Track market-moving stories before they get noisy

Futures signaled a down open about an hour ahead of the opening bell. Tom White points to Samsung's earnings as a main culprit.

Store

SubscribeSign In

My Subscriptions

Founder's ClubSwingTraderLeaderboardMarketSurgeeIBDIBD DigitalIBD LiveCustomer Center

My Stock Lists

Email Preferences

Help & Support

Sign Out

Search stocks or keywords

Sections

My IBD

MARKET TREND

STOCK LISTS

STOCK RESEARCH

NEWSECONOMY

VIDEOS & PODCASTS

HOW TO INVESTEDUCATIONAL RESOURCESStoreMy Products

Founder's ClubSwingTraderLeaderboardMarketSurgeeIBDIBD DigitalIBD Live

Recently Searched

Arista Networks, Morgan Stanley Among 15 New Stocks On IBD Watchlists

Stock Market Strengthens As Nasdaq Paces Gains; Did You Spot These 3 New Breakouts?

Dow Jones Futures: Tech Futures Slide On Samsung Earnings; SpaceX Falls Ahead Of Nasdaq-100 Inclusion SpaceX stock's quiet period ended with a bang early Tuesday as Elon Musk's rocket, AI and technology company readied for its first day on the Nasdaq 100 index. The inclusion means SpaceX will join key ETFs and index-tracking funds, working its way into millions of retirement portfolios. Wall Street also rolled out a strong vote of confidence as a score…

Copyright ©2026 Investor's Business Daily, LLC. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

When a company goes public, it's important to know that the shares sold in the offering are a fraction of the existing shares. The rest, the stakes held by employees, early backers, and executives, sit behind a lockup -- an inability to sell for a set stretch after the debut.

For Space Exploration Technologies (SPCX 4.92%), the first stretch lifts in late July, and the design of the release tells you more than the date does. Most IPOs use one 180-day lockup, so a wall of shares might hit the market on a single morning.

SpaceX built something different. The first slice, nearly 20% of locked shares, is freed up after the company reports second-quarter results in late July. Smaller tranches of around 7% each follow through August, September, and October, with a larger release tied to third-quarter earnings, and the 180-day batch clears in December. Instead of one flood, supply arrives in steps.

Today's Change

(

-4.92

%) $

-7.89

Current Price

$

152.53

The SpaceX price triggers worth watching One tranche, about 10% of the locked pool, is unlocked if the stock trades at 30% above the $135 IPO price, or $175.50. That condition ties insider selling to strength rather than weakness. If shares are unlocked this way, more supply reaches the market, but it reaches the market because the stock has climbed. Think of this mechanism as a built-in brake: The plan releases the most shares when demand can absorb them.

What the lockup expiration means for the stock Two forces are at play here. More sellable shares can cap gains, and the late-July window is the first real test of how many insiders want out at a $2 trillion valuation. On the other side, the staggered format spreads the pressure across months rather than one session, and the largest holder sits out of every July move. Elon Musk's 6.4 billion shares stay locked until June 2027, with no early release provision. The overhang that could matter most is a year down the road.

Image source: Getty Images.

The takeaway for investors The July expiration is a signal, not a cliff, and the difference shapes how you read the rest of the year. A staggered lockup lets the market price in each release as it comes rather than absorb one shock, so the second-quarter report in late July becomes the first honest look at insider appetite. If early backers and employees hold their shares through that window, it says something about how the people closest to SpaceX view a $2 trillion price tag; if they sell into the opening, their exit says the opposite.

The AI Winner Investors May Be OverlookingThe centerpiece of JPMorgan’s thesis isn’t simply that Macs will continue growing—it’s why.

“Demand for Macs is likely to prove the least elastic,” Chatterjee wrote, pointing to Apple’s expanding lineup, broader addressable market and what he called “Edge AI-led demand.”

Unlike traditional PC refresh cycles, the bank believes the next wave of upgrades will be driven by increasingly demanding on-device AI applications running on Apple silicon.

Those “capability-driven” purchases, Chatterjee argues, are “far less price-sensitive than commodity refresh demand,” giving Apple greater pricing power even as component costs rise.

Growing While the PC Market ShrinksThe backdrop makes JPMorgan’s outlook even more notable.

The bank points to industry forecasts showing the broader PC market is expected to contract this year as higher memory costs push device prices higher. Yet Apple is expected to continue taking share.

According to Chatterjee, Macs have been “side-stepping” the broader PC market’s price elasticity through two structural advantages: a wider range of price points and accelerating demand for AI-capable computers. Gartner expects AI PCs to account for roughly 46% of the market next year, rising to about 70% by 2027, trends JPMorgan believes should continue benefiting Apple’s Mac lineup.

That combination leads the bank to forecast double-digit Mac revenue growth despite higher prices—a sharp contrast to much of the broader PC industry.

Not Every Apple Product Looks the SameJPMorgan’s outlook isn’t equally bullish across Apple’s hardware portfolio.

The bank expects the iPad to be “the most price-sensitive” of Apple’s major product lines, while base-model iPhones should also see more demand pressure than premium devices. Macs, meanwhile, stand apart because AI functionality is creating new reasons to upgrade beyond routine replacement cycles.

That distinction also helps explain why JPMorgan left its longer-term earnings outlook largely intact despite assuming steeper hardware price increases. While lower-cost products may experience some volume pressure, stronger pricing and resilient demand for Macs and premium iPhones should leave Apple with “much more favorable” revenue and earnings outcomes than many investors currently expect.

The Bigger PictureFor years, Apple’s investment story has revolved around the iPhone.

JPMorgan’s latest research suggests the company’s next AI narrative may be unfolding elsewhere. As investors debate iPhone pricing and the foldable cycle, Apple’s quieter Mac business could become one of its biggest AI beneficiaries—driven not just by new hardware, but by “Edge AI-led demand” that may prove far more durable than the market expects.

Mac Mini-Photo by Wachiwit via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Wall Street prefers SpaceX stock to Tesla.

Uber is not developing autonomous vehicles itself but is strategically partnering to benefit from the technology. UBER avoids heavy R&D costs by leveraging alliances with autonomous vehicle innovators instead of direct competition. The prevailing bear thesis underestimates UBER's adaptability and its platform's ability to profit regardless of who supplies the vehicles.

On June 1, the artificial intelligence (AI) start-up Anthropic announced it had confidentially submitted its draft registration statement for an initial public offering to the Securities and Exchange Commission. That puts it firmly on the path to go public, which could happen before the end of 2026.

For retail investors, that will bring the opportunity to own a piece of the company that offers one of the most advanced AI models on the market, Claude. But after seeing the price action of Space Technologies Exploration shares since its IPO, some investors may be feeling extra cautious about buying shares of another company just after its debut. They may recognize the upside potential of Anthropic, but also want to limit their risk.

One strategy that could offer a solution is to invest in well-established tech companies that already hold stakes in Anthropic, such as Amazon (AMZN +0.81%) and Alphabet (GOOG +1.09%) (GOOGL +1.32%).

Image source: Getty Images.

Amazon gets a stake and potentially $100 billion in revenue Amazon has been an investor in Anthropic for several years. It had already pumped $8 billion into the start-up before its latest investment agreement in April. At that time, it upped the ante by agreeing to invest an additional $5 billion immediately, and up to $20 billion more over time, with purchases tied to the start-up achieving certain milestones.

The stake it had built up earlier was valued at $74 billion in April, so Amazon has already profited handsomely. It's also doing well already from its follow-on investment of $5 billion. Anthropic had a valuation of $380 billion at the time. But by its May financing round, Anthropic's valuation had ballooned to $965 billion.

Aside from its investment, Amazon can also benefit from Anthropic being one of its customers. Over the next 10 years, Anthropic says it plans to spend over $100 billion on Amazon Web Services technologies.

Today's Change

(

0.81

%) $

1.98

Current Price

$

246.14

Alphabet wants a slice of Anthropic Alphabet invested in Anthropic in 2023, acquiring a 10% stake in the company for around $300 million. A few months later, the tech giant invested another $2 billion, reportedly raising its stake to 14%.

Its next big investment came this past April, when Alphabet announced it would invest up to $40 billion in the company. Of that $40 billion, $10 billion was to be invested immediately, with $30 billion more to follow if Anthropic meets certain performance milestones.

Alphabet also has a partnership with Anthropic, as it provides customers access to Claude through Google Cloud. Plus, Anthropic has secured more compute capacity through Alphabet.

