Investopedia Markets News (all except PF)

Meta is one of 16 AI stocks highlighted by Bank of America.
Credit: Marcus Brandt / picture alliance / Getty Images

Key Takeaways

• Bank of America analysts identified 16 stocks they believe could be due for a rebound soon.
• The analysts said they still see substantial growth ahead for these companies, amid expectations AI spending by America’s biggest tech giants could peak this year.

A pullback in the AI trade has created opportunities for bargain-hunting investors, according to analysts at Bank of America. 

The analysts in a recent note named 16 companies that—despite upward earnings revisions—have recently suffered more than 20% drawdowns from their 52-week highs, offering what they called “attractive medium-term upside.” Though AI spending by America’s biggest tech giants is seen peaking this year, according to the analysts, growth rates for the companies in their list “are expected to remain strong” into 2027.

There have already been some signs of sentiment starting to shift back toward the AI trade. Chip stocks flirted with the start of a new bull market Thursday before sliding amid a broader pullback Friday. Memory chip leader Micron Technology (MU) and chip equipment maker Lam Research (LRCX) were some of Bank of America’s picks, as well as hard drive maker Seagate (STX). Though they’ve pulled back from their highs recently, all three remain among the S&P 500’s top performers this year.

Meta (META) made the list too, with BofA saying it believes the Street underappreciates the company’s “ability to monetize its growing capacity assets” and its growing ad revenues. The social media giant is reportedly in talks to lease extra compute to Anthropic. Its shares are down roughly 10% year-to-date and have lost about a quarter of their value from their highs last August.

Data center operator CoreWeave (CRWV), database giant Oracle (ORCL), and data center supply chain solutions company Celestica (CLS) were also listed, as were cooling and power management firm Vertiv (VRT), electricity provider Talen Energy (TLN) and nuclear power company Vistra (VST). Albemarle (ALB), the world’s largest lithium producer, a key metal in the production of batteries used in data centers, was highlighted along with uranium provider Cameco (CCJ).  

Electronics manufacturer Flex (FLEX), enterprise software company Atlassian (TEAM), brokerage platform Robinhood (HOOD), and Eli Lilly-backed (LLY) Aktis Oncology (AKTS) rounded out the list.  

This article has been updated since it was first published to include Vertiv.

Treasury Secretary Scott Bessent, whose department announced Tuesday that employers can contribute to Trump Accounts.
Credit: Tom Williams / Getty Images

KEY TAKEAWAYS

• Parents can sign their child up for a Trump Account, which converts to a traditional IRA when the child turns 18.
• Employers can contribute up to $2,500 a year to the Trump Accounts of their workers’ dependent children.
• Employees may also fund their children’s accounts with pretax dollars through an employer plan.

Your employer’s benefits package could now include money for your child’s Trump Account.

More than 50 companies, including major organizations such as ADP, Chime, and Edward Jones, have committed to automatically contributing to their employees’ Trump Accounts. The Treasury Department issued guidance this week allowing employers to contribute directly to accounts opened for workers’ dependent children.

Employers can contribute up to $2,500 a year, and qualifying contributions won’t count toward an employee’s taxable income. Employer contributions to Trump Accounts do count toward the $5,000 annual contribution limit.

Why This Matters

Workplace benefits often target just the employee—a 401(k) match, maybe tuition help. Employer contributions could let families put more money into a child’s account without taking the full amount out of their own after-tax pay.

The guidance announced by the Treasury Department also lets employers allow employees to fund their children’s accounts with pretax dollars through an employer cafeteria plan.

Individual contributions to Trump Accounts aren’t tax-deductible. Money for a cafeteria plan, though, comes out of a paycheck before taxes, lowering both the worker’s taxable income and their tax bill.

Trump Accounts were created through the One Big, Beautiful Bill Act of 2025 and opened this summer. Still, the rules are a proposal, not final. Treasury is taking written comments through Sept. 25 and will hold a public hearing Oct. 15, so the details could still change.

This Could Change the Calculus For Some Who Have Resisted Trump Accounts

Employer contributions could make Trump accounts more valuable for some who may have been hesitant about the new accounts.

Some financial experts argue that most parents would be better off investing the money in a 529 savings plan or even a custodial brokerage account. However, if your employer offers a contribution, it may be worth signing up to utilize that part of your benefits package.

