Investing in castings capacity to support strong demand across commercial engines, aftermarket and defense$11.75 billion transaction, expected to be accretive-a) to adjusted EPS* and free cash flow* in the first yearStrong near and long-term value creation for customers and shareholders GE Aerospace (NYSE:GE) announced today that it has signed an agreement to acquire Consolidated Precision Products (CPP), a leading manufacturer of highly engineered castings, from private investment firms Warburg Pincus and Berkshire Partners.
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., said, “Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense. By combining GE Aerospace’s technology capabilities and FLIGHT DECK with CPP’s manufacturing experience, we expect to expand capacity, improve performance and accelerate new engine technologies for the current fleet and next-generation platforms.”
CPP, headquartered in Cleveland, Ohio, manufactures highly engineered castings and sub-assemblies primarily for the commercial aerospace and defense markets. Founded in 1991, CPP is one of the world's largest producers of investment and precision sand castings, producing complex super alloy, titanium, aluminum, magnesium and steel castings for a variety of leading commercial and military aircraft, weapon systems, commercial and regional/business jets, helicopters and industrial gas turbines. CPP has a global team of ~6,600 employees across more than 20 facilities. GE Aerospace has been a CPP customer for over fifteen years.
Culp added, “We will leverage FLIGHT DECK to drive process and quality improvements, supporting higher output, and integrate design and manufacturing to bring engine technologies to market faster for our customers. These improvements also will ensure manufacturing readiness to deploy enhanced airfoil technology for a more reliable ramp.”
CPP CEO James Stewart, said, “GE Aerospace has been a great partner to CPP for many years, and we are excited to further strengthen this long‑standing relationship. As we advance our position as an industry leader in castings, GE Aerospace has expressed strong enthusiasm for supporting our continued growth and expanded vision. Together, we look forward to delivering meaningful value and advancing the success of both organizations.”
Warburg Pincus Managing Director Dan Zamlong, said, “We are incredibly proud of the platform we have built in partnership with Berkshire Partners and CPP’s talented management team. CPP has been transformed into a leading precision casting company in the industry, with significant investments in its operations, technology, quality systems and talent, while expanding its ability to support customers across the commercial aerospace, defense, and power generation markets.”
Berkshire Partners Managing Director Blake Gottesman said, “Berkshire Partners is grateful to have partnered with CPP’s management team and Warburg Pincus during a critical chapter of the company’s growth. Together, we have strengthened CPP’s leadership in the castings industry, and we are excited for the company’s continued success as part of GE Aerospace.”
Transaction Details
This transaction will deliver strong near and long-term value creation for customers and shareholders:
Purchase price of $11.75 billion to be financed with $7 billion in cash, with the remainder in new debtValues CPP at ~18x 2027 EBITDA including expected net synergies, multiple of ~26x without The acquisition is expected to be accretive-a) to adjusted EPS* and free cash flow* in the first yearNo change to GE Aerospace’s capital allocation plans GE Aerospace and CPP are committed to a disciplined, well-planned integration. The transaction is expected to close in the second half of 2027 and will be subject to regulatory approvals and other customary closing conditions.
Advisors
Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as lead legal counsel to GE Aerospace. Evercore and PJT Partners are the lead financial advisors to GE Aerospace on the transaction. Morgan Stanley & Co. LLC and Guggenheim Securities, LLC are serving as financial advisors and Cleary Gottlieb is serving as legal counsel to CPP on the transaction.
About GE Aerospace
GE Aerospace is a global aerospace propulsion, services, and systems leader with an installed base of approximately 50,000 commercial and 30,000 military aircraft engines. With a global team of approximately 57,000 employees building on more than a century of innovation and learning, GE Aerospace is committed to inventing the future of flight, lifting people up, and bringing them home safely. Learn more about how GE Aerospace and its partners are defining flight for today, tomorrow and the future at www.geaerospace.com.
About Warburg Pincus
Warburg Pincus LLC is the pioneer of private equity global growth investing. A private partnership since 1966, the firm has the flexibility and experience to focus on helping investors and management teams achieve enduring success across market cycles. Today, the firm has more than $105 billion in assets under management, and more than 225 companies in their active portfolio, diversified across stages, sectors, and geographies. Warburg Pincus has been an active investor in the aerospace & defense and industrial technology sectors with current and former investments including Accelya, Aquila Air Capital, CAMP Systems, Duravant, Extant Aerospace, Infinite Electronics, Inmarsat, iNRCORE, Quest Global, Sundyne, Topcast, TransDigm, TRIUMPH, and Wencor Group. Warburg Pincus has invested in more than 1,100 companies across its private equity, real estate, and capital solutions strategies.
The firm is headquartered in New York with more than 15 offices globally. For more information, please visit www.warburgpincus.com or follow us on LinkedIn and YouTube.
About Berkshire Partners
Berkshire Partners is a 100% employee-owned, multi-sector specialist investor in private and public equity, with a focus on North American-based, middle-market companies. For more than four decades, the firm's private equity team has invested in well-positioned, growing companies across services, healthcare, industrials, and technology. Berkshire is currently investing from its Fund XI, with approximately $7.8 billion in commitments. Since inception, Berkshire Partners has made more than 140 private equity investments and has consistently worked in close partnership with management teams to build enduring businesses. Stockbridge, the firm's public equity group, was founded in 2007 and manages a concentrated portfolio seeking attractive long-term investments. For additional information, visit www.berkshirepartners.com.
Caution concerning forward-looking statements - This document contains "forward-looking statements" – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. Uncertainties related to this transaction, including expected timing and structure, the ability of the parties to satisfy regulatory and other closing conditions and the expected benefits of the transaction, or other matters as described in our SEC filings may cause our actual future results to be materially different than those expressed in our forward-looking statements; see www.geaerospace.com/investor-relations/important-forward-looking-statement-information as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q for additional details. We do not undertake to update our forward-looking statements. This document also includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.
*Non-GAAP Financial Measure
(a- excluding one-time costs and deal related amortization
GE Aerospace (GE.N) said on Tuesday it would buy castings supplier Consolidated Precision Products for $11.75 billion, bringing a key part of its engine supply chain in-house as it races to expand production capacity.
Supply-chain constraints have made it harder for engine makers to keep pace with strong demand for new engines and aftermarket parts and repairs. While conditions have improved, castings remain a key pressure point for the industry.
For GE Aerospace, the deal aims to tackle that constraint directly. The company has a large backlog stretching into the next decade and is looking to secure enough capacity to meet demand already on its books.
The acquisition is GE Aerospace's largest since it became a standalone company in 2024.
"Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense," GE Aerospace CEO Larry Culp said.
CASTINGS CONSTRAINT
CPP is one of the world's largest makers of precision sand castings, complex metal parts made by pouring molten material into molds.
It is a key supplier to GE's LEAP and GEnx commercial engines and makes parts for nearly every major current-generation commercial aircraft program. About 70% of its revenue comes from commercial and defense engines.
GE said it expects CPP to generate about $2 billion in revenue in 2027.
GE also expects its demand for airfoils to rise more than 30% by 2030 from 2026 levels. Airfoils include turbine blades and vanes that operate in some of the hottest parts of an engine.
That demand is coming from two fronts. Culp has said GE and its suppliers face competing demands from aircraft makers seeking more new engines and airlines needing more parts and repairs. The same supply chain serves both markets, requiring suppliers to keep raising output to meet demand on both fronts.
The announcement of the deal comes days after SpaceX (SPCX.O) CEO Elon Musk touted his company's ambitions to manufacture turbine blades to cater to its own power needs.
GE said it expects to raise CPP's output by improving factory yields and machine use while cutting scrap and rework.
The CEO of leasing company AerCap (AER.N), Aengus Kelly, said the deal was important because engines remain a major constraint on aircraft production.
"You want to be in control of that critical part of your supply chain," Kelly told CNBC of castings and forgings, adding that an engine maker such as GE could take a longer-term view of investments needed to expand capacity.
Vertical Research analyst Robert Stallard said the deal made strategic sense given continued tightness in engine castings.
The acquisition could raise questions for other aerospace companies that rely on CPP for parts. Stallard said it remained to be seen whether the deal would affect CPP's non-GE customers.
RTX (RTX.N), whose Pratt & Whitney unit buys engine components from CPP and competes with GE, declined to comment. Howmet Aerospace (HWM.N), a major rival to CPP in aerospace castings, also declined to comment.
GE Aerospace shares were little changed in afternoon trading, while Howmet fell about 8%.
MORE THAN CAPACITY
GE also sees the deal as a way to bring new engine technology into production faster.
The company said its enhanced airfoil technology can lower metal temperatures inside engines, helping improve durability and efficiency. The technology can be used on the LEAP as well as future engines.
By bringing airfoil design and manufacturing closer together, GE expects to shorten development times and make it easier to ramp up production of new parts.
The deal values CPP at about 26 times its expected 2027 core profit before benefits GE expects from combining the businesses, falling to about 18 times after including them.
GE will fund $7 billion of the purchase with cash and the rest with new debt. The deal is expected to close in the second half of 2027.
GE Aerospace has struck a deal to buy engineered-castings maker Consolidated Precision Products from private investment firms Warburg Pincus and Berkshire Partners for $11.75 billion.
GE Aerospace (GE) is seeing a modest increase in its stock price following its announcement to acquire Consolidated Precision Products (CPP) for $11.75 billion.
Verizon has quietly staged one of the year's most surprising large-cap comebacks, but the real question is whether the stock's best days are still ahead or already priced in.
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Shares of Verizon (NYSE:VZ | VZ Price Prediction) have quietly become one of the year’s most interesting large-cap turnaround stories. The stock has climbed 29.5% year to date and sits within striking distance of its 52-week high.
Even so, our proprietary model still sees room to run. Our 24/7 Wall St. price target for Verizon is $56.60, implying 11.6% additional upside from the current $50.78 quote. The model rates this a buy with high confidence.
Metric Value Current Price $50.78 24/7 Wall St. Price Target $56.60 Upside 11.6% Recommendation BUY Confidence Level 90% A Turnaround That Is Actually Working Verizon’s Q2 2026 report, delivered on July 24, 2026, marked its sixth consecutive earnings beat. Adjusted EPS came in at $1.30 versus a $1.27 consensus, on revenue of $34.25 billion.
Adjusted EBITDA margin expanded to 40.1% from 37.1%, postpaid phone net adds swung to 184,000 from a loss of 9,000 a year earlier, and free cash flow jumped 27.12% to $6.426 billion.
Management raised FY26 adjusted EPS guidance to $4.99 to $5.04 and lifted the buyback target to $4.5 billion. CEO Dan Schulman called it “a structural inflection point across our entire business.”
Why Bulls See a Breakout Above $60 The bull case is grounded in three levers. First, fiber. Verizon expects to exceed 32 million fiber passings by year-end, with a medium-term goal of 40 to 50 million. Fiber-broadband connections already grew 43.3% YoY to 10.9 million.
Second, AI infrastructure. Schulman flagged discussions with hyperscalers around dark fiber, lit fiber, and 5G assets that could unlock “multi billions in revenues.” Carriers are only one slice of that buildout, and we profiled seven other companies powering, cooling, and connecting AI data centers in a free report here.
Third, churn. Postpaid phone churn improved to 0.92%, and every basis point compounds. If the AI-revenue narrative materializes, our bull-case path lands at $63.82.
What Could Go Wrong Verizon carries $136.5 billion in unsecured debt and net leverage rose to 2.5x from 2.2x post-Frontier. GAAP net income fell 21.07% on $1.8 billion in special items, wireless retail postpaid ARPA slipped 1.4% to $168.35, and FWA net adds dropped 30.6%.
Bulls would counter that the special items are non-recurring and adjusted EBITDA still grew 7.2%. In a bear scenario, our model floor is $49.49.
How Verizon Stacks Up Against AT&T and T-Mobile AT&T (NYSE:T) is the closest strategic analog. Its Q2 2026 adjusted EPS of $0.65 beat by 10.71%, with fiber reaching 38.6 million locations and postpaid phone net adds of 432,000.
AT&T’s $179 billion market cap trades at a modest discount to Verizon’s $210.98 billion, but AT&T is guiding to $45 billion+ in shareholder returns through 2028, roughly matching Verizon’s return profile on a smaller base.