Today's Change

(

1.32

%) $

4.84

Current Price

$

371.30

The benefits of investing in established tech giants Anthropic is rapidly growing its revenue: It's expected to report sales of $10.9 billion for the second quarter. If it reaches that total, not only would it be a profitable quarter for the start-up, but it would also be more than double the $4.8 billion it reportedly generated in the first quarter.

There is plenty of upside potential with Anthropic, but there's also plenty of risk due to increasing competition, rising infrastructure costs, and a lofty valuation that may be difficult to sustain. That's why some investors may be looking to sidestep those issues through investing in Amazon and Alphabet.

Both tech giants are already established, so they won't experience the volatile price swings Anthropic is likely to face when it first starts trading. And because they have established themselves in an array of businesses, they aren't reliant on Anthopic's success.

If Anthropic ultimately proves to be a successful business, it won't just benefit Amazon and Alphabet through their direct stakes in the company, but also through the deals and partnerships they have established with it. Amazon and Alphabet also have safety nets built into their investment plans: Each company will only invest more money in Anthropic when it meets certain milestones.

If Anthropic fails, it will sting for Amazon and Alphabet, but the tech giants will still be in business. In comparison, an investment in Anthropic alone will be entirely dependent on that company's performance. The potential gains could be rewarding, but the potential losses could be painful.

Primitive Labs co-founders, from left: CTO Jean Farmer, CEO Rohit Talluri and COO Gabriel Fong. (Primitive Labs Photo) Rohit Talluri learned the tradition at Amazon: always keep an empty chair in the room to represent the customer — a reminder of the people who will ultimately use whatever gets built.

Now, with AI coding tools creating software faster than ever, Talluri and his co-founders, fellow Amazon veterans Jean Farmer and Gabriel Fong, recognize that the customer can be easily forgotten in the process. So they’re creating a seat at the table for AI agents.

That’s the idea behind Primitive Labs. The startup is building what it calls behavioral intelligence: systems that observe, reason and act as customers would across software platforms and devices, helping product teams learn how people will react to a new feature, design or marketing decision before it ships.

Traditional user research and focus groups can take weeks or months, so teams under pressure to ship quickly are tempted to skip them. Primitive Labs is automating that research with agents that simulate human behavior, aiming to make it a routine step in building software.

“It’s bringing humans back to the center of a world that’s created by AI,” Talluri said. “That is the goal here.”

The mission, according to the startup’s launch post, is to “make human behavior a first-class primitive of software development.” That’s the inspiration for Primitive Labs’ name. The idea is to build products that people will understand, trust and keep using — not the average user, but specific types of users in specific contexts.

Founding team: Talluri, the Primitive Labs CEO, is joined by co-founders Farmer, CTO; and Fong, COO.

Fong and Talluri have worked together since 2020. At AWS in Seattle, Fong held product marketing and enterprise account roles, then led sales and marketing at the cloud consultancy DoiT International.

At Primitive Labs, his role runs broader than sales and marketing, spanning product direction, customer development and operations. Talluri describes him as highly technical and a hands-on contributor to the company’s core product work.

Farmer and Talluri worked together at AWS on large-scale machine-learning infrastructure, including the SageMaker HyperPod training service, before both moved into Amazon’s AGI organization.

Farmer worked on the Amazon Nova models’ ability to use software tools — designing how the models call tools and take actions, and building the systems to test and measure how well the resulting agents perform. That work included benchmarks for the Model Context Protocol (MCP), the emerging standard for connecting AI models to outside tools and data.

Roots in AI autonomy: Talluri joined the AGI Autonomy Lab, the group Amazon assembled around talent it hired from Adept, a San Francisco startup building AI agents that operate software on their own.

Amazon had brought on Adept’s CEO, David Luan, a former OpenAI executive, along with other co-founders in 2024, and licensed the startup’s technology, putting Luan in charge of the lab. Talluri worked there on computer-use agents and helped launch Nova Act, Amazon’s agentic computer-use model.

Talluri said he initially came close to leaving Amazon in 2025 to start a company, before leaders there steered him toward the Autonomy Lab to work under Luan (who has since left Amazon).

Funding: Primitive Labs has raised a pre-seed round, led by a16z Speedrun and joined by several small, newer venture funds and a group of angel investors. The company isn’t disclosing the funding amount.

Its launch post lists backers including Olive Tree Capital, Cloverfield Fund and Unexpected Investments (from former TechCrunch editor Josh Constine), plus angels such as Luan, Harsh Patel and Artur Kiulian, and others with backgrounds at OpenAI, Amazon, Google DeepMind, Databricks, Nvidia and Meta.

Primitive Labs will join a16z Speedrun’s cohort starting this month, and expects to raise its next round around the end of the program, in September or October.

Headquarters: The company is based in San Francisco, where it’s working part-time out of a16z’s Speedrun space, with plans to get its own office after making its first hires.

Talluri, a University of Washington graduate who read GeekWire as a student and dreamed of launching a startup of his own, said the choice came down to San Francisco’s talent density and the pace of AI research there, plus the Speedrun program being there.

Primitive Labs posted its first job listings last week — for founding engineers, researchers and an intern, in San Francisco or New York.

Product status: The company is pre-revenue and working with a small group of early customers who are testing its product and helping shape it, including private previews with what Talluri described as Fortune 500 and Fortune 50 consumer-technology and e-commerce brands.

The company plans to launch its products in general availability later this year.

How it works: The agents work across devices including computers and phones, focused for now on digital products and customer journeys. The company says it has also explored using them to gauge reactions to physical products, such as brand and packaging.

The underlying research draws on computational cognitive science, continual learning and custom memory systems modeled on how people store information — work Talluri said the company plans to publish and partly open-source in the coming months.

While other startups are working on agent-based simulation and automated testing of user interfaces, what sets Primitive Labs apart, Talluri said, is the focus on human alignment. That means building agents that faithfully represent a specific product’s users, and making that a standard layer of how software gets built. He described the key measure as behavioral fidelity, or how closely an agent’s choices track human decisions.

Asked whether the startup will keep a chair empty when it gets an office, in the Amazon tradition, Talluri didn’t hesitate. “100%,” he said. And yes, he said, they’ll be envisioning an agent sitting there.

As Microsoft Corp. (NASDAQ: MSFT) stock rebounded from a crucial multi-year support level over the past two weeks, Gil Luria, a Wall Street analyst at D.A. Davidson, reiterated bullish sentiment.

Luria maintained a ‘Buy’ rating for MSFT stock and kept his 12-month price target at $550, in a note to clients analyzed by Finbold on July 7. The new target implies a potential upside of approximately 42.21% from the current share price of $386.74.

In his research note, Luria highlighted Microsoft’s Copilot as a mature component for democratizing AI models. Looking ahead, the analyst identified deeper integration of open-source models as a critical next step to catalyze a MSFT stock bull rally.

The analyst acknowledged MSFT stock continues to face a competitive landscape, noting that NVIDIA Corp. (NASDAQ: NVDA) has shown strong interest in filling the open-source integration space, and that Meta Platforms Inc. (NASDAQ: META) could potentially re-enter the arena.

Despite these risks, Luria remains confident in MAFT stock positioning. Furthermore, he believes Chinese AI models are unlikely to gain significant traction in the American enterprise. The current geopolitical and bilateral dynamics between the United States and China could limit the mainstream adoption of Chinese AI models.

MSFT stock price forecast and outlook Following Luria’s stance to maintain a bullish outlook on his MSFT share price forecast, the average target from 37 analysts surveyed by TipRanks over the last three months was $560,97 at the time of reporting.

Microsoft stock price forecast. Source: TipRanks Microsoft has received a strong buy rating from Wall Street analysts, as more S&P 100 index companies signal bullish sentiment. Year to date (YTD), the company’s stock has rebounded twice from its multi-year support level around $356.77 to trading at $386.74 at press time.

MSFT stock YTD. Source: Finbold As part of the S&P 100 index, MSFT stock could attract more buyers amid the ongoing AI boom.

Nike (NKE 1.70%) has been struggling in recent years to grow its business, but there's no denying the brand remains highly recognizable and is iconic in the athletic world. And when a company has strong assets to work with, there's the potential for a turnaround effort to be successful and pay off.

The apparel company remains in the midst of a turnaround, and with it beating expectations in its most recent quarterly results, there may be a glimmer of hope that the business is on the right track. Is Nike's stock worth buying right now?

Image source: Getty Images.

