Track market-moving stories before they get noisy

Key Takeaways AMD will ship Helios systems to Microsoft in the second half of 2026 for Azure AI workloads.Helios combines Instinct GPUs, EPYC CPUs, Pensando networking and ROCm software.AMD sees hyperscaler partnerships driving multi-generation AI demand and data center growth. Advanced Micro Devices (AMD - Free Report) is strengthening its long-term bond with Microsoft (MSFT - Free Report) to expand the deployment of its AI infrastructure across Microsoft Azure. Under the agreement, Microsoft will deploy AMD’s Helios rack-scale platform, combining Instinct MI455X GPUs, 6th Gen EPYC “Venice” CPUs, Pensando networking and ROCm software, to power frontier AI inference, Azure AI services and customer workloads. Azure will also introduce new EPYC-powered virtual machine series and expand the use of Pensando DPUs to enhance networking performance. AMD expects to begin shipping Helios systems, including to Microsoft, in the second half of 2026.

The expanded partnership strengthens AMD’s position as a strategic AI infrastructure supplier for hyperscale cloud providers by expanding beyond GPUs into CPUs, networking and software. AMD’s AI revenue opportunity expands through deployment of its integrated Helios rack-scale platform for large-scale inference workloads. The extended partnership with Microsoft expands AMD’s presence in Azure AI services and enterprise AI deployments, creating additional long-term infrastructure demand.

Management has highlighted that AI infrastructure demand is increasingly being driven by deep strategic partnerships with hyperscalers rather than one-time hardware sales. The company said customers are moving from pilot projects to large-scale production deployments, resulting in multi-generation engagements for both EPYC CPUs and Instinct GPUs. It cited partnerships with Meta, OpenAI and Microsoft as evidence that customers are co-engineering future AI platforms with AMD. These partnerships strengthen demand for Helios rack-scale systems and support AMD’s goal of generating tens of billions of dollars in annual Data Center AI revenues over time.

AMD expects server CPU revenues to grow more than 70% year over year in the second quarter of 2026, with robust growth continuing through the second half of 2026 and into 2027 as sixth-generation EPYC “Venice” processors ramp. AMD believes inferencing and agentic AI are fundamentally increasing CPU requirements for orchestration, data movement and head-node functions. AMD doubled its 2030 server CPU total addressable market estimate from about $60 billion to more than $120 billion.

Tough Competition Hurts AMD’s ProspectsAMD’s prospects suffer from stiff competition. NVIDIA (NVDA - Free Report) and Broadcom (AVGO - Free Report) are major competitors in the Data Center space.

NVIDIA is at the center of AI computing, with its products widely used across data centers, gaming and autonomous vehicles. The company’s newer Hopper 200 and Blackwell GPU platforms are being adopted quickly as customers work to grow their AI infrastructure. Data Center revenues reached $75.2 billion in the first quarter of fiscal 2027, up 92% from a year ago and up 21% sequentially, driven by the ramp-up of Blackwell 300 products and demand for InfiniBand, Spectrum-X Ethernet and NVLink solutions. NVIDIA remains AMD's primary rival in GPU-accelerated supercomputing.

Broadcom is benefiting from strong demand for its networking products and custom AI accelerators. In the second quarter of fiscal 2026, AI semiconductor revenues reached a record $10.8 billion, up 143% year over year and above management’s outlook. Broadcom expects AI semiconductor revenues to reach $16 billion in the third quarter of fiscal 2026, up more than 200% year over year. For fiscal 2026, management expects AI semiconductor revenues of $56 billion, up approximately 180% from fiscal 2025. Broadcom also reiterated that AI semiconductor revenues are expected to exceed $100 billion in fiscal 2027.

AMD’s Share Price Performance, Valuation & EstimatesAMD shares have jumped 147.3% year to date, outperforming the broader Zacks Computer and Technology sector’s growth of 12.1%.

AMD Stock’s Price Performance
Image Source: Zacks Investment Research

AMD stock is overvalued, with a forward 12-month price/sales of 13.09X compared with the broader sector’s 6.6X. AMD has a Value Score of F.

AMD Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings is pegged at $7.28 per share, up 1% over the past 30 days, suggesting 74.58% growth from the figure reported in 2025.
 

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

Nvidia (NVDA +1.93%) was founded in 1993 by Jensen Huang, Curtis Priem, and Chris Malachowsky. The trio of engineers and semiconductor designers had a vision to bring 3D video graphics to computers, and they quickly succeeded.

They took Nvidia public in January 1999, raising $42 million from investors to fund the production of its revolutionary GeForce 256, which was the world's first graphics processing unit (GPU) for computers. The company's modern GPUs have become the primary component in the artificial intelligence (AI) data center hardware stack, creating the biggest financial opportunity in the history of the semiconductor industry.

Nvidia is now the most valuable enterprise in the world, and had you parked $5,000 in its stock back in 1999 and never sold, you would be filthy rich today. Here's exactly how big your fortune would be.

Image source: Nvidia.

Nvidia's chips have changed the world Nvidia commercialized its first computer graphics chip in 1995, but its GeForce 256 GPU delivered a whopping 50% increase in processing power four years later. More importantly, it cemented GeForce as one of the graphics industry's most recognizable brands.

But Nvidia never stopped innovating. Not only does it continue to make some of the best GPUs for computer games and digital 3D simulations, but it has also adapted these chips for data centers, robots, and even cars. While a traditional central processing unit typically has a handful of cores, a single GPU can have thousands, so it's better suited for rapidly analyzing high volumes of data.

Therefore, GPUs are ideal for developing AI models, which are constantly ingesting new information, analyzing it, and then using it to generate outputs. Nvidia's Blackwell GB300 GPU is widely considered to be the best data center chip in the world for processing AI workloads, but it's about to be superseded by a more powerful replacement built on the company's new Vera Rubin architecture.

