N.V. (NXPI - Free Report) are among the key players benefiting from this trend, thanks to their strong exposure to the fast-growing automotive chip market. While ON is capitalizing on rising demand for power and sensing solutions in EVs, NXP continues to strengthen its position in vehicle connectivity, radar and embedded processing. With both stocks offering distinct growth opportunities, investors may now be wondering which automotive chip company presents the better buying opportunity in the current market environment.

The Case for ONON Semiconductor is strengthening position in the automotive chip market by expanding its exposure to electric vehicles and next-generation vehicle architectures. The company is benefiting from rising demand for silicon carbide solutions, which are increasingly being used in EV powertrains to improve charging speed, energy efficiency and driving range.

Management highlighted that ON already has a strong presence in China’s fast-growing EV market, with its silicon carbide technology featured in a significant portion of new EV models showcased at the 2026 Beijing Auto Show. The company is also expanding partnerships with automakers such as Geely and NIO, reinforcing its role in advanced EV platforms.

Another positive for ON is its increasing traction in software-defined vehicles and zonal architecture. The company’s Treo platform is gaining momentum across automotive and industrial applications, helping it secure new design wins with major customers.

During the first quarter, ON began production shipments of its Ethernet solutions for a North American automaker’s next-generation zonal architecture. These products support faster in-vehicle communication and centralized computing systems, both of which are becoming essential for modern connected cars. Management also noted that Treo products carry attractive margin potential, which could support long-term profitability as adoption rises.

ON is also benefiting from improving business fundamentals and expanding opportunities beyond automotive. The company reported strong momentum in AI data centers, with revenues surging sequentially as broader adoption of power infrastructure drove broader adoption across the power infrastructure market.

Management expects AI data center revenues to double this year as ON leverages its broad portfolio of power technologies across hyperscaler and XPU platforms. At the same time, the company continues to improve margins through portfolio optimization, manufacturing efficiency and cost-control initiatives. These factors position ON to generate stronger operating leverage and sustainable earnings growth as demand recovers across its core markets.

The Case for NXPINXP Semiconductors continues to strengthen its automotive leadership through the growing exposure to software-defined vehicles and advanced vehicle networking. The company is benefiting from rising demand for its S32 processing platforms, automotive Ethernet solutions and imaging radar products, all of which are becoming increasingly important as automakers shift toward centralized computing architectures.

Management noted that these next-generation automotive programs are expanding NXPI’s semiconductor content per vehicle while deepening long-term relationships with customers. The company is also seeing strong traction in China, where faster adoption of advanced vehicle architectures is creating additional opportunities for its high-performance automotive processors and connectivity solutions.

Another major strength for NXPI is its growing industrial and edge AI business. The company reported strong momentum in industrial automation, robotics, energy storage and connected edge devices, supported by increasing adoption of its newer processing platforms such as i.MX, RT and MCX. Management believes the rise of physical AI and intelligent edge computing will drive higher demand for processing power, connectivity and security solutions, areas where NXPI already has an established position. The company also highlighted growing customer commitments tied to AI-enabled industrial systems, which should support durable long-term growth across its industrial and IoT portfolio.

NXPI is also emerging as a stronger player in data center infrastructure, an area investors may have previously overlooked. The company expects its data center-related revenues to more than double this year as it gains traction in system cooling, power supply management, networking control and board management applications.

Unlike companies focused directly on GPUs or accelerators, NXP is targeting the control and power management layers of AI data centers, where reliability, security and long product life cycles are critical. Alongside these growth opportunities, the company continues to benefit from margin expansion, disciplined cost management and strong customer adoption of its differentiated semiconductor portfolio, supporting confidence in its long-term growth outlook.

How Does the Zacks Consensus Estimate Compare for ON & NXPI?The Zacks Consensus Estimate for ON’s 2026 sales implies an 8% year-over-year increase. The consensus estimate for earnings per share for 2026 is $3.09, compared with $2.35 reported in 2025. Earnings estimates for the current year have increased in the past 30 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NXPI’s 2026 sales and EPS implies year-over-year growth of 14.3% and 25.1%, respectively. Earnings estimates for 2026 have increased in the past 30 days.

Image Source: Zacks Investment Research

Price Performance & ValuationON stock has surged 134.1% in the past six months compared with the S&P 500’s growth of 10.2%. Conversely, NXPI’s shares have risen 63.4% in the same time frame.

Price Performance
Image Source: Zacks Investment Research

ON is trading at a forward 12-month price-to-sales ratio of 6.75X, above its median of 3.61X over the last year. NXPI’s forward sales multiple sits at 5.48X, up from its median of 4.31X over the same time frame.

P/S (F12M)
Image Source: Zacks Investment Research

End NotesON Semiconductor and NXP Semiconductors are well-positioned to benefit from the growing adoption of electric vehicles, software-defined vehicles and AI-driven infrastructure, making both attractive choices for long-term investors. ON appears stronger in power semiconductors, silicon carbide adoption and EV-related growth, while NXPI holds a broader leadership position in automotive processing, connectivity and industrial edge computing. With the stronger stock momentum, ON currently has greater leverage to the EV transition, but NXPI offers a more diversified business model with improved exposure to industrial AI and data center infrastructure.

Overall, NXPI seems slightly ahead because of its broader portfolio strength, accelerating company-specific growth drivers and stronger earnings outlook, making the stock a more balanced long-term investment option for investors seeking stability along with growth potential. However, growth-focused investors with a higher risk appetite may still find ON attractive due to its stronger momentum in EV power solutions. Both stocks currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It's time to revisit the investment case for ON Semiconductor (ON +0.80%). The stock is up 114% year to date as I write, and many of the factors that made it a top stock to buy for 2026 remain in place today. However, valuations still matter, so is ON Semiconductor still a great stock for long-term investors? I think the answer is yes, and here's why.

The company's silicon carbide (SiC) and gallium nitride (GaN) power and sensing chips make it a leading player in the electrification of the economy. SiC and GaN possess properties that make them ideal for use in high-voltage and high-switching applications.

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Going into 2026, the case for buying the stock was based on the near-term catalyst of the company passing an inflection point in both its automotive (electric vehicles, or EVs) and industrial end markets (such as factory automation). In addition, the company has a small but rapidly growing exposure to data centers (revenue up 30% sequentially in the first quarter), not least through its partnership with Nvidia to create chips for a new high-voltage class of AI data centers.

The chart below shows how the company has now returned to year-over-year growth, with all three of its end markets reporting growth. For reference, data center revenue is reported under "other" revenue.

Data source: ON Semiconductor presentations. Chart by the author.

The long-term growth case for ON Semiconductor The good news is that investors can expect revenue growth based on its exposure to the EV market. For example, CEO Hassane El Khoury disclosed that its "silicon carbide share of new EV models deployed at the 2026 Beijing Auto Show in April is approximately 55%," and he expects the company's "AI data center revenue to double year over year in 2026." AI spending is also supporting growth in the industrial sector's energy storage revenue, and ON Semiconductor has long-term exposure to growth in renewable energy and factory automation.

Valuation matters Revenue growth is extremely important for a business like ON Semiconductor because it has relatively high fixed costs, so when revenue increases, more of it tends to flow through to profits. The key metric to follow is manufacturing utilization (output divided by full-capacity output), which El Khoury said increased to 77% in the first quarter.

Image source: Getty Images.

CFO Thad Trent believes a low 90% utilization represents "fully utilized," and the company will get there with a 25%-30% revenue increase in the coming years. That increased utilization will result in significant margin expansion before the company even needs to invest in expanding capacity.

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

Key Takeaways ON's Q1 2026 gross margin rose to 38.5%, its third straight sequential expansion.ON's AI data center revenues more than doubled YoY and rose 30% sequentially; seen doubling in 2026.ON cites utilization, Fab Right, mix, Treo and EliteSiC as levers toward a 50% margin goal. ON Semiconductor Corporation (ON - Free Report) continued to make progress on profitability in the first quarter of 2026, delivering its third consecutive quarter of sequential gross margin expansion despite a still-recovering demand environment. The company reported a gross margin of 38.5%, up from 38.2% in the fourth quarter of 2025, supported by manufacturing optimization under its Fab Right strategy, higher utilization and a richer product mix tied to AI data centers, automotive electrification and intelligent power.

AI data center revenues were a standout, more than doubling year over year and rising over 30% sequentially, reflecting broader adoption across the power tree with XPU vendors, power supply providers and leading hyperscalers. Management now expects AI data center revenues to double in 2026, strengthening the case for margin-accretive growth.

The company also highlighted several levers that could support its long-term gross margin target of more than 50%. Each point of factory utilization improvement could add 25-30 basis points to gross margin, while Fab Right initiatives and favorable mix could each contribute roughly 200 basis points over time. Treo, ON Semiconductor’s analog mixed-signal platform, is another important driver, given its expected 60-70% gross margin profile.

EliteSiC remains central to the margin story as EV makers shift toward 900V architectures. Expanded collaborations with Geely and NIO reinforce ON Semiconductor’s position in higher-voltage EV systems, where silicon carbide products typically offer stronger profitability. The company’s China automotive revenues grew year over year in the first quarter despite weakness in the broader China passenger vehicle market, underscoring content gains and share opportunities.

Overall, ON’s margin expansion story is gaining credibility. While the 50% gross margin target remains a multi-year objective rather than a near-term milestone, the latest results suggest that the company’s transformation strategy is moving in the right direction.

Key Competitors to Watch in the Power Semiconductor MarketTwo important competitors to monitor in the broader analog, industrial and power semiconductor landscape are Texas Instruments Incorporated (TXN - Free Report) and STMicroelectronics N.V. (STM - Free Report) .

Texas Instruments remains one of the strongest competitors in analog and embedded processing chips, particularly across industrial automation, automotive electronics and data center power management. TXN has spent the past several years aggressively expanding internal manufacturing capacity and 300-millimeter wafer production, positioning itself to support customers during the current semiconductor recovery cycle. Management recently highlighted growing market-share gains driven by improved supply availability, competitive pricing and stable lead times.

STMicroelectronics, meanwhile, continues strengthening its position in automotive power semiconductors, silicon carbide solutions and AI infrastructure applications. The company reported strong momentum in electric vehicle power systems, industrial automation and AI-related data center programs, including collaborations tied to NVIDIA and Amazon Web Services. STMicroelectronics is also expanding its silicon carbide and optical interconnect capabilities to support next-generation AI compute infrastructure and higher-voltage EV architectures.

ON’s Price Performance, Valuation & EstimatesShares of ON Semiconductor surged 190.9% over the past year compared with the industry’s 111.2% rise.

ON’s One-Year Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, ON trades at a forward price-to-earnings (P/E) multiple of 34.67, down from the industry’s average of 35.82.

ON’s P/E Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ON’s 2026 earnings per share has increased in the past 30 days. The company is likely to report strong earnings, with projections indicating a 31.5% year-over-year rise in 2026.

Image Source: Zacks Investment Research

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

Micron Technology (MU), Sandisk (SNDK), Dell Technologies (DELL), Arm Holdings (ARM) and On Semiconductor (ON) received price-target increases from Mizuho Secur

Top Stock for AI’s Next Megatrend: Infineon The development of AI data centers has pushed the limits of the industry in several categories. For instance, capex keeps increasing, as infrastructure expands. Energy might be one of the sectors with the fastest growth. Normally it grows at a steady pace, nonetheless to keep up with the enormous energy needs, the sector is expected to double by 2030. In fact, experts estimate that the demand will reach 950 TWh. Under conservative estimates that is around 120 GW of additional electricity capacity. Energy demand is expected to grow progressively. Companies that provide energy efficient solutions for the buildout are likely to benefit from the expected growth.  Although generation is a big part of the energy value chain; however, distribution, transformation, and efficient power conversion are where companies such as Infineon Technologies ($IFNNY) play a critical role. 

Infineon Infineon is a German semiconductor company founded in 1999 as a spinoff from Siemens. The company is the global leader in power semiconductors and has a market share of around 17%, above companies such as OnSemi (ON) and STMicro (STM). Its products are used across a wide range of applications, the most relevant being the automotive sector. Infineon is a leader across major power semiconductor technologies, including silicon (Si), silicon carbide (SiC), and gallium nitride (GaN) power devices. 

The automotive EV sector has faced significant challenges in recent years, due to the slowdown in EV demand and broader weakness in the automotive market. The automotive segment represents 50% of the company’s revenue, while the energy sector accounts for 29%. In fact, data center-related revenue accounts for approximately 8% of total revenue.

Infineon has a broad product portfolio, which includes several discrete power MOSFET families such as IGBTs, MOSFETs, SiC and GaN power transistors. Infineon’s products are vertically integrated for power solutions, not limited to transistor-level solutions. The company also provides microcontrollers used to manage these power solutions, embedded security solutions and low-level software for its products.

The company is a tier 2 provider to companies across the automotive, industrial and energy sectors. Essentially, Infineon supplies the semiconductors for the development of several products. For instance, in the automotive space, the company has components for EV inverter solutions. Infineon’s expertise in automotive has expanded to the energy sector. To illustrate, in the energy sector its applications extend across several categories such as Solid State Transformers (SST), Power Regulators, Uninterruptible Power Supply (UPS-ESS), Solid State Circuit Breaker (SSCB), battery management systems (BMS) and several other categories in server rack power distribution technologies. In fact, companies such as Delta Electronics and SolarEdge have collaborated closely with Infineon to codevelop power solutions for data centers.  

The company is vertically integrated, holds research and development centers and semiconductor fabs. Moreover, the deep integration between research and manufacturing enables the company to design products that are at least 15% more efficient than competitors, not only because of design and fabrication techniques, but also due to its advanced packaging technologies. In addition, the company claims to have the largest and most efficient SiC power semiconductor fab in the world.

Power electronics and the cumulative effect on efficiency Power generation is arguably the most discussed topic in the energy sector. Mostly the discussion centers around what is the most efficient way of producing energy. In fact, efficiency starts to have a snowball effect as the required energy use increases. For instance, a 40%-efficient energy source, such as combustion engine based electricity generation, with a required output of 100 MW for a data center, would require an installed capacity of 250 MW just to balance the loss in efficiency. Power losses increase the need for thermal dissipation because most of the lost 150 MW is ultimately released as heat. Cooling systems required to dissipate this heat also consume additional electricity.

Data centers and the new dc voltage standard In the last generation of Nvidia GPUs, NVIDIA’s Rubin architecture, 800 volts DC is the norm, and the whole so-called AI factory ecosystem will be based on such power needs. NVIDIA adopted the standard to reduce power losses in data centers. By moving from the previous 48 V DC architecture to 800 V DC, the required current can be reduced by a factor of 16. This change can lower resistive losses by nearly 280 times. Power efficiency is becoming increasingly crucial as rack-level energy consumption continues to grow. A CPU based server rack can be between 20 and 80 kW. Vera Rubin-based GPU servers can reach up to 600 kW per rack. In this kind of rack, each percentage point of efficiency represents roughly 6 kW. Energy losses directly translate to higher operating costs. 

The voltage transformations and power electronics Power electronics refers to electronic systems used for the control and conversion of electric power. Today, power electronics use active components such as SiC MOSFET or GaN MOSFET transistors. Compared to traditional approaches with passive electronic components, power electronics tend to be more efficient and have reduced weight. Power electronics are used to convert between AC and DC, referred to as rectifiers, inverters, or converters.

As power electronics offer control and higher efficiency in the electric power conversion, several traditional products such as transformers are being replaced by solid state transformers. architectures based on power electronics.

Efficiency is critical Moreover, power generation is only one part of the puzzle. To meet growing demand, companies must also distribute, transform, and deliver electricity into server racks. Each step must be power efficient, as the losses cascade. Even at 99% of efficiency, 10 sequential conversion stages end up with an overall efficiency of 90.4%. At envisioned GW-scale data centers, this translates to 100 MW losses per GW.  In fact, the current overall efficiency of a data center is 85%, while with Infineon solutions it could potentially increase toward 90%. 

Infineon’s role in the power distribution future Infineon envisions deploying its products across the entire AI power delivery chain. The company targets applications from 800 V rack-level distribution to point-of-load regulation at the silicon level. Its solutions aim to enable efficient multi-stage power conversion throughout the system. Product families like Infineon’s Silicon carbide CoolSiC™ MOSFETs claim efficiencies between 97-99.5%, while its GaN-based CoolGaN™ can reach similar efficiencies. Both technologies are essential as discrete components for several power solutions.

Broad category of solutions by Infineon in the AI data center era

Infineon envisions a future in which the server rack reaches up to 1 MW. This will require several power solutions, including voltage step-down, cooling solutions, battery storage solutions, super capacitor solutions, and voltage bus distribution. 

Evolution of the server rack in the AI era

Micro grids Finally, Infineon envisions its products playing a key role in upcoming microgrid power architectures. Microgrids are becoming an important enabler for integrating multiple energy sources, including renewables, nuclear, and traditional combustion-based generation. These systems could efficiently distribute  power across the future AI server racks while providing a scalable and future-proof solution for the evolving data center energy demands. Such demands may include different voltage levels, active power quality management, bidirectional power flow, and highly efficient multi-stage power conversion.

Microgrid architecture  in the AI data center era

Earnings and current valuation of the company In the last fiscal year, Infineon reported revenue of €14.6B, representing a 2% YoY decline. Approximately 50% of total revenue came from the automotive segment, while around 16% was related to data centers and power infrastructure applications. Notably, power infrastructure revenue increased from 6% to 8% of total company revenue during the last quarter.

Management expects significant long-term growth opportunities across energy generation, storage, and power conversion infrastructure. In particular, the company views SiC power semiconductors as one of its most attractive growth areas, driven by increasing power density and efficiency requirements in renewable energy systems.

In solar infrastructure applications, Infineon estimates SiC content between €1,500 and €5,000 per MW. The company expects annual demand growth of approximately 17%. For battery energy storage systems, Infineon estimates SiC content between €2,500 and €3,500 per MW. 

Additionally, management highlighted that energy storage systems could represent BOM opportunities exceeding €2,500 per MW, further reinforcing the long-term growth potential of power semiconductors in next-generation energy infrastructure. Moreover, growing demand from AI server infrastructure is expected to turn Infineon’s Power & Sensor Systems division into one of the company’s fastest-growing business segments. The division, which primarily serves AI server and power delivery applications, is expected to grow from approximately €1.5B in revenue in 2026 to around €2.5B in 2027, representing roughly 67% YoY growth.

Future expectations Looking further ahead, management estimates that the opportunity in AI power infrastructure could reach up to €12B by the end of the decade. Equivalent to nearly 85% of the company’s current annual revenue. Infineon expects its semiconductor and power management content per AI server rack to increase substantially. The company estimates growth from roughly €15K today to more than €100K per rack by the end of the decade.
Rapidly growing rack-level power consumption mainly drives this increase. Next-generation AI racks could approach 1 MW of power demand.

BOM content in a server rack  in the AI data center era

Customers Infineon is a diversified company and counts several industry leaders among its customers. Bloom Energy (BE), Delta Electronics (2308.TW) and SolarEdge (SEDG) are some of the relevant customers in the energy generation and distribution steps, key to the AI data center buildout. 

Author’s opinion In conclusion, Infineon Technologies is a key enabler of next-generation power and intelligent infrastructure systems. Its collaborations across the power electronics ecosystem reinforce the company’s relevance in the evolving energy and AI infrastructure landscape.

Although the automotive sector, particularly electric vehicles, has faced a weaker environment in recent years, it has also pushed Infineon to adapt. As a result, the company has further strengthened and expanded its power electronics capabilities. The demanding requirements of automotive applications have helped the company develop highly reliable and efficient solutions. These solutions include power semiconductors, battery management, and energy conversion systems. The company uses this technical expertise to expand its market share in the energy industry.

Management has highlighted strong long-term demand for power generation, distribution, and conversion infrastructure for AI data centers. The company expects this demand to grow significantly by the end of the decade. Infineon believes the data center power architecture opportunity could equal around 85% of its current annual revenue.

Beyond power semiconductors, Infineon has a strong presence in sensors, microcontrollers, and embedded software. All with strategic value for the emerging physical AI era. Finally, the company already develops encryption chips for the post-quantum computing era.

Another important strength is its diversification. Unlike many semiconductor companies with heavy customer concentration, no single customer accounts for more than 10% of Infineon’s total revenue. 

Infineon is one of the leading suppliers of power electronics. These technologies are becoming increasingly important as AI infrastructure requires much higher energy consumption. That is why I consider it a top stock in the next megatrend.

ON Semiconductor (NASDAQ:ON | ON Price Prediction) has staged one of the most aggressive recoveries in the chip sector this year, and our proprietary model still sees room to run.

After a vicious 2025 cyclical downturn, shares have rallied 137.56% year to date and now trade just shy of the 52-week high. Our 24/7 Wall St. price target for onsemi is $141.68, implying additional upside even after the run.

24/7 Wall St. Price Target Summary Metric Value Current Price $128.64 24/7 Wall St. Price Target $141.68 Upside 10.14% Recommendation BUY Confidence Level 90% The 24/7 Wall St. price target points to $141.68 over the next 12 months, a constructive view that runs against the Street’s $105.45 consensus. Confidence is high, but with a beta near 1.94, position sizing matters.