Nike beat expectations, but the results remain underwhelming On June 30, Nike reported its fourth-quarter results for the period ending May 31. While revenue for the period totaled $10.97 billion and beat analyst expectations of $10.86 billion, that still represented a year-over-year decline of 1%, reflecting a low bar for the company. Nike benefited from tariff refunds during the quarter, which enabled its bottom line to jump from $211 million a year ago to nearly $1.1 billion for the most recent period. Even on an adjusted basis, however, the company's per-share profit of 20 cents was better than expectations of 13 cents.

The earnings results have given the apparel stock a bit of a boost, but CEO Elliott Hill, who took over nearly two years ago, admits that the company still faces challenges in its turnaround effort, particularly in Greater China, where sales declined by 12%. "We know we're not living up to our full potential."

Today's Change

(

-1.70

%) $

-0.75

Current Price

$

43.34

Should investors trust the process and buy Nike's stock on weakness? If Hill successfully turns the business around and gets Nike back to growth, that would likely result in significant gains for the beaten-down stock, which has fallen more than 70% over the past five years. But with there being little, if any, real progress to show since Hill took over, it's clear there are significant challenges for the company and questions about its future.

The stock may appear cheap, but not when measured by future earnings projections; it's trading at a forward price-to-earnings multiple of 23, based on analysts' expectations for the year ahead. That's not low at all, given the uncertainty with Nike's stock right now. There's still a ton of risk here, and Nike's stock may only be suitable for investors who are comfortable with that and who are willing to potentially hang on for years, in the hopes that the turnaround will be successful, which is by no means a sure thing.

watch now

Robots on the factory floor. Self-driving vehicles on the Las Vegas strip. Even a substitute for man's best friend — the robotic dog.

They are all part of the physical artificial intelligence buildout that depends on high-tech, low-cost lidar, the critical sensors that allow these technologies to see their surroundings.

And at the heart of this buildout is Hesai Technology, a Shanghai-based lidar manufacturer blacklisted as a national security threat in 2024 by the U.S. Department of Defense, which designated Hesai as a Chinese military entity. While the blacklist prevents Hesai and the 187 other companies and subsidiaries on the list from securing Pentagon contracts, there is nothing illegal about using these products in nonmilitary applications. Hesai's presence on the blacklist does not prevent U.S. companies from using Hesai's technology.

Government officials and security experts say the use of Chinese lidar could open this new, critical infrastructure to cyberthreats with potentially serious consequences and become a backdoor for Beijing to access sensitive data collected by the lidar technology. 

David Li, Hesai's co-founder and CEO, says the narrative that his company poses a threat is fiction.

"In the DOD case, I don't feel there is sufficient evidence, and it's not logical," Li said. "We are frustrated by that."

In his first extended interview about the blacklist designation, Li defended the company against allegations that its technology poses national security risks or could be used by the Chinese government to collect data.

Despite the federal blacklist designation, Hesai's reach is growing. Under an expanded partnership between Hesai and Nvidia, Hesai sensors will be one of the options automakers can choose to integrate into Nvidia's autonomous vehicle platforms, which the chipmaker hopes will power the self-driving vehicle revolution.

"Our vision is that some day, every single car, every single truck will be autonomous. And we have been working towards that future," Nvidia CEO Jensen Huang said in his keynote address at the Consumer Electronics Show in January, when the expanded partnership was announced.

Huang has said that robotics, which includes self-driving cars, is the company's second most important growth category after artificial intelligence. In its latest annual filing, Nvidia reported automotive revenue for fiscal year 2026 was up 39% from a year prior, driven by the adoption of its self-driving platforms. 

Hesai is one of the dominant suppliers in the global autonomous technology ecosystem. Its sensors are integrated into several autonomous systems in addition to Nvidia's, including those of Amazon's robotaxi company, Zoox; autonomous trucking companies such as Waabi and Kodiak; autonomous vehicle technology company Nuro; and agricultural automation firm Agtonomy. The sensors can also be found at New York's John F. Kennedy International Airport, where they monitor passenger and traffic flow at security checkpoints and gate entrances, and even in autonomous lawn mowers.

The threat of weaponizing lidarNot everyone is convinced that these data-collecting sensors should be integrated into U.S. autonomous systems.

Craig Singleton is a senior director for the China Program at the Foundation for Defense of Democracies, a conservative Washington-based think tank known for being critical of the Chinese government. His research has concluded that there are security risks in Chinese-made sensors operating in U.S. systems, including that lidar sensors could enable Beijing "to access sensitive U.S. data or disrupt critical operations."

Lidar — which stands for "light detection and ranging" — works by firing laser pulses and measuring how long it takes for them to bounce off an object and back to the sensors. The sensors then combine thousands of these measurements to create a "point cloud," or three-dimensional map, which allows autonomous machines to see and navigate their surroundings. 

Singleton told CNBC that as Chinese lidar sensors become more prolific across the U.S., they will move closer to defense nodes, utility grids and airports.

"That data is so sensitive and it's so precise that it could be weaponized by a hostile foreign power if they ever wanted to target our infrastructure," Singleton said.

Questions about how and where Chinese-made lidar sensors are being used come alongside broader concerns about Chinese government oversight and the potential for that government to access data collected by Chinese companies.

The U.S. Securities and Exchange Commission requires all China-based companies to disclose "the risk of Chinese government intervention or control." In its SEC filings, Hesai has disclosed that the Chinese government has "significant oversight in regulating our operations and may influence or intervene in our operations at any time." 

Singleton said that in part means Hesai can be compelled to share data collected by its lidar sensors with the Chinese government.

"Whether they want to transmit that information or not isn't a question, it's mandated by law," Singleton said. 

Li said the company's sensors hold no data because they lack the memory capacity to do so. He said Hesai's partners are responsible for securing the data the sensors collect and that Hesai has no control over that. 

Li also rejected concerns that the Chinese government could access data through the company.

But Singleton said the rapid deployment of autonomous systems is outpacing scrutiny over potential security risks.

"It's a tale as old as time with Chinese tech," he said. 

'Rip and replace'Companies in the U.S. have previously embraced low-cost Chinese technology, even from entities that had been blacklisted, only to later spend billions replacing it after the products raised national security concerns.

Chinese telecommunications giant Huawei, for example, was placed on the Defense Department's blacklist in 2021, but that did not stop U.S. companies from using Huawei products. The Federal Communications Commission, which had designated Huawei a "national security threat" in 2020, forced U.S. companies to "rip and replace" Huawei products from their networks beginning in July 2021. Huawei challenged both the decision to bar it from securing federal contracts and FCC's designation of the company as a national security threat in court, but lost both cases. 

Like Huawei, other Chinese companies have been found by the Defense Department to be national security risks only after their products made their way into U.S. homes and businesses.

Shenzhen-based DJI, the world's largest drone maker, and Wi-Fi router maker TP-Link both sold popular consumer goods. DJI was blacklisted in 2022 by the Pentagon for its ties to the Chinese government, and TP-Link was added to the list in June. 

DJI sued the Defense Department in 2024 to be removed from the blacklist, but a federal judge ruled there was "substantial evidence" that the company contributes to China's defense industrial base. DJI is appealing the decision. 

Unlike Hesai, which remains free to sell lidar sensors commercially in the United States, a separate FCC ruling in December banned DJI from selling new products to U.S. consumers due to national security risks, though existing models remain legal to use.  

TP-Link was also barred from selling new models after the FCC determined foreign-made routers posed "an unacceptable risk to the national security of the United States."

Inside a simulated lidar attackNational security concerns surrounding foreign-made lidar sensors have also spurred academic research on the potential risks posed by these devices.

Miroslav Pajic, a professor at Duke University who studies vulnerabilities in lidar sensors, told CNBC it's "easy to physically spoof lidar."

Pajic said any lidar sensor can be compromised with malware inserted at the factory during production or through firmware updates. Malware can be difficult to detect, since automakers and other manufacturers usually cannot access a lidar maker's proprietary source code and malware can remain dormant until triggered. 

Inside his lab at Duke, Pajic demonstrated one such attack. 

On a computer monitor displaying a lidar sensor's point cloud image, the room the sensor was capturing appeared exactly as expected. The sensor mapped its surroundings in real time, creating a 3-D picture of the space. 

But after Pajic activated malware embedded in the lidar unit, a person appeared in the sensor's point cloud. In reality, nobody had entered the room.

The system generated a phantom person — a false object created entirely through manipulated sensor data. 

