Investopedia Markets News (all except PF)

Oklo shares have nearly tripled in value over the past 12 months
Credit: Jonathan Raa / NurPhoto / Getty Images

Key Takeaways

• Oklo's latest quarterly results are due after the closing bell Tuesday, with the nuclear energy startup's stock seen swinging following the report.
• As a start-up that does not yet report real revenue, investors and analysts will be watching for updates on Oklo's trajectory toward building and generating power from its first reactors.

Oklo is scheduled to report its latest quarterly results after the market closes Tuesday, with traders anticipating a big swing in the nuclear startup's stock following the report.

Current options pricing suggests Oklo (OKLO) shares are seen moving up to 11% in either direction by the end of the week. A move of that size from Monday's level around $78 could lift shares as high as $87, or drag the shares below $70, giving up some of their gains amid a broader market rally in recent weeks.

Oklo shares have climbed nearly 50% over the past month alone, but remain about 60% off their October highs amid some concerns about the company's timeline to generating real revenue and profits. The stock has nearly tripled in value over the past 12 months as nuclear energy stocks have gotten a boost from expectations they could benefit from growing energy demand to power AI data centers.

Why This Matters to Investors

Investors and analysts will likely be looking for updates in Oklo's trajectory toward building and starting to generate power from its first nuclear reactors.

JPMorgan analysts initiated their coverage of Oklo on Monday with a neutral rating and $83 price target, writing they believe the company "stands out in a nascent industry," pointing to its backlog and the federal government's efforts to boost the nuclear industry, though they added Oklo could still face a number of challenges including permitting delays and growing competition.

As a startup that is still in the process of receiving approvals necessary to build and operate its small nuclear reactors, analyst estimates compiled by Visible Alpha suggest it's seen reporting widening losses through the end of the year. Analysts expect Oklo to report a first-quarter loss of 17 cents per share, compared to 7 cents per share a year ago.

Analysts are largely bullish on the startup, with the nine analysts with current ratings tracked by Visible Alpha split between seven "buy" and two neutral ratings. Their average price target of about $95 would represent upside of about 20%.

Market experts see U.S. stocks charging higher, but what's driving the surge might warrant caution.
Credit: Scott Eells / Bloomberg via Getty Images

Key Takeaways

• Ed Yardeni's Yardeni Research raised its year-end target for the S&P 500 to what would appear to be the new top on the Street.
• The S&P 500 and the Nasdaq Composite have risen 16% and 26% respectively since the end of March. Those are big numbers, but they pale next to chip stocks' gains.

Stock market bulls see the S&P charging toward new records. But if the latest rise is a mark of froth, some experts say, look out on the way down.

Yardeni Research, market veteran Ed Yardeni's eponymous firm, on Sunday raised its year-end S&P 500 target from 7700 to 8250. That's a decidedly upbeat outlook, at or near the top of the pile of Street estimates, suggesting double-digit upside on top of year-to-date gains already near that level. But the reasoning behind the hike—what Yardeni and his team call an "earnings-led melt up"—suggests U.S. stocks' fast and furious rally could end in a meltdown.

A so-called melt-up is a fast, unsustainable surge in prices, driven in part by frenzied investors, setting the stage for extremes in the other direction. If the S&P—already up more than 16% since the end of March, with the Nasdaq Composite up some 26%—hits Yardeni's number, the benchmark index will have notched 2026 gains of more than 20% at a time marked by geopolitical tensions, a global energy supply shock, and an uncertain path forward for monetary policy.

WHY THIS MATTERS TO YOU

Market experts are circling a fresh S&P 500 target that implies double-digit stock returns for the year, but what's driving those gains might not be something to cheer about.

Think it sounds a bit absurd? You're not alone, with some market experts using the word "crazy" these days and others wondering when the music might stop. The force pulling stocks higher, many say, is earnings, with companies posting big profit growth and expected to keep doing so. As of Friday, with results for nearly 90% of the S&P 500 in the books, more than 80% of companies had beaten earnings expectations, according to FactSet, with numbers in the aggregate landing some 18% higher than expected.

Consensus earnings-per-share estimates were recently around $336.49 for 2026, and $386.70 for 2027, higher than Yardeni's original estimates of $310 and $350, respectively, according to the firm. Yardeni has raised its EPS estimates to $330 and $375, but maintained its valuation assumptions, implying the S&P could keep climbing—or fall back to 6,750, were it was about a month ago.

"We've been bullish on earnings, but not as bullish as the recent consensus of industry analysts. We've never seen consensus earnings expectations rise so quickly for the current and coming years as they have in recent months," Yardeni and his team wrote. "The result has been an earnings-led melt-up in the stock market."

The high end of Yardeni's range exceeds top Street forecasts. Deutsche Bank and Morgan Stanley, for example, at the end of April saw the S&P hitting 8,000 and 7,800 respectively.

A big part of what's driving the market higher is chip stocks, which have issued powerhouse earnings numbers and strong outlooks and have booming shares. Ben Carlson, who manages portfolios at adviser Ritholtz Wealth Management, observed that shares of Intel (INTC), Sandisk (SNDK), and Western Digital (WDC) were "going vertical." Those three stocks are up anywhere between almost 500% to over 4,000% just over the past 12 mos.

"This is certainly starting to feel like a melt-up," Carlson said in a recent post on his blog A Wealth of Common Sense.

Moderna said it is researching a vaccine for hantavirus, which is the disease that broke out on the MV Hondius.
Credit: AFP / Getty Images

Key Takeaways

• Moderna shares are surging after a report the drugmaker confirmed it's working on a potential hantavirus vaccine.
• Several people have tested positive for the rare hantavirus on the cruise ship MV Hondius, with many transported to their home countries over the weekend.

Moderna's stock is rallying on hopes it could develop a hantavirus vaccine.

Shares of Moderna (MRNA) were up nearly 7% in recent trading, following a 12% jump Friday, after Bloomberg reported the company confirmed it's working on a hantavirus vaccine. The virus has made headlines in recent weeks after cruise ship passengers on the MV Hondius tested positive for it.

Moderna did not respond to an Investopedia request for comment in time for publication.

Why This Matters to Investors

Moderna's recent stock gains have helped pare back some of its losses in recent years amid worries about its dependence on COVID-19 vaccine revenues.

The World Health Organization said eight cases of the virus have been identified so far tied to the MV Hondius cruise ship that docked in the Canary Islands over the weekend, including three deaths. Yesterday, government planes reportedly started carrying passengers back to their home countries to be quarantined. Officials have said that the risk to the broader public remains low.

With Monday's gains, Moderna shares have nearly doubled since the start of the year, though they remain nearly 90% off their 2021 highs.

News of the day for May 11, 2026

Stocks hit a series of record highs in recent weeks as investors responded to strong earnings reports and economic data.
Credit: Michael Nagle / Bloomberg / Getty Images

Stock futures are holding steady Monday, as the S&P 500 and Nasdaq enter the week at record highs after posting gains for six straight weeks; oil prices are rising after Iranian officials and President Trump each rejected the latest peace proposals; inflation data, a potential confirmation vote for Fed Chair nominee Kevin Warsh, and a trip for Trump to China are among the things investors will be watching this week; Intel is leading chip stocks higher again this morning; and fellow AