Investopedia Markets News (all except PF)

Even with their recent losses, many chipmakers remain among the S&P 500’s biggest gainers for the year.
Credit: Daniel Ceng / Anadolu / Getty Images

Key Takeaways

• Chip stocks slid Thursday, extending what’s been a tough few weeks for the sector and the broader AI trade.

• Some experts have suggested a pullback could be healthy after a torrid rally earlier this year.

The chips are down today.

Shares of major chipmakers plunged Thursday, extending what’s been a rough stretch for the AI trade that has come despite a string of solid earnings reports. Shares of TSMC (TSM) were down 3% in recent trading after the world’s largest contract chip manufacturer posted quarterly results that topped analysts estimates. Shares of Nvidia (NVDA), Advanced Micro Devices (AMD), and Intel (INTC) were also lower. The PHLX Semiconductor Sector Index (SOX) was down 3%.

Memory chipmakers and data storage stocks have been among the strongest performers in the AI trade. Today, they were among the major indexes’ leading decliners, with Sandisk (SNDK), Seagate (STX) and Micron Technology (MU) all down more than 5%. The Roundhill Memory ETF (DRAM) fell 7%.

Why This Matters to Investors

Thursday’s stock slide points to sustained worries about whether the chip stocks still have room to rise after a torrid rally this year.

Worries about growing expenditures on AI infrastructure and the sustainability of spending could be weighing on sentiment. TSMC said today that it would raise its capital expenditures forecast for the year to $60 billion to $64 billion, up from $52 billion to $56 billion. The company also said it plans to invest another $100 billion in its operations in Arizona to meet demand.

A number of Wall Street analysts have said in recent weeks they would view the pullback in chipmakers and other AI stocks as healthy, suggesting that it could be an opportunity to buy the shares at a discount. A survey of fund managers by Bank of America published earlier this week found that many “trimmed July tech longs to hedge AI risks,” but “no one [is] short,” and semiconductors remain the “world’s most crowded trade.”

Even with their recent losses, many AI-related stocks are among the S&P 500’s biggest gainers for the year so far. Sandisk leads the list of top performers for 2026 with shares up over 500%, followed by AI server maker Dell (DELL), memory chipmaker Micron, and Seagate.

Also worth watching today: Data center stock Csquare, which is set to start trading sometime Thursday after its IPO priced below its marketed range.

For more reporting from Investopedia on today’s market moves, click here.

Brookfield-backed data center operator Csquare will start trading on the NYSE today.
Credit: Photographer: Michael Nagle / Bloomberg via Getty Images

Key Takeaways

• Csquare’s IPO priced at $21, below its marketed range of $23 to $27, implying a market valuation of $3.2 billion.
• The company made its debut on the NYSE under the symbol “CSQR,” and closed lower on its first trading day.

Thursday was a rough day for AI stocks. That made it a tricky time to debut a new one.

Csquare, a Texas-headquartered data center operator, priced its IPO at $21, raising more than $1 billion and implying a market valuation of $3.2 billion. It opened just under its IPO price, and closed at around $20.75.

The offering was set below the companies marketed range of $23 to $27, suggesting that new issues may not be immune to the AI trade reckoning of late.

Though investors sent shares of chipmakers flying in the first half of 2026, many of those stocks have come back down to earth. A case in point: SpaceX (SPCX) closed below its IPO price and hit a new low Thursday.

WHY THIS MATTERS TO YOU

SpaceX’s IPO, the biggest in history, was supposed to kick off a new wave of offerings including mega deals from the likes of Anthropic and OpenAI. The recent chill around the AI trade could force some companies to change their plans.

Csquare’s first trading day, which came to the NYSE under the ticker symbol “CSQR,’ tested AI IPO demand, with some companies reportedly considering delaying their offerings in hopes for a warmer reception later.

The company said it expects to use IPO net proceeds of $920 million to repay debt.

The Brookfield-backed (BN) company generated about $270 million in revenue for the March-end quarter and logged a net loss of about $66 million, according to company filings. “Leading hyperscalers” accounted for roughly 11% of its monthly recurring revenue for that quarter, the company said.