A Vertical Rally Out of a Cyclical Trough ON is up 202.4% over the past year and 24.86% in the past month alone, with shares climbing from $113.11 on May 15 to current levels.

The rally followed Q4 2025 results that beat on the bottom line: revenue of $1.53 billion against $1.54 billion expected, with non-GAAP EPS of $0.64 versus the $0.62 estimate.

CEO Hassane El-Khoury flagged “increasing signs of stabilization in our key markets”, and FY2025 free cash flow hit a record $1.42 billion, fully returned via $1.377 billion in buybacks alongside a fresh $6 billion three-year repurchase authorization.

The Case for $148 and Beyond The bull thesis rests on operating leverage as the cycle turns. Q4 free cash flow grew 11.6% even on an 11.2% revenue decline, evidence that El-Khoury’s restructuring is sticking.

Growth catalysts are stacking: vertical GaN power semiconductors, the MoU with Innoscience for 200mm GaN-on-silicon, a GlobalFoundries collaboration on 650V GaN, and EliteSiC M3e wins including the Xiaomi EV SUV.

AI data center power is the wild card, and r/stocks chatter framing onsemi as “My most confident ai chip play” hints at retail momentum building. Our bull case puts shares at $148.11.

What Could Go Wrong The bear case is real. Barclays initiated coverage at equal-weight with a $75 price target, citing automotive and China exposure. FY GAAP gross margin compressed to 33.1% from 45.4%, and the company absorbed $666.9 million in restructuring and impairment charges last year.

Insider activity adds caution: CFO Thad Trent sold 90,000 shares across April at $80 to $100. Bulls would counter that those charges reflect heavy investment in SiC and GaN capacity that should drive future operating leverage, and that the new $6 billion buyback partially offsets the dilution risk. Our bear case lands at $111.21.

ON Semiconductor Price Prediction 2026-2030 Our 24/7 Wall St. price target of $141.68 carries a buy recommendation with 90% confidence. The factor tipping the scale is the combination of record FCF generation through a downturn and a credible 2026 stabilization signal from management.

The bull case strengthens if the Q1 2026 earnings report confirms revenue holding within the $1.435 billion to $1.535 billion guide. The thesis weakens if non-GAAP gross margin slips below the 37.5% guidance floor, since that would signal pricing pressure is outrunning the cost reset.

Year 24/7 Wall St. Price Target 2026 $141.68 2027 $152.00 2028 $163.00 2029 $173.00 2030 $183.45 These projections assume onsemi continues executing on its SiC, GaN, and intelligent sensing roadmap while the auto and industrial cycles normalize. Significant upside or downside could result from AI data center power demand inflection or a deeper China automotive correction.

SCOTTSDALE, Ariz., June 09, 2026 (GLOBE NEWSWIRE) -- Summary

onsemi today announced the launch of GaNEXUS™, a new gallium nitride (GaN) power portfolio engineered to deliver higher efficiency, greater power density, and improved thermal performance across AI data centers, industrial automation, robotics, and energy infrastructure applications. The initial portfolio includes GaNEXUS FETs sampling across voltage ranges from 40V to 650V, including 650V GaNEXUS Smart, GaN FETs with integrated protection features, to simplify system integration and improve reliability.

News Highlights

onsemi’s GaNEXUS power portfolio delivers faster switching speeds, lower switching losses, higher power density, and improved thermal performance for next-generation power architecturesGaNEXUS FETs from 40V to 650V and 650V GaNEXUS Smart, GaN FETs with integrated protection features, are sampling nowWhen combined with onsemi’s Treo Platform for integrated sensing, control, protection, and power management, GaNEXUS enables smarter, more reliable, and more robust system-level power solutionsTogether, onsemi’s silicon, EliteSiC, and GaNEXUS technologies give customers the flexibility to optimize efficiency, thermal performance, system size, and total cost across the full power-delivery chain What’s New: onsemi announced today the launch of its GaNEXUS™ gallium nitride (GaN) power portfolio, with the initial sampling of GaNEXUS FETs across voltage ranges from 40V to 650V as well as its GaNEXUS Smart 650V GaN FETs. The portfolio is ideally suited for power-hungry applications including AI data center power delivery, 48V systems, robotics and industrial automation, and energy infrastructure.

The addition of GaNEXUS to onsemi’s intelligent power portfolio expands the company’s ability to deliver optimized power solutions across a range of applications, voltage domains, and performance requirements. As part of onsemi’s broader power portfolio alongside silicon and EliteSiC technologies, GaNEXUS gives customers greater flexibility to optimize performance, efficiency, thermal behavior, and total system cost across the full power-delivery architecture.

Why it Matters: As AI infrastructure, electrification, industrial automation, and energy systems continue to increase demand for more efficient and compact power architectures, designers are facing growing challenges around energy consumption, thermal management, and system size. AI data centers alone are expected to consume up to 9% of U.S. electricity generation by 20301, with power and cooling costs accounting for up to 40% of the total data center operating expenses2.

GaNEXUS addresses these challenges by enabling faster switching speeds, lower switching losses, higher power density, and improved thermal performance compared to conventional silicon-based solutions. These advantages allow customers to reduce the size of magnetics and cooling systems while improving overall system efficiency and responsiveness and lowering system cost in applications ranging from AI data center power delivery and electric vehicle charging to robotics and industrial power systems.

“Our GaNEXUS portfolio is enabling new architectures for power system design,” said Antoine Jalabert, vice president of the GaN division at onsemi. “As customers push for more power in less space, it gives engineers greater flexibility to overcome constraints that have limited conventional power architectures.”

How it Works: GaNEXUS solutions are engineered to improve how modern power systems convert and manage energy. When paired with onsemi’s Treo Platform for integrated sensing, control, protection, and power-management, GaNEXUS can deliver complete system-level power solutions that are smarter, more reliable, and more robust. This system-level approach helps customers simplify design complexity, accelerate development and qualification, reduce thermal and cooling requirements, and optimize performance across the full power delivery chain.

In low- and medium-voltage systems, including AI server 48V intermediate bus converter (IBC) and battery backup units (BBU) and motor drives, GaNEXUS enables:

~30–60% smaller magnetics~1.5x–2x higher power density~0.5–2% efficiency improvement, depending on topologyReduced switching losses, improved thermal performance and control stability In higher-voltage applications such as AI power shelves, high-voltage DC-DC conversion, PFC, and LLC power stages, GaNEXUS enables:

Up to ~60% reduction in magnetics size in high-frequency AC-DC and resonant stages~1.5x–2x higher power density in PFC, LLC, and HV DC-DC architectures~0.5–1% efficiency gains with meaningful thermal and operating-cost impact at scaleLower losses reduce thermal stress in compact, high-power systemsGaNEXUS Smart reduces system risk and simplifies power stage design for faster qualification and higher confidence GaNEXUS devices feature thermally enhanced packages with industry-standard footprints for dual sourcing, like TOLL Bottom Cooling, TOLT Top Cooling, and dual cooling 3.3mm x 3.3mm and 5mm x 6mm packages.