How Do I Start a Trump Account?

You can open a Trump Account for your child by filling out tax form 4547 online through your IRS account or by mail.

To be eligible, the child must be under 18 and have a valid Social Security number. U.S. citizens born between 2025 and 2028 also qualify for a one-time $1,000 government contribution, but it isn’t automatic. You have to request it on Form 4547 when you open the account. The $1,000 government contribution doesn’t count against the annual $5,000 cap.

Contributions must go into low-cost mutual funds or exchange-traded funds tracking a broad U.S. stock index, with annual fees capped at 0.10%. On Jan. 1 of the year the child turns 18, the account converts to a traditional Individual Retirement Account. After that, withdrawals will be taxed as ordinary income. Money withdrawn before 59½ generally carries a 10% penalty.

Even with Friday’s drop, shares of Applied Materials have roughly doubled in value since the start of the year
Credit: Applied Materials

Key Takeaways

• Applied Materials shares slid Friday, despite solid quarterly results from the chip equipment maker.
• Several Wall Street analysts reiterated their support in the wake of the report.

Applied Materials isn’t having an easy time impressing investors.

Shares of Applied Materials (AMAT) were down about 5% in recent trading, despite quarterly results that topped analysts’ estimates. It was one of the biggest decliners in the S&P 500 and Nasdaq, on a day when markets broadly lost ground.

The chip equipment maker reported adjusted earnings per share of $3.50 on revenue that jumped 25% year-over-year to $9.12 billion in the company’s fiscal third quarter, above projections compiled by Visible Alpha. Its fourth-quarter outlook of $3.82 to $4.22 in adjusted EPS on revenue of between $9.75 billion and $10.75 billion also came in well ahead of forecasts.

CEO Gary Dickerson said in a release that global AI adoption is driving “unprecedented demand” for the company’s offerings, and that he expects “another strong growth year for Applied Materials in 2027.”

It wasn’t enough to impress investors, who may have had even higher hopes for the results after a strong run for the stock earlier this year. Even with Friday’s slide, shares of Applied Materials have roughly doubled in value year-to-date.

Analysts at several firms, including Citi, UBS, and Mizuho, reiterated bullish ratings for the stock in the wake of the report. Jefferies analysts told clients Applied Materials remains their favorite semiconductor equipment stock, citing its “strong setup for another strong year.”

While targets are still in flux, the mean of analysts surveyed by Visible Alpha at around $675 would suggest nearly 33% upside from the stock’s recent level.

The price of bitcoin has steadily fallen this week.
Credit: Jens Kalaene / picture alliance via Getty Images

KEY TAKEAWAYS

• Bitcoin prices have fallen this week, with the drag also hitting crypto-linked stocks.
• The SEC canceled a meeting to discuss new crypto fundraising rules, delaying some regulatory clarity.

Crypto investors got a letdown this week—and not just from bitcoin prices. 

The price of bitcoin, which was around $65,000 on Monday, sank to around $62,500 as of Friday morning. Crypto-linked stocks including Coinbase (COIN), Robinhood (HOOD), and Strategy (MSTR) were down at least 2% in morning trading. 

The latest dip comes as investors are sorting through the latest regulatory developments from Washington. One that cropped up: Though the Securities and Exchange Commission on Monday said it would hold an open meeting today to discuss potential new rules around how crypto startups could raise capital, it canceled that meeting right before it was supposed to take place.

Moves to create rules for crypto-startup fundraising were seen as a consolation prize after the Senate on Saturday started its five-week recess without advancing a key crypto bill called the Clarity Act. 

On Polymarket, the perceived odds of the Clarity Act passing in 2026 have sunk to 20% from highs of about 80% earlier this year.

An SEC spokesperson told Investopedia that the regulator was “committed to delivering on the President’s agenda to bring certainty to the crypto space,” citing an “unforeseen scheduling issue” for the move of today’s meeting to a yet-unscheduled date. 

Reddit shares entered Friday down more than 30% this year.
Credit: Thomas Fuller / SOPA Images / LightRocket via Getty Images

Key Takeaways

• Reddit shares surged Friday after news of its entry into the S&P 500.
• The social media platform will replace AvalonBay Communities in the benchmark index ahead of the opening bell next Tuesday.