Pajic's lab has also conducted demonstrations that have the opposite effect: manipulating lidar data to remove real objects from a sensor's view. In that scenario, an autonomous system could fail to detect a pedestrian, vehicle or obstacle that is physically present. 

Pajic said similar attacks could theoretically be used against autonomous vehicle fleets operating in cities, causing them to malfunction.

When asked about the simulation, Li said a system can be designed to be vulnerable in a lab setting. 

But the risk of malfunction isn't just theoretical. 

Michael Robbins, CEO of the Association for Uncrewed Vehicle Systems International — a trade organization that represents companies in the industry, including U.S. lidar competitors — said that in 2024 Hesai pushed a firmware update to all its lidar sensors. The firmware didn't take into account that 2024 was a leap year, so on Feb. 29, all of Hesai's lidar sensors stopped working.

"In that case it was by error, but that could also be done intentionally, where every lidar in use in the United States could be turned off, or it could be used against us in a nefarious way," Robbins said. 

While the potential for a software error across autonomous vehicles is widespread, an error in lidar systems is grave considering its implementation in cars across America.

Li said that in the case of the leap year incident there was an overlooked coding bug in the firmware — not malware. He added that Hesai publishes all its firmware as open source data, so it can be publicly analyzed. In a statement to CNBC, Hesai said the issue was fixed within 24 hours.

"We are making ourselves transparent on what exactly this is able to do," he said.

Li also said autonomous systems are designed with other sensors such as cameras and radar systems that can compensate for lidar failures.

"If any of them stop, the cars will have to reevaluate the situation to know whether it's safe enough to continue the course or we're gonna have to pull over," he said. 

Hesai's sensors have also met the standards set by Tüv Rheinland and Dekra, which are independent third-party companies that specialize in product testing, safety validation and cybersecurity assessments. 

Hesai's U.S. partners Hesai, which is publicly listed on both the Nasdaq and the Hong Kong Stock Exchange, is one of the world's biggest lidar manufacturers. It has one-third of the global automotive lidar market, the company told CNBC in a statement. 

And autonomous driving is projected to become a massive global market. McKinsey & Company estimates the market potential for autonomous driving will be roughly $300 billion to $400 billion by 2035.

Hesai's footprint inside the U.S. autonomous ecosystem has continued to grow.

CNBC reached out to Hesai's U.S. partners about their relationship with the company.

CNBC asked Nvidia more than a dozen questions, including whether it was aware that Hesai had been blacklisted by the Pentagon and what safeguards are in place to protect the data the sensors collect. 

Nvidia did not respond to CNBC's specific questions and instead provided a statement: 

"Automakers worldwide demand an open, vendor-agnostic reference architecture, so they can select components that are best for the markets they serve to build the safest cars. Our NVIDIA DRIVE Hyperion architecture provides that flexibility, ensuring that American industry competes worldwide, consistent with all regulatory and commercial requirements."

In a statement, Kodiak wrote that its technology is designed "so that Hesai does not have access to the data from their sensors or any data produced by Kodiak's autonomous system."

A spokesperson for Waabi wrote that its "autonomous trucks utilize an array of sensors" and that it does not "comment on or disclose specific hardware being tested or used in our autonomous vehicles." The spokesperson added, "We have rigorous data security protocols in place and thoroughly vet all third-party hardware to ensure the absolute integrity and safety of our systems as well as compliance with all applicable laws and regulations."

Agtonomy, Nuro and Zoox did not respond to CNBC's request for comment.

High-tech, low costHesai's expansion has been driven in part by pricing.

Hesai told CNBC it has reduced the cost of its lidar units from more than $10,000 each to less than $200. By comparison, U.S. lidar manufacturer Aeva told CNBC its automotive sensors cost "in the few hundreds of dollars" per unit.

Industry analysts say that the pricing advantage is reshaping the market. A 2025 automotive lidar report by the Yole Group, a global advisory and market analysis firm, said Chinese firms such as Hesai are "dominating due to cost, scale and government support" while Western players "face higher costs and slower adoption."

In a statement to CNBC, Hesai said it's among the first in the industry to mass produce its lidar systems due to its "innovation" and "automotive manufacturing capability."

Critics say those lower prices are only possible because of Chinese government assistance.

"Chinese lidar companies have benefited from massive unfair state subsidies that have allowed them to scale production and control the market," said Singleton, of the Foundation for Defense of Democracies.

Li denied his company receives support from the Chinese government.

"That's an accusation with no evidence," he said. "When you see a player being able to build sensors at a much more affordable level, you just assume that they get help."

According to Hesai's 2025 annual filing with the U.S. SEC, the company received Chinese government subsidies, preferential tax rates of 15% versus the standard 25%, preferential borrowing rates below benchmark, and a tax break that lets it deduct 200% of its research and development costs. 

In a statement to CNBC, Hesai said those programs are not unusual, that "governments worldwide commonly offer tax incentives to technology enterprises as a standard measure to stimulate innovation" and that these incentives are "broadly available to all qualifying companies in China, both domestic and foreign."

Hesai also wrote that "no government organization, including the Chinese government, holds any equity stake in Hesai."

Ties to the Chinese military At the center of Hesai's legal battle with the Pentagon is whether the company contributes to China's military-civil fusion strategy, a national initiative aimed at integrating civilian and military technological development. The Pentagon says Hesai is part of that ecosystem. 

After the Defense Department blacklisted Hesai in January 2024, the company sued the department in federal court over the designation, in May 2024.

In court filings, the Defense Department cited several factors in support of the designation. Among them is that Hesai's Chinese headquarters are in Shanghai's Jiading district, an area associated with military-civil fusion initiatives.

Li rejected that argument. He said a military-civil fusion zone has not been clearly defined and that several of the companies in the area are American companies. 

"For lack of a better analogy, just because the Pentagon is in Virginia, you think that Virginia is a place full of military," Li said. "Anybody operating in the state of Virginia becomes military."

The Pentagon also pointed to supplier relationships between Hesai and China Electronics Technology Group Corporation, or CETC, a state-owned defense conglomerate tied to the People's Liberation Army. In a prospectus Hesai submitted for possible listing on the Shanghai Stock Market, CETC is listed as its third-largest supplier.

Li said none of the parts Hesai purchased from CETC have a military application.  

In court, Hesai also said its sensors are "solely for commercial and civilian uses." 

Li also told CNBC that Hesai's commercial agreement strictly prohibits customers from using its devices in military applications. However, he also said that, like any piece of hardware, once sensors leave the factory, it is impossible to physically control where they end up.

Hesai lost its lawsuit against the Defense Department in 2025 and remains on the blacklist. The company is appealing the decision.

Additional scrutinyBeyond the courtroom, the company is also facing scrutiny from international policy groups. 

In July 2025, the Prague Security Studies Institute — a nonprofit, nongovernmental public policy organization — published a white paper on Hesai. Among the findings: Hesai's lidar sensor appeared on a military vehicle during a 2023 Chinese military television program. The program is called "Land Unmanned Systems Challenge," a Chinese unmanned systems competition hosted by China's Army Equipment Department and organized by a military research institute. 

Chinese defense materials describing the event say its goal is to advance China's military-civil fusion strategy. Participants included military and civilian universities, state-owned enterprises, private companies and research institutes testing unmanned vehicles.

Li confirmed that the sensor that appeared in the footage was Hesai lidar technology but said the company did not supply the sensor for the military competition. 

"We shipped probably hundreds of thousands of lidars like this," Li said. "So, there is a possibility that they end up somewhere that we are completely unaware of in the aftermarket."

Li also said Hesai has no way to communicate with or trace the sensors once they are shipped out, that the sensors send the data to the company using them, not to Hesai. 

Proposed legislation On Capitol Hill, lawmakers are raising alarms about the use of Chinese lidar technology in the United States, warning the sensors could create both cybersecurity and national security risks.

"These sensors and the ability to transmit information is a huge concern," said U.S. Rep. John Moolenaar, R-Mich., chairman of the House Select Committee on the Chinese Communist Party. The committee's website says that it is "committed to working on a bipartisan basis to build consensus on the threat posed by the Chinese Communist Party."

Some of the committee's work has focused on protecting U.S. automakers from Chinese competition.

The committee has proposed legislation that would phase out Chinese-made lidar technology in the United States, arguing that the Chinese Communist Party could otherwise exploit a fast-growing and strategically important industry.

In May, Moolenaar introduced legislation that would ban Chinese vehicles from U.S. roads.

Li said his company's sensors are not capable of storing data and therefore could not transmit information to China. But Moolenaar said he is skeptical of those assurances, arguing that Chinese technology has been known to have back doors.