The S&P 500 and the Nasdaq declined Thursday as swooning chipmakers weighed on the major benchmark indexes. The PHLX Semiconductor index, a gauge for chip stocks known as “SOX.” was down more than 4%.

This article has been updated since it was first published to reflect the close of trading.

News of the day for July 16, 2026

Stocks ended yesterday higher as investors assessed a series of big-name earnings reports.
Credit: Michael Nagle / Bloomberg / Getty Images

Stock futures are mixed as tech shares pull back while investors assess a new batch of earnings reports; chip stocks are falling as volatility in the AI trade continues; Taiwan Semiconductor’s U.S.-listed shares are sinking despite a solid earnings report; UnitedHealth shares are surging after the health insurer reported strong earnings and lifted its profit forecast; and Netflix is due to report its results after the closing bell. Here’s what you need to know today.

S&P 500, Nasdaq Futures Fall as Chip Stocks Slide

Stock futures are pointing to a mixed open this morning after two straight days of gains for major indexes. Futures tied to the S&P 500 and the Nasdaq were recently down 0.2% and 0.8%, respectively, as chip stocks are under pressure, while Dow Jones Industrial Average futures rose 0.2%, boosted by big gains for UnitedHealth Group stock after a strong earnings report. (more on that below) The major indexes finished higher yesterday as investors digested quarterly results from a wide range of companies, as well as a softer-than-expected inflation report. WTI crude oil futures were holding steady at just under $80 per barrel, after surging earlier this week amid an escalation of fighting between the U.S. and Iran. Gold futures were little-changed at around $4,050 an ounce, while bitcoin fell slightly to $64,000, after the cryptocurrency climbed back above the $65,000 mark this week for the first time in a month.

Chip Stocks Retreat as Volatile Week Continues For AI Trade

Chip stocks have had a bumpy ride this week, sinking to start the week and recovering in the last two days, amid lingering fears of an AI bubble fears. That rollercoaster ride is taking another turn Thursday, with several chip stocks down premarket. Nvidia (NVDA) and Broadcom (AVGO) were each down about 2%, while Intel (INTC) dropped 3% and Micron (MU) tumbled 5%. Shares of SK Hynix (SKHY), the South Korean memory chip giant that debuted on U.S. markets this week, were down 8% this morning after gaining 27% over the previous two sessions. The iShares Semiconductor ETF (SOXX) was down nearly 4% before the opening bell, while the Roundhill Memory ETF (DRAM) fell 6%.

TSMC Stock Drops Despite Solid Earnings from AI Chipmaker

Shares of Taiwan Semiconductor Manufacturing Co. (TSM) are sinking despite a solid second-quarter report from the world’s dominant contract chipmaker. The company said early this morning that it earned 27.25 New Taiwan dollars per share (85 cents per share) in the second quarter, about 3 New Taiwan dollars above what analysts had forecast, on sales of 1.27 trillion New Taiwan dollars, up 36% year-over-year. Investors may have had higher hopes for the results after a number of strong quarters in a row for TSMC, which has seen its shares soar over the last several years thanks to the boom in demand for AI hardware. TSMC’s U.S.-listed shares were down 5% premarket after entering the day up nearly 40% year-to-date.

UnitedHealth Stock Surges on Strong Earnings, Outlook

UnitedHealth Group (UNH) shares are sharply higher this morning after the health insurance giant reported better-than-expected results and lifted its profit forecast. The Dow component announced that it earned an adjusted $6.38 per share in the second quarter, well above the analyst consensus of $4.87, on revenue of $112.03 billion, which was roughly flat year-over-year but also above what analysts had projected. UnitedHealth said it now expects full-year adjusted EPS of between $19.50 and $20, up from a prior outlook of at least $17.75. Shares were up 6% ahead of the opening bell and are on track to hit their highest level since April 2025, when a disappointing report and outlook sent the stock to its worst day in decades.