Additional Information

onsemi GaNEXUSonsemi Treo Platform ____________________
1 Source Powering Intelligence: Analyzing Artificial Intelligence and Data Center Energy Consumption
2 Source: Data Center Operating Costs: Complete Guide (2026)

About onsemi
onsemi (Nasdaq: ON) delivers intelligent power and sensing technologies that enable electrification, energy efficiency, safety, and automation across automotive, industrial, and AI data center end-markets. With a highly differentiated and innovative product portfolio, onsemi helps customers solve complex challenges to achieve higher efficiency, improved performance, and lower system cost, while supporting a safer, cleaner, and more energy‑efficient world. The company is part of the S&P 500® index. Learn more at www.onsemi.com.

onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the Company references its website in this news release, information on the website is not to be incorporated herein.

Contact:
onsemi
Michael Mullaney
[email protected]
+1 838-289-7314

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5ca786af-b7b1-4cef-bf7e-dd21fa649e54

onsemi Introduces GaNEXUS Gallium Nitride Power Portfolio onsemi today announced the launch of GaNEXUS™, a new gallium nitride (GaN) power portfolio engineere...

ON Semiconductor has seen an inflection point, with Q1 2026 marking its first YoY revenue growth quarter since 2023 Q2. AI data center segment revenue more than doubled YoY, positioning ON Semiconductor as a critical enabler in the AI revolution. Q2 guidance signals accelerating growth and profitability, with revenue and EPS midpoints above consensus.

2 Software Stocks Turning AI Fears Into Fundamental GainsDatadog NASDAQ: DDOG co-founder and CEO Olivier said the company has seen business acceleration over the past several quarters, with growth coming from a broad set of customers rather than a single account or segment.

Speaking at a Bernstein event with Senior Analyst Peter Weed, Olivier said the company is seeing increased demand from “AI natives,” including newer companies built around artificial intelligence and businesses developing key AI infrastructure. But he said the more notable trend is that acceleration is also occurring outside that group, including among older cloud-native companies and larger enterprises.

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Datadog Soars, Dynatrace Slumps: Gap Widens in AI Agent Stocks“What’s the most exciting to us is that it is not a specific customer, a specific set of customers, a specific side of the business,” Olivier said. “We’ve really seen acceleration across the board.”

AI Growth Adds to Existing Observability Demand Olivier said AI companies are consuming large amounts of infrastructure and running more applications, which is driving demand for Datadog’s traditional observability tools. He also pointed to rising use of Datadog’s AI-specific products, including traffic to MCP services and traces flowing into its LLM Observability product.

The AI Fear Around Datadog Stock May Have Been Completely WrongAsked where Datadog’s long-term value comes from, Olivier said the company helps customers manage the complexity created as they ship more applications. He argued that as developers become more productive — from higher-level programming languages to cloud, SaaS and now coding agents — the resulting systems become harder to understand and operate.

“That increase of productivity creates a dramatic increase in complexity,” he said. “The problem we solve for our customers is we actually understand that complexity, we manage it for them.”

Olivier pushed back on the idea that general-purpose AI models could replace observability software. He said Datadog handles much larger volumes of data than are typically placed into large language models and must operate in near real time. He compared the distinction to asking an AI chatbot for driving advice versus relying on a real-time self-driving system to operate a car.

CEO Says Build-It-Yourself Approach Often Lacks Economic Logic Olivier also addressed the argument that companies could use AI coding tools or open-source software to build their own observability systems. He said Datadog provides leverage because a dollar spent on Datadog typically sits alongside much larger spending on cloud infrastructure and engineering teams.

He said customers often spend $10 to $20 with their cloud provider and $20 to $100 on engineering for every dollar spent with Datadog. In that context, he said, using Datadog to optimize infrastructure, engineering and AI model spending “doesn’t make economic sense” to replicate internally.

He cited hyperscalers adopting Datadog products for development and training of AI models as an example, saying these are companies that culturally tend to build internally and avoid commercial software.

Product-Led Model Remains Central Olivier described Datadog’s business as built around bottom-up product adoption, with tools typically first adopted by the people doing the technical work. He said the company emphasizes a unified platform, replatforms acquired products and relies largely on usage-based pricing.

That model, he said, gives Datadog clearer signals about what customers find valuable and allows the company to expand its product footprint efficiently. Olivier said Datadog spends about 30% of revenue on research and development, supported by what he described as a more efficient go-to-market model than typical enterprise software businesses.

While Datadog has an enterprise sales organization, Olivier said its motion remains bottom-up inside large companies. He said enterprise customers often start with relatively small annualized deals in the mid-five-figure to low-six-figure range and grow over time.

Security, AI Agents and Automation Seen as Expansion Areas Olivier said security is a natural extension of Datadog’s platform because development, operations and security teams increasingly need to work together. He said many of the signals needed to secure an application are already present in observability data, including production behavior, code changes, testing environments, user behavior and developer activity.

On AI, Olivier distinguished between “Datadog for AI,” which observes AI components used by customers, and “AI for Datadog,” which applies AI to automate more of the application lifecycle.

He highlighted Datadog’s Bits AI SRE agent and Bits AI security agent, which he said can run investigations and reduce the time spent responding to outages or security alerts. In one example, he said an AI agent could identify an incident, suggest the people who know how to fix it and propose a fix within minutes, reducing the need for long incident-response calls.

Olivier also discussed Toto, a time-series model trained largely on observability data. He said the model generalizes to other time-series domains and is part of Datadog’s broader effort to put specialized intelligence closer to the data plane for real-time automation.

Bring Your Own Cloud Addresses Data and Cost Needs Datadog is also expanding deployment flexibility through Bring Your Own Cloud options, Olivier said. The approach allows customers to store data on infrastructure they manage while Datadog continues to run and update the application.

He said the demand is driven by several factors, including cost at large scale, data residency laws, existing data center capacity and cloud provider commitments. Olivier said Datadog historically avoided on-premises deployments because they could slow innovation, but said the Bring Your Own Cloud model allows the company to retain product iteration while giving customers more control over data infrastructure.

Looking ahead, Olivier said AI is increasing the amount of software, infrastructure and complexity that companies must operate. He said that dynamic supports both newer AI-specific opportunities and Datadog’s core observability business, where he said the company has less than 14% share of a market that continues to grow.

About Datadog NASDAQ: DDOGDatadog NASDAQ: DDOG is a cloud-based monitoring and observability platform that helps organizations monitor, troubleshoot and secure their applications and infrastructure at scale. Its software-as-a-service offering collects and analyzes metrics, traces and logs from servers, containers, cloud services and applications to provide real-time visibility into system performance and health. Datadog's platform is widely used by engineering, operations and security teams to reduce downtime, accelerate incident response and improve application reliability.

The company's product suite includes infrastructure monitoring, application performance monitoring (APM), log management, real user monitoring (RUM), synthetic monitoring and network performance monitoring, along with security-focused products such as security monitoring and cloud SIEM.

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].

Should You Invest $1,000 in Datadog Right Now?Before you consider Datadog, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Datadog wasn't on the list.

While Datadog currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

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Click the link to see MarketBeat's list of seven stocks and why their long-term outlooks are very promising.