"We've seen back doors in robots that would transmit information back to these Chinese Communist interests," he said.  

No proposed legislation or existing laws currently prohibit blacklisted Chinese companies from being listed on U.S. stock exchanges or prevent American investors from buying their shares.

Moolenaar said companies focused on growth and shareholder returns may not prioritize national security concerns in the same way policymakers do.

"We need to consider what implications there are when we merge these Chinese technologies with American technologies," he said. "Often legislation takes a while to catch up."

Nvidia Corporation (NASDAQ:NVDA) shares are trading lower following reports suggesting China’s DeepSeek is developing AI chips for inference, which reduces its reliance on the company.

DeepSeek’s Quiet Push Into SemiconductorsIf successful, the move would mark a major strategic shift for DeepSeek — widely regarded as China’s AI champion — and could reduce its reliance on both Nvidia and Huawei chips, which it has historically depended on to train and run its globally popular models.

The Broader ContextDeepSeek would be joining a growing list of AI companies seeking to reduce dependence on Nvidia by developing custom silicon. OpenAI last month unveiled Jalapeño, its first custom inference chip developed with Broadcom, while Anthropic has been weighing building its own chips, Reuters reported in April.

Nvidia Shares FallNVDA Price Action: At the time of publication, Nvidia shares are trading 1.62% lower at $192.39, according to data from Benzinga Pro.

Image via Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Our NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) call comes at a moment when the stock has cooled off but the underlying business is still accelerating. The 24/7 Wall St. price target for NVIDIA is $250.31 over the next 12 months, implying 28.47% upside from the $194.83 close on July 2, 2026. Our recommendation is buy with a confidence level we characterize as high at 90%.

24/7 Wall St. Price Target Summary Metric Value Current Price $194.83 24/7 Wall St. Price Target $250.31 Upside 28.47% Recommendation BUY Confidence Level 90% A Pullback Into Blowout Fundamentals NVIDIA shares fell 12.46% over the past month and now trade roughly 28% below the 52-week high of $236.26, even as year-to-date performance stays positive at 4.59% and the one-year return sits at 24.06%.

That derating happened despite Q1 FY2027 results (filed May 20, 2026) that beat on both lines: revenue of $81.615 billion grew 85.23% YoY, and non-GAAP EPS of $1.87 topped estimates by 5.42%. Data Center revenue reached $75.246 billion, up 92% YoY, with networking exploding 199%.

Recent news reinforces the demand backdrop: Foxconn reported a 40% quarterly sales increase on AI server strength, and Microsoft made Anthropic’s Claude generally available in Azure Foundry on GB300 Blackwell Ultra GPUs.

The Case for $260 and Higher The bull scenario in our model targets $260.05, roughly 33.48% above spot. The Street is more aggressive: consensus analyst target sits at $301.62 with 10 Strong Buy and 48 Buy ratings against just 2 Holds and 1 Sell.

Q2 FY2027 guidance calls for revenue of $91 billion with 75% non-GAAP gross margin, and Jensen Huang described the Blackwell and Vera Rubin ramp as “the largest infrastructure expansion in human history”.

Major commitments from OpenAI (10GW), Anthropic (1GW), CoreWeave, and sovereign programs in the UK, Germany, and South Korea add visibility. On 22x forward earnings, the multiple compresses fast if 2027 estimates keep drifting higher.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

The Risks Worth Watching Our bear case lands at $217.64, still positive but far below consensus. CNBC reported on July 5, 2026 that NVIDIA’s Kyber rack system for Rubin Ultra chips has slipped to 2028 due to manufacturing issues, opening a door for AMD and Google. China exposure has effectively gone to zero: guidance excludes any China Data Center compute.

And $119 billion in supply commitments create demand-risk if hyperscaler capex normalizes. Insider activity has skewed toward net selling across 16 recent transactions. That said, bulls would counter that supply commitments reflect confidence in booked orders backed by real demand, and that networking growing at 199% shows full-stack lock-in that is very hard to displace.

The Setup Favors Upside The 24/7 Wall St. price target of $250.31 and a buy rating reflect a business compounding revenue at 85% while trading at 22x forward earnings, with 90% confidence behind the projection.

The setup looks attractive if the Q2 earnings report confirms $91 billion and Blackwell 300 shipments stay ahead of schedule. The setup weakens if the Kyber delay expands into the base Rubin timeline or if hyperscaler capex guidance turns lower. On today’s setup, the risk skews to the upside.

NVIDIA Price Prediction 2026-2030 Year 24/7 Wall St. Price Target 2026 $219.09 2027 $267.34 2028 $324.66 2029 $353.02 2030 $389.92 These projections assume NVIDIA continues executing on its Blackwell and Vera Rubin roadmap. Meaningful upside or downside could come from Chinese market re-entry, a sharper competitive push from AMD and hyperscaler custom silicon, or a change in AI training capex intensity.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Contact [email protected] for any questions or corrections.

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

The company logo and trading information for BlackRock is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 30, 2017. REUTERS/Brendan McDermid Purchase Licensing Rights, opens new tab

CompaniesJuly 7 (Reuters) - BlackRock (BLK.N), opens new tab said on Tuesday it would launch an exchange-traded fund tracking the technology-heavy Nasdaq-100 index (.NDX), opens new tab, as ​it seeks to tap surging investor demand for exposure to ‌the AI-driven stock market rally.

The iShares Nasdaq 100 ETF, offered by the world's largest asset manager, will track the flagship U.S. index and start ​trading under the ticker on Thursday, just months after the Nasdaq (NDAQ.O), opens new tab revised ​its criteria to accelerate the inclusion of newly listed companies ⁠such as SpaceX (SPCX.O), opens new tab.

Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.

BlackRock's ETF will compete with asset manager Invesco's Nasdaq-100 ​franchise, which has long dominated the market for investors seeking ​access to large-cap growth and tech-heavy stocks through its QQQ Trust Series 1 (QQQ.O), opens new tab and Nasdaq 100 (QQQM.O), opens new tab ETFs. Last month, bank State Street (STT.N), opens new tab also launched a Nasdaq ​100 ETF (QNDX.O), opens new tab.

"IQQ enhances our ability to offer investors access to ​the Nasdaq-100 with iShares ETFs — providing complementary strategies that allow them to align ‌their ⁠portfolios with their objectives," said U.S. head of iShares at BlackRock Elise Terry.

Strong investor demand for large-caps and technology-focused stocks helped the Nasdaq 100 (.NDX), opens new tab log its best quarter since April 2020 in the three months ended June. ​The index tracks ​the top ⁠100 non-financial companies listed on the Nasdaq stock exchange.

The iShares Nasdaq 100 ETF will start trading ​with an initial net asset value (NAV) of $24 per ​share. In ⁠comparison, the NAVs of Invesco's funds are $722.45 and $297.45, respectively.

BlackRock currently has over $41 billion in assets under management through its other Nasdaq 100 strategies such ⁠as ​the iShares Nasdaq Top 30 Stocks ​ETF (QTOP.O), opens new tab and the iShares Nasdaq Premium Income Active ETF (BALQ.O), opens new tab.

Reporting by Johann M Cherian in ​Bengaluru and Lewis Krauskopf in New York; Editing by Diti Pujara

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

Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.

Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.

The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.

The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.

When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.

Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.

Should You Consider Toast?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Toast (TOST - Free Report) holds a #1 (Strong Buy) at the moment and its Most Accurate Estimate comes in at $0.34 a share 28 days away from its upcoming earnings release on August 4, 2026.

Toast's Earnings ESP sits at +5.43%, which, as explained above, is calculated by taking the percentage difference between the $0.34 Most Accurate Estimate and the Zacks Consensus Estimate of $0.32. TOST is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

TOST is part of a big group of Computer and Technology stocks that boast a positive ESP, and investors may want to take a look at Hewlett Packard Enterprise (HPE - Free Report) as well.

Hewlett Packard Enterprise is a Zacks Rank #1 (Strong Buy) stock, and is getting ready to report earnings on September 2, 2026. HPE's Most Accurate Estimate sits at $0.95 a share 57 days from its next earnings release.

Hewlett Packard Enterprise's Earnings ESP figure currently stands at +2.70% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.93.

TOST and HPE's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

Paypal (PYPL - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this technology platform and digital payments company have returned +9.3%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Financial Transaction Services industry, which Paypal falls in, has gained 9.5%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Paypal is expected to post earnings of $1.28 per share for the current quarter, representing a year-over-year change of -8.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.