A single data center can house thousands of GPUs, resulting in explosive demand as tech giants battle for AI supremacy. According to Nvidia CEO Jensen Huang, every frontier model company plans to adopt the new Vera Rubin chips when they start shipping over the next few months. That wasn't the case when the previous Blackwell chips launched. In other words, GPU demand still hasn't peaked.

Nvidia has become a financial behemoth The semiconductor industry used to be very cyclical. Companies would build data centers and use them for several years before upgrading their components, resulting in lumpy revenue for chipmakers from year to year. The AI boom changed that, at least for now, because Nvidia is releasing faster chips on an annual basis, and data center operators are buying them hand over fist.

As a result, Nvidia's revenue is exploding higher. It topped $215 billion during the company's 2026 fiscal year (which ended on Jan. 25), representing a whopping 65% growth from the prior year.

Furthermore, it represents a 136,372% increase compared with Nvidia's fiscal 1999 revenue of $158 million.

NVDA Revenue (Annual) data by YCharts

According to Wall Street's average estimates (provided by Yahoo! Finance), Nvidia's revenue could grow to $393 billion during its current 2027 fiscal year, and then to $559 billion in fiscal 2028. If recent results are anything to go by, around 90% of that revenue will come from the data center business alone, thanks to red-hot demand for AI GPUs.

Here's how much a $5,000 investment in Nvidia's IPO would be worth today Nvidia completed its initial public offering (IPO) on Jan. 22, 1999, at $12 per share. The company has since created so much value that management executed six stock splits to ensure its shares remained affordable for small investors.

Had you invested $5,000 at its IPO, you would have acquired 416 shares at $12 each. Adjusting for the stock splits, you would have 199,680 shares today with a cost basis of $0.025 per share.

Considering Nvidia stock trades at $203.28 as I write this, that translates to a return of 813,020%. In dollar terms, that initial investment of $5,000 would be worth an eye-popping $40.6 million today. Plus, Nvidia has paid a total of $0.23365 per share in dividends (split-adjusted) since fiscal 2012, so you would have also earned $46,655 in cash payments.

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Investors who don't already own Nvidia stock might be wondering if it's still a good buy. In my opinion, the answer is yes, because it's still attractively valued despite its past gains. Plus, although the AI boom is well under way, Nvidia will also benefit from a multitude of other emerging industries, such as autonomous driving, robotics, and quantum computing, which will require high volumes of chips and components in the future.

Nvidia Corporation is rated Strong Buy, driven by its transition to a rack-scale AI utility model and aggressive CPU disintermediation via Vera. NVDA's Vera CPU and Rubin architecture enable 35X lower compute costs, accelerating agentic AI adoption and expanding total addressable market. Key risks include gross margin compression from HBM memory pricing and systemic credit contagion from circular-financed NeoClouds like Nebius.

Nvidia has held the position as the world's biggest company since about a year ago, when it became the first to reach $4 trillion in market value. It soared past former leaders Apple and Microsoft. But in recent days, Apple, which hasn't climbed as much as its peers during the artificial intelligence (AI) boom, has been making a comeback.

And on July 17, Apple even slipped ahead of Nvidia to become – at least for part of the trading session – the world's biggest company. By the end of the day, though, Nvidia returned to the lead with a value of $4.9 trillion. That's compared to $4.89 trillion for Apple.

As these tech giants vie for the position as the world's biggest company, which is the better buy now? Let's find out.

APPLE BRIEFLY OVERTAKES NVIDIA AS WORLD'S MOST VALUABLE COMPANY AMID AI INVESTMENT DOUBTS

Apple even slipped ahead of Nvidia on July 17 to become – at least for part of the trading session – the world's biggest company. (Adam Gray for Fox News Digital)

The case for NvidiaNvidia stock has soared more than 300% over the past three years amid excitement about its position in the AI market. The company is the No. 1 designer of graphic processing units (GPUs), the chips used to power AI development and use. This strength, along with Nvidia's full portfolio of related products and services, has generated double- and triple-digit earnings growth in recent years.

For example, in the recent quarter, Nvidia's revenue surged 85% to more than $81 billion, and this was at a high level of profitability on sales, as we can see through the company's gross margin – that figure has exceeded 70% quarter after quarter.

JENSEN HUANG SAYS NVIDIA'S NEW RTX SPARK CHIP WILL REINVENT THE PC

Nvidia stock has soared more than 300% over the past three years. (Patrick T. Fallon/AFP via Getty Images)

Nvidia focuses on innovation, pledging to update its GPUs on an annual basis, and this has helped it stay ahead. The company has also steadily expanded its reach in order to make it the key place to go for anything AI. In the latest quarter, Nvidia announced the upcoming release of its first stand-alone central processing unit (CPU), a move that opens the door to a $200 billion market.

Investors have piled into Nvidia's stock in recent years, understanding that an investment in this company should put them on track to benefit from the AI revolution.

The case for AppleApple shares have advanced – but not as much as those of Nvidia. Over the past three years, Apple has climbed about 70%. The company has been slower to invest in and apply AI than many of its peers – for example, it only began rolling out AI features across its devices in the fall of 2024, and the rollout continues. So, investors aiming to get in on potential AI leaders turned away from Apple and chose companies that were investing more aggressively in the space.

APPLE TO INVEST $30 BILLION IN US CHIP MANUFACTURING

This trend, however, hasn't hurt Apple's earnings growth. In fact, the company has proven itself to be a player investors can count on for progress in this area. Apple has a fantastic moat, or competitive advantage, and this is its brand – customers love the iPhone and won't easily switch to another. In the first quarter, the iPhone 17 was the world's top-selling smartphone, according to Counterpoint Research.