T-Mobile US (NASDAQ:TMUS) is the growth benchmark. Q2 revenue rose 7.85% to $22.79 billion, with Core Adjusted EBITDA margin at 50.2%. Postpaid ARPA of $152.91 and a market cap of $202.7 billion imply investors pay a premium for growth.
That premium is exactly why Verizon’s yield-and-turnaround setup at a lower implied multiple makes the 24/7 Wall St. price target look reasonable rather than aggressive.
Verizon Price Prediction 2026-2030 The model’s verdict: Buy, with a 24/7 Wall St. price target of $56.60 and 90% confidence. Margin expansion, six straight beats, and a $2.83 forward dividend that funds patience.
The bull thesis strengthens if Verizon delivers Q3 service revenue growth near the guided 3% and continues repaying Frontier debt. The thesis weakens if leverage climbs above 2.7x or postpaid churn ticks back above 1%.
Year 24/7 Wall St. Price Target 2026 $52.17 2027 $56.35 2028 $61.67 2029 $66.40 2030 $70.53 These projections assume Verizon executes on its fiber build-out, extracts Frontier synergies, and captures early AI-infrastructure revenue. Meaningful upside or downside would come from either a hyperscaler-scale AI network deal or a resurgence in promotional wireless competition.
Contact [email protected] for any questions or corrections.
Verizon just signed a supply agreement with Corning that runs through 2032, and the scale of the commitment reveals exactly how aggressively the carrier plans to rewire its growth around fiber and AI infrastructure.
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80 Million Miles of Glass 80 million miles. That is the volume of high-density optical fiber and connectivity solutions Verizon (NYSE:VZ | VZ Price Prediction) has committed to buy from Corning (NYSE:GLW) under a multi-billion dollar agreement running 2027 to 2032, according to terms revealed alongside a Tuesday announcement covered by Barron’s. The deal names Corning Contour Flow Cable as a supplied product and deepens an existing 30-year Verizon-Corning relationship. The agreement spans both use cases: Verizon has locked in supply for consumer broadband and fiber-to-the-home buildout as well as the long-haul backbone for AI data centers.
What It Means Operationally Verizon is buying certainty. On its most recent call, CEO Hans Vestberg said the carrier is “solidly on track to have more than 32 million fiber passings by the end of this year” and is still “very focused on driving our fiber footprint 40 to 50 million over the medium term.” Reaching that medium-term footprint requires glass, and lots of it. An 80 million mile commitment covers both the fiber-to-the-home push and the dark and lit fiber Verizon plans to sell into AI infrastructure, where management has flagged “potentially multi billions in revenues” from hyperscalers and enterprises.
Verizon closed Q2 FY2026 with 10.9 million fiber broadband connections, up 43.3% year over year, and 348,000 broadband net adds, up 12.3% year over year. The Frontier Communications acquisition closed Jan 20, 2026, pushing the fiber footprint to 30 million-plus homes and businesses. Locking in supply through 2032 removes a bottleneck at exactly the moment Corning is telling investors “if we could make more, we could sell more.” Corning is one of the quieter names powering the AI data-center buildout, and we profiled seven suppliers like it, from power to cooling to fiber, in a free report you can grab here.
Market Reaction Verizon shares traded at $50.37 on Tuesday morning, up 0.46% on the session. The stock is up 8.39% over the past month and 29.89% year to date. Corning, the supplier side of the trade, traded at $161.46, up 8.58% over the past week and 85.38% year to date.
Bull Case For long-term Verizon holders, this contract does three things at once. It underwrites the network Verizon needs to hit its 40 to 50 million fiber-passings goal, it hard-wires the physical layer for the AI infrastructure revenue Dan Schulman flagged when he said “with the emergence of AI infrastructure revenue, we are fundamentally reshaping Verizon’s growth trajectory”, and it does so alongside a balance sheet already funding the raised FY2026 buyback target of up to $4.5B and a $0.7075 quarterly dividend.
The operating results back the strategy. Q2 FY2026 delivered adjusted EPS of $1.30 versus a $1.27 consensus, the sixth straight EPS beat. Adjusted EBITDA margin expanded to 40.1% from 37.1%. Free cash flow reached $6.426 billion, up 27.12% year over year. Postpaid phone churn improved to 0.92% from 0.97%, and postpaid phone net adds swung to 184,000 from a loss of 9,000 a year earlier. Management has told investors converged customers show “almost 30% less” churn. More fiber, sold into more homes, alongside wireless, is the bull thesis, and Verizon just secured six years of the raw material to execute it.
Bottom Line An 80 million mile supply commitment through 2032 is the kind of number long-term holders should weigh heavier than any single quarter. It aligns Verizon’s capex plan, its $16.0 to $16.5 billion FY2026 capex range, its Frontier integration, and its AI infrastructure ambitions behind one physical asset base. Management has told investors more specifics on AI infrastructure revenue are due “in the next three to six months.” That is the next catalyst. The glass is already ordered.
Contact [email protected] for any questions or corrections.
California State Teachers Retirement System raised its position in shares of The Home Depot, Inc. (NYSE:HD – Free Report) by 34,873.9% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 525,674,125 shares of the home improvement retailer’s stock after buying an additional 524,171,077 shares during the quarter. California State Teachers Retirement System owned about 52.72% of Home Depot worth $185,394,750,000 as of its most recent SEC filing.
Other large investors have also added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in Home Depot during the second quarter valued at $28,771,247,000. State Street Corp increased its holdings in shares of Home Depot by 1.8% in the 4th quarter. State Street Corp now owns 46,925,342 shares of the home improvement retailer’s stock worth $16,147,010,000 after buying an additional 825,164 shares during the last quarter. Geode Capital Management LLC raised its position in shares of Home Depot by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 23,756,142 shares of the home improvement retailer’s stock valued at $8,151,344,000 after buying an additional 343,153 shares in the last quarter. Bank of America Corp DE purchased a new stake in shares of Home Depot during the 2nd quarter valued at about $5,780,468,000. Finally, Charles Schwab Investment Management Inc. increased its stake in Home Depot by 7.8% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 15,471,132 shares of the home improvement retailer’s stock worth $5,323,620,000 after acquiring an additional 1,113,114 shares during the last quarter. Institutional investors own 70.86% of the company’s stock.
Insider Buying and Selling In other news, EVP Teresa Roseborough sold 2,455 shares of the company’s stock in a transaction on Friday, August 28th. The stock was sold at an average price of $328.77, for a total transaction of $807,130.35. Following the transaction, the executive vice president directly owned 14,061 shares of the company’s stock, valued at approximately $4,622,834.97. This represents a 14.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Michael F. Rowe sold 710 shares of the firm’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $336.76, for a total transaction of $239,099.60. Following the completion of the transaction, the executive vice president directly owned 6,838 shares of the company’s stock, valued at approximately $2,302,764.88. This represents a 9.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 9,154 shares of company stock worth $3,132,798 in the last three months. 0.08% of the stock is owned by insiders.
Analyst Ratings Changes A number of equities analysts have recently commented on the company. Jefferies Financial Group reiterated a “buy” rating and issued a $398.00 target price on shares of Home Depot in a report on Tuesday, August 18th. Wells Fargo & Company raised their price target on Home Depot from $360.00 to $400.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 11th. UBS Group dropped their price target on shares of Home Depot from $430.00 to $420.00 and set a “buy” rating for the company in a research note on Wednesday, August 19th. Royal Bank Of Canada reduced their price objective on shares of Home Depot from $343.00 to $342.00 and set a “sector perform” rating on the stock in a research report on Wednesday, August 19th. Finally, Morgan Stanley reduced their target price on Home Depot from $420.00 to $400.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 20th. Eighteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $375.54. View Our Latest Analysis on HD
Home Depot Trading Down 0.0% NYSE:HD opened at $320.94 on Tuesday. The firm has a 50-day simple moving average of $338.76 and a 200-day simple moving average of $335.58. The Home Depot, Inc. has a one year low of $289.10 and a one year high of $426.75. The firm has a market cap of $320.20 billion, a P/E ratio of 22.46, a P/E/G ratio of 3.53 and a beta of 0.95. The company has a debt-to-equity ratio of 2.64, a quick ratio of 0.31 and a current ratio of 1.08.
Home Depot (NYSE:HD – Get Free Report) last issued its quarterly earnings data on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.73 by $0.19. The company had revenue of $47.86 billion for the quarter, compared to analyst estimates of $47.24 billion. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. Home Depot’s revenue was up 5.7% compared to the same quarter last year. During the same period last year, the company posted $4.68 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Equities analysts anticipate that The Home Depot, Inc. will post 15 EPS for the current fiscal year.
Home Depot Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, September 3rd will be paid a dividend of $2.33 per share. This represents a $9.32 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Thursday, September 3rd. Home Depot’s dividend payout ratio is 65.22%.
About Home Depot (Free Report)
The Home Depot, Inc (NYSE: HD) is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.
Home Depot’s core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.
Further Reading Five stocks we like better than Home Depot 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane Want to see what other hedge funds are holding HD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Home Depot, Inc. (NYSE:HD – Free Report).
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Goldman Sachs (GS.N) said on Tuesday it has opened a new office in Bellevue, Washington, to serve as a dedicated engineering location for more than 125 employees focused on AI and cloud transformation.
Corporate America has stepped up investments in AI as the fast-growing technology promises to transform business operations and boost productivity.
"The Pacific Northwest is home to many of the world’s top engineering schools and a deep pool of talent," Goldman CEO David Solomon said in a statement. "Hiring exceptional talent is central to how we adapt and grow."
The Wall Street giant employs more than 12,000 engineers, representing roughly one-quarter of its global workforce, who play a critical role in developing the technologies that power its businesses, it said.
BlackRock (BLK - Free Report) closed the most recent trading day at $1,095.37, moving -2.4% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.58%. Elsewhere, the Dow lost 1.18%, while the tech-heavy Nasdaq lost 0.32%.
Coming into today, shares of the investment firm had lost 0.81% in the past month. In that same time, the Finance sector gained 0.23%, while the S&P 500 lost 0.36%.
The investment community will be closely monitoring the performance of BlackRock in its forthcoming earnings report. In that report, analysts expect BlackRock to post earnings of $14.24 per share. This would mark year-over-year growth of 23.29%. Meanwhile, our latest consensus estimate is calling for revenue of $7.44 billion, up 14.26% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $55.86 per share and a revenue of $28.8 billion, indicating changes of +16.16% and +18.92%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for BlackRock. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.41% upward. As of now, BlackRock holds a Zacks Rank of #3 (Hold).
Looking at valuation, BlackRock is presently trading at a Forward P/E ratio of 20.09. This indicates a premium in contrast to its industry's Forward P/E of 12.11.
One should further note that BLK currently holds a PEG ratio of 1.24. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial - Investment Management industry was having an average PEG ratio of 1.21.
The Financial - Investment Management industry is part of the Finance sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 42% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Key Takeaways McDonald's delayed its 50,000-restaurant target to 2028 amid higher costs and consumer pressure.MCD still plans about 2,600 gross openings in 2026, its fastest restaurant growth period ever.McDonald's says new openings support growth, while return quality remains central to development. McDonald’s Corporation (MCD - Free Report) has pushed its target of reaching 50,000 restaurants globally to 2028 from the end of 2027, citing higher development costs and a pressured consumer environment. The adjustment follows a review of its restaurant pipeline and signals a more measured approach to expansion.
The decision reinforces McDonald’s established focus on investment returns. The company adjusted its opening pace to support appropriate returns on new locations, emphasizing the quality of development alongside the number of openings. It continues to see significant opportunities to expand its footprint despite the revised schedule.
Despite the adjustment, McDonald’s said it remains in the fastest period of restaurant growth in its history. The company remains on track to open approximately 2,600 gross restaurants in 2026. New openings are contributing to growth, with second-quarter systemwide sales increasing 4% year over year in constant currency.
For McDonald’s, moderating expansion could help preserve the financial appeal of new locations as investment costs rise. The longer timeline provides flexibility to pursue growth at a pace consistent with its return objectives. This supports a disciplined approach to development, with new-restaurant performance remaining the key indicator of success.