The consensus earnings estimate of $5.32 for the current fiscal year indicates a year-over-year change of +0.2%. This estimate has changed +0.3% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $5.75 indicates a change of +8.2% from what Paypal is expected to report a year ago. Over the past month, the estimate has changed -0.5%.

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 Paypal.

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 Paypal, the consensus sales estimate of $8.52 billion for the current quarter points to a year-over-year change of +2.8%. The $34.32 billion and $35.75 billion estimates for the current and next fiscal years indicate changes of +3.5% and +4.2%, respectively.

Last Reported Results and Surprise HistoryPaypal reported revenues of $8.35 billion in the last reported quarter, representing a year-over-year change of +7.2%. EPS of $1.34 for the same period compares with $1.33 a year ago.

Compared to the Zacks Consensus Estimate of $8.11 billion, the reported revenues represent a surprise of +2.96%. The EPS surprise was +5.51%.

Over the last four quarters, Paypal surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

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.

Paypal is graded A on this front, indicating that it is trading at a discount to 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 Paypal. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.

Microchips look a bit threatened in the early part of the Tuesday session, as we continue to see fears about the AI trade.

PREMIUM

Read what the experts are trading this weekExclusive analysis from FXEmpire top analysts — curated insights you won't find on the free site.

In-depth analysis

Curated reports

Top analysts

Unlock Premium

NVIDIA looks like it’s going to gap lower to kick off the trading session on Tuesday, and it is worth noting that we are hanging around the 200-day EMA. The 200-day EMA, of course, is an indicator that a lot of people will watch to determine the overall trend. Whether or not that actually holds remains to be seen, but it certainly looks as if the whole idea of the artificial intelligence trade is in serious trouble. If we get some type of bounce from here, the 200-day EMA is more likely than not to end up being a massive barrier, but if we can break above there, then the 50-day EMA would be the next technical resistance barrier. I think at this point we’re just trying to build up a reason to go higher.

AMD Technical Analysis The market for Advanced Micro Devices looks pretty weak as well, and I think ultimately this is a market that is doing everything it can to consolidate and perhaps work off some of that massive move to the upside. That does make a certain amount of sense, mainly due to the idea that the market can’t go in one direction forever, and with this, when you look at the markets, it’s also worth noting right around the $500 level, there seems to be a certain amount of support based on the action here recently.

INTC Technical Analysis Intel looks like it’s also going to be negative, but again, I think this is more consolidation than anything else. The market is more likely than not going to look at the potential support level of the 50-day EMA as an area that I think a lot of people will be interested in. If we were to break down below there, then the $100 level of course is a potential support level as well. If we were to rally to the upside, pay close attention to the $142 level; that is where we had seen sellers previously. Breaking above that could open up a much bigger move to the upside. All things being equal, it looks like there is a lot of concern about the artificial intelligence trade.

If you’d like to know more about technical analysis and how traders use it, please visit our educational area.

Related Articles

Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – Buyers Defend Dips as Long-Term Trend HoldsGBP/USD, Copper and CAC 40 Forecasts – Rising 10-Year Yield Pressures Risk AppetiteNasdaq 100: Global Chip Selloff Threatens 50-Day MA SupportAbout the Author

Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.

Editors’ Picks

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Healthcare has become Wall Street’s bargain bin in 2026, and value hunters are starting to pay attention. Drug pricing reform, patent cliffs and post-COVID-19 hangovers have crushed multiples across Big Pharma, but the wreckage has created opportunities in two cash-generative franchises trading at single-digit forward earnings multiples. Heading into July, Novo Nordisk and Pfizer stand out as the cheapest large-cap names in the group, with concrete catalysts that could re-rate them before year-end.

Both report Q2 earnings in early August, which means the window to position before the next data point is narrow. Here’s the case for each.

Novo Nordisk (NVO) Novo Nordisk (NYSE:NVO | NVO Price Prediction) trades around $49 after a brutal 12-month derating that took the stock down 29% from a year ago. The 52-week range stretches from $35.12 to $71.80, and shares now sit well below the $47.32 consensus analyst target. Note for income investors: NVO is a Danish ADR, so dividends are subject to foreign withholding tax at the source before they hit your brokerage account.

The valuation is where this gets interesting. Novo trades at a trailing P/E of 12 and a forward P/E of 14, with EV/EBITDA at 9. For a business generating a 71% return on equity and a 62% operating margin, that is a fire-sale multiple.

The bull case rests on the Wegovy pill launch. CEO Mike Doustdar called it “the most efficacious GLP-1 tablet now used by more than one million patients since its January launch.” Q1 FY2026 results, reported May 6, showed the oral version generating $2.26 billion in its first quarter and capturing 65% of new US prescriptions in the category. Obesity care grew 22% at constant exchange rates, and management raised 2026 guidance. Free cash flow yield sits in the high teens, and the board funded a DKK 15 billion buyback through February 2027.

The risk: US pricing is the swing factor. The Most-Favored-Nation framework and planned ~50% Wegovy and ~35% Ozempic list price cuts effective January 2027 will compress cash flow. CER sales are still declining, and CagriSema missed its primary endpoint in the REDEFINE 4 obesity trial. Q2 results land Aug. 5, with consensus at 83 cents.

The same investor newsletter that told subscribers to buy Amazon in 2002, Netflix in 2004, and Nvidia in 2005 still publishes two new stock picks every month. Over 23 years, Motley Fool's Stock Advisor has more than quadrupled the S&P 500. New members get this month's picks, the Top 10 Rankings, and a 30-day money-back guarantee. Click here to unlock their next top stocks while new members are still being accepted.

Pfizer (PFE) Pfizer (NYSE:PFE) trades around $23.80 with a forward P/E of just 8x, a trailing P/E of 19 and a dividend yield of 7.23%. The current quarterly payout of 43 cents per share cost the company $2.4 billion in Q1 alone, fully covered by free cash flow. Analyst target sits at $29.15.

The plain-language bull case: the COVID hangover is almost behind them, and the underlying business is growing again. Q1 FY2026 revenue came in at $14.451 billion, beating expectations and rising 5% year over year. Adjusted EPS of $0.75 marked the fifth consecutive consensus beat. Launched and acquired products grew 22% operationally, with Padcev up 39%, Nurtec up 41%, Eliquis up 13%, and Orgovyx up 43%.

Two specific catalysts matter. First, the Vyndamax patent settlement extends US exclusivity to June 2031, eliminating a feared cliff and providing visibility through the end of the decade. Second, Pfizer is teeing up roughly 20 pivotal studies in 2026, including obesity assets from the Metsera acquisition. CEO Albert Bourla said he is “particularly encouraged by what we’re seeing in oncology and obesity, two areas where I believe Pfizer is positioned to lead.” Add in a $7.2 billion cost-savings program targeted by 2027, and the margin story has a tailwind.

The risk: patent cliff and pricing policy. COVID-era franchises continued to roll over in Q1, with Comirnaty down 59% and Paxlovid down 63%. Generic and biosimilar competition is expected to subtract roughly $1.5 billion in revenue this year. Net debt to EBITDA at 3.26x leaves little slack, and management explicitly stated no share repurchases are anticipated in 2026. Full-year guidance was reaffirmed at $59.5 to $62.5 billion in revenue and $2.80 to $3.00 in adjusted EPS. Q2 results arrive pre-market on August 4, 2026, with consensus at $0.68.

What to Watch in July Both stocks screen as deep value, but the catalysts diverge. Novo’s story hinges on whether Wegovy pill volume can outrun US price cuts. Pfizer’s hinges on pipeline conversion and oncology execution. With both companies reporting in the first week of August, July’s positioning window is short. Investors looking for cheap optionality on the GLP-1 franchise lean toward Novo. Income-focused buyers wanting a 7% yield backed by Eliquis, Vyndaqel, and a stretched but not broken balance sheet skew toward Pfizer.

If You'd Bought Amazon When the Motley Fool Said To…In September 2002, Stock Advisor told subscribers to buy Amazon. In December 2004, Netflix. In April 2005, Nvidia. The newsletter still publishes two new stock picks every month — and over 23 years, has more than quadrupled the S&P 500. Here's how to get this month's picks:

- Join Stock Advisor for one year, with a 30-day money-back guarantee

- Get this month's two new picks — plus the Top 10 Rankings and the full historical pick list

- Read the analysis, decide for yourself, and trade through your own brokerage

Five years from now, you'll probably wish you'd bought this month's picks. Don't miss them.