Reddit stock is getting a much-needed boost on its admission into a major index.

Shares of Reddit (RDDT) were up nearly 14% in early trading, after S&P Dow Jones Indices announced late yesterday that the stock would join the S&P 500 ahead of the opening bell next Tuesday.

Reddit—known for its platform where people gather in communities to discuss almost any topic—will be replacing AvalonBay Communities (AVB) in the benchmark index, as fellow S&P 500 constituent Equity Residential (EQR) is finalizing its acquisition of AvalonBay. After the transaction is completed, the combined company will be renamed Vivmark Residential and remain in the index with the ticker “VMRK.”

“We’re proud to be added to the S&P 500, recognizing the growth, momentum, and consistency we’ve established as a public company,” said Reddit CFO Drew Vollero said in a release. “Reddit’s raw materials are special, and there is so much potential to continue building great products and scaling profitably. Our focus remains on executing against the many opportunities ahead.”

Joining a major index like the S&P 500 tends to lift a stock, as funds that track the index must buy shares once a company is added. Reddit, which has seen its stock pressured lately by worries around AI disruption and volatile web traffic trends, could use the support; shares entered Friday down more than 30% this year.

News of the day for August 14, 2026

The S&P 500 and Nasdaq Composite are on track to post weekly gains for the third consecutive week.
Credit: Liu Yanan / Xinhua / Getty Images

Stock futures are steady Friday after the S&P 500 closed at a record high yesterday; semiconductor stocks are on the cusp of entering a bull market; Reddit stock is popping on news of its inclusion in the S&P 500; Applied Materials shares are slipping despite strong results; and Elon Musk disclosed a nearly 50% stake in SpaceX. Here’s what you need to know today.

Stock Futures Steady After Record-Setting Session

Stock futures are little-changed this morning as the market looks to close out another winning week. Futures tied to the benchmark S&P 500 and the tech-heavy Nasdaq were recently up 0.1% and 0.2%, respectively, while Dow Jones Industrial Average futures slipped 0.1%. The major indexes rose in yesterday’s session, with the S&P 500 closing at a record high, as investor concerns about possible Fed rate hikes eased following a tame inflation report. WTI oil futures were up less than 1% to $81.55 per barrel as the U.S. threatened an indefinite blockade of Iranian ports and economic measures that Treasury Secretary Scott Bessent said “have never been seen on Iran.” Gold futures were holding steady at $4,420 an ounce, while bitcoin hovered around $62,800. The yield on the 10-year Treasury note, which affects interest rates on consumer loans, ticked higher to 4.65%.

Chip Stocks Look to Enter a Bull Market

After a steep July sell-off, investors are back to buying chip stocks. SanDisk (SNDK), Micron Technology (MU), and other semiconductor shares were pointing higher in premarket trading, looking to extend their recent winning streak after a string of strong earnings reports and rosy forecasts. The PHLX Semiconductor Sector (SOX) finished Thursday’s session on the cusp of what would mark the start of a new bull market. It’s rallied nearly 20% from recent lows after a string of strong earnings reports. Still, it remains 15% off its highs in June. The Roundhill Memory ETF (DRAM) was up 3% in recent premarket trading.

Reddit Stock Pops on Entry to the S&P 500

Shares of Reddit were up more than 10% in premarket trading as investors cheered the social media company’s inclusion in the S&P 500, ending months of speculation. Reddit is set to replace AvalonBay Communities (AVB) in the index before markets open on Tuesday, Aug. 18, according to S&P Dow Jones Indices, after Equity Residential (EQR) agreed to acquire AvalonBay. Reddit shares were down 31% for the year through Thursday’s close.

Applied Materials Stock Slides, Despite Solid Results

Shares of Applied Materials (AMAT) were down about 5% in premarket trading, despite earnings that topped analysts’ estimates. The chip equipment maker reported adjusted earnings per share of $3.50 on revenue that jumped 25% year-over-year to $9.12 billion in the company’s fiscal third quarter, above projections compiled by Visible Alpha. Its fourth-quarter outlook of $3.82 to $4.22 in adjusted EPS on revenue of between $9.75 billion and $10.75 billion also came in ahead of forecasts. It wasn’t enough to impress investors, after a strong run for the stock earlier this year. Through Thursday’s close, shares of Applied Materials have more than doubled in value year-to-date.