Key Competitors Taking Different Paths on Unit GrowthStarbucks Corporation (SBUX - Free Report) is taking a more selective approach to coffeehouse development as it works to build a stronger store base. Management said every new coffeehouse must “earn its place,” while net new company-operated unit growth in North America may remain modest through fiscal 2027. Starbucks is also gaining greater visibility into underperforming locations that could be closed while rebuilding its U.S. development pipeline and directing near-term resources toward coffeehouse uplifts, where early results are showing transaction gains. International markets are expected to remain a meaningful contributor to unit growth, supporting the company’s fiscal 2026 target of approximately 600-650 net new coffeehouses.
Dutch Bros Inc. (BROS - Free Report) continues to pursue a faster unit expansion strategy, supported by strong new-shop productivity and a growing development pipeline. The company opened 48 system shops in the second quarter and has approximately 90% of the pipeline needed to reach 2,029 shops by 2029. Management said new-shop productivity remained strong alongside rising systemwide AUVs, while several newer markets were annualizing above expectations. Company-operated shop contribution margin reached approximately 31% in the second quarter, although higher coffee and occupancy costs are expected to pressure adjusted EBITDA margin in 2026. With at least 185 system shop openings expected this year, Dutch Bros’ approach contrasts with MCD’s more measured expansion pace, highlighting the importance of new-store productivity and disciplined development as restaurant operators balance growth with attractive returns.
MCD’s Price Performance, Valuation & EstimatesShares of McDonald’s have declined 18.3% over the past year compared with the industry’s fall of 7.5%.
MCD’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 6.22, above the industry’s average of 3.23.
MCD’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MCD’s 2026 earnings per share (EPS) implies a year-over-year rise of 5.5%. The EPS estimates for 2026 have declined in the past 30 days.
EPS Trend of MCD Stock
Image Source: Zacks Investment Research
MCD’s Zacks RankMCD stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service, which provides daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter, makes these more manageable goals. All of the features can help you identify what stocks to buy, what to sell, and what are today's hottest industries.
It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market.
Breaking Down the Zacks Focus ListBuilding an investment portfolio from scratch can be difficult, so if you could, wouldn't you take a peek at a curated list of top stocks?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
One thing that makes the Focus List even more advantageous is that each pick comes with a full Zacks Analyst Report. This helps explain why each stock was selected and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each one of these features is then given a raw score that's recalculated every night and compiled into the Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Starbucks (SBUX - Free Report) Starbucks is a global roaster, marketer and retailer of specialty coffee, operating in 90 markets worldwide. As of March 29, 2026, the company had 41,129 company-operated and licensed stores. The United States and China represented 61% of the global portfolio, with 16,944 stores in the United States and 7,991 in China.
SBUX, a #3 (Hold) stock, was added to the Focus List on August 16, 2019 at $95.93 per share. Since then, shares have increased 8.9% to $104.47.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.17 to $2.58. SBUX also boasts an average earnings surprise of 8.4%.
Additionally, SBUX's earnings are expected to grow 21.1% for the current fiscal year.
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PRAGUE--(BUSINESS WIRE)--STARTEEPO SICAV a.s. (“STARTEEPO”) today issued an investor presentation and the following letter to the Board of Directors (the “Board”) of Xerox Holdings Corporation (“Xerox” or the “Company”) (NASDAQ: XRX). STARTEEPO, which has increased its investment in Xerox to a beneficial ownership of 7.34%, in stocks and options, is urging the Board to take bold actions to unlock significant shareholder value, including by increasing transparency about Xerox Financial Services'.
Medicare Part B premiums keep climbing, and Social Security checks keep shrinking to cover them. Three Dividend Kings with very different yields and coverage profiles could shift that math entirely in a retiree's favor.
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For anyone on Medicare, the Part B premium is a bill that arrives every month without fail, usually withheld right out of the Social Security check. CMS set the standard monthly Part B premium at $202.90 for 2026, an increase of $17.90 from $185.00 in 2025. The question this article answers is simple: what does it take, in capital, for dividends alone to cover that recurring line item? Three blue-chip Dividend Kings, PepsiCo (NASDAQ:PEP | PEP Price Prediction), Johnson & Johnson (NYSE:JNJ), and Coca-Cola (NYSE:KO), offer three different combinations of yield, coverage, and dividend track record to do exactly that.
There are a couple caveats to this roster. First, the annual Part B deductible is $283 in 2026, an increase of $26 from $257 in 2025, so the premium is not the only Part B cash outflow. Second, income-related monthly adjustment amounts affect roughly 8% of people with Medicare Part B, and higher-income filers pay meaningfully more, all the way up to $689.90 per month at the top bracket. The math below is anchored to the standard premium.
PepsiCo: The Highest Yield in the Trio PepsiCo trades at $137.63 with a dividend yield of 4.06%, the richest starting yield in this bundle. The current quarterly payout is $1.48 per share, with an annualized forward dividend of $5.92 per share. For an income investor trying to defray Medicare, PEP delivers the most premium coverage per dollar of capital in this group.
Free cash flow yield of 4.08% essentially matches the dividend yield, and management guides FY2026 total cash returns of about $8.9B, with dividends around $7.9B, funded by free cash flow conversion of at least 80%. Interest coverage sits at 12.03x. The dividend track record is the anchor: PepsiCo announced a 4% annualized dividend increase beginning with the June 2026 payment, representing the 54th consecutive annual increase, comfortably a Dividend King.
The bull case for a Medicare-focused income investor is that PEP offers a rare combination of a 4%-plus yield on a wide-moat consumer staple with more than five decades of payout growth, backed by international momentum (LatAm Foods +15%, EMEA +10%, Asia Pacific Foods +12% in Q2 2026). The caveat is that PFNA revenue declined about 2% in Q2 on weaker effective net pricing and core operating margin contracted 40 basis points, while the balance sheet carries a debt/equity ratio of 2.45. Coverage is fine; margin discipline is the thing to watch.
Johnson & Johnson: The Longest Streak, the Deepest Coverage Johnson & Johnson trades at $275.23, with a market cap near $663.3B. The current quarterly payout is $1.34, with an annualized forward dividend of $5.36 per share. JNJ has the lowest headline yield of the three but arguably the strongest cash-flow cushion, and the longest streak.
The board approved a 3.1% dividend increase in Q1 2026 to $1.34 per share quarterly, marking the 64th consecutive year of dividend increases. Coverage is not close: FY2025 free cash flow was $19.7B against a dividend load that JNJ can absorb many times over. FY2026 guidance was raised to reported sales of $100.3B to $101.3B and adjusted EPS of $11.45 to $11.65, and Q1 2026 revenue landed at $24.06B, up 9.9% year over year. Standout oncology assets include DARZALEX at $3.96B (+22.5%) and CARVYKTI at $597M (+62.1%).
The bull case for retirees is straightforward: 64 years of consecutive increases, a diversified pharma and MedTech portfolio, and a planned Orthopaedics separation that sharpens focus. The caveat is STELARA biosimilar erosion of 59.7% in Q1, creating roughly a 920 basis point drag on Innovative Medicine growth, alongside ongoing litigation charges of $330M in Q1 2026 and $854M in Q4 2025. Neither dents dividend coverage, but both drag headline earnings comparisons.
Coca-Cola: Iconic Payer, Richest Valuation Coca-Cola trades at $88.07 with a dividend yield of 2.32%. The current quarterly payout is $0.53 per share, with an annualized forward dividend of $2.12 per share. That yield is the lowest of the three, which means KO requires the most capital to fund the same Medicare bill. What KO offers in exchange is best-in-class quality metrics and one of the most durable payout histories in the entire market.
The dividend record supplied shows sustained annual increases from $0.16 per share in 1999 through $0.53 per share in 2026, consistent with KO’s status as a widely recognized Dividend King with more than 60 years of consecutive annual increases. Coverage is comfortable: FY2026 guidance calls for organic revenue growth of about 5%, comparable EPS growth of 9% to 10%, and free cash flow of roughly $12.4B. Return on equity runs 45.97%, with a gross margin of 61.6% and operating margin of 28.7%. Q2 2026 delivered revenue of $13.38B (+6.7% YoY) with global unit case volume up 5%, led by India, China, US, and Brazil.
The bull case is quality plus staying power: a wide-moat brand system, high-return operations, and FIFA World Cup 2026 activation driving volumes. The caveat is valuation. KO trades at a P/E of roughly 29 and a P/FCF of roughly 72, which caps the effective yield an investor gets on new capital and leaves less margin for error if consumer demand softens.
Blending the Three Kings Three Dividend Kings, three different tradeoffs against one recurring bill. PEP’s 4.06% yield does the heaviest lifting per dollar of capital, JNJ pairs a lower yield with $19.7B in annual free cash flow and a 64-year streak, and KO trades the thinnest current yield for arguably the most bulletproof brand economics in staples. Split evenly, the blend gives a Medicare-focused retiree a coverage profile that does not depend on any single company holding its price, its payout, or its end market (if you want a wider bench of 50-plus-year raisers screened by valuation, we ranked ten of them in a free Dividend Kings report). And because the 2026 Part B standard premium of $202.90 was a $17.90 increase from 2025, dividend growth, not just dividend yield, is what keeps this strategy intact as premiums drift higher.
Contact [email protected] for any questions or corrections.
Coca-Cola (KO +0.33%) and PepsiCo (PEP +0.60%) are iconic businesses, and their stocks are known for being among the best income-generating investments to own.
However, they've been going in vastly different directions. In the past three years, Coca-Cola's stock has risen by around 50%, while PepsiCo's has declined by 21%. And as dividend investors know, that means their yields have been going in opposite directions; Coca-Cola's yield has been shrinking while PepsiCo's has been rising.
But there's more to assessing dividend stocks than just looking at their yields and past performances. Below, I'll look at both of these stocks to see which one is the best option for dividend investors right now, considering their yields, dividend growth rates, overall financial strength, and valuations.
Image source: Getty Images.
PepsiCo's yield is higher, and its increases have been more generous in recent yearsBoth PepsiCo and Coca-Cola have been increasing their payouts for more than 50 consecutive years, making them Dividend Kings. Past dividend growth doesn't guarantee future increases, but it is indicative of a company's commitment to growing the payout. Plus, it also demonstrates confidence in its future earnings growth.
Investors should also, however, consider the rate of dividend increases. A stock that raises its payout by just one cent would technically be increasing it, but that can mean minimal incremental dividend income for an investor. In the past five years, PepsiCo has raised its dividend at a noticeably higher rate than Coca-Cola.
KO Dividend data by YCharts
PepsiCo already offers a higher yield of 4.3% versus 2.4% for Coca-Cola, which gives it the edge in this area. If this trend continues, the gap may grow larger in the future.
Coca-Cola has a leaner business and a lower payout ratioCoca-Cola has a simpler, less complex business model than PepsiCo, which, in addition to beverages, also includes many top snacking brands. Its business is bulkier, and as a result, its margins are not as impressive as Coca-Cola's. While PepsiCo has averaged a profit margin of around 11% over the trailing 12 months, Coca-Cola's margin is up around 28%.
Furthermore, Coca-Cola's payout ratio of 63% is lower than PepsiCo's, which is around 75%. With a lower payout ratio and better margins, Coca-Cola may be in a stronger position to increase its dividend at a faster rate in the future -- but it's by no means a guarantee.
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Investors are paying significantly more for Coca-Cola stockAs good a business as Coca-Cola may be, the stock itself is priced at a hefty premium. It's trading at a forward price-to-earnings (P/E) multiple of 25, which is based on analyst projections of its future earnings. By comparison, PepsiCo's forward P/E is only 15.
The risk with paying a high multiple is that it can limit future returns, and the stock may even be due for a decline if its valuation is highly inflated. While investors have been much more bullish on Coca-Cola's stock in recent years, that may not necessarily be the case in upcoming years, particularly with its forward P/E multiple being as high as it is right now.
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PepsiCo is the dividend stock I'd buy todayCoca-Cola has better margins and a lower payout ratio, but that's not enough to make it the better overall dividend stock. Even if Coca-Cola's dividend increases are more generous in future years, the gap between the yields is already fairly significant. Without significant changes in their respective share prices, it could take a long time for Coca-Cola to catch up to PepsiCo.