Apple shares have climbed about 70% over the past three years. (Apple Inc./Reuters)

Apple also is benefiting from its sales of services, with services revenue reaching records quarter after quarter. After building up more than 2.5 billion active devices over the years, Apple now can count on these devices for recurrent revenue. When customers sign up for digital entertainment or storage, for example, this represents a regular stream of income for the company.

Today, investors may be turning to Apple as they recognize these strengths and as they seek an alternative to companies heavily exposed to AI.

The better buy?Nvidia and Apple have proven their earnings strength and leadership over time. So either makes a solid long-term investment. But if you could only choose one to buy right now, which one should you go for?

Nvidia clearly beats Apple when it comes to valuation. At these levels, the chip giant looks dirt cheap, particularly considering the AI empire it's built and its long-term prospects in the field. It's important to note that even if AI stocks slump temporarily, the AI story remains strong, with the technology already put to use in many areas.

Ticker Security Last Change Change % AAPL APPLE INC. 326.59 -7.15 -2.14% NVDA NVIDIA CORP. 203.28 +0.47 +0.23% So now is a fantastic moment to get in on Nvidia at these levels. That said, cautious investors who aim to avoid any AI turbulence still may prefer picking up Apple shares, as even at today's level, the stock has room to run.

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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

For more than three years now, Nvidia (NVDA +1.85%) has been at the center of the most significant technology shift in decades. The company was a linchpin in the early 2023 advent of artificial intelligence (AI) and has been at the heart of the AI boom ever since. The chipmaker has been investing in ancillary products and adjacent industries, thereby expanding its reach. In the latest development, Nvidia significantly increased its position in one area of AI infrastructure: neoclouds.

According to a recent filing with the Securities and Exchange Commission (SEC), Nvidia now has 12% of its investment portfolio in Nebius (NBIS +16.41%), after increasing its stake by more than $3.8 billion. Nvidia previously owned roughly 1.1 million shares of Nebius stock, but boosted its stake by more than 21 million shares and now owns roughly 9.3% of the company.

Let's take a look at what prompted that move and why investors should be paying attention.

Image source: The Motley Fool.

Neocloud 101To understand why this is a big deal, it's worth taking a step back to review what Nebius does. The concept of cloud computing is well known to most investors. The cloud, as it's commonly called, allows internet users to access applications, data storage, data processing, and AI. Cloud use provides improved security, increased flexibility, and scalability, making it an attractive option for many companies. Furthermore, cloud access to AI models and processing has supercharged adoption.

Neocloud operators fill a special function in the AI boom. These companies have stockpiled the graphics processing units (GPUs) and other infrastructure needed to facilitate AI and other high-performance computing. The offering has been dubbed GPU-as-a-service (GPUaaS).

Nebius is one of the leading providers of these services, offering an "AI-centric cloud platform building large, cost-efficient GPU clusters to service the explosive growth of the global AI industry," according to its website.

The company's financial results are telling. In the first quarter, it generated revenue of $399 million, which soared 684% year over year, albeit from a small base. Perhaps more telling is the annualized run rate for its core AI services of $1.92 billion, an increase of 674%.

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Does Huang know something Wall Street doesn't?Nvidia CEO Jensen Huang is the architect of this investment, which includes the ownership of 1.19 million shares previously reported and the addition of 21 million shares from a warrant Nvidia acquired in Q1. In the regulatory filing, Nvidia revealed that it was prohibited from selling the newly acquired shares before Sept. 11, 2026.

This increased investment marks a huge vote of confidence from Nvidia. This shouldn't come as a surprise. At the keynote address at the Computex technology trade show in Taipei, Taiwan, last month, Huang lauded Nebius as one of a select group of "world-class AI clouds." He cited the neocloud's impressive customer list and Nvidia's own experience working with the company. "We worked with Nebius, and they are growing incredibly fast," Huang said.

Don't take his word for it. Neocloud revenues are expected to grow from $25 billion in 2025 to $400 billion by 2031, a compound annual growth rate of 58%, according to a report by Synergy Research Group. The report goes on to say, "Neocloud providers are capturing an increasing share of the fastest-growing segments of the cloud market, fundamentally reshaping the competitive dynamics of AI infrastructure."

Nebius isn't yet profitable, as the company scrambles to build out its infrastructure to meet its soaring customer demand. Wall Street expects revenue growth of 541% in 2026 and 238% in 2027, and 63% of analysts rate the stock a buy or strong buy.

At 64 times sales, the stock certainly doesn't look cheap. That said, Jensen Huang has his finger on the pulse of all things AI and just increased Nvidia's stake by more than 18x, which suggests he believes strongly in Nebius’s future.

That's why investors should be paying attention -- and why Nebius stock is a buy.

3M delivered strong Q2 results, beating EPS and revenue estimates, and raised FY 2026 guidance, sparking a 6% earnings-day rally. I maintain a "Hold" rating as MMM trades near intrinsic value; valuation appears fair, and technicals suggest sideways action in the near term. Q2 growth was driven by General Industrial, Safety, and Electronics, offsetting Consumer weakness; 3M launched 92 new products and returned $1.4 billion to shareholders.

3M NYSE: MMM delivered a beat-and-raise quarter before the market opened on July 21. The initial reaction from investors is bullish, with the stock surging 9% after trading began. The earnings beat was more of the same for a company that’s taken many steps to improve efficiency in the past 12 months. The revenue beat was what investors have been waiting for, making the bear case harder to defend.