Elon Musk Discloses Nearly 50% Stake in SpaceX

Elon Musk disclosed that he holds 6.42 billion shares of SpaceX (SPCX) representing a 48.4% stake, according to a regulatory filing Thursday. That could value his holding at over $900 billion. In a post on his X social media platform, Musk said, “A bunch of it only vests on extremely crazy good outcomes for SpaceX, so actual full vested percentage is lower.” Shares of SpaceX climbed about 2% in premarket trading, after taking a hit in yesterday’s session.

Netflix shares are still down nearly 17% since the start of the year.
Credit: Samuel Boivin / NurPhoto / Getty Images

Key Takeaways

• Netflix shares have dropped nearly 17% this year, making it one of the worst-performing stocks in the S&P 500.
• High-profile investors, including Bill Ackman’s Pershing Square and Cathie Wood’s ARK Invest, have recently purchased Netflix shares.
• Analysts remain optimistic about Netflix, with most rating it a “buy” and projecting significant upside potential.

Netflix shares have had a rough year. Some well-known investors have been buying the dip.

Shares of Netflix (NFLX) rose more than 5% Thursday, a day after Bill Ackman’s Pershing Square (PS) disclosed new stakes in the streaming giant and several other stocks in a letter to shareholders. 

Ackman and Chief Investment Officer Ryan Israel wrote in the letter that Pershing took advantage of Netflix’s prolonged slump in recent months to buy it at what they called “a substantial discount.” Netflix is one of the worst-performing stocks in the S&P 500 this year, down nearly 17%.

Pershing isn’t the only high-profile firm that’s been snapping up shares. Cathie Wood’s ARK Invest bought up more than 38,000 Netflix shares last month. 

Worries about Netflix’s user growth and engagement trends have pressured the shares recently, though Ackman and Israel said they believe Netflix has “effectively won the streaming wars,” citing a market-leading subscriber base. 

Wall Street analysts are widely bullish on Netflix, with 11 of the 14 analysts tracked by Visible Alpha calling the stock a “buy.” Morgan Stanley analysts said in a recent note that they see engagement concerns as “overblown,” expecting growing revenue and profits from Netflix in the coming quarters.

The mean price target of analysts surveyed by Visible Alpha around $100 would suggest nearly 30% upside from Thursday’s close. 

Pershing Square went public earlier this year with a dual listing of the firm and a closed-end fund. In their letter, the executives said Pershing has since used nearly all of the $5 billion it raised building new and previous investments including Netflix, Visa (V), Mastercard (MA), S&P Global (SPGI), Intercontinental Exchange (ICE), and Alcon (ALC).

Sandisk and other chip stocks were strong performers on Thursday.
Credit: Omar Marques / SOPA Images / LightRocket via Getty Images

KEY TAKEAWAYS

• Chip stocks rallied Thursday, with the PHLX Semiconductor Sector nearing a new bull market.
• Bank of America analysts expect faster growth in the AI server chip market.
• Nvidia, a key player in AI, is close to its May highs and reports earnings on Aug. 26.

After a steep July sell-off, investors are chipping in again.

Chip stocks were some of the biggest gainers in the S&P 500 and Nasdaq Thursday, a day when markets rose broadly. Shares of SanDisk (SNDK) popped 14%, while Micron Technology (MU) jumped 4% and Arm (ARM) added close to 3%. Intel (INTC) and Qualcomm (QCOM) also climbed, driving the PHLX Semiconductor Sector (SOX) up 0.5%. 

Thursday’s rise brought the index to the cusp of what would mark the start of a new bull market for the measure. It’s rallied nearly 20% from recent lows after a string of strong earnings reports. Still, it remains 15% off its highs in June. 

Bank of America analysts in a note Wednesday said that they see the AI server chip market growing faster than previously expected, based on strong AI compute and memory demand trends. They highlighted Advanced Micro Devices (AMD) as their top pick for the industry, citing the breadth of its product portfolio, along with Nvidia (NVDA). 