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On May 29, 2026, Datadog Inc (DDOG) shares rose 10.0% to a current price of $247.69, showcasing a significant increase in momentum. The stock has seen a remarka

May was a big month for the technology sector. The Technology Select Sector SPDR Fund NYSEARCA: XLK, a commonly used proxy for the industry’s performance, delivered a total return of 19.8%. This was barely below the 20% gain the fund put up in April, as investors strongly bid up many stocks within the AI trade.

Three stocks did particularly well and received high praise from the analyst community—topping MarketBeat’s list of the most upgraded stocks in May. Unsurprisingly, all three are in the tech sector, including two prominent software companies.

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Datadog Blasts off, Receiving Over 30 Upgrades in MayObservability software provider Datadog NASDAQ: DDOG ties for first as MarketBeat’s most upgraded stock in May, receiving a whopping 32 upgrades from analysts. Datadog’s software is becoming increasingly important as agentic AI starts to move into the mainstream. It helps companies monitor their AI agents and address issues with their performance.

Datadog Today

$230.82 -3.43 (-1.46%)

As of 12:21 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$98.01▼

$278.70P/E Ratio609.52

Price Target$231.64

Datadog shares absolutely exploded after the company’s Q1 2026 earnings report, shooting up by 31% in a single session.

This came as the firm handily beat expectations on sales and adjusted earnings per share (EPS) and substantially increased its guidance for the full year. It now expects to generate full-year sales of between $4.32 billion at the midpoint, which represents growth of around 25% year-over-year (YOY).

Datadog also received FedRAMP High certification, which allows it to move forward with U.S. federal government customers that handle highly sensitive workloads. Overall, Datadog shares rose 87.1% in May, the stock’s best monthly return ever.

Despite receiving a plethora of upgrades, the MarketBeat consensus price target of approximately $220 implies around 20% downside in shares. The average of targets updated after its report is only slightly higher at $225. However, the vast majority of analysts continue to have a Buy rating on the stock. Datadog’s 41 Buy ratings stand in stark contrast to its just two Sell ratings and one Hold rating.

Marvell Continues Strong Performance From April, Ups GuidanceMarvell Technology NASDAQ: MRVL was also a huge winner in May, and tied with Datadog for the top spot, receiving 32 analyst upgrades. Overall, shares gained by 24% in May after coming off of a 67% gain in April. There wasn’t a specific catalyst in May that allowed for Marvell’s strong performance. Rather, the stock really benefited from strength in the AI hardware trade, being a supplier of custom chips and networking solutions.

Marvell Technology Today

MRVL

Marvell Technology

$283.90 +3.19 (+1.14%)

As of 12:21 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$61.44▼

$324.20Dividend Yield0.08%

P/E Ratio96.49

Price Target$224.68

Marvell’s Q1 fiscal 2027 (FY2027) earnings report in late May saw the firm post a slight beat on sales and in-line adjusted earnings per share (EPS). Note that the firm’s fiscal reporting period is several quarters ahead of the calendar period. However, the company raised its guidance substantially, by $500 million for FY2027 and by $1.5 billion in FY2028. It expects sales of $11.5 billion and $16.5 billion in these years, respectively.

Notably, shares rose by just 3% after this report. Investors seemed to have anticipated the strong guidance Marvell would post, bidding up shares earlier in the month.

The MarketBeat consensus price target on Marvell sits near $212, implying a notable downside in shares. The average of targets updated after the company’s report is substantially higher at $236—better, but still implying downside, a reflection of the recent surge in shares following an announcement from NVIDIA NASDAQ: NVDA CEO Jensen Huang that thrust Marvell into the spotlight. In terms of ratings, Marvell has 31 Buys, six Holds, and zero Sells.

Snowflake Ends May With a 36% Surge, Gains Over 80% in the MonthLast up is Snowflake NYSE: SNOW—another key player in the AI software space. The stock received 28 upgrades in May, shooting up 87% during the month, good for its largest monthly gain ever. The company’s AI Data Cloud provides a unified platform for analyzing data and building AI applications. Like Datadog, there was a clear catalyst for Snowflake’s hallmark performance: its Q1 FY2027 earnings report. (Snowflake’s fiscal reporting period is several quarters ahead of the calendar year period.)

Snowflake Today

$237.21 -3.18 (-1.32%)

As of 12:21 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$118.30▼

$284.99Price Target$291.77

The stock gained almost 37% after the report as Snowflake posted beats on sales and adjusted EPS. The company also raised its full-year guidance, projecting sales of $5.84 billion, compared to its prior estimate of $5.66 billion. Furthermore, Snowflake allocated $6 billion to Amazon.com NASDAQ: AMZN to access more of its Graviton chips. This signals confidence in the firm’s outlook as Snowflake supports its growth through this significant spending commitment.

The MarketBeat consensus price target on Snowflake currently sits at $284, implying moderate upside from recent trading levels. The average of targets updated after the company’s report sits near $291, implying healthy upside. Still, most analysts maintain a positive rating on the stock, with Snowflake having 36 Buys compared to just five Holds and one Sell.

AI Software Stocks Make Their Voice Heard in MayNotably, large gains in the AI trade were not limited to the hardware stocks that have traditionally dominated. Several software players saw very strong performance as well, rebounding after many names in this industry were crushed earlier in the year. This signals that AI-related success is broadening as AI application building becomes a larger focus in the market.

Should You Invest $1,000 in Snowflake Right Now?Before you consider Snowflake, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Snowflake wasn't on the list.

While Snowflake currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

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The AI wave will soon hit public markets with Anthropic and OpenAI set to go public later this year. However, you don't have to wait to invest. This report shows seven AI stocks that you can buy today while the big model providers get ready to go public.

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Software stocks are staging a strong comeback after a bruising selloff earlier this year, as investors increasingly bet that artificial intelligence will become a growth catalyst for the industry rather than a disruptive threat.

The turnaround has been swift.

The iShares Expanded Tech-Software Sector ETF (IGV), a widely followed benchmark for software shares, has surged nearly 42% from its April low.

The ETF, which had fallen as much as 30% earlier in 2026 amid concerns that AI could replace many traditional software functions, is now down less than 2% for the year.

The recovery reflects a shift in investor sentiment as market participants reassess how software companies may benefit from AI adoption instead of being displaced by it.

“While AI is causing massive disruption, it is remapping the industry rather than destroying it,” Daniel Morgan, portfolio manager at Synovus Trust in Atlanta, told Reuters.

The renewed enthusiasm is not lifting all software stocks equally.

Investors are increasingly gravitating toward companies that are successfully integrating AI into their offerings and adapting pricing structures to reflect actual usage rather than charging customers based primarily on employee headcount.

The distinction has become increasingly important as businesses deploy AI tools that can perform tasks traditionally handled by large workforces, potentially reducing the effectiveness of conventional subscription-based pricing models.

Analysts and portfolio managers cited by Reuters highlighted cloud security providers Datadog and Palo Alto Networks, chip design software company Synopsys, and technology giants Oracle and Microsoft as some of their preferred ways to play the theme.

The software rally gained momentum after a months-long selloff that many investors considered excessive.

As enthusiasm for AI-powered chipmakers and broader technology stocks intensified, bargain hunters began returning to software names that had suffered some of the steepest declines.