3M Today

$170.26 +11.15 (+7.00%)

As of 02:54 PM Eastern

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

52-Week Range$139.34▼

$177.41Dividend Yield1.83%

P/E Ratio32.82

Price Target$169.43

The best part of the Q2 2026 earnings report may have been the company’s forward guidance. 3M raised its full-year guidance for revenue, earnings per share (EPS) and free cash flow. The estimates for EPS of $8.80 to $8.95 and FCF of $4.7 billion to $4.9 billion would represent growth of around 10% and 20%, respectively. Both of which are ahead of the company’s average over the last few years.

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That’s where the short-term and long-term outlook for MMM diverge. Most formulas model significantly less growth. But averages are backward-looking, which is the core of the issue. MMM stock has surged, but it looks expensive compared to its history. Investors, however, tend to look towards the future.

Industrial and China Demand Powered the Quarter3M's adjusted organic sales grew 5.4% year over year. That growth was concentrated in the parts of the business investors care most about.

Safety and Industrial, the company’s largest segment, posted adjusted organic growth of roughly 8% for the quarter, led by strength in industrial adhesives and tapes and personal safety products.

Transportation and Electronics grew organically by nearly 6%.

The Consumer segment was the lone soft spot, posting a modest organic decline.

That's a familiar pattern for 3M this year: industrial and electronics demand is doing the heavy lifting while its consumer division stays sluggish.

Geographically, China stood out. Adjusted organic sales grew by double digits for the quarter. That’s meaningful given how much of the bear case on industrials this year has hinged on weakness in China demand. If that strength holds, it undercuts one of the more persistent worries about 3M's growth runway.

Adjusted operating margin expanded 40 basis points to 24.9%. That continues a trend of efficiency gains that management has been building toward for several quarters. It's not a dramatic jump, but consistency here matters more than a single big number.

3M also used the report to highlight a handful of partnerships aimed at newer growth areas: a deal with Microsoft Corp. NASDAQ: MSFT to deploy 3M's optical technology in AI data centers, a long-term agreement with Airbus on aircraft insulation, and an AI-powered customer service tool called Ask 3M. None of these will move the needle on this quarter's numbers, but they're the kind of forward-looking additions management likes to point to when making the case that 3M is more than a legacy industrial name.

3M Is Rebuilding Its Dividend After the 2024 Cut3M cut its dividend in 2024 after spinning off its healthcare business. That was a bigger story than having the payout cut in half. 3M was a Dividend King, a title that made MMM a set-it-and-forget-it choice for income investors.

Many of those investors walked away from 3M after the cut. But the company has been taking steps to win those investors back. The company increased its dividend in 2025 and again in February. The payout of 78 cents per share is well below the pre-cut level of $1.51, but it’s up more than 10% from the post-cut level of 70 cents per share.

MMM Stock Tests Key Resistance After Earnings Breakout3M's chart tells two stories at once, and today's earnings reaction is forcing them to collide. MMM has spent the last three months in a textbook ascending channel. That can be seen with higher lows in May, higher lows again in June, and now a fresh push toward the top of that channel. That's the bullish structure. Buyers have been in control since the April low near $145.

But zoom out further, and MMM has also just completed a round trip. The post-earnings surge to near $172 puts the stock back at the same level it touched at its February high—the last time it tried this level, it failed and fell nearly 20% into April. That history is why this retest matters more than a typical breakout attempt.

The difference is the catalyst. This earnings breakout is being fueled by a genuinely strong quarter across the board. That's a fundamentally different setup than February's failed breakout, which happened without a comparable catalyst. This time, buyers have a reason to defend the highs.

RSI Signals Overbought Conditions, But the Trend Remains BullishThe RSI reading of 70 puts MMM squarely in overbought territory, and the stock is trading well above its 50-day moving average near $156. That gap between price and trend typically resolves one of two ways: a sideways digestion, or a pullback toward the moving average.

Neither outcome breaks the bullish structure. A pullback that holds above the channel's rising trendline, likely in the $160-$165 zone, would reinforce the higher-lows pattern rather than undermine it. That's the healthiest version of "overbought": a pause that resets momentum without giving back the structural gains.

Will Analyst Upgrades Keep 3M Stock Moving Higher?Overall MarketRank™75th Percentile

Analyst RatingHold

Upside/Downside2.3% Downside

Short Interest LevelHealthy

Dividend StrengthModerate

News Sentiment0.34 Insider TradingN/A

Proj. Earnings Growth7.55%

See Full Analysis

Overall, this was a good quarter for 3M, but a lot of the company’s growth appears to be priced in. Investors looking to get involved may want to wait for a better entry point, which could come in the days following the earnings report.

That said, overbought readings after an 8% gap almost always cool off. The real question is whether Wall Street analysts follow the earnings beat with upgraded price targets. The post-earnings spike has pushed MMM slightly above its consensus price target of $169.43.

Sell-side re-ratings, not chart patterns, are usually what turn a one-day earnings pop into a sustained re-rating of the stock. Until that happens, this breakout is unconfirmed, resting on a single catalyst rather than a broader shift in how the Street values 3M.

Should You Invest $1,000 in 3M Right Now?Before you consider 3M, 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 3M wasn't on the list.

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Tesla, Nvidia, and Google helped shape the last era of market growth, but the next wave could come from a new group of companies. Inside this report, you’ll find 7 stocks that could play a major role in the next tech-driven market boom.

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U.S. stocks traded higher midway through trading, with the Dow Jones index gaining over 350 points on Tuesday.

The Dow traded up 0.70% to 52,204.49 while the NASDAQ climbed 1.30% to 25,838.45. The S&P 500 also rose, gaining, 0.82% to 7,504.18.

Leading and Lagging Sectors

Information technology shares jumped by 2% on Tuesday.

In trading on Tuesday, consumer staples stocks fell by 0.9%.

Top Headline

3M Company (NYSE:MMM) shares jumped over 9% on Tuesday after the company reported better-than-expected second-quarter results and raised its full-year guidance.