Netflix Set to Report Results After the Closing Bell

Streaming giant Netflix (NFLX) is due to release its results this afternoon. The company’s stock has struggled lately amid concerns about its revenue outlook and engagement numbers, along with speculation about future acquisition targets after Netflix declined to match a raised offer and backed out of its deal for Warner Bros. Discovery (WBD) earlier this year. Netflix is expected to report $12.57 billion in second-quarter revenue, up 13.5% year-over-year after the streamer raised prices for its plans back in March, along with earnings of 79 cents per share, up 7 cents from this time last year. Netflix shares, which have lost more than 20% since the start of the year, were up less than 1% premarket.

Apple shares have added about a fifth of their value in 2026.
Credit: Cheng Xin / Getty Images

Key Takeaways

• Apple shares climbed to a fresh record Wednesday in the wake of reports the iPhone maker is considering buying an AI chip company.
• The stock has been on a roll lately amid hopes new releases and AI updates later this year could drive more gains.

The possibility that Apple could add an AI chip company to its portfolio sent its stock to fresh highs.

Shares of Apple (AAPL) climbed 4% Wednesday, closing above $327 to top a record set earlier this week. The Information reported Wednesday that the iPhone maker is on the hunt to buy a chip company that can help it realize its AI ambitions. The stock was one of the top performers in the S&P 500 as stocks rose broadly.

Apple has approached several chip startups about a buyout after facing challenges with its in-house ⁠AI servers, according to the report. Apple did not respond to Investopedia’s request for comment in time for publication.

Why This Matters to Investors

Apple faces intense pressure to prove it’s making progress with AI, and a new chip deal could help boost confidence in its trajectory.

The iPhone maker’s stock has been on a roll lately. It has hit a series of record highs in recent weeks amid growing optimism about upcoming releases and ahead of the September rise of CEO John Ternus into the seat long held by Tim Cook.

In a note to clients yesterday, Morgan Stanley analysts pointed to hopes that recent price hikes and loyalty to Apple’s brand could help defend the company’s margins from the impact of rising memory prices amid an industrywide shortage of parts.

Apple shares have added about a fifth of their value since the year began, making it the best-performing member of the Magnificent 7 in 2026 so far.

For more reporting from Investopedia on today’s market moves, click here.

The Federal Reserve’s “Beige Book” report is composed of anecdotal information from districts around the country.
Credit: Spencer Platt/Getty Images

Key Takeaways

• The U.S. labor market got better, and inflation simmered down in June, according to anecdotal reports from the Federal Reserve’s “Beige Book.”
• The report had far fewer mentions of angst over high fuel prices than the previous edition, reflecting a drop in gasoline prices in mid-June.
• The report provided a reassuring, though somewhat outdated, picture of the economy, which now faces renewed risks due to the resurgence of fighting in the Middle East.

The Federal Reserve’s ‘Beige Book’ report painted a picture Wednesday of a U.S. economy that’s improving on several fronts, but hanging in the balance amid new risks stemming from the Iran war.

The report, composed of anecdotal information from Fed districts across the country, showed the economy expanding from late May through early July. It also reported an improving job market and inflation that has lost some steam, while consumers remained under financial stress, though not as much as in recent months.

The report contained half as many mentions of “gasoline” and “fuel” prices as the previous report, reflecting a price downturn during the month that helped quell overall inflation. However, the report covered a period around when a short-lived ceasefire in Iran took hold. Since then, the latest wave of fighting has sent gasoline prices shooting up once again, muddying the economic outlook.

What This Means For The Economy

The Fed’s Beige Book shows that the word on the street among business and civic leaders is similar to the hard data, with the economy remaining resilient, though not immune to the consequences of the war in Iran.

The report also added to recent evidence that the threat of inflation was dormant in June, though not conquered.

“The Beige Book reinforces the picture of a U.S. economy that remains resilient,” Priscilla Thiagamoorthy, senior economist at BMO Capital Markets, wrote in a commentary. “The labor market is holding up, but inflation pressures continue to stir. The Fed is likely to maintain a cautious, data-dependent approach, keeping the possibility of higher-for-longer interest rates on the table if inflation proves more persistent.”

The relatively cool inflation seen in the Beige Book echoes the hard data from June, which showed consumer prices fell by the most since 2020 that month due to a steep drop in fuel costs. And while the report didn’t have any red flags about the trajectory of inflation, Fed officials may wait to see more hard data before taking rate hikes off the table, especially after this week’s escalation of fighting in the Middle East sparked fresh fears about rising fuel costs.