Contact [email protected] for any questions or corrections.

Jim Cramer spent his July 6, 2026 Stop Trading segment pointing away from the obvious AI trade. While traders chase every hyperscaler capex beneficiary and GPU adjacency they can find, he told viewers to “check, without the cauldron of the data center, [they] should be looking at IBM.” His pitch leaned on a fresh Bank of America upgrade and a valuation that, in a market where AI names routinely trade north of 40x forward earnings, looks almost quaint.

IBM (NYSE:IBM | IBM Price Prediction) is the trade he wants you to make while the rest of the market is busy elsewhere.

The Cramer pitch, in his own words Cramer’s setup was direct. “Bank of America raising price target, raising earnings per share. It’s got some of course AI. But it really is this great computer company,” he said, before landing on the number that matters. “And it sells at 22 times next year’s earnings. I think this one works.” He also acknowledged the elephant. “I know it got hit very badly when it reported, but I think it’s going to be a good, good idea.”

IBM printed a clean beat on April 22, then sold off anyway. Shares closed the filing day at $257.80, dropped roughly 10% within a week, then clawed back to $299.68 by Monday morning. BofA is now at $330 (raised from $315), citing software strength, Confluent synergies, and IBM’s dividend record. The forward P/E per Alpha Vantage is 23x, close enough to Cramer’s 22 to call it a match.

What’s actually inside the “boring” AI story The AI part of IBM’s business is bigger than casual observers realize. The generative AI book of business had crossed $12.5 billion inception-to-date by year-end, with roughly four-fifths in Consulting and one-fifth in Software, and it has been accelerating from $7.5 billion in Q2 2025 and $9.5 billion in Q3 2025. That is real money attached to real workloads.

Q1 2026 gave the thesis teeth. Revenue of $15.917 billion, up 9.46% year over year, beat by 1.70%. Non-GAAP EPS of $1.91 versus $1.81 consensus made it the fourth consecutive EPS beat. Software grew 11.3% with Red Hat up 13% and Data up 19%. Infrastructure was the shocker. IBM Z mainframe revenue rose 51% year over year and segment margin expanding to 15.8% from 8.6%.

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

Arvind Krishna claimed on the call that IBM’s fully populated Z can now handle “about 450 billion inferences a day”, which is why banks are running fraud models directly on the transaction rail instead of shipping data out.

Then there is the ballast. IBM raised the dividend to $1.69 per share, the 31st consecutive annual increase, and the company has paid a quarterly dividend every year since 1916. That income floor does not exist in the data-center-darling universe. You can verify the Q1 numbers in the Q1 2026 8-K exhibit filed with the SEC.

Pressure-testing the 22x trade Is 22x forward earnings actually cheap for what IBM does, or is it priced correctly for a company that grew Consulting only 4% in the quarter and carries elevated debt after Confluent? Free cash flow guidance calls for an approximately $1 billion year-over-year increase in 2026. Return on equity sits at 35.8%. Beta is 0.675, so you are getting AI exposure with less whip than the rest of the complex.

The bearish read has weight. Consulting is the largest slice of that $12.5 billion AI book, and consulting revenue growing 4% while the backlog is 30% GenAI raises a fair question about whether AI is expanding the pie or eating older services. Reddit conversation in June kept surfacing IBM in “forgotten tech stocks” threads, which is either the contrarian’s dream or the market telling you something.

Cramer’s call is coherent. A 2.25% dividend yield, a forward multiple in the low 20s, a real AI book compounding fast, and a mainframe cycle that will not quit. Whether that trade-off works depends on whether you are trying to win the next quarter or the next five years.

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

Contact [email protected] for any questions or corrections.

EL SEGUNDO, Calif., July 07, 2026 (GLOBE NEWSWIRE) -- Beyond Meat, Inc. (NASDAQ: BYND), otherwise known as Beyond The Plant Protein Company™, today announced that Beyond Steak Filet will begin rolling out to Meijer stores this month, expanding its retail presence following recent launches at Wegmans and H-E-B.

Since debuting on the brand's direct-to-consumer site in October 2025, Beyond Steak Filet has quickly become the site's #1 selling product1, earning enthusiastic consumer reviews for its delicious taste, great texture, and strong nutritional profile. Made with mycelium and heart-healthy2 avocado oil, the whole-cut filet delivers 28g of plant protein, 3g of fiber, and just 1g of saturated fat per serving. Beyond Steak Filet is made with clean, simple ingredients and is one of more than 20 Beyond Meat products to earn Clean Label Project Certification. It also contains no added antibiotics or hormones and is Non-GMO Project Verified.

"We're excited to bring Beyond Steak Filet to more consumers across the country," said Ethan Brown, Founder and CEO of Beyond Meat. "The response we saw during our direct-to-consumer launch signaled that consumers share our enthusiasm for this special whole-cut steak, which delivers on taste, texture, and nutrition while being made with clean, simple ingredients. As we offer Beyond Steak Filet at more retailers, we're making it easier than ever for consumers to enjoy a satisfying, nutritious steak experience at home."

To learn more about Beyond Steak Filet, discover delicious ways to enjoy it, and find a retailer near you, visit www.BeyondMeat.com.

About Beyond Meat
Beyond Meat, Inc. (NASDAQ: BYND), otherwise known as Beyond The Plant Protein Company™, is a plant protein company offering a portfolio of plant-based products made with non-GMO ingredients, no added hormones or antibiotics, and 0mg of cholesterol per serving. Founded in 2009, Beyond Meat’s core products are designed to have the same taste and texture as animal-based meat while being better for people and the planet. The company’s brand promise, Eat What You Love®, represents a strong belief that there is a better way to feed our future and that the positive choices we all make, no matter how small, can have a great impact on our personal health and the health of our planet. By shifting from animal-based protein to plant-based protein, we can positively impact four growing global issues: human health, climate change, constraints on natural resources and animal welfare. Visit www.BeyondMeat.com and follow @BeyondMeat on Facebook, Instagram, Threads and LinkedIn.

Beyond Meat Forward Looking Statements
Certain statements in this release constitute “forward-looking statements.” These statements are based on management’s current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. These forward-looking statements are only predictions, not historical fact, and involve certain risks and uncertainties, as well as assumptions. Actual results, levels of activity, performance, achievements and events could differ materially from those stated, anticipated or implied by such forward-looking statements. While Beyond Meat believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results. There are many risks and uncertainties that could cause actual results to differ materially from forward-looking statements made herein including, most prominently, the risks discussed under the heading “Risk Factors” in Beyond Meat’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission (“SEC”) on April 9, 2026, Beyond Meat’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 28, 2026 filed with the SEC on May 7, 2026, as well as other factors described from time to time in Beyond Meat’s filings with the SEC. Such forward-looking statements are made only as of the date of this release. Beyond Meat undertakes no obligation to publicly update or revise any forward-looking statement because of new information, future events or otherwise, except as otherwise required by law. If Beyond Meat does update one or more forward-looking statements, no inference should be made that Beyond Meat will make additional updates with respect to those or other forward-looking statements.

Media Contact
Shira Zackai
[email protected]

1 "#1 seller" refers exclusively to unit sales on Beyond Test Kitchen DTC website since October 2025. No comparison to broader market or category sales is intended or implied.
2 Diets low in saturated fat and cholesterol, and as low as possible in trans fat, may reduce the risk of heart disease.

Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/d4f4613f-05c5-4a9b-8592-055cfb9d67a1
https://www.globenewswire.com/NewsRoom/AttachmentNg/bef10e02-0d89-493e-9999-b5f5f246ba97

BEYOND MEAT INTRODUCES BEYOND STEAK FILET AT MEIJER Adding to availability at Wegmans and H-E-B, Meijer is the latest retailer to offer Beyond Steak Fil... Beyond Steak Filet delivers 28g of plant protein, 3g of fiber, and just 1g of saturated fat per serv... Beyond Steak Filet is made with clean, simple ingredients and is one of more than 20 Beyond Meat pro...

Key Takeaways Dow Jones tops 53,000 as financials and selective tech exposure fuel the record-breaking rally.Lower AI exposure may help the Dow outperform if richly valued tech stocks face a correction.DIA offers diversified exposure to the Dow as investors assess whether the rally can continue. The Dow Jones Industrial Average index hit a record high of 53,000 for the first time on July 6, 2026, per CNBC. The Dow Jones index advanced 8.9% during the first six months of this year, marking its best first-half performance since 2021. Let’s find out what’s driving the rally and whether the momentum can last.