Shares of AMD were little changed Thursday. They have more than doubled in value this year as the company’s data center sales soared, though they remain about 17% off their June highs. Nvidia’s stock, which ticked 0.5% higher Thursday, is less than 5% away from its May highs. 

Nvidia—widely seen as a bellwether for the AI trade—is set to report earnings on Aug. 26. 

Anthropic filed confidentially with the SEC to go public earlier this year.
Credit: Thomas Fuller / SOPA Images / LightRocket via Getty Images

KEY TAKEAWAYS

• Anthropic investors reportedly expect the AI company to go public in October at a $2 trillion valuation, potentially setting a record for the most valuable IPO ever.
• Anthropic’s projected annualized revenue could reach $100 billion to $120 billion by 2026, over 10 times its revenue at the start of 2026, according to reports.

SpaceX’s post-IPO run has been bumpy. That doesn’t seem to be putting off backers of Anthropic, who see the company going public this year at a valuation even higher than Elon Musk managed for his company in June. 

Anthropic investors expect the AI company to go public in October at a $2 trillion valuation, which would top the record for the most valuable IPO ever, according to The Financial Times. That would mean besting SpaceX (SPCX), which earlier this summer went public at a valuation of around $1.8 trillion while raising more money than any IPO to come before it. 

Anthropic announced its last funding round in May, raising $65 billion at a valuation of $965 billion, surpassing OpenAI’s valuation for the first time.

Citing conversations with at least six Anthropic investors, the FT reported that the group sees Anthropic’s rising revenue justifying the valuation. The report said Anthropic’s annualized revenue, a popular metric among AI companies that sometimes means extrapolating a single month of sales over a full year, could reach $100 billion to $120 billion by the end of 2026, more than 10 times where it was at the start of the year.

Investors have broadly expected Anthropic and OpenAI, another big company in the space that could go public before long, to be the year’s next mega IPOs. (OpenAI may wait until next year.) Successful listings have been seen not only as vital for the companies as they seek to raise cash, but for markets. That’s contributed to some consternation in recent months, with SpaceX landing a big valuation but then struggling until recently to sustain share price momentum.  

The FT’s report said Anthropic executives have yet to settle on a valuation internally at this point, noting that the $2 trillion target is the result of financial models made by investors. Anthropic did not respond to Investopedia’s request for comment on the report in time for publication. 

The Claude chatbot maker faces risks including intensifying competition with cheaper models coming out of China, as well as regulatory uncertainty after Anthropic was forced to take two of its most advanced models down for a few days in June.

Anthropic filed confidentially for an IPO in June and would have to release more detailed information about its finances ahead of going public. Some investors and analysts have voiced concerns that AI model providers like Anthropic and OpenAI are burning cash without a real path to profitability.

Even with Thursday’s decline, Cerebras shares are up about 20% from their IPO price in May.
Credit: Matteo Della Torre / NurPhoto via Getty Images

Key Takeaways

• Shares of Cerebras plunged Thursday, despite solid quarterly results from the AI chip designer.
• Analysts said rising expectations heading into the report could have made it harder for the company to impress investors.

Cerebras shares are sinking, despite solid results from the chipmaker in the second quarter since it went public earlier this year.

Shares of Cerebras (CBRS) were down 14% in recent trading. The company said after the bell yesterday that it made $180.11 million in revenue in the second quarter, up more than 70% year-over-year and about $15 million above analysts’ forecasts per Visible Alpha. Cerebras posted a “core,” or adjusted loss of $6.91 million, narrower than the $41 million analyst consensus, though its net loss of $450.53 million was nearly $100 million wider than analysts had expected.

The chipmaker’s third-quarter core revenue forecast of $214 million to $216 million came in ahead of estimates. Cerebras also lifted its full-year forecast for core revenue to $880 million to $890 million, up from $855 million to $865 million previously.

Rising expectations heading into the report could have made it harder for the company to impress investors, Wedbush analysts wrote, telling clients they believe the market’s reaction “largely misses the forest for the trees as Cerebras’s success will be dictated by its ability to gain meaningful share over time (we believe it will) in the extremely large growing market for accelerators.” 

Back in June, the firm topped Street estimates with its first report since going public, but the stock slumped in the days that followed amid worries about the chipmaker’s margins.

Even with Thursday’s decline, they’ve climbed about 20% from their IPO price in May.