The company posted adjusted earnings of $2.40 per share, beating the analyst consensus estimate of $2.25. Revenue rose 2.4% year over year to $6.50 billion, topping expectations of $6.41 billion.

Equities Trading UP
           

Equities Trading DOWN

Commodities

In commodity news, oil traded up 2.1% to $84.97 while gold traded up 1.4% at $4,071.30.

Silver traded up 3.9% to $59.290 on Tuesday, while copper rose 2.8% to $6.5200.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.3%, while Spain’s IBEX 35 Index rose 0.6% London’s FTSE 100 rose 0.5%, Germany’s DAX gained 0.3%, while France’s CAC 40 slipped 0.1%.

Asia Pacific Markets

Asian markets closed mixed on Tuesday, with Japan’s Nikkei 225 gaining 3.26%, Hong Kong’s Hang Seng index falling 0.04%, China’s Shanghai Composite rising 1.79% and India’s BSE Sensex falling 0.31%.

Economics

U.S. Redbook Index rose by 7.8% year-over-year in the week ending July 18.

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Bank of America Enhances EricaAssist with Generative AI to Help Employees Resolve Client Needs Faster PR Newswire

Delta Air Lines (DAL - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for Delta is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

For Delta, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for DeltaFor the fiscal year ending December 2026, this airline is expected to earn $6.66 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Delta. Over the past three months, the Zacks Consensus Estimate for the company has increased 31%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Delta to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Marley Kayden discusses General Motors' (GM) latest earnings as shares rally on a beat and raise quarter. She says consumer demand in North America remains strong even as tariffs and an unclear geopolitical backdrop pose last challenges.

Goldman Sachs has created a new platform to expand its offerings for wealthy clients and family offices who increasingly want direct stakes in fast-growing private companies, CNBC has learned.

The new group, called the alternative investments platform, combines Goldman's existing alternatives business with two newly established teams, according to a memo seen first by CNBC.

The new teams focus on direct investments in individual private companies, rather than broader private equity funds, and on helping clients buy and sell those stakes, according to the memo.

"There has been a lot of focus on the big growth tech names and getting clients access to those before they debut in the public markets," Kristin Olson, Goldman Sachs' global head of alternatives for wealth, told CNBC in an interview.

Goldman's move reflects two of the biggest trends reshaping Wall Street. The firm has spent years pushing deeper into wealth and asset management because of its perception as providing steadier revenues than investment banking and trading. At the same time, the most successful startups are staying private far longer than they once did, allowing early investors to capture most of the gains before public investors get a chance.

"Companies are going public at a trillion dollars," Olson said. "If you haven't participated along the way, you're clearly missing a big part of the growth cycle."

AI boomGoldman has been arranging direct investments in later-stage private companies for wealthy clients for roughly two decades, Olson said, pointing to Facebook before its 2012 IPO and later SpaceX, Stripe and Canva. But growth in demand for the asset class convinced executives to break out the business, she added.

The firm's goal, Olson said, is to help clients identify promising companies before they become household names.

Rather than targeting early-stage startups, Olson said Goldman generally focuses on later-stage companies that have established products, meaningful revenue and clearer paths toward profitability, seeking what she described as a "sweet spot" between risk and return.

The AI investment boom has only intensified demand. Beyond leading model developers, Goldman is increasingly steering clients toward investments in the infrastructure underpinning AI, including data centers and related projects, Olson said.

watch now

The announcement comes days after Goldman reported record quarterly revenue, with executives highlighting AI-driven activity across investment banking, trading and financing businesses. The results reinforced investors' view that Goldman is positioned to benefit from multiple facets of the AI investment cycle.

The announcement also formalizes Goldman's growing business helping clients find liquidity for private investments.

Through its new secondary advisory group, the firm plans to expand a marketplace that allows clients to buy and sell private holdings while also advising clients looking to exit investments held outside Goldman.

"We said, let's break that out and let's make it very clearly defined as something that we're leaning into," Olson said.

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Hilton Worldwide Holdings Inc. (HLT - Free Report) , which belongs to the Zacks Hotels and Motels industry.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 3.28%.

For the most recent quarter, Hilton Worldwide was expected to post earnings of $1.96 per share, but it reported $2.01 per share instead, representing a surprise of 2.55%. For the previous quarter, the consensus estimate was $2 per share, while it actually produced $2.08 per share, a surprise of 4.00%.

Price and EPS Surprise

For Hilton Worldwide, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Hilton Worldwide has an Earnings ESP of +1.54% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 28, 2026.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

I believe Intel Corporation CEO Tan is executing the turnaround quite well. Datacenter, ASICs, and 18A all look better, and the stock reflects that. That's precisely the problem. I now see a real INTC turnaround priced as though the hard part is already done. At 87x forward earnings, there is little room for error. Consensus for Q2 sits just above Intel's own guide. After seven straight revenue beats, simply landing near the midpoint is unlikely to be enough.

NEW YORK, July 21, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of International Business Machines Corporation (“IBM” or the “Company”) (NYSE: IBM).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether IBM and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On July 14, 2026, IBM released its financial results for the second quarter of 2026.  IBM announced a disappointing quarter that it attributed to “a shortfall in our Z performance and the associated software stack, primarily in Transaction Processing.”  IBM also disclosed that it had “faltered,” and “did not adapt and move quickly enough” so that “numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall.” 

On this news, IBM’s stock price fell $73.16 per share, or 25.21%, to close at $217.07 per share on July 14, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

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Pomerantz LLP
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Goldman Sachs sees a potential return of triple-digit crude prices on the horizon if disruptions to oil flows out of the Strait of Hormuz don’t ease soon. Analysts at the investment bank estimate that Brent crude oil, the global benchmark price, could top $120 a barrel next quarter and average more than $100 a barrel next year if that key waterway remains disrupted. The recent increase in hostilities between the U.S. and Iran has already driven Brent up over $90 a barrel, a roughly 30% surge from its recent bottom in the low $70s, when it appeared that the two sides had a deal to end hostilities and reopen the Strait.