Ultimately, I don't see a compelling reason why Coca-Cola should be worth a drastically higher premium than PepsiCo. Both businesses are doing well, and even if PepsiCo's rate hikes may not be as high moving forward, it already makes for a fairly safe, high-yielding investment today. At a discounted valuation, it looks to have much more potential upside than Coca-Cola.
California State Teachers Retirement System increased its holdings in shares of Hilton Worldwide Holdings Inc. (NYSE:HLT – Free Report) by 37,154.8% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 108,102,719 shares of the company’s stock after buying an additional 107,812,548 shares during the period. California State Teachers Retirement System owned about 48.03% of Hilton Worldwide worth $35,723,625,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other hedge funds and other institutional investors have also added to or reduced their stakes in HLT. Empowered Funds LLC purchased a new position in Hilton Worldwide in the 2nd quarter worth approximately $10,140,000. Jefferies Financial Group Inc. purchased a new position in Hilton Worldwide during the second quarter worth approximately $1,909,000. Northwestern Mutual Wealth Management Co. boosted its stake in Hilton Worldwide by 2.4% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 200,598 shares of the company’s stock worth $66,290,000 after buying an additional 4,700 shares during the last quarter. Allstate Corp grew its holdings in Hilton Worldwide by 100.2% in the 4th quarter. Allstate Corp now owns 16,678 shares of the company’s stock valued at $4,791,000 after buying an additional 8,348 shares in the last quarter. Finally, Cumberland Partners Ltd increased its stake in shares of Hilton Worldwide by 100.0% in the 4th quarter. Cumberland Partners Ltd now owns 15,000 shares of the company’s stock worth $4,309,000 after acquiring an additional 7,500 shares during the last quarter. 95.90% of the stock is owned by hedge funds and other institutional investors.
Hilton Worldwide Price Performance Shares of NYSE HLT opened at $310.97 on Tuesday. The company has a market cap of $69.99 billion, a price-to-earnings ratio of 45.66, a price-to-earnings-growth ratio of 2.51 and a beta of 1.05. The stock’s 50-day moving average is $324.68 and its two-hundred day moving average is $322.06. Hilton Worldwide Holdings Inc. has a 1-year low of $253.54 and a 1-year high of $358.00.
Hilton Worldwide (NYSE:HLT – Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The company reported $2.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.27 by $0.02. Hilton Worldwide had a negative return on equity of 35.24% and a net margin of 12.69%.The business had revenue of $1.38 billion during the quarter, compared to analysts’ expectations of $3.32 billion. During the same quarter last year, the business posted $2.20 EPS. The business’s quarterly revenue was up 6.5% compared to the same quarter last year. Hilton Worldwide has set its Q3 2026 guidance at 2.280-2.340 EPS and its FY 2026 guidance at 8.890-9.010 EPS. Equities research analysts anticipate that Hilton Worldwide Holdings Inc. will post 9.08 earnings per share for the current fiscal year. Hilton Worldwide Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, August 21st will be given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 0.2%. The ex-dividend date of this dividend is Friday, August 21st. Hilton Worldwide’s dividend payout ratio is currently 8.81%.
Analyst Upgrades and Downgrades HLT has been the topic of several analyst reports. Wolfe Research assumed coverage on Hilton Worldwide in a report on Wednesday, September 2nd. They set a “peer perform” rating on the stock. Robert W. Baird raised their price objective on shares of Hilton Worldwide from $359.00 to $360.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 29th. Barclays increased their price target on shares of Hilton Worldwide from $367.00 to $368.00 and gave the company an “overweight” rating in a research note on Wednesday, July 29th. Argus upped their price objective on Hilton Worldwide from $380.00 to $400.00 and gave the company a “buy” rating in a report on Monday, June 15th. Finally, Morgan Stanley raised their price objective on Hilton Worldwide from $319.00 to $332.00 and gave the stock an “overweight” rating in a research report on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $353.82.
View Our Latest Analysis on Hilton Worldwide
Hilton Worldwide Company Profile (Free Report)
Hilton Worldwide Holdings Inc is a global hospitality company that develops, owns, manages and franchises a broad portfolio of hotels and resorts. Its business spans full-service luxury and lifestyle properties, select- and focused-service hotels, and extended-stay accommodations. The company generates revenue through management and franchise fees, owned and leased real estate, and guest services, and supports customer retention and direct bookings through its Hilton Honors guest loyalty program.
Hilton’s brand portfolio includes internationally recognized names across the lodging spectrum, from luxury and upper-upscale brands to midscale and extended-stay offerings.
Recommended Stories Five stocks we like better than Hilton Worldwide 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane Want to see what other hedge funds are holding HLT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Hilton Worldwide Holdings Inc. (NYSE:HLT – Free Report).
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Key Takeaways FIGR benefits from blockchain lending, tokenized assets and crypto-backed loans.CHYM Financial is working to bring dollar-tied stablecoins into everyday user payments.PAY integrates PayPal's "Checkout with Crypto" feature into its bill-payment technology. Wall Street’s cryptocurrency environment has improved meaningfully over the past few months, although the market remains highly sensitive to interest rates, Treasury yields and regulatory developments. The biggest shift has been the growing importance of institutional capital, with Bitcoin (BTC) and Ethereum (ETH) increasingly traded through regulated exchange-traded products rather than solely through traditional crypto exchanges. Figure Technology Solutions, Inc. (FIGR - Free Report) , Chime Financial, Inc. (CHYM - Free Report) and Paymentus Holdings, Inc. (PAY - Free Report) are three crypto-related stocks that must be watched in this environment.
ETF Demand ReturnsCrypto ETF flows have emerged as one of the clearest indicators of institutional sentiment. After periods of heavy outflows earlier in the year, demand strengthened significantly during August. Between Aug. 17 and Aug. 20, U.S. spot Bitcoin ETFs attracted about $1.6 billion, their strongest weekly inflow pace of 2026 at that point.
The momentum continued into early September. Bitcoin ETFs recorded $986.9 million of inflows during the week ended Sept. 4, while demand for Ethereum and several newer altcoin ETFs cooled. More recently, Bitcoin ETFs attracted $730.8 million in a single session, while Ethereum ETFs added $141.4 million.
This suggests that institutional investors continue to view Bitcoin as the primary digital-asset exposure, while interest in Ethereum and other cryptocurrencies remains more dependent on market momentum.
Regulation Improves the BackdropRegulatory developments have also become increasingly important. The proposed CLARITY Act, which seeks to establish clearer oversight of digital assets and divide responsibilities between regulators, has become a major focus for Wall Street. Although Senate action was delayed until September, the prospect of clearer rules has helped support institutional participation.
The U.S. Securities and Exchange Commission (“SEC”) has separately moved toward a more accommodating framework. In August, SEC Chair Paul Atkins outlined proposed rules that would create exemptions specifically designed for innovation and fundraising in crypto markets.
Stablecoins are another important part of the institutional story. The GENIUS Act has established a federal framework for payment stablecoins, potentially encouraging their use in payments and financial-market infrastructure.
Rates Remain the Biggest RiskDespite the improving structural backdrop, crypto remains closely tied to Wall Street's macro environment. Bitcoin recently moved around the $80,000 level, but a stronger-than-expected August jobs report pushed Treasury yields higher and reduced expectations for near-term Federal Reserve easing.Top of FormBottom of Form
Our ChoicesThe stocks below have a Zacks Rank #1 (Strong Buy) or Rank #2 (Buy), and positive returns and margins. You can see the complete list of today’s Zacks #1 Rank stocks here.
Figure Technology is a fintech and blockchain-native capital marketplace, using blockchain for lending and tokenized assets, with direct crypto exposure through crypto-backed loans. FIGR’s expected earnings growth rate for the next year is 168.2%. The Zacks Consensus Estimate for its current-year earnings has improved 25.5% over the past 60 days. The company currently sports a Zacks Rank #1.
Chime Financial is a digital banking company offering payments, working to bring stablecoins (cryptocurrencies tied to the U.S. dollar) into everyday user payments. CHYM’s expected earnings growth rate for the next year is 109.6%. The Zacks Consensus Estimate for its current-year earnings has improved 36.7% over the past 60 days. The company currently carries a Zacks Rank #2.
Paymentus is a provider of cloud-based electronic bill-payment and revenue-management technology with native integration with PayPal Holdings, Inc.’s (PYPL - Free Report) "Checkout with Crypto" feature. PAY’s expected earnings growth rate for the next year is 40.9%. The Zacks Consensus Estimate for its current-year earnings has improved 14.8% over the past 60 days. The company currently has a Zacks Rank #2.
Bottom LineWall Street’s crypto environment appears increasingly institutional, with ETF flows, regulatory progress and stablecoin adoption providing important support. However, cryptocurrencies remain high-beta assets, leaving Bitcoin and other digital assets vulnerable to higher yields, changing Fed expectations and broader risk-off sentiment.
Qualcomm (QCOM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this chipmaker have returned +4.1% over the past month versus the Zacks S&P 500 composite's -0.4% change. The Zacks Electronics - Semiconductors industry, to which Qualcomm belongs, has lost 4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Qualcomm is expected to post earnings of $2.18 per share, indicating a change of -27.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.4% over the last 30 days.
The consensus earnings estimate of $10.54 for the current fiscal year indicates a year-over-year change of -12.4%. This estimate has changed -0.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $10.06 indicates a change of -4.6% from what Qualcomm is expected to report a year ago. Over the past month, the estimate has changed -0.6%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. 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 #4 (Sell) for Qualcomm.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Qualcomm, the consensus sales estimate of $10.18 billion for the current quarter points to a year-over-year change of -9.7%. The $42.9 billion and $44.41 billion estimates for the current and next fiscal years indicate changes of -2.8% and +3.5%, respectively.
Last Reported Results and Surprise HistoryQualcomm reported revenues of $9.95 billion in the last reported quarter, representing a year-over-year change of -4%. EPS of $2.21 for the same period compares with $2.77 a year ago.
Compared to the Zacks Consensus Estimate of $9.71 billion, the reported revenues represent a surprise of +2.43%. The EPS surprise was -0.45%.
Over the last four quarters, Qualcomm surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Qualcomm is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Qualcomm. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
A trade through 29,811.50 will change the minor trend to up. If the move creates enough upside momentum, the rally could extend into the next main top at 30,343.00.
On the downside, a sustained move under 29,610.75 will signal the presence of sellers. This could trigger a break into the 50-day moving average at 29,375.89. Buyers could show up on the first test of the 50-day moving average, but if it fails, selling could extend into the intermediate 50% level at 29,150.75.
What to Watch Crude oil is the immediate risk. Brent near $99 has put $100 back in play, and another push higher would add to inflation pressure, lift Treasury yields and test the Nasdaq’s ability to ignore the macro trade. Qualcomm and the semiconductor group have the bid for now, but they are not trading in a vacuum.
The inflation reports arrive later this week. They matter because oil is already pushing the rate-hike case higher. If crude stays bid and the data come in hot, the chip rally faces a much tougher market.
The near-term bias stays bullish while the Nasdaq-100 holds the 50-day moving average at 29,375.89. A push through 29,811.50 confirms the uptrend and opens 30,343.00. The chip group has to hold Tuesday’s gains through PPI and CPI for the breakout to mean anything. The inflation numbers decide whether the Nasdaq keeps resisting the crude and yield pressure or whether the Dow’s problem becomes everybody’s problem.
AWS is sitting on a $496 billion backlog and doubling its power capacity, and the pressure is now pulling a surprising new name into the AI silicon race alongside Broadcom. Whether that newcomer can actually deliver before the window closes…
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Amazon’s AWS unit is now the loudest buyer in the AI compute market, and this morning it handed a piece of its silicon roadmap to a new supplier. Qualcomm announced a multi-generational product collaboration with Amazon to build next-generation AI data center infrastructure, extending AWS’s custom-chip strategy beyond in-house Trainium and incumbent Broadcom. The scale of what AWS is trying to feed is the point: AWS backlog stands at $496 billion, and Amazon is on pace to double its power capacity by the end of 2027 versus 2025. That is the demand pressure that just pulled Qualcomm into the accelerator conversation.