Reinforcing that idea, Fed Governor Lisa Cook reiterated the central bank’s determination to raise interest rates if necessary.

“If we do not see signs of disinflation soon, I am prepared to act,” she said at an event in Washington, according to prepared remarks.

Financial markets are pricing in just a 10% chance the Fed will raise its benchmark interest rate by at least a quarter-point when it next meets at the end of July. Those chances jump to 70% by the end of the year, according to the CME Group’s FedWatch tool, which forecasts rate movements based on fed funds futures trading data.

In addition to the sanguine outlook for inflation, the report showed several regions of the country enjoying a tourism boost from the World Cup, and the “K-shaped” consumer spending trend continuing, with wealthier households spending more freely, while those with lower incomes face more stress and look for ways to cut back.

In the Atlanta district, “Retailers indicated that higher-income households generally maintained steady spending levels, though a few noted emerging signs of softening within this group,” the report said. “Lower- and middle-income consumers continued to display signs of increasing financial stress, including trading down, buying less but shopping more frequently, and pulling back on discretionary items.”

This frame grab taken from AFPTV video footage on July 12, 2026 shows cargo ships anchoring near the Strait of Hormuz off the eastern coast of the United Arab Emirates at Khor Fakkan.
Credit: AFPTV / AFP via Getty Images

Key Takeaways

• Several disruptions to global fuel supplies are hitting energy markets at once, pushing up prices for gasoline and diesel for U.S. Drivers .
• The resumption of fighting between the U.S. and Iran has constrained oil shipments through the Strait of Hormuz.
• On top of the oil shock, damage to oil refineries in Russia, and the restriction of refined fuels through the strait have pushed up prices directly.

If you’re wondering why it costs so much to fill up your tank these days, the simple answer is that the war in Iran is causing an energy crisis that is pushing up prices. And while that’s much of the story, the woes of the fuel market actually extend to hotspots all over the world, energy analysts say.

As of Wednesday, a gallon of regular gasoline averaged $3.89 nationwide, up 10 cents over the week and well above the $2.98 prewar price, according to AAA. Diesel fuel, crucial to transportation and industry, was $4.94, well above the $3.76 it cost before fighting began in March. Those prices could go much higher if the fighting continues, and supply disruptions from Russia, China, and potential threats elsewhere in the Middle East bite into crude oil and the fuel produced from it.

What This Means For The Economy

High fuel prices hurt household budgets and could damage the economy by pushing up inflation and crowding out consumer spending on other items.

The relief U.S. drivers got from gasoline prices in June is at risk of evaporating. Alongside higher gas prices come renewed risks to the trajectory of inflation and the overall economy.

Gas could average over $4 a gallon over the next week, Patrick DeHaan, head of petroleum analysis at GasBuddy, said in a commentary. Diesel fuel is likely to cross $5 a gallon by Friday, he wrote.

“The pain at the pump is about to intensify, and this time it’s not one story driving it,” DeHaan wrote.

DeHaan and other experts have, in fact, identified multiple stories that are pushing up prices.

Revived Fighting in Iran

The first is the most obvious: Iran and the U.S. are once again fighting over the Strait of Hormuz this week, after a cease-fire collapsed. That’s shut down traffic through the crucial waterway, which normally carries 20% of the world’s crude oil supply from Persian Gulf countries to global markets.

Crude oil, as measured by the Brent international benchmark, was $84 a barrel on Wednesday afternoon, up from early July when the fragile truce was still in place.

China’s Dwindling Stockpiles

There are several further risks for crude oil prices waiting in the wings. One is in China, which heavily cut back its imports when war broke out in March. That offset “roughly half of the Middle Eastern supply lost through the Strait,” Bridget Payne, head of energy forecasting at Oxford Economics, wrote in a commentary.

The trouble is, sooner or later, China is likely to ramp up its oil consumption again to refill its dwindling stockpiles, creating more demand in global markets and pushing up prices, analysts at Goldman Sachs said in a commentary Wednesday.