Here’s a look at the investment bank’s current oil price scenarios and what they mean for oil stocks.

Image source: Getty Images.

Two paths for oil pricesAnalysts at Goldman Sachs recently published a note outlining their outlook for crude prices. The base case is that Brent will average $80 a barrel in the fourth quarter of 2026 and be around $75 next year. This outlook assumes that there’s a de-escalation in hostilities between the U.S. and Iran before the end of this year. Despite recent attacks by both sides, there’s renewed hope that they could take steps to de-escalate the current conflict. Several news outlets recently reported that mediators presented a proposal to Iran that included a 10-day ceasefire to revive peace talks between the countries.

However, while de-escalation is Goldman Sachs’ base case, it now sees upside price risks. Oil flows out of that key waterway have nearly stopped since the recent resurgence in fighting and have averaged 45% below pre-war levels in the last month, according to Goldman’s estimates. That’s driving the bank’s upside scenario. It sees Brent surging past $120 a barrel by the fourth quarter if the Strait remains disrupted. Meanwhile, it sees crude averaging $100 a barrel next year if the disturbance continues throughout 2027, and production in the Persian Gulf doesn’t recover to its pre-war level until the end of the year, when additional oil bypass pipeline capacity comes online.

Oil stocks can thrive in either scenarioGoldman Sachs’ upside scenario for oil prices would be a boon for oil producers. They’d cash in on triple-digit crude prices, enabling them to further strengthen their balance sheets and return more cash to shareholders through higher dividends and share repurchases. However, the bank’s base case for crude prices -- $80 by the fourth quarter and $75 a barrel in 2027 -- is still a great range for oil companies.

For example, Chevron (CVX +0.16%) can thrive at $70 oil. The company initially expected to generate an additional $12.5 billion in free cash flow this year at that oil price point, fueled by its merger with Hess, recently completed expansion projects, and cost-saving initiatives. Given where crude prices have been and Goldman Sachs’ estimates for the rest of this year, Chevron will vastly exceed that projection. Meanwhile, it can grow its free cash flow at a more than 10% annual rate through 2030 at $70 oil, putting it in a position for another strong showing in 2027.

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Fellow oil giant ExxonMobil (XOM +1.80%) can also thrive at lower oil prices. Exxon is in the middle of a multi-year structural cost-savings initiative that has already delivered $15.6 billion in cumulative savings since 2019, with the goal of reaching $20 billion by 2030. The oil giant is also investing heavily in its highest-return, highest-margin assets. These catalysts could add $25 billion in earnings growth and $35 billion in cash flow growth by 2030 at the same prices and margins as 2024. Exxon would produce $145 billion in surplus free cash during this period at $65 Brent. It’s on track to generate a lot more surplus cash over the next year at Goldman’s base case for oil prices.

Even the base case is optimistic for oil stocksGoldman Sachs sees the potential for crude prices to top $120 a barrel next quarter if the U.S. and Iran don’t de-escalate soon. That would enable oil companies like Exxon and Chevron to generate even bigger gushers of excess free cash flow. However, they’d still thrive under its base case. That makes oil stocks compelling investments in the current environment, as they should deliver strong returns in the base case and significant upside in a higher oil price scenario.

Investors looking for stocks in the Internet - Software sector might want to consider either Salesforce (CRM - Free Report) or Adyen N.V. Unsponsored ADR (ADYEY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Salesforce is sporting a Zacks Rank of #2 (Buy), while Adyen N.V. Unsponsored ADR has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CRM has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

CRM currently has a forward P/E ratio of 12.31, while ADYEY has a forward P/E of 20.82. We also note that CRM has a PEG ratio of 0.68. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ADYEY currently has a PEG ratio of 1.25.

Another notable valuation metric for CRM is its P/B ratio of 4.16. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ADYEY has a P/B of 5.48.

These metrics, and several others, help CRM earn a Value grade of B, while ADYEY has been given a Value grade of D.

CRM sticks out from ADYEY in both our Zacks Rank and Style Scores models, so value investors will likely feel that CRM is the better option right now.

Investors might want to bet on Commerce Bancshares (CBSH - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

Therefore, the Zacks rating upgrade for Commerce basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Commerce imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for CommerceFor the fiscal year ending December 2026, this bank holding company is expected to earn $4.22 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Commerce. Over the past three months, the Zacks Consensus Estimate for the company has increased 4.1%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Commerce to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

All the fears that worried the market in the past are percolating. Inflationary concerns are rising, with oil prices near a six-week high, more tariffs, and geopolitical tensions in the Middle East unlikely to go away anytime soon. The Federal Reserve is likely to nudge rates higher -- not lower -- the next time it meets. Suddenly, everything that is borrowed is about to be something blue.

It's against this unsettling climate, with consumer confidence hitting a new low before rebounding this summer, that investors might want to consider investing in Costco (COST 0.63%). Yes, Costco.

The country's top warehouse club operator may not seem much of a growth stock. It's also certainly not cheap by most measuring sticks. However, if reality catches up to today's buoyant market later this month, you're probably going to learn the real reason why Costco is worth its market premium.

Image source: Getty Images.

Welcome to Costco, I love you Costco stock is trading for 47 times trailing earnings, a big markup to both the market average and the retailer's own growth. Its revenue multiple may initially seem low at 1.4, but in the low-margin world of groceries and other consumer staples retail, it's a princely premium. If you're an income investor, the stock's 0.6% dividend yield isn't going to ring a dinner bell, even though Costco does reward shareholders with substantially larger special dividends every few years.