Amazon: Anchor Buyer With a $496 Billion Backlog Amazon (NASDAQ:AMZN | AMZN Price Prediction) is the customer at the center of this story, and its Q2 FY2026 print explains why silicon vendors are lining up. AWS revenue was $42.2 billion, up 36.7% year-over-year, the fastest AWS growth in 18 quarters, with an annualized revenue run rate of $169 billion. Amazon’s own AI revenue run rate is now over $25 billion, and its chips business separately eclipsed a $25 billion run rate. Cash capital expenditures hit $53.1 billion in the quarter, and CEO Andy Jassy said AWS could “very possibly be a trillion dollar annual revenue business for us in time.”
The bull case is straightforward: Amazon has already reserved the lion’s share of 2027 capacity and is signing 2028, and management said most AI capacity is being contracted for at least five-year terms. Shares trade at a P/E of 36 with the stock up 11.03% year to date. The risk: near-term free cash flow is under pressure while data centers are built ahead of monetization, a point Amazon flagged directly on the call.
Qualcomm: New Data Center Entrant With a Signed Amazon Deal Qualcomm (NASDAQ:QCOM) just converted what had been a vaguely disclosed “leading hyperscaler” engagement into a named Amazon partnership. Per CNBC, Qualcomm is working with Amazon “across multiple generations of customized silicon” focused on inference workloads for AWS AI infrastructure, and per user context, the scope also reaches into 1.6T optical connectivity, giving Qualcomm a shot at selling both compute and networking around AI workloads. On the July earnings call, CFO Akash Palkhiwala said Qualcomm already has purchase orders and has started wafer production on its two hyperscaler engagements, with revenue starting in the December quarter.
The numbers behind the pivot: Qualcomm is targeting $5 billion in data-center revenue in fiscal 2027 and $15 billion in fiscal 2029, with total non-handset revenue targeted at $40 billion by fiscal 2029. CEO Cristiano Amon said non-handset growth will accelerate from 24% in fiscal 2026 to greater than 60% in fiscal 2027. The stock ripped on the news, up 7.4% over the past week and 3.94% on the session to $175.39, trading at a P/E of 33 with a 2.11% dividend yield.
The bull case: this is Qualcomm’s second major hyperscaler win, following Meta’s commitment to use the Dragonfly C1000 starting in 2028 production, and Bank of America sees the CPU market growing from $27 billion in 2025 to $60 billion by 2030. The risk is real and management flagged it themselves: initial custom-chip data-center revenue carries gross margins significantly lower than baseline and will reduce QCT weighted-average gross margin by one and a half to 2% during the ramp. Handset revenue also declined 20% year-over-year last quarter, so the data-center story has to work to offset the core business.
Broadcom: Incumbent With a $115 Billion AI Runway Broadcom (NASDAQ:AVGO) is the incumbent Qualcomm is trying to catch, and last week’s print set the bar. Q3 AI semiconductor revenue was $16.70 billion, up 221% year-over-year and 54% quarter-over-quarter, representing 56% of total revenue. Q4 guidance calls for AI semi revenue of $21.7 billion, and management expects fiscal 2026 AI revenue of $58 billion, scaling to approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028. CEO Hock Tan pegged Broadcom’s content at $20 billion to $30 billion per gigawatt of AI infrastructure deployed.
The customer roster is what makes the incumbency stick: Google TPUs (Broadcom said it plans to deliver “multi-tens of billions of dollars of TPUs annually over the next several years”), Anthropic (a one-gigawatt Ironwood deployment in 2026 and another five gigawatts of TPU v8i in 2027), OpenAI (Jalapeno accelerator with 1.3 gigawatts of deployment in 2027), and Meta’s MTIA program. The stock is up 20.62% over the past year but down 12.37% over the past month to $366.52, with free cash flow last quarter of $13.66 billion (46% of revenue). The risk is customer concentration: the “vast majority” of AI demand originates from a concentrated group of frontier-model developers, and any of those customers dual-sourcing (as AWS is now doing with Qualcomm) chips away at the addressable moat.
What to Watch These are three fundamentally different bets on the same buildout. Amazon has the balance sheet and the backlog to fund the demand pull, Broadcom has the incumbent AI-silicon P&L with real free cash flow behind it, and Qualcomm is an early-revenue data-center entrant whose thesis rests on execution against a fiscal 2029 $15 billion target that has not yet shown up in the reported numbers. December-quarter shipments and the fiscal 2027 ramp are the two proof points that will decide whether Qualcomm actually takes durable share, or whether Broadcom’s TPU, Jalapeno, and MTIA pipelines simply absorb the next leg of hyperscaler capex. For readers hunting the next monster run in AI silicon, we reverse-engineered what the biggest tech winners looked like early in a free playbook here.
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Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI) and Amazon.com Inc (NASDAQ:AMZN) on Tuesday announced a multi-generation collaboration to develop customized silicon for large-scale AI data centers, with an initial focus on AI inference for Amazon Web Services.
The news sent Qualcomm shares up 4.5% on Tuesday morning in New York.
The companies said they will also work together on advanced optical connectivity solutions for data centers, supporting speeds up to 1.6T and future generations, using Qualcomm's SerDes and optical DSP technology.
As part of the expanded partnership, Qualcomm plans to increase its use of AWS AI infrastructure, including Amazon Bedrock, for electronic design automation workloads, aiming to shorten chip design cycles.
"As AI demand accelerates, data center infrastructure will require advances in both computing and connectivity to deliver greater performance with more efficiency," said Cristiano Amon, CEO of Qualcomm.
"Qualcomm is pleased to work with AWS on customized silicon and connectivity solutions, bringing decades of leadership in advanced processing and power-efficient compute, to deliver breakthrough performance and enable the next generation of AI infrastructure."
Prasad Kalyanaraman, vice president at AWS, said the collaboration builds on a "strong foundation of partnership" and reflects a shared commitment to advancing customized silicon and connectivity, aiming to deliver more performant, efficient and cost-effective infrastructure for customers.
Qualcomm QCOM shares were surging on Tuesday after the chipmaker announced a major deal.
The stock surged as much as 10% in early trading, but gave up most of those gains to trade around 4% higher at the time of writing.
The company said it has entered a multi-generational product collaboration with Amazon Web Services to supply customized silicon for large-scale AI data centers.
The deal marks the chipmaker’s third named hyperscaler partnership as it pushes into a market dominated by Nvidia.
The companies will work together across multiple generations of custom chips focused on AI inference, the process by which trained models generate outputs.
They will also jointly develop optical connectivity solutions extending up to 1.6T, built on Qualcomm’s SerDes and optical DSP technologies, to handle the bandwidth demands of AWS’s data center networks.
The pullback from the day’s high suggests some profit-taking once the initial reaction to the Amazon news settled in.
The stock has lagged the broader semiconductor sector for most of 2026. On a year-to-date basis, the stock is up around 1.5%, while the VanEck Semiconductor ETF is up over 50%.
As part of the agreement, Qualcomm issued Amazon a warrant to purchase up to 25 million QCOM shares at $161.26 each, according to Qualcomm’s regulatory filing.
Amazon receives an initial tranche of 3.75 million shares, with the remainder tied to commercial milestones that could total up to $60 billion in business under the deal.
The warrant expires on September 3, 2036.
Qualcomm also said it plans to deepen its own use of AWS infrastructure, including Amazon Bedrock, for electronic design automation work, aiming to shorten its chip design cycles.
“As AI demand accelerates, data center infrastructure will require advances in both computing and connectivity to deliver greater performance with more efficiency,” Qualcomm CEO Cristiano Amon said in the companies’ joint statement.
The Amazon agreement follows Qualcomm’s June 2026 Investor Day, where the company laid out its AI data center strategy in detail, introducing the Dragonfly C1000 CPU and its High Bandwidth Compute architecture, alongside separately announced AI200 and AI250 inference accelerators built for Saudi-backed Humain.
At that event, Qualcomm named Meta and Microsoft as its first data center partners, Meta as a customer for the Dragonfly C1000 CPU, with production expected in the second half of 2028, and Microsoft backing Qualcomm’s High Bandwidth Compute architecture for Azure.
Qualcomm also told investors it was targeting $15 billion in data center revenue by fiscal 2029.
Amazon now becomes Qualcomm’s third named hyperscaler relationship.
The tie-up also puts Qualcomm in a slightly unusual position relative to Amazon’s own chip ambitions.
AWS already builds its own custom silicon, including the Trainium and Graviton lines, and CEO Andy Jassy said in his April shareholder letter that annualized revenue across Amazon’s chip products was already around $20 billion, with a path toward $50 billion if AWS begins selling to outside customers.
Collaboration covers AI inference and optical connectivity up to 1.6T Summary
Qualcomm will supply customized silicon for AWS AI inference across multiple product generations.
Qualcomm Inc. QCOM rose 6.02% intraday after announcing a multi-generation collaboration with Amazon.com Inc. AMZN on customized silicon for large-scale AI data centers, focused on inference. Amazon slipped 1.12%. The two will also work on optical connectivity extending up to 1.6T, drawing on Qualcomm's SerDes and optical DSP technologies to support bandwidth demands inside AWS networks.
Qualcomm said it plans to deepen its own use of AWS infrastructure, including Amazon Bedrock, for electronic design automation workloads, with the aim of shortening chip design cycles. "Data center infrastructure will require advances in both computing and connectivity," said CEO Cristiano Amon.
It' Qualcomm unveiled the Dragonfly C1000 data center CPU in June and said Meta Platforms Inc. META would use it from 2028 production, while targeting $15 billion in data center sales in fiscal 2029. Neither company disclosed terms for the Amazon arrangement.
Disclosures I am/we currently own positions in the stocks mentioned, and have NO plans to sell some or all of the positions in the stocks mentioned over the next 72 hours.
MarketBeat Week in Review – 08/31 - 09/04Qualcomm NASDAQ: QCOM CFO and COO Akash Palkhiwala said the company’s newly announced multiyear agreement with Amazon represents a “landmark deal” for its expanding data-center business and supports its previously disclosed growth targets.
Speaking at the Goldman Sachs Communacopia + Technology Conference, Palkhiwala said the agreement includes multiple generations of customized silicon as well as optical connectivity products beginning with 1.6T technology and future generations. Qualcomm expects to begin recording revenue from Amazon in the December quarter and said it is already producing chips for the customer.
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Qualcomm’s AI Ambitions Run Into a Smartphone Reality CheckThe transaction also includes a warrant agreement tied to Amazon purchases of up to $60 billion in Qualcomm data-center products over 10 years, according to Palkhiwala. He said roughly 15% of the warrants vest upfront based on Amazon’s initial commitments.
Data-center targets and product strategy Palkhiwala said the Amazon relationship gives Qualcomm high confidence in its target of approximately $5 billion in data-center revenue for fiscal 2027, which begins shortly for the company. He also said the agreement should support strong year-over-year growth in fiscal 2028 and is among the core components supporting Qualcomm’s goal of $15 billion in data-center revenue in fiscal 2029.
Qualcomm’s Turnaround Is Working, So Why Is Wall Street Selling?Qualcomm’s data-center approach consists of four business areas, Palkhiwala said:
Custom silicon for hyperscale customers AI accelerators Central processing units Connectivity products, including SerDes and optical connectivity The company is also working with another global hyperscaler on custom silicon, he said. Qualcomm’s custom-chip capabilities draw on its compute and connectivity technologies, experience with advanced manufacturing nodes and high-yield production, according to Palkhiwala.
In AI accelerators, Qualcomm is initially targeting inference workloads, particularly memory-bandwidth-intensive decode tasks. Palkhiwala highlighted the company’s High Bandwidth Compute technology, which combines compute and memory through stacking. He said the technology is designed to deliver high bandwidth at low power and has received a positive response from customers.
Qualcomm is also bringing its CPU technology to data centers, where it has Meta as its first silicon customer. Palkhiwala said the company believes its products can provide strong performance per watt and performance per area. He said the CPU market opportunity has expanded to more than $200 billion annually and that Qualcomm sees about half of that market moving toward Arm architecture.
Software and power efficiency Palkhiwala said Qualcomm’s acquisition of Modular addresses a key software need as the company expands in data centers. Modular’s software stack is designed to enable models to run across multiple silicon platforms, including those from NVIDIA, AMD and Qualcomm, without requiring developers to build separately for each architecture.