The recovery accelerated last week after strong earnings reports and upbeat forecasts from Snowflake and MongoDB improved confidence in the sector's outlook.

Another boost came on Monday when Nvidia CEO Jensen Huang delivered a bullish assessment of software demand during his keynote address at the Computex technology conference in Taipei.

Addressing concerns that AI agents could diminish the need for software applications, Huang argued the opposite.

“The world is no longer limited by the number of people, therefore those agents are going to use more tools than ever,” he said.

“This is actually an incredible time to be a software company.”

His comments helped fuel another wave of buying across software stocks, reinforcing the view that AI could create new markets and revenue streams rather than simply replacing existing products.

Among the standout performers is Datadog DDOG, which has benefited from rising demand for security and monitoring tools used by AI-powered data centers.

Jonathan Cofsky, portfolio manager at Janus Henderson, said the company’s usage-based pricing model positions it well for the AI era.

Datadog shares have nearly doubled this year and recently hit a record high after the company raised its annual outlook.

Palo Alto Networks has also emerged as a favorite among investors. Even though the stock fell on Tuesday, it hit record high on Monday and is up more than 57% for the year.

Doug Rogers, portfolio manager at Eaton Vance, believes the growing complexity of cybersecurity threats will support stronger pricing power for the company.

“As the number of potential threats and vulnerabilities and the awareness of those vulnerabilities increases, so should the price Palo Alto is able to charge for defending against them,” Rogers told Reuters.

Oracle has also regained favor after recovering from sharp earlier losses.

Marc Dizard, chief investment officer at Huntington National Bank, said Oracle’s large customer base gives the company flexibility as it refines its AI monetization strategy.

Meanwhile, investors continue to view Microsoft as one of the safest long-term AI bets.

Despite its subscription-heavy revenue model, analysts point to growth opportunities from its Copilot AI assistant and Azure cloud platform.

“Given its size and breadth, it's more than a survivor. It'll always be in the game,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder.

Datadog has evolved into a unified platform for cloud infrastructure, security, and application monitoring, driving robust growth and profitability. Q1 2026 revenue reached $761.6M (up 25% YoY), with non-GAAP EPS of $0.46 and strong customer expansion across multiple product lines. AI workload monitoring and deepening customer adoption position DDOG for continued high growth, with a five-year annual growth estimate of 19% and a target price of $520.80.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Datadog (DDOG - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Datadog currently has an average brokerage recommendation (ABR) of 1.24, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 45 brokerage firms. An ABR of 1.24 approximates between Strong Buy and Buy.

Of the 45 recommendations that derive the current ABR, 39 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 86.7% and 6.7% of all recommendations.

Brokerage Recommendation Trends for DDOG

Check price target & stock forecast for Datadog here>>>

The ABR suggests buying Datadog, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Should You Invest in DDOG?In terms of earnings estimate revisions for Datadog, the Zacks Consensus Estimate for the current year has increased 93.2% over the past month to $2.39.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Datadog. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Datadog may serve as a useful guide for investors.

Datadog (DDOG) rose 0.62% intraday after multiple analysts raised their price targets following the company's annual Dash user conference, where Datadog unveile

Datadog (DDOG - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, DDOG broke through the 20-day moving average, which suggests a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

DDOG has rallied 15.5% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests DDOG could be on the verge of another move higher.

The bullish case solidifies once investors consider DDOG's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 13 higher, while the consensus estimate has increased too.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on DDOG for more gains in the near future.

A month has gone by since the last earnings report for Cognizant (CTSH - Free Report) . Shares have added about 1.8% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Cognizant due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Cognizant Technology Solutions Corporation before we dive into how investors and analysts have reacted as of late.

Cognizant Q1 Earnings Beat Estimates, Revenues Up Y/YCognizant Technology Solutions posted adjusted earnings of $1.40 per share for the first quarter of 2026, up 13.8% year over year and surpassing the Zacks Consensus Estimate by 5.01%.

Revenues of $5.41 billion increased 5.8% from the year-ago quarter but missed the consensus mark by 0.02%. Trailing 12-month bookings of $29.6 billion rose 11% year over year and supported a book-to-bill of roughly 1.4x, reflecting 21% bookings growth in the quarter.

CTSH’s Segmental DetailsFinancial Services revenues of $1.64 billion rose 12.4% year over year (up 10.2% at constant currency). Management tied the strength to demand across banking and insurance clients as large-deal ramps continued to support growth.

Health Sciences revenues were $1.58 billion, up 0.5% year over year (down 0.9% at constant currency), while Products and Resources revenues climbed 3.4% year over year to $1.32 billion (up 1.1% at constant currency), and Communications, Media and Technology rose 8.1% year over year to $869 million (up 6.5% at constant currency).

Cognizant’s Regional Trends Highlight Europe's StrengthNorth America remained the core revenue engine, generating $4.05 billion (74.9% of total), up 5.1% year over year and 4.9% in constant currency. The company attributed growth to large-deal ramp activity and demand for AI and analytics services tied to readiness and innovation budgets.

Europe stood out on a reported basis. Total Europe revenue increased 9.4% year over year to $1.04 billion, though constant-currency growth was modest at 0.6%. Within Europe, the United Kingdom delivered $509 million in revenues, up 11.4% year over year (up 4.6% at constant currency), while Continental Europe revenues of $530 million rose 7.5% (down 3.1% at constant currency). Rest of World revenue was $322 million, up 3.5% year over year (up 1.5% at constant currency).

CTSH’s Operating DetailsSelling, general & administrative expenses, as a percentage of revenues, contracted 100 basis points (bps) year over year to 14.6%.

Total headcount at the end of the first quarter was 357,600 compared with 354,600 in the prior quarter.

Voluntary attrition - Tech Services on a trailing 12-month basis was 12.3% in the first quarter of 2026 compared with 12.3% and 12% for the periods ended Dec. 31, 2025, and March 31, 2026, respectively.

On an adjusted basis, operating margin was 15.6%, reflecting a 10-bps year-over-year improvement despite changes in delivery mix.

CTSH’s Balance SheetCTSH had cash and short-term investments of $1.51 billion as of March 31, 2026, compared with $1.91 billion as of Dec. 31, 2025.

As of March 31, 2026, the company had a total debt of $568 million, down from $576 billion reported as of Dec. 31, 2025.

Operating cash flow was $274 million in the quarter, and free cash flow was $198 million, consistent with typical first-quarter seasonality and impacted by a larger bonus payout. The company returned capital through both repurchases and dividends, including 6.3 million shares bought back for $427 million during the quarter.

Cognizant declared a quarterly cash dividend of $0.33 per share for shareholders of record on May 18, 2026, payable May 27, 2026, and had $1.5 billion remaining under its repurchase authorization as of March 31, 2026.

CTSH Outlook Improves With Project Leap in FocusFor the second quarter of 2026, Cognizant expects revenues in the range of $5.45-$5.52 billion, implying year-over-year growth of 3.8%-5.3% (3.2%-4.7% at constant currency). For 2026, the company expects revenues in the range of $22.11-$22.64 billion, maintaining its constant-currency growth view of 4.0%-6.5%.