The warehouse club operator's appeal in bear markets, if not outright crashes, lies in its resilience. Costco has posted positive net sales growth in 32 of the last 33 years. The one time it fell short was a modest 1.5% decline in 2009 during the Great Recession. It was a stalwart that year, as the U.S. corporate sector saw its revenue plummet 13%.

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You beta, you beta, you bet Costco's beta -- a measure of stock volatility -- clocks in at 0.87, only slightly below the market at 1.00. However, the all-weather retailer's one-year beta is roughly zero. Put another way, over the past year, Costco shares haven't moved in step with the market. If you're worried about a market crash, this lack of correlation should excite you.

In a rising market, Costco investors have experienced a 2% decline. This may not seem bullish, but with Costco's business continuing to expand and its dominance growing, its valuation has become even more compelling than a year ago.

Costco isn't cheap, but it's a safe, recession-resistant stock, if not recession-resilient. You don't typically say that about a company with a paid membership model, but the money it collects from its 82.9 million paid memberships accounts for most of its profit. Shoppers know they are getting a good deal, and that matters even more when the economy is headed in the wrong direction.

Nobody wants the market to crash, but it will inevitably happen several times in your lifespan as an investor. It's good to have Costco on your side, ready for the worst, like an airbag in a car or a flotation device on a boat or a plane.

Key Takeaways T1 Energy is expanding solar manufacturing and entering battery storage through the KORE Power acquisition.First Solar is increasing module capacity while its order backlog extends through 2030.Both companies are positioned to benefit from rising U.S. solar demand and domestic manufacturing expansion. T1 Energy (TE - Free Report) and First Solar (FSLR - Free Report) provide investors with exposure to the growing U.S. solar industry. T1 Energy is an emerging clean energy manufacturer that is in the early stages of building its solar business, while First Solar is the largest and most established solar manufacturer in the United States. Both companies stand to benefit as governments continue to promote domestic clean energy production and supply-chain localization.

The comparison is particularly relevant today because both companies are positioned to benefit from the same long-term industry tailwinds. The U.S. government's emphasis on strengthening domestic solar manufacturing, reducing dependence on imported panels, and expanding renewable energy capacity has created a favorable environment for American solar manufacturers. Companies that can successfully scale domestic production while maintaining competitive costs are likely to benefit from increasing demand over the coming years.

Let us compare the stocks' fundamentals to determine which one is a better investment option at present.

Factors Acting in Favor of TE StockT1 Energy already operates one of the world's largest and most advanced solar module manufacturing facilities while building a 2.1 gigawatt (GW) solar cell plant that will significantly expand its domestic production capacity. Management has indicated that customer demand for the combined output of these facilities already exceeds planned production for 2027 and 2028, suggesting strong market demand, high expected utilization, and improved revenue visibility. Beyond solar manufacturing, the company is expanding into battery energy storage systems (BESS) and energy infrastructure solutions for high-growth markets, such as hyperscale data centers. This diversification broadens its revenue opportunities and positions it to capitalize on multiple long-term energy transition trends.

In June 2026, T1 Energy entered into a definitive agreement to acquire KORE Power, Inc., an established engineering-focused BESS and software solutions provider supporting industrial hyperscaler development. Through this acquisition, the company is expected to gain an established engineering platform with decades of experience in designing, deploying and operating utility-scale battery storage systems, along with deep relationships with utilities, government agencies, developers and industrial customers.

Factors Acting in Favor of FSLR StockFirst Solar has been investing heftily in the production ramp-up of its modules to expand its manufacturing capacity. The company manufactured 4.3 GW in the first quarter of 2026 and sold 3.8 GW of solar modules. With a strong global footprint, First Solar enjoys a solid presence in the United States, India, Malaysia and Vietnam. The company’s new 3.7 GW capacity module finishing line in the United States is expected to commence operations in the fourth quarter of 2026. These vigorous manufacturing capacity expansions will help boost its revenues.

The growth prospects of FSLR remain solid in the United States, thanks to favorable solar demand growth in the nation. The company commenced operations at its fourth and fifth manufacturing facilities in the United States and completed the expansion of its manufacturing footprint at its existing facilities in Ohio. FSLR has added 1.9 GW of gross booking since the previous earnings call and its total booking backlog is 47.9 GW extending through 2030, which indicates a strong demand for its products.

How Do Zacks Estimates Compare for TE & FSLR?The Zacks Consensus Estimate for T1 Energy’s 2026 earnings per share (EPS) indicates growth of 85.28% year over year. 
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for First Solar’s 2026 EPS implies growth of 23.43%.

Image Source: Zacks Investment Research

Valuation for TE & FSLRT1 Energy’s shares trade at a forward 12-month price/sales (P/S F12M) of 1.56X compared with First Solar’s P/S F12M of 3.91X.

Image Source: Zacks Investment Research

TE & FSLR Stock’s LiquidityCurrent ratio for TE and FSLR is 1.26 and 2.56, respectively. A ratio of more than one suggests a healthy liquidity position, in which the business can meet its immediate financial obligations without selling long-term assets.

TE & FSLR Stock’s Price PerformanceIn the past three months, shares of T1 Energy and First Solar have risen 18.3% and 10.1%, respectively, compared with the industry’s 4.7% growth.

Image Source: Zacks Investment Research

TE & FSLR: Which Is a Better Choice Now?Expanding manufacturing capacity, strong customer demand, and diversification into battery storage and energy infrastructure position T1 Energy for sustained long-term growth. Ongoing manufacturing expansion, a strong order backlog, and favorable solar demand trends position First Solar for continued revenue growth.