Red Sea Shifts

Another issue could arise in Yemen, on the other side of the Arabian Peninsula from the Strait of Hormuz. Fresh fighting between Houthi Rebels and Saudi Arabia broke out there again this week, raising the possibility that a second global energy chokepoint could be disrupted.

Between 2023 and 2025, the rebels had attacked shipping through the Bab-el-Mandeb, controlling access to the Red Sea and creating a major headache for global shipping. The logistical logjam could be even worse this time around, however, because oil exporters have used pipelines to re-route some of the oil that would normally go through the Strait of Hormuz.

“Should the Houthis broaden their attacks to Saudi energy infrastructure or vessels in the Red Sea, as they did earlier in the decade, a substantial share of this bypass capacity would be at risk,” Payne wrote.

If restrictions persist and fighting expands, oil could go as high as $110 a barrel; while if the conflict simmers down, prices could swiftly dive to prewar prices around $60, according to analysts at Goldman.

Limited Refinery Capacity

While crude oil prices influence fuel costs, they’re not the whole story. After all, you don’t fill up your tank with crude oil—the stuff must be turned into diesel fuel or gasoline at a refinery. And many of those refineries have been taken out of action in one way or another in recent weeks.

One shock came from the Russia-Ukraine war after the Ukrainians launched a series of attacks on Russian energy industry targets using long-range drones. Strikes hit a critical refinery in Omsk, Western Siberia, for example, as well as oil tankers in the Sea of Azov. The attacks prompted fuel shortages and forced Russia to ban diesel fuel exports last week, worsening global supply problems.

And while the U.S. doesn’t directly import Russian diesel (it was already banned under sanctions), it still affects prices.

“Russia remains one of the world’s largest exporters of diesel and other refined products,” DeHaan wrote. “When that supply disappears from the global market, buyers in Europe, Latin America and elsewhere compete harder for everyone else’s barrels, including ours.”

Not only that, but the Strait of Hormuz closure is affecting shipments of refined fuel as well as of oil, pushing up prices directly.

“Some of the world’s largest, newest export refineries sit in the Persian Gulf, and their gasoline, diesel and jet fuel have to move through the same chokepoint as crude,” DeHaan wrote. “With flows through the Strait restrained again amid renewed tensions, those finished fuels are effectively stuck, removing yet another slug of refining capacity from the global market on top of what’s been lost in Russia.”

China’s cutback on crude oil is also a double-edged sword because it takes Chinese refineries offline, reducing yet another major source of fuel.

“In a normal year, Chinese fuel exports help keep Asian and global product markets supplied and refining margins in check,” DeHaan wrote. “Take that supply off the table at the same time Russian exports are banned and Gulf products are constrained, and you have three of the world’s major refined product sources compromised at once.”

The price of the world’s largest cryptocurrency cracked $65,000 on Wednesday, a level it hasn’t seen in weeks.
Credit: Photo by Nikolas Kokovlis / NurPhoto via Getty Images

Key Takeaways

• Digital asset experts said the cooler-than expected-June CPI report could shift expectations for hawkish Fed policy, raising the crypto price ceiling.
• Fundstrat’s Sean Farrell says Polymarket’s 40%-ish odds of the Clarity Act getting signed into law are “too pessimistic.”

Bitcoin is clawing its way back.

The world’s largest cryptocurrency on Wednesday broke $65,000, a level it hasn’t seen since in about a month. (It’s now back below that price.) Coin-linked stocks showed modest gains ,with Circle (CRCL) and Coinbase (COIN), rising at least 2%.

Digital asset experts attribute the recent strength to risk-on vibes, with Tuesday’s cooler-than-expected June CPI report inspiring some investors to rethink their hawkish Fed policy expectations. And while traders now think the Clarity Act, a key piece of crypto legislation that could boost bitcoin prices if it becomes law, has lower odds of being passed this year, at least one crypto analyst says there’s reason to be more optimistic.

WHY IT MATTERS TO YOU

Crypto has been stuck in a rut since reaching its all-time high of around $126,000 in October—and then falling to about half of that. Digital asset investors are eager to find a positive catalyst to hold onto.

Also potentially bullish: Spot bitcoin ETF flows on Tuesday turned positive, bucking recent trends, following the June inflation report. Funds saw some $181 million in net inflows yesterday, according to Farside Investors. That could have been a one-off, some experts say, reflecting temporary effects of a brief truce between the U.S. and Iran that recently broke down. But some are now a bit more optimistic, and looking toward the July Fed meeting for signs of more dovishness.

“If the CPI data holds and the Fed signals a credible pivot path, the conditions for sustained ETF inflows are back in place,” Nicolai Sondergaard, a research analyst at crypto analytics firm Nansen said in an emailed statement. Sondergaard said he is watching for signals that those latest ETF flows are “durable rather than one-session repositioning.”

Fundstrat’s head of digital asset strategy Sean Farrell, said odds of the Clarity Act passing this year “may be better than markets appreciate.” Polymarket traders recently placed a 42% chance of the bill being signed into law in 2026, down from more than 70% in May. President Donald Trump earlier this week called on the Senate to pass the bill in honor of Lindsey Graham, the Republican senator from South Carolina, who died over the weekend. “In honor of Senator Lindsey Graham, a big supporter, the U.S. Senate should pass the Clarity Act,” Trump said in a social media post, according to The Hill.

One point of contention in the broad crypto market bill is an ethics clause that would stop top government officials and their families from making money on crypto while in office. The White House is reportedly meeting with senators to resolve the issue, per a CoinDesk report. Farrell said his discussions with advocacy groups close to the action “generally expressed materially greater optimism” than prediction markets imply. The White House did not respond to Investopedia’s request for comment in time for publication.

Spot gold prices are roughly flat since the start of the second half of the year.
Credit: Photo by Uli Deck / picture alliance via Getty Images

Key Takeaways

• The price of gold has done very little this year. One analyst observes that it has benefited historically from seasonality that could lift prices in the coming months.
• Still, re-escalating tensions around the Strait of Hormuz represents downside risk for precious metals, a commodity analyst said.

The U.S. and Iran are back to fighting. Gold remains unmoved.

Spot gold prices are at around $4,000, leaving the price of the precious metal essentially flat since the start of the second half, and down more than 5% year to date. Silver, which recently traded around $59, also hasn’t done much in the last couple of weeks, and has declined almost 20% so far this year. A slate of analysts has cut their forecasts on gold prices, pointing to hawkish statements from the Fed, though they still appear to be optimistic that a comeback could materialize in the back half of the year. It just might not be because of the metal’s perceived role as a hedge against geopolitical uncertainty.

One theory for why gold might rise again: It has entered what historically has been its best seasonal period, which lands between the 134th and 207th trading days of the year, according to SentimenTrader’s Jay Kaeppel, which this year runs from July 9 to Oct. 21. (To be sure, Kaeppel also said seasonal trends shouldn’t be viewed as buy or sell signals, but rather a clue to be considered alongside others.)

WHY THIS MATTERS TO YOU

While gold prices waver, some analysts say there are related opportunities elsewhere. BofA’s Research Investment Committee has made the case for gold mining stocks, which offer high earnings yields and are the cheapest of any sector relative to the S&P in 20 years.

Another trend—the lack of momentum in the gold trade—may suggest a headwind in flagging demand for a subsection of investors. “Chinese retail investors have show strong tendency to follow trends, i.e. buying on the way up and fading when the rally stops,” Citi analyst Kenny said in a Tuesday report. In other words: They’re not interested unless gold does something.

Re-escalating tensions around the Strait of Hormuz, Hu said, and the Federal Reserve “staying hawkish” are big downside risks for precious metal prices. Higher interest rates are generally viewed as bearish for gold since they can make interest-paying assets more attractive, and if war in the Middle East means higher oil prices that inflame inflation, the Fed might feel compelled to raise rates.

UBS’ Chief Investment Office in late June called for gold to hit $5,200 over the next 12 months and said recent trading levels were “an opportunity for underallocated investors.” The firm said that the Fed is “unlikely” to raise rates in the near term, that the U.S. dollar stands to be weaker—usually a tailwind for gold, since it can boost demand from international buyers—and that “robust” central bank buying is a “critical pillar of support.”