Profitability guidance moved higher as Project Leap takes shape. Management raised full-year 2026 adjusted operating margin guidance to 16.0%-16.2%, and reaffirmed adjusted earnings guidance of $5.63-$5.77 per share. Project Leap is expected to generate in-year savings of approximately $200-$300 million in 2026, while the company anticipates recording $230-$320 million of costs, with substantially all incurred in 2026.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.

VGM ScoresAt this time, Cognizant has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

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

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cognizant has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerCognizant is part of the Zacks Computers - IT Services industry. Over the past month, Fair Isaac (FICO - Free Report) , a stock from the same industry, has gained 26.5%. The company reported its results for the quarter ended March 2026 more than a month ago.

Fair Isaac reported revenues of $691.68 million in the last reported quarter, representing a year-over-year change of +38.7%. EPS of $12.50 for the same period compares with $7.81 a year ago.

Fair Isaac is expected to post earnings of $12.05 per share for the current quarter, representing a year-over-year change of +40.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.

Fair Isaac has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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Stock to Watch: Cognizant (CTSH - Free Report) Headquartered in Teaneck, NJ, Cognizant Technology Solutions Corporation is a leading professional services company. The company was spun off from Dun & Bradstreet in 1996 and went public in 1998.

CTSH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Computer and Technology stock. CTSH has a Momentum Style Score of A, and shares are up 10.2% over the past four weeks.

Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.04 to $5.70 per share. CTSH boasts an average earnings surprise of +4.8%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CTSH should be on investors' short list.

Cognizant and CrowdStrike Expand Strategic Alliance to Secure the Agentic Enterprise PR Newswire TEANECK, N.J.,

Expanded collaboration leverages Snowflake CoCo aiming to deliver production-grade
intelligent agents across data engineering, analytics and decision workflows

, /PRNewswire/ -- Cognizant (Nasdaq: CTSH) and Snowflake today announced at Snowflake Summit 26 an expanded collaboration aiming to accelerate enterprise AI adoption through the Snowflake CoCo platform. As a Preferred Launch Partner for CoCo and Snowflake's 2026 CoCo Catalyst Partner of the Year for Impactful Customer Story, Cognizant is deploying a growing portfolio of AI-powered intelligent agents that support and enhance data engineering, analytics and business decision workflows, helping organizations move beyond pilots and into full-scale production with speed and confidence.

Enterprises are under increasing pressure to operationalize AI, yet many remain constrained by legacy systems, fragmented data environments and the complexity of embedding AI into business workflows. Cognizant's AI Builder strategy is designed to address this challenge directly by connecting advanced AI platforms, deep industry expertise and workflow-centric design to translate AI investment into measurable business outcomes. Under this approach, Cognizant is enabling clients to compress timelines across the full AI lifecycle, from semantic model generation and agent orchestration to governed analytics and streamlined validation workflows, deploying production-grade intelligent agents at a pace traditional delivery models often struggle to match.

"When the data foundation is AI-ready and business context is built in, build cycles collapse," said Naveen Sharma, Senior Vice President and Practice Head, AI & Analytics at Cognizant. "That is exactly what Cognizant's AI Builder approach delivers, and with Snowflake CoCo, we are putting production-grade AI into enterprise workflows in hours, not weeks."

The expanded collaboration is underpinned by strong enterprise adoption of the CoCo platform within Cognizant's AI & Analytics practice, which integrates AI engineering, domain expertise and ecosystem platforms to operationalize AI at scale. To date, CoCo has expanded to more than 2,250 users across Cognizant labs and client environments, with over 30 enterprise use cases operationalized and more than 260 hours of enablement delivered. Cognizant has also developed 12+ custom CoCo skills and over 90 revenue-ready accelerators, supporting more than 1.3 million AI-driven requests, demonstrating sustained, enterprise-wide adoption and real consumption at scale.

"Enterprises are at a pivotal moment in their AI journey, where success depends on the ability to move from experimentation to real, scalable impact," said Amy Kodl, SVP, Worldwide Alliances & Channels at Snowflake. "Our collaboration with Cognizant brings together the power of the CoCo platform with deep industry and workflow expertise to help organizations operationalize AI faster—turning data into decisions and driving meaningful business outcomes at scale."

A+E Global Media™ provides a clear example of how enterprises are translating AI investment into measurable business outcomes. Cognizant successfully deployed an AI-powered conversational analytics agent built on Snowflake CoCo to transform Creative Airing Logs across the linear landscape. The solution streamlined a previously manual, multi-step analytics workflow by automating dataset preparation and supporting business users in asking natural language questions and easy investigation of trafficking discrepancies reported by agencies, as well as ad-hoc reporting on problematic product categories.

By replacing time-intensive reporting processes, the Cortex agent significantly improved operational efficiency across Commercial Operations and Legal & Business Affairs teams. Agent implementation has helped A+E Global Media reclaim approximately 200 hours of manual effort for business users while reducing labor costs and accelerating decision-making. Snowflake CoCo accelerated end-to-end workflow – from authoring complex SQL, to validating data quality and performing exploratory analysis – serving as an AI co-pilot that reduced development time, improved accuracy and streamlined key phases of delivery.

"At A+E Global Media, we are leveraging Snowflake's AI-native cloud platform, including Cortex agents, to enable intelligent access to creative airing and advertising operations data. This empowers our Ad Operations and Legal teams to interact with data more directly, make faster and more informed decisions and significantly reduce manual effort across critical workflows. Cognizant continues to be a strong strategic partner in helping us bring these innovative AI-driven solutions to life," said Bruno Sathyan, VP, Corporate Application Engineering & Enterprise Data at A+E Global Media.

Cognizant continues to expand its portfolio of CoCo-enabled use cases across analytics, contract intelligence, compliance automation, financial workflows and anomaly detection. Representative outcomes include up to 70% effort reduction for a global biopharma leader, approximately $85K in annual savings and 1,300 hours reclaimed for a sports and entertainment company and a 99% reduction in change impact analysis time for a North American telecom provider, reinforcing its leadership in translating AI innovation into tangible enterprise value.

Building on the success of engagements such as A+E Global Media, Cognizant plans to continue to deepen its investment in industry-specific CoCo skills, pre-built agent templates and cross-platform orchestration capabilities – supporting enterprises to scale their agentic AI programs on a proven, governed foundation.

For the latest news and announcements, including coverage from Snowflake Summit 2026, visit LinkedIn and X.

About Cognizant
Cognizant (NASDAQ: CTSH) is an AI builder and technology services provider, building the bridge between AI investment and enterprise value by building full-stack AI solutions for our clients. Our deep industry, process and engineering expertise enables us to build an organization's unique context into technology systems that amplify human potential, realize tangible returns and keep global enterprises ahead in a fast-changing world. See how at www.cognizant.ai or @cognizant.

For more information, contact:

U.S.

Name Ben Gorelick

Email [email protected]

Europe / APAC

Name Sarah Douglas

Email [email protected] 

India

Name Vipin Nair

Email [email protected] 

SOURCE Cognizant Technology Solutions Corporation

Cognizant announces ServiceNow partnership to accelerate scalable, operationalized AI governance at enterprise scale PR Newswir