Qualcomm plans to use Modular as its software stack going forward and is pursuing an open-source approach for lower layers of the stack, Palkhiwala said. He compared the strategy to an Android-like model intended to make Qualcomm silicon more accessible to developers across both edge and data-center products.
He also said power constraints, wafer availability and memory supply are likely to shape the AI infrastructure market. Qualcomm’s longstanding focus on performance per watt could provide an advantage in a power-constrained environment, he said, while its manufacturing scale could also be strategically important.
Palkhiwala said AI computing will be distributed between cloud data centers and edge devices rather than concentrated solely in one environment. Qualcomm is developing AI accelerators for edge devices including smartphones, vehicles, PCs, industrial products and robotics.
Smartphones, automotive and wearables On smartphones, Palkhiwala described the market as being in transition toward agentic and voice-first experiences. He said future devices could incorporate separate AI accelerators alongside main processors, increasing silicon content.
He said global smartphone volumes have declined by low-double-digit percentages over the past year, with the largest pressure affecting devices priced below $300 as memory costs rose. However, Qualcomm has seen limited impact at the premium end of the market, where it has its greatest presence.
Palkhiwala also pointed to personal AI devices—including smart glasses, watches, pendants, pins and dongles—as another opportunity. He said companies are developing devices that can see and hear what users do and serve as AI interaction points. Qualcomm is moving toward providing modules and systems-in-package for these products, integrating processing, connectivity, AI, memory and passive components.
In automotive, Palkhiwala said Qualcomm expects to become the largest chip supplier to the auto industry next year. He said the company’s automotive compute content has increased eightfold from its third-generation products to its fifth-generation products, supported by demand for AI, advanced driver-assistance systems and in-car voice interfaces.
Qualcomm has also shifted from selling individual chips toward selling modules and systems-in-package for automotive customers, he said. The company has accelerated its automotive revenue target timetable, originally targeting $10 billion in revenue by 2031 before moving that objective to 2029 and then earlier.
Margins and investment Regarding financial implications, Palkhiwala said Qualcomm expects data-center gross margins to remain broadly in the range of current company margins. Custom products may carry lower margins, while merchant products could carry significantly higher margins, he said.
He added that operating margins should benefit as Qualcomm scales new businesses and leverages research and development investments across its product portfolio. The company has set a target of 30% operating margins three years out, with operating-expense increases expected to trail revenue growth, according to Palkhiwala.
About Qualcomm (NASDAQ:QCOM)Qualcomm Incorporated is a global semiconductor and telecommunications equipment company headquartered in San Diego, California. Founded in 1985, the company is known for its development of wireless technologies and for playing a central role in the evolution of digital cellular standards, including CDMA and subsequent generations of mobile standards. Qualcomm’s business combines the design and sale of semiconductor products with a patent licensing program for wireless technologies and related intellectual property.
The company’s product portfolio includes system-on-chip (SoC) platforms marketed under the Snapdragon brand, cellular modem and RF front-end components, connectivity solutions for Wi‑Fi and Bluetooth, and processors and platforms aimed at automotive, IoT, networking and edge-computing applications.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Qualcomm (QCOM) establishing an AI collaboration with Amazon (AMZN) is something Futurum CEO Dan Newman sees as "very optimistic." The partnership is currently valued at $60 billion.
Shares of Qualcomm (QCOM +3.17%) rose as much as 8.7% on Tuesday after the semiconductor designer struck a potentially highly lucrative partnership with Amazon (AMZN -0.60%).
Image source: The Motley Fool.
Accelerating the AI boom Qualcomm will help Amazon develop custom artificial intelligence (AI) chips to power its industry-leading cloud computing business.
Amazon Web Services (AWS) will also deploy Qualcomm's advanced optical connectivity solutions to speed up data transfers across Amazon's sprawling data center network.
The shift from AI model training to inference -- using trained models to make predictions -- is creating an even greater need for power-efficient computing infrastructure.
That just happens to be Qualcomm's specialty.
The semiconductor designer has built expertise in energy-efficient processors over nearly two decades of developing high-performance, low-power chips for the smartphone market.
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As part of the deal, Amazon obtained a warrant to buy up to 25 million shares of Qualcomm's stock at an exercise price of $161.26 per share. The warrant vests in stages based on up to $60 billion in chip orders and related purchases. It expires on Sept. 3, 2036.
A strong vote of confidence for Qualcomm's AI chips The global smartphone industry's slowing growth has prompted Qualcomm to seek greener pastures -- and there aren't many greener than the AI data center build-out race.
Earning Amazon's stamp of approval could provide a powerful boost to Qualcomm's AI customer acquisition efforts.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Qualcomm. The Motley Fool has a disclosure policy.
Qualcomm CFO Akash Palkhiwala discusses the company's deal to create customized chips for Amazon Web Services' AI infrastructure. Speaking on "Bloomberg The Close," Palkhiwala also comments on Qualcomm's AI data center strategy and the future of smartphones.
Qualcomm President and CEO Cristiano Amon is not a morning person, so the meetings that decide the most get scheduled last, when nothing has to end on time. Ryan Patel spent a day with Amon at Qualcomm's San Diego campus: a ride in the 1973 Bronco he rebuilt, thirty minutes inside an all-hands where his own employees pushed back on the company's bets, and a walk through the 6G and robotics labs.
Qualcomm is rated Strong Buy, with current weakness seen as a long-term buying opportunity amid data center AI breakthroughs. QCOM's data center revenue is expected to scale from 2027, with Meta as a key anchor client and robust validation processes underway. Shares trade at a forward P/E of 16, pricing in only the stagnating mobile business; future data center and robotics growth is not reflected.
Greenwoods Asset Management Hong Kong Ltd. cut its holdings in shares of Intel Corporation (NASDAQ:INTC – Free Report) by 60.3% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,751,193 shares of the chip maker’s stock after selling 4,172,043 shares during the quarter. Intel makes up 17.6% of Greenwoods Asset Management Hong Kong Ltd.’s portfolio, making the stock its 2nd largest position. Greenwoods Asset Management Hong Kong Ltd. owned about 0.05% of Intel worth $384,149,000 as of its most recent SEC filing.
A number of other large investors also recently modified their holdings of the business. Financially Speaking Inc increased its position in shares of Intel by 69.2% in the fourth quarter. Financially Speaking Inc now owns 682 shares of the chip maker’s stock valued at $25,000 after acquiring an additional 279 shares during the last quarter. Financial Life Planners bought a new position in Intel in the first quarter valued at approximately $25,000. Glynn Capital Management LLC bought a new position in Intel in the second quarter valued at approximately $29,000. Swiss RE Ltd. acquired a new position in shares of Intel during the 4th quarter worth approximately $29,000. Finally, Osbon Capital Management LLC bought a new stake in shares of Intel during the 4th quarter worth approximately $30,000. 64.53% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth Several research firms have recently commented on INTC. Wall Street Zen downgraded Intel from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Sanford C. Bernstein restated a “market perform” rating and set a $110.00 target price on shares of Intel in a report on Monday, July 27th. HC Wainwright set a $150.00 price target on shares of Intel in a research report on Monday, June 29th. Seaport Research Partners reiterated a “buy” rating and issued a $125.00 price target on shares of Intel in a research note on Friday, July 24th. Finally, Cantor Fitzgerald lowered their price objective on shares of Intel from $150.00 to $125.00 and set a “neutral” rating on the stock in a research note on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, thirty-one have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Intel presently has a consensus rating of “Hold” and a consensus price target of $107.01.
View Our Latest Stock Analysis on Intel Intel Stock Performance Shares of Intel stock opened at $95.80 on Tuesday. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.60 and a quick ratio of 1.25. The business has a fifty day simple moving average of $99.73 and a two-hundred day simple moving average of $88.55. Intel Corporation has a 1 year low of $24.05 and a 1 year high of $142.35. The company has a market capitalization of $483.22 billion, a price-to-earnings ratio of -45.40, a P/E/G ratio of 10.58 and a beta of 2.22.
Intel (NASDAQ:INTC – Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The chip maker reported $0.42 EPS for the quarter, beating the consensus estimate of $0.21 by $0.21. The firm had revenue of $16.13 billion for the quarter, compared to the consensus estimate of $14.43 billion. Intel had a negative net margin of 19.79% and a positive return on equity of 2.62%. The company’s quarterly revenue was up 25.2% on a year-over-year basis. During the same period in the previous year, the company earned ($0.10) earnings per share. Intel has set its Q3 2026 guidance at 0.380-0.380 EPS. Research analysts forecast that Intel Corporation will post 1.01 EPS for the current year.
Insider Buying and Selling In related news, CEO Lip Bu Tan purchased 105,263 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The shares were acquired at an average price of $95.00 per share, for a total transaction of $9,999,985.00. Following the purchase, the chief executive officer owned 1,314,669 shares in the company, valued at approximately $124,893,555. This represents a 8.70% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.05% of the company’s stock.
Key Stories Impacting Intel Here are the key news stories impacting Intel this week:
Positive Sentiment: Intel CEO Lip-Bu Tan reportedly purchased approximately $10 million of Intel shares, a vote of confidence in the turnaround. The company’s latest quarter also showed revenue of about $16.1 billion, including strong data-center growth. Intel CEO share purchase and quarterly growth Positive Sentiment: Investors are broadening the AI trade beyond Nvidia. Intel gained alongside AMD as Nvidia lagged during the latest session, suggesting increased interest in alternative beneficiaries of AI infrastructure spending. AMD and Intel outperform Nvidia Positive Sentiment: Intel is positioning itself in enterprise and edge AI through contributions to the Linux Foundation’s TRACE open specification for trusted and verifiable AI workloads. The development could strengthen Intel’s role in secure AI infrastructure. Intel’s trusted AI standards efforts Neutral Sentiment: Some analysts remain bullish after Intel’s more than 140% 2026 rally, with one published target implying substantial additional upside. That optimism supports sentiment, but the size of the rally raises questions about whether expectations are already reflected in the stock. Intel upside forecast Negative Sentiment: A prominent Mizuho analyst lowered or reset Intel’s price target while comparing Intel with Arm. The move may weigh on shares because it signals that the recent rally could have outpaced near-term fundamentals. Analyst downgrades Intel price target Negative Sentiment: Nvidia’s expanding CPU and AI infrastructure strategy presents a competitive threat to Intel in data-center processors. Nvidia’s ecosystem investments, including a reported Intel stake, may support Intel financially but also make the company’s performance increasingly dependent on Nvidia-led demand. Nvidia CPU strategy and Intel competition Negative Sentiment: Intel’s comeback may require substantial capital and shareholder dilution, with one analysis highlighting a potential $23 billion dilution cost. Investors remain focused on whether manufacturing and AI investments can generate sufficient returns to justify that financing. Intel potential dilution analysis Intel Profile (Free Report)
Intel Corporation, founded in 1968 by Robert Noyce and Gordon E. Moore and headquartered in Santa Clara, California, is a leading global designer and manufacturer of semiconductor products. The company is historically notable for introducing the first commercial microprocessor and for driving the x86 architecture that underpins many personal computers and servers. Intel’s core business spans the design, fabrication and marketing of processors, chipsets and related components for a wide range of computing applications.
Intel’s product portfolio includes client and mobile processors marketed under brands such as Intel Core and Pentium, as well as high-performance Xeon processors for data centers and cloud infrastructure.
Further Reading Five stocks we like better than Intel 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane Want to see what other hedge funds are holding INTC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Intel Corporation (NASDAQ:INTC – Free Report).
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Jim Cramer went on live television to beg the president not to sell a chipmaker sitting on massive gains, and the reason why reveals just how much political risk now hangs over one of the hottest stocks in the semiconductor…
President Trump spent the weekend posting about the paper profit on Washington’s Intel (NASDAQ:INTC | INTC Price Prediction) stake, and on Tuesday morning Jim Cramer, whose charitable trust owns the same stock, publicly asked him to hold. On CNBC’s Squawk on the Street, Carl Quintanilla noted “the president was tweeting over the weekend about his gains, his paper gains on Intel,” and Cramer responded, “Yeah, I love that because my trust owns Intel. Yeah. Please don’t sell it. Remember all the last week of August is when he can sell it.”