If spot prices don’t appear that appealing in the near term, perhaps mining stocks will. Bank of America analysts earlier this week said gold miners have 12% earnings yields, the “highest of any sector,” and are the “cheapest” when compared to the S&P in two decades.

SpaceX shares are down roughly 40% from their post-IPO highs.
Credit: Samuel Boivin / NurPhoto via Getty Images

Key Takeaways

• Shares of SpaceX fell to a new low near $132 on Wednesday, putting it below the $135 price at which it sold shares to the public last month.
• Investor skepticism about the AI trade could be hitting the stock, despite broadly bullish views from Wall Street analysts and the inclusion of SpaceX in major indexes and funds.

SpaceX stock fell below where it started when the company completed its record-setting IPO last month.

Shares of SpaceX (SPCX) lost ground for a fourth straight session Wednesday, finishing down 0.6%. The stock closed at $135.27, earlier hitting a low of $132.15 to mark the first time it dropped below the $135 at which the company first sold shares to the public on June 12. That culminated a dramatic round trip for a stock that managed highs above $225 in its first few days of trading. (You can read Investopedia’s full coverage of today’s action here.)

SpaceX has likely been a victim at least in part of investor skepticism about the resilience of the AI trade. Some experts believe that investors are no longer “pricing in promise” and are looking more closely at assets linked to artificial intelligence; xAI consumes the lion’s share of SpaceX’s capital spending. Wild trading in the newly listed U.S. shares of South Korea’s SK Hynix (SKHY) illustrates the possibility for both quick gains and losses in memory stocks, which have seen massive gains lately on demand for the chips that support the AI buildout. Another coming IPO, data center company Csquare, could be the next litmus test.

And investors may be trying to get ahead of the possibility that the coming expiration of lock-ups, which will permit insiders to sell more shares, will drag on the stock.

Events seen as catalysts for gains, including the addition of SpaceX to the Nasdaq 100 index and a raft of bullish coverage from Wall Street analysts, have in recent weeks failed to reignite the stock. Analysts at Oppenheimer on Wednesday reiterated their $250 price target, which represents about 85% appreciation from Wednesday’s close. In their note, they examined the “Terafab” AI chip partnership with Tesla (TSLA) and Intel (INTC), saying the effort “will require perfect execution” but is “critical to leveraging its unique models/data/infrastructure to support [SpaceX’s] valuation.”

Still, SpaceX remains in the trillion-dollar market-cap club, and its trio of businesses—AI, rockets and satellite connectivity—offer exposure to a range of opportunities some investors are eager to support. The potential for a merger with Tesla or partnerships with companies in mobile telecommunications may also be seen as reasons for bullishness.

UPDATE: This article has been updated after initial publication to reflect the close of trading and to add context.

PayPal shares were down nearly 20% for the year entering Wednesday’s session.
Credit: Stanislav Kogiku / SOPA Images / LightRocket / Getty Images

Key Takeaways

• PayPal shares surged following a report that Stripe and Advent offered to buy the company.
• Stripe and Advent are bidding $60.50 a share for PayPal, valuing it north of $53 billion, Reuters reported.

PayPal’s stock is surging in the wake of a report the payments platform could be bought out.

Shares of PayPal (PYPL) were up over 13% in early trading to $54, after Reuters reported late yesterday that payments processor Stripe and private equity firm Advent International have made a bid to acquire PayPal in a deal that would value the company north of $53 billion. The offer would pay PayPal shareholders $60.50 per share, nearly 30% above yesterday’s closing price.

Stripe and Advent are reportedly looking to advance negotiations over the next few weeks, according to the report, which said the deal would see PayPal jointly owned, with Stripe and Advent holding equal stakes.

PayPal and Advent declined to comment on the report, and Stripe did not immediately respond to a request for comment.

Why This Is Significant

Such a deal would unite two of the world’s largest digital payments providers.

PayPal shares have been pressured in recent months after financial results that disappointed amid concerns about growing competition in the digital payments industry. The company also replaced its CEO earlier this year, hiring CEO Enrique Lores away from HP (HPQ).

Investors could hear more from PayPal executives about a potential deal when the company reports second-quarter earnings ahead of the opening bell on July 28.