Note that unlike most major indexes, the Dow is price-weighted, meaning higher-priced stocks have a greater influence on index performance. The index contains only 30 stocks, making it less diversified than broader benchmarks like the S&P 500.

SPDR Dow Jones Industrial Average ETF Trust (DIA - Free Report) ETF is well diversified across its holdings, with no single holding accounting for more than 12.24% of the portfolio. Financials (27.2%), information technology (18.38%), and industrials (18.25%) are the top three sectors.

Growing Tech ExposureToday’s investing world is all about technology and artificial intelligence (AI). Although the Dow Jones has traditionally been a value-centric index, which has caused it to underperform the tech-heavy Nasdaq-100 and the S&P 500 at times, the 30-stock blue-chip index has been adding more tech stocks lately.

In late June, Alphabet (GOOGL - Free Report) officially entered the Dow Jones Industrial Average. However, the S&P 500 still has about 40% exposure to the technology sector, and the Nasdaq-100 has about 55% exposure to the IT sector (read: Alphabet Joins Dow Jones: ETF Likely to Benefit).

Heavy On FinancialsThe Dow Jones is heavy on the financial sector. Meanwhile, Financial Select Sector SPDR Fund (XLF - Free Report) is up about 8% over the past month. The resolution of the Iran crisis, chances of a dovish Fed amid weak June jobs data and the resultant steepening of the yield curve have boosted the financial sector's market performance. Plus, upbeat big-bank earnings and strong deal activity driven by mega IPOs are tailwinds for the sector.

Cheaper Valuation of Financial SectorThe financials sector currently trades at a forward price-to-earnings multiple of 11.83 versus 18.67 possessed by the S&P 500. The Financial - Investment Bank industry trades at a forward P/E of 14.56X. The financials sector currently has a lower debt-to-equity ratio of 0.28X than the S&P 500’s 0.57X.  

Dow Jones Less Impacted by Occasional AI Valuation Worries Due to its lower exposure to technology stocks compared with its other two peers, the Dow Jones has remained relatively resilient during periods of AI-driven valuation concerns, thanks to its diversified mix of established blue-chip companies. Its lower exposure to high-growth AI stocks helps cushion the index from sharp, sentiment-driven swings.

Will the Rally Last? If the Fed remains less hawkish going forward, U.S. interest rates will likely decline, which should support growth sectors like technology. In that case, the Dow Jones is less likely to outperform the S&P 500 and the Nasdaq because the Dow Jones has a stronger value orientation than the other two major indexes. However, if any overvaluation-induced selloff occurs in the AI space, the value-centric Dow Jones should fare better.

Average Returns Tend to Be Lower in Years of Mid-Term ElectionsAccording to data cited by the Stock Trader's Almanac going back to 1896, the Dow Jones has historically generated an average return of about 4% during midterm election years (like this year), compared with roughly 10.2% in pre-election years and about 6% in presidential election years, as quoted on disruptionbanking.com. 

Bottom LineOverall, the Dow Jones’ performance could remain moderate in 2026, if not exceptional. Investors can keep a close tab on the SPDR Dow Jones Industrial Average ETF Trust (DIA - Free Report) ETF.

NextEra Energy (NEE - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this parent company of Florida Power & Light Co. have returned +4.1% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Utility - Electric Power industry, to which NextEra belongs, has gained 2.7% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, NextEra is expected to post earnings of $1.08 per share, indicating a change of +2.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -6% over the last 30 days.

The consensus earnings estimate of $4.01 for the current fiscal year indicates a year-over-year change of +8.1%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $4.36 indicates a change of +8.7% from what NextEra is expected to report a year ago. Over the past month, the estimate has remained unchanged.

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 #2 (Buy) for NextEra.

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.

For NextEra, the consensus sales estimate for the current quarter of $7.97 billion indicates a year-over-year change of +18.9%. For the current and next fiscal years, $31.84 billion and $34.71 billion estimates indicate +16.2% and +9% changes, respectively.

Last Reported Results and Surprise HistoryNextEra reported revenues of $6.7 billion in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $1.09 for the same period compares with $0.99 a year ago.

Compared to the Zacks Consensus Estimate of $7.21 billion, the reported revenues represent a surprise of -7.01%. The EPS surprise was +11.22%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

NextEra is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe 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 NextEra. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo & Company (NYSE: WFC), as previously announced, will report its second quarter 2026 earnings results on Tuesday, July 14, 2026, at approximately 7:00 a.m. Eastern time. The results will be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/. In addition to being available on the company's Investor Relations website, the earnings results also will be available on the Securities and Exchange Commission website.

, /PRNewswire/ -- Hyliion Holdings Corp. (NYSE American: HYLN), a developer of modular power plant technology, today announced that defense innovation leader and technology entrepreneur, Abdul Subhani has been appointed to be a strategic advisor for the company.

Abdul Subhani has been appointed as a strategic advisor to Hyliion. Subhani brings more than two decades of experience at the intersection of national security, emerging technology, cybersecurity, and defense innovation. As Founder and Chief Executive Officer of Centex Technologies, he has led technology modernization initiatives supporting government, military, and commercial organizations while building strategic partnerships across the United States and allied nations.

Subhani has served as Civilian Aide to the Secretary of the Army for Texas, where he worked closely with military leadership on defense modernization and innovation initiatives. He also serves as Distinguished Chair of Innovation and Senior Advisor to the Superintendent of the United States Military Academy at West Point, U.S. Technology Advisor to the Royal Military Academy Sandhurst, and a member of the Board of Advisors for the Center for a New American Security.

As a strategic advisor to Hyliion, Subhani will provide guidance on defense strategy, military engagement, and the growing role advanced power generation technologies can play in strengthening U.S. national security.

"The need for resilient, efficient power across the defense sector continues to grow," said Abdul Subhani. "Hyliion's technology has already generated strong interest from the U.S. military, and I believe it can play an important role in strengthening our nation's energy resilience and supporting next-generation defense capabilities. I'm excited to help the company deepen its engagement across the defense community."

"As demand for the KARNO™ technology continues to grow across defense applications, Abdul's experience at the intersection of technology and national security will be invaluable," said Thomas Healy, Founder and Chief Executive Officer of Hyliion. "His insight and relationships will help strengthen our engagement across the defense community as we continue expanding our military business."

Hyliion has rapidly expanded its defense business, securing multiple contracts with the U.S. Navy while advancing a growing pipeline of military opportunities. The Company expects to secure an additional $40–50 million of military contracts during 2026. Subhani's appointment further strengthens Hyliion's ability to support this growth as the Company expands deployment of the KARNO technology across defense and national security applications.

About Hyliion

Hyliion is committed to creating innovative solutions that enable clean, flexible and affordable electricity production. The Company's primary focus is to provide modular power plant technology that can operate on various fuel sources to future-proof against an ever-changing energy economy. Headquartered in Austin, Texas, and with research and development in Cincinnati, Ohio, Hyliion is initially targeting the commercial and waste management industries with a locally deployable KARNO Power Module that can offer prime power as well as energy arbitrage opportunities. Beyond stationary power, Hyliion will address mobile applications such as vehicles and marine vessels. The Company aims to offer innovative, yet practical solutions that contribute positively to the environment in the energy economy. For further information, please visit www.hyliion.com.

Forward-Looking Statements

The information in this press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Hyliion and its future financial and operational performance, as well as its strategy, future operations, estimated financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, including any oral statements made in connection therewith, the words "could," "should," "will," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Hyliion expressly disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements herein, to reflect events or circumstances after the date of this press release. Hyliion cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Hyliion. These risks include, but are not limited to, our status as an early stage Company with a history of losses; our expectation of incurring significant expenses and continuing losses for the foreseeable future; our ability to develop key commercial relationships with suppliers and customers; our ability to retain the services of Thomas Healy, our Chief Executive Officer; the expected performance of the KARNO generator and system; the execution of the strategic shift from our powertrain business to our KARNO business, and the other risks and uncertainties described under the heading "Risk Factors" in our SEC filings including in our Annual Report (See item 1A. Risk Factors) on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on February 25, 2026 for the year ended December 31, 2025 and subsequently filed Form 10-Qs. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact Hyliion's operations and projections can be found in its filings with the SEC. Hyliion's SEC Filings are available publicly on the SEC's website at www.sec.gov, and readers are urged to carefully review and consider the various disclosures made in such filings.

SOURCE Hyliion