Our choice at the moment is T1 Energy, given its better earnings growth, price performance, and more attractive valuation than First Solar. Both TE and FSLR carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

First Solar, Inc. (FSLR) Shareholders Who Lost Money Have Opportunity to Lead Securities Fraud Lawsuit PR Newswire

Realty Income is rated Hold as current prices embed strong long-term growth not fully supported by recent numbers. Q1 2026 AFFO growth was driven mostly by non-recurring items, with core organic rental growth modest and same-store rents lagging inflation. The dividend remains well-covered with a 72% payout ratio and strong occupancy, but dividend growth is slowing and yield has compressed below 5%.

Kraft Heinz's multiyear partnership with Disney expands its brands across theme parks, cruises, streaming, and consumer products, but investors see little reason to change earnings expectations without evidence the deal will boost growth.

If Monday was a tale of divergence, Tuesday brought something rarer: agreement. All three major indexes climbed together, powered by a semiconductor rally that showed no signs of fading.

By 11:31 a.m. ET, the Nasdaq Composite (^IXIC +1.37%) had jumped 1.3%, the S&P 500 (^GSPC +0.85%) was up 0.7%, and the Dow Jones Industrial Average (^DJI +0.69%) had gained 0.6%. The session started with a brief wobble; all three indexes opened in the green but dipped in the first 20 minutes before finding their footing. By late morning, each had hit fresh session highs.

^IXIC data by YCharts

Why chip stocks keep bouncing back Memory chip stocks stole the show on Tuesday. Micron Technology (MU +12.42%) surged 10.1% after Morgan Stanley predicted memory prices could rise 25% on continued AI demand. SK Hynix (SKHY +13.10%), the Korean memory giant that just debuted on the Nasdaq earlier this month, jumped 10.9% as bargain hunters piled in to take advantage of last week's sell-off.

The iShares Semiconductor ETF (SOXX +5.52%) climbed 5.2%, extending Monday's gains. Memory chips led the charge, but the chipmaker rally was broad. Nvidia (NVDA +1.72%) rose 1.5% after releasing new details about its Vera CPU for AI data centers. Advanced Micro Devices (AMD +7.85%) popped 6.1% without much news of its own. If anything, Nvidia's Vera chips pose a new threat to AMD's EPYC server processors; no one said the stock market had to make sense.

Image source: Getty Images.

The Dow got help from an unlikely source. Caterpillar, Monday's biggest drag, reversed course with a 2.7% gain. 3M (MMM +7.12%) extended a post-earnings rally to 9.8% after beating expectations with bullish second-half guidance. Together, the two industrials contributed more than 230 points to the Dow's advance.

President Donald Trump's announcement of 50% tariffs on most Canadian goods barely registered with investors. The duties take effect in 30 days, leaving room for negotiation. Canadian Prime Minister Mark Carney said Ottawa is ready to talk.

Oil prices kept climbing. Brent crude topped $91 per barrel as tankers reportedly caught fire in the Strait of Hormuz. Gold caught a tailwind, too. The SPDR Gold Shares ETF (GLD +1.90%) rose 1.8%, suggesting some investors are hedging their optimism.

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The week is just getting started Tuesday's rally suggests investors remain focused on AI-driven semiconductor demand despite mounting geopolitical and trade uncertainties.

So far, 87% of S&P 500 companies have beaten earnings estimates this quarter. The real tests are coming over the next couple of weeks, with several major names on tap before the weekend. Alphabet and Tesla report on Wednesday. Intel, up 7% Tuesday on news of a new foundry customer, reports Thursday. If AI spending remains robust, the chip rally could have room to run.

For now, Tuesday belongs to the memory makers. The semiconductor sector is reminding investors why it remains the market's most volatile corner, and its most closely watched. Whether the current rally has legs depends on what the earnings calls reveal about demand and pricing power in the months ahead.

Anders Bylund has positions in Alphabet, Intel, Micron Technology, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Caterpillar, Intel, Micron Technology, Nvidia, Tesla, and iShares Trust-iShares Semiconductor ETF. The Motley Fool recommends 3M. The Motley Fool has a disclosure policy.

Micron (MU +12.42%) stock shot higher for a second straight day Tuesday, soaring 13.4% through 1 p.m. ET.

You can thank Taiwan Semiconductor Manufacturing Company (TSM +5.39%) for that -- and Bank of America, too.

Image source: Micron.

TSMC raises prices Nikkei Asia reports TSMC will raise prices for contract chip manufacturing by "up to 10%" in 2027 (and some prices might spike 20%). Nikkei says TSMC is doing this to offset "rising costs for materials, manufacturing equipment and construction of new overseas chip plants."

But that's just one reason -- the other reason is that TSMC can raise prices.

Just because input prices rise doesn't mean a manufacturer can raise its product prices without losing customers. If customers balk, the manufacturer may need to absorb the higher costs of the more expensive inputs, hurting its profit margin. In light of strong demand for artificial intelligence chips, though, it seems TSMC is comfortable raising prices -- and confident its customers will not flee.

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Implications for Micron By implication -- because AI chips require lots of memory chips when performing inference functions -- this means Micron can raise its prices, too. So in essence, TSMC has reinforced the bull thesis for Micron stock today.

Separately, Bank of America analyst Vivek Arya addressed concerns that cheap AI models from China might threaten Micron's business... a theory he says is nonsense. Just because Chinese models charge lower prices than American models from Anthropic and OpenAI doesn't mean they're doing so profitably, or that their input costs are lower.

To the contrary, Arya thinks that by using fewer and lower-quality GPUs, Chinese AI companies may actually need to buy more memory chips to answer questions -- not fewer. And if he's right about that, he's just given investors yet another reason to buy Micron stock.

Bank of America is an advertising partner of Motley Fool Money. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.