Why the Selling Window Matters Intel traded around $101.07 Tuesday morning, up 311.58% over the past year and up 174.5% year to date. That is the context behind Cramer’s plea: a federal disposition would be one of the largest overhangs the stock has ever faced. Cramer added “I was thinking he’s not going to sell it. I mean, I felt that he’s pounding the table on it.”
Intel’s Turnaround Underneath the Political Story The gains are backed by fundamentals. Q2 2026 revenue reached $16.13 billion, growing 25.42% year over year and beating consensus by 11.64%. Non-GAAP EPS came in at $0.42 versus a $0.2175 estimate. Data Center and AI revenue rose 59% to $6.26 billion, and Intel Foundry expanded 31% to $5.76 billion, though the segment still posted a $2.1 billion quarterly loss.
The GAAP picture is messier. Intel booked a $12.53 billion non-cash charge tied to its CHIPS Act escrow arrangement, driving a GAAP net loss of $2.16 per share. Intel’s Q2 filing lists U.S. government acquisition of significant equity interests among its risk factors, and CEO Lip-Bu Tan framed the setup as capturing “sustainable growth across our CPU franchise, ASICs, advanced packaging and vast wafer foundry network” (see the SEC 8-K exhibit).
Strategic capital has also come from the private side. Intel’s Q4 2025 materials referenced the completed sale of $5.0 billion of Intel common stock to NVIDIA. NVIDIA (NASDAQ:NVDA) selected Intel Xeon 6 as the host CPU for its DGX Rubin NVL8 systems, tying the Intel narrative directly to the AI infrastructure buildout.
Same Playbook Just Landed on Quantum The Intel story is expanding. Quintanilla noted “today it’s a definitive agreements of deals on Rigetti and qubits and QNT,” and Cramer said “I want anything that’s quantum. I believe we should leave. Look, I believe that Intel was very much in danger.” His framing was strategic: “I believe we have a race against China… things that make it so that we win the race, whether it be what we’re doing with quantum, whether it be what we’re doing with nuclear, these are all really important.”
Rigetti Computing (NASDAQ:RGTI) had already been in Commerce’s orbit. A May 2026 CHIPS letter of intent covered up to $100 million in planned funding for superconducting quantum work, part of a broader $2.013 billion package covering nine companies. Rigetti’s Q2 2026 revenue reached $5.138 million versus $1.8 million a year earlier. The stock jumped 10.85% on the session to $16.85 yet remains down 23.93% year to date.
AI Peer Backdrop Intel’s rally is happening while the broader AI stack keeps compounding. Amazon (NASDAQ:AMZN) reported AWS revenue of $42.23 billion, up 37% year over year, its fastest growth in 18 quarters. Qualcomm (NASDAQ:QCOM) shares popped 10% Tuesday on a data center infrastructure deal with Amazon, another sign that AI capex is broadening beyond the three chipmakers investors instinctively name first (we profiled seven of the power, cooling, and networking suppliers riding that same buildout in a free report).
What to Watch Cramer’s on-air ask does not change the calculus for the Treasury, but it sharpens the market’s attention on two questions. Does the government treat Intel as a strategic long-term holding or as a monetizable position now that the last-week-of-August window has passed? And does the emerging pattern of federal equity stakes in quantum extend Cramer’s national-security thesis into more names? For Intel holders, the setup is a stock that has already run 311.58% in a year with a very visible potential seller on the cap table.
Data Sources CNBC Squawk on the Street segment used to source the Trump-Cramer exchange, the selling-window comment, and the quantum framing. 247 Wall St. price-performance API used for Intel’s session move, one-year and year-to-date returns, and for Rigetti’s intraday move. Contact [email protected] for any questions or corrections.
Buy Intel (INTC). A reported ~10% CPU price hike signals Intel is prioritizing gross-margin expansion to offset rising supply-chain costs while demand remains strong enough to support higher pricing. The stock already moved +8%, and the analyst framing (margin over share) fits a turnaround phase where pricing discipline can lift earnings even if the PC market softens.
Key Risk: Customers (PC and server OEMs) push back hard and Intel loses volume, forcing price cuts that erase the margin gain.
ASML High NA momentum
Buy ASML (ASML). Intel’s deepening High NA EUV collaboration and >1M wafers processed reinforces that High NA is moving from testing into scalable production. That accelerates adoption across the industry (Samsung DRAM later, TSMC advanced chips later), supporting multi-year demand for ASML’s most valuable lithography systems.
Key Risk: High NA adoption slips (technical yield, throughput, or customer delays), reducing orders and slowing the revenue ramp.
Intel stock surged 8% on Tuesday after a report said that the chipmaker is considering a 10% increase in prices for its central processing units (CPUs) starting in early October.
The potential price increase was reported by Taiwan-based technology publication DigiTimes, which cited unnamed sources.
The move would continue a series of price increases that Intel began at the end of 2025 and would come as the company faces higher supply-chain costs and strong demand for its products.
The reported price increase comes despite expectations that the broader computer market could contract next year.
Citrini analyst Jukan Choe said the move suggests Intel may be placing greater emphasis on expanding gross margins rather than pursuing additional market share.
Intel has faced rising costs for memory chips and other components as demand from artificial intelligence companies has pushed memory prices sharply higher.
In April, the company said those higher costs would reduce the overall PC market by a low double-digit percentage.
The memory price surge has created challenges across the technology sector as manufacturers compete for components needed for AI infrastructure.
For Intel, higher CPU prices could provide a way to offset some of those cost pressures if the company proceeds with the reported increase.
Separately, Intel and Dutch semiconductor equipment maker ASML said they have deepened their multiyear collaboration on High Numerical Aperture Extreme Ultraviolet (High NA EUV) lithography.
Intel said more than 1 million wafers have now been processed using High NA EUV equipment.
The figure includes testing and development work as well as production of certain layers used in its Core Ultra Series 3 processors, known as Panther Lake.
High NA EUV is a next-generation lithography technology designed to allow chipmakers to create smaller and more complex features on semiconductor wafers.
Intel is already using the technology in high-volume production, while Samsung plans to introduce it into DRAM manufacturing by 2028.
Taiwan Semiconductor Manufacturing Co. is expected to use the technology for advanced chips from 2030.
Intel said High NA EUV machines are performing as expected in areas including accuracy, production speed and availability.
It also said chips manufactured using the technology on its 18A process are matching or exceeding the performance of comparable layers produced using ASML’s existing EUV technology.
ASML CEO Christophe Fouquet described Intel as “one of the key leaders of the industry's adoption of High NA,” highlighting its role in bringing the technology into commercial production.
The developments come as analysts point to signs of improvement in Intel’s business.
Northland analyst Gus Richard upgraded Intel to Outperform from Market Perform, citing what he described as “material progress” in the company’s turnaround. He also said Intel could continue benefiting from an ongoing server CPU shortage.
Richard further said Intel’s partnership with Tesla on the Terafab semiconductor initiative could “materially benefit” the company’s foundry business.
Intel’s reported pricing strategy, progress in advanced manufacturing and potential foundry opportunities come as the company attempts to strengthen its financial performance while navigating higher component costs and shifting demand across the semiconductor industry.
Shares of Intel (INTC +9.05%) climbed out of the gate on Monday, rising as much as 8.6%. As of 11:20 a.m. ET, the stock was still up 8.3%.
The catalyst that drove the semiconductor company higher was a report that it may be raising prices, along with a corresponding upgrade from a Wall Street analyst.
Image source: The Motley Fool.
Third time's a charm A media report emerged early Tuesday that Intel may be planning another round of price increases as the company works to improve its gross margin rather than taking market share. Intel is expected to increase the price of its CPUs by another 10% later this year, according to a report that first appeared in DigiTimes.
If the report is accurate, this would mark the third such price increase this year, after hikes in the first quarter and again in July.
On the heels of this news, Northland Securities analyst Gus Richard upgraded Intel to outperform (buy), from market perform (hold), with a price target of $120. For those keeping score at home, that represents potential upside of 25% compared to Friday's closing price (ahead of the Labor Day weekend).
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The analyst cited "material progress" in Intel's turnaround, with particular emphasis on the company's foundry ambitions. Additionally, the current CPU shortage will work to Intel's advantage, giving the chipmaker pricing power -- at least for now.
Intel has previously announced plans to become the world's second-largest foundry by 2030, and while the company has certainly made progress, it still has work to do to achieve that goal.
Moreover, Intel stock is pricey at 68 times forward earnings and 51 times next year's expected earnings, so there's already a lot of growth baked into today's stock price.
Danny Vena, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool has a disclosure policy.
Key Takeaways INTC and ASU developed an AI agent that automates football practice play-card creation from opponent footage.The tool identifies player positions, tracks movements and converts analysis into digital whiteboard diagrams.Intel aims to expand agentic AI PCs across industries to improve productivity and streamline operations. Intel Corporation (INTC - Free Report) is advancing its agentic artificial intelligence (AI) strategy with a new on-device AI application for Arizona State University’s ("ASU") football program. The initiative underscores the role of Intel-powered AI PCs in automating specialized tasks and supporting enterprise device management.
Intel’s engineers worked with ASU to develop a custom AI agent to automate the creation of football practice play cards, a time-intensive part of game preparation. The tool runs on Lenovo ThinkPad X9 Aura Edition PCs powered by Intel vPro and allows coaching staff to upload opponent game footage directly to their devices. The AI agent identifies offensive and defensive player positions, tracks movements during plays and automatically converts the analysis into digital whiteboard diagrams.
The company’s new technology is expected to help ASU reduce game preparation time by approximately 15% to 20%. Its AI PCs can automate specialized workflows while reducing reliance on cloud infrastructure, and Intel vPro adds security and remote management capabilities to help IT teams protect and manage devices used both on campus and while traveling. By keeping sensitive workloads closer to the device, the platform also helps organizations maintain greater control over proprietary information.
The development reflects Intel’s broader strategy to expand the use of its AI PCs for agentic applications across industries. By combining on-device AI capabilities with its security and management technologies, the company aims to help organizations improve productivity and streamline operations.
How Are Competitors Advancing in the AI PC Market?Intel faces competition from Qualcomm Incorporated (QCOM - Free Report) and Advanced Micro Devices (AMD - Free Report) . Qualcomm is expanding its AI PC efforts with Snapdragon X Series processors designed to support on-device and agentic AI applications. The company is working with software partners to run AI agents locally on Snapdragon-powered PCs. Qualcomm is strengthening its AI PC lineup with new Snapdragon X2 Series processors and devices.
AMD is advancing its AI PC strategy with new technologies designed for local and agentic AI workloads. The company introduced the Ryzen AI Halo developer platform and Ryzen AI Max PRO 400 Series processors for developers and commercial AI PCs. AMD is focusing on enabling AI PCs to handle more demanding AI tasks directly on the device, reducing dependence on cloud-based processing.
INTC’s Price Performance, Valuation & EstimatesShares of Intel have skyrocketed 292% over the past year compared with the industry’s growth of 39.9%.
Image Source: Zacks Investment Research
Going by the price/book ratio, the company's shares currently trade at 4.69 times book value, lower than the industry average of 23.65.
Image Source: Zacks Investment Research
INTC’s earnings estimate for 2026 has increased 42.7% to $1.47 per share, while that for 2027 has increased 33.6% to $1.95 over the past 60 days.
Image Source: Zacks Investment Research
Intel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nvidia (NVDA) CEO asserts AI has reached general intelligence, highlighting rapid model evolution and the income-generating potential of NVDA compute infrastructure. Intel (INTC) receives an upgrade to Outperform with a $120 target, citing material turnaround progress and potential CPU price increases.
DigiTimes says CPU prices go up 10% in early October, citing unnamed sources Summary
Intel could raise CPU prices 10% in October, extending increases that began in late 2025.
Intel Corp. INTC rose 4.98% premarket after DigiTimes reported that the company plans to lift central processing unit prices by 10% in early October, citing unnamed sources. Intel has confirmed nothing publicly.
The increase would extend a pattern that started at the end of 2025, and the report attributes it to supply-chain costs and strong demand. The PC market is expected to shrink next year, and Citrini analyst Jukan Choe argued on X that raising prices into that suggests Intel is prioritizing gross margin expansion over market share. Memory chip prices have climbed sharply this year on demand from AI companies, and that increase is working its way through the wider technology sector.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Intel Stock Jumps as Northland Turns Bullish and CPU Price Hike Looms Summary
A separate report said Intel could raise CPU prices by as much as 10%, adding another catalyst for the chipmaker
Intel INTC shares gained 4% on Tuesday after Northland Securities lifted its rating and a report pointed to possible increases in the company's CPU prices.
Northland analyst Gus Richard moved his view to Outperform from Market Perform and set a $120 price target. He cited progress in Intel's turnaround and said the company could continue benefiting from tight supply of server processors.
Richard also pointed to Intel's work with Tesla TSLA on the Terafab semiconductor project as a potential boost for Intel's foundry operations, which manufacture chips for customers.
Separately, DigiTimes reported that Intel could raise CPU prices by as much as 10%, citing people familiar with the matter. The potential increase would cover Intel's processor business and comes as the company seeks to improve its financial and manufacturing position.
The combination of a more favorable analyst view and potential pricing changes gave Intel shares a lift in premarket trading. The report on CPU prices was separate from Northland's rating action.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
As Intel Corp. (NASDAQ: INTC) stock rallied nearly 20% over the past 5 days through September 8, 2026, catalyzed by its strong pricing power amid its growing capacity in the artificial intelligence (AI) supply chain, Gus Richard, a Wall Street analyst at Northland Securities, upgraded semiconductor giant from ‘Market Perform’ to ‘Outperform’.
Richard raised the firm’s 12-month rating and set a price target for Intel stock at $120. With INTC price hovering at $104.72 at the time of writing, this analyst signals a potential 14.59% upside.
He based his bullish thesis on the company’s major capital allocations, its long-term valuation targets, and structural capacity spending. Specifically, Northland Securities highlighted Intel’s strategic alignment with the mega-scale Terafab project, which is jointly backed by Space Exploration Technologies Corp. (NASDAQ: SPCX) alongside Tesla Inc. (NASDAQ: TSLA).
Notably, Terafab is expected to command an initial Phase 1 capital investment of $55 billion and an estimated $120 billion in total build-out expenses through the late 2030s. Amid the anticipated geopolitical uncertainty between China and Taiwan over the next 18 months, Richard believes that Intel is well positioned to reap from server Central Processing Unit (CPU) shortages.
“The analyst expects Intel’s turnaround and Terafab relationship to strengthen its foundry business and support outperformance,” Northland Securities noted.
Is Intel a good stock to buy? At press time, 31 Wall Street analysts surveyed by TipRanks, over the past three months, have set an average 12-month price target of $116.31.
Intel stock forecast. Source: TipRanks The highest 12-month price target for Intel stock is $200 while the lowest is $80.
INTC price performance Year-to-date (YTD), INTC price has rallied by more than $165%. Consequently, this company has a market capitalization of around $506.4 billion.
INTC’s YTD chart. Source: Finbold If INTC continues to benefit from the rising AI spending amid its expected 10% hike in CPU prices, Richard’s 12-month target could materialize.
Featured image via Shutterstock
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Two things at Intel (INTC +9.05%) have nearly quadrupled over the past 12 months. One is the quarterly operating income of the chipmaker's data center business. The other is its stock price, which trades near $96 as of this writing, up from a 52-week low of $24.05 and about a third below the high of $142.35 it set in late June.
The rally has lifted Intel's market value to about $500 billion -- this for a company that lost $11 billion on paper in its most recent quarter. And the price is about 47 times what analysts think the company can earn next year.
The business is improving faster than it has in years. I just don't think it has improved as fast as the price.
Image source: Intel.
The data center business earned the rallyIntel's second-quarter revenue of $16.1 billion was up 25% year over year -- growth CEO Lip-Bu Tan called the company's strongest in more than 15 years.
No part of the company improved more than the data center and artificial intelligence (AI) segment. A year ago, the segment earned $633 million of operating income in a quarter. In the first quarter of 2026, it earned $1.5 billion. And in the second quarter, the figure reached $2.5 billion. Revenue growth is accelerating as well, from 22% in the first quarter to 59% in the second.
Management said the quarter's server growth was the strongest on record. The segment's operating margin, meanwhile, now sits at about 40%.
Companywide, adjusted earnings per share swung from a year-ago loss of $0.10 to a profit of $0.42.
The $11 billion net loss Intel reported for the period, meanwhile, traces to a $12.5 billion noncash charge tied to shares held in escrow for the U.S. government, which took a stake in the company last year. Cash from operations during the quarter was $7 billion.
Is the foundry fixed?Not yet -- but it is losing money more slowly. Intel Foundry's second-quarter revenue grew 31% year over year to $5.8 billion, and it still lost $2.1 billion at the operating line, an improvement from $3.2 billion in the same period last year. First-half losses total $4.5 billion, down from $5.5 billion a year earlier.
Nearly all of that revenue, however, still comes from Intel buying from itself. Customers outside the company accounted for just $293 million in the period, compared with $22 million in the same quarter of 2025. That leaves external sales at less than 2% of Intel's total revenue.
So far, Intel has yet to announce a high-volume outside customer for Intel 14A, its next-generation manufacturing process. The foundry did sign a named customer in July, when cybersecurity specialist Fortinet picked Intel to build its next security chip. But that chip will use an older Intel process, not 14A.
Of course, the spending comes first. David Zinsner, Intel's chief financial officer, said in the second-quarter earnings release that to support expected growth "this year and next across products and foundry, we are meaningfully increasing our investments in equipment, clean room space, and substrates."
Additionally, Intel sold about 242 million new shares at $95 apiece in August, raising about $23 billion. The sale gives Intel a war chest for the build-out, and it puts the share count about 20% above the year-ago average.
The stock is priced ahead of the businessIntel's adjusted earnings per share total $0.71 through two quarters, and management guided to $0.38 for the third. Even with a stronger fourth quarter, 2026 looks likely to land near $1.50 per share. Analysts expect about $2 next year.
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That works out to 47 times next year's earnings with the stock at about $96. Taiwan Semiconductor Manufacturing (TSM +2.35%), the world's largest chip foundry and arguably the finished version of the business Intel is trying to build, costs about 20 times its expected earnings for next year.
In other words, the market is not paying for what Intel earns today. It is paying for what could happen: the data center segment keeps growing quickly, the foundry approaches breakeven, and outside customers sign on in volume. Each looks more believable after the second quarter. But at this valuation, all three need to happen just to hold the current price.
Ultimately, is Intel stock a buy after a year like that? I don't think so.
Growth could keep accelerating, and the foundry's losses could keep narrowing. The second quarter showed both. But the price already assumes years more of it. If I wanted to own a leading-edge foundry today, I'd rather buy Taiwan Semiconductor at less than half the forward price-to-earnings multiple. As for Intel, I'd wait for a better entry point.
California State Teachers Retirement System grew its stake in shares of Adobe Inc. (NASDAQ:ADBE – Free Report) by 19,873.5% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 125,658,193 shares of the software company’s stock after acquiring an additional 125,029,070 shares during the quarter. California State Teachers Retirement System owned about 31.61% of Adobe worth $25,762,443,000 as of its most recent SEC filing.
Other institutional investors also recently bought and sold shares of the company. BlackRock Inc. purchased a new stake in shares of Adobe during the second quarter valued at $8,437,821,000. Norges Bank purchased a new position in Adobe in the 4th quarter worth $2,275,165,000. Primecap Management Co. CA acquired a new stake in Adobe during the 2nd quarter worth about $1,071,668,000. Bank of New York Mellon Corp acquired a new stake in Adobe during the 2nd quarter worth about $954,468,000. Finally, Deutsche Bank AG purchased a new stake in Adobe during the 2nd quarter valued at about $750,203,000. 81.79% of the stock is currently owned by institutional investors and hedge funds.
Adobe Price Performance NASDAQ:ADBE opened at $266.51 on Tuesday. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.75 and a quick ratio of 0.75. The company has a 50 day moving average price of $250.39 and a 200-day moving average price of $245.73. Adobe Inc. has a 1-year low of $190.12 and a 1-year high of $370.86. The firm has a market cap of $105.94 billion, a price-to-earnings ratio of 15.25, a price-to-earnings-growth ratio of 0.93 and a beta of 1.42.
Adobe (NASDAQ:ADBE – Get Free Report) last released its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, beating the consensus estimate of $5.82 by $0.14. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The company had revenue of $6.62 billion for the quarter, compared to analyst estimates of $6.45 billion. During the same quarter last year, the business earned $5.06 earnings per share. The firm’s revenue was up 12.7% on a year-over-year basis. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. Equities research analysts forecast that Adobe Inc. will post 19.81 EPS for the current year. Key Stories Impacting Adobe Here are the key news stories impacting Adobe this week:
Positive Sentiment: RBC Capital maintained an Outperform rating and raised its price target to $315, citing expectations for an in-line third quarter and the importance of renewed annual recurring-revenue growth. The target implies meaningful upside from recent trading levels. RBC sets $315 target article Positive Sentiment: Adobe’s recent rally is being supported by strong fundamentals: second-quarter revenue reached roughly $6.6 billion, up 12.7% year over year, while AI-first ARR more than tripled to above $500 million. Investors will look for further evidence of monetization in Thursday’s results. Adobe Q3 earnings preview Positive Sentiment: Bank of America reportedly views Adobe more favorably than Oracle ahead of earnings, adding a positive relative-investment case for the software company. BofA Adobe versus Oracle analysis Neutral Sentiment: Adobe named Anil Chakravarthy president and CEO effective December 1, while longtime CEO Shantanu Narayen becomes executive chair. The transition could sharpen the company’s AI strategy, but investors will closely evaluate execution under the new leadership. Adobe CEO succession article Negative Sentiment: Analyst sentiment remains divided ahead of earnings. Several recent calls are Holds or Sells, and concerns include Adobe’s roughly 20% year-to-date decline, an open CFO search and uncertainty over whether AI growth can offset competitive pressure. Adobe analyst earnings preview Negative Sentiment: Retail investors and hedge funds appear sharply split, while reported insider activity shows six open-market sales and no purchases over the past six months. That divergence may reinforce concerns about near-term confidence in the stock. Adobe investor sentiment article Analyst Ratings Changes Several research analysts have recently issued reports on the company. The Goldman Sachs Group reduced their price objective on Adobe from $220.00 to $190.00 and set a “sell” rating for the company in a research note on Friday, June 12th. Jefferies Financial Group increased their price target on shares of Adobe from $230.00 to $285.00 and gave the stock a “hold” rating in a report on Sunday, August 30th. Oppenheimer reissued a “market perform” rating on shares of Adobe in a research report on Friday, June 12th. JPMorgan Chase & Co. decreased their price objective on shares of Adobe from $420.00 to $340.00 and set an “overweight” rating for the company in a research note on Friday, June 12th. Finally, Royal Bank Of Canada increased their price objective on shares of Adobe from $285.00 to $315.00 and gave the stock an “outperform” rating in a research note on Wednesday, September 2nd. Seven investment analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $278.72.
Check Out Our Latest Stock Report on ADBE
Insider Buying and Selling In other Adobe news, CAO Jillian Forusz sold 416 shares of the stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total transaction of $109,961.28. Following the transaction, the chief accounting officer owned 3,824 shares in the company, valued at approximately $1,010,797.92. This represents a 9.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director David Ricks acquired 10,000 shares of the company’s stock in a transaction on Thursday, June 25th. The stock was acquired at an average cost of $194.51 per share, for a total transaction of $1,945,100.00. Following the completion of the acquisition, the director owned 17,655 shares of the company’s stock, valued at $3,434,074.05. This trade represents a 130.63% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.20% of the company’s stock.
Adobe Profile (Free Report)
Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.
The company’s core offerings are organized around digital media and digital experience.
See Also Five stocks we like better than Adobe 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane Want to see what other hedge funds are holding ADBE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Adobe Inc. (NASDAQ:ADBE – Free Report).
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Adobe has delivered a 30% gain since my 2026 buy rating a few months back, but I am waiting for the next earnings report before reallocating capital. Despite ADBE's attractive forward PEG ratio of 0.78, broader market overextension and high correlation with NDX/SPX warrant caution. I expect ADBE to decline alongside the Nasdaq and S&P 500 if a market correction occurs, especially if triggered by Fed rate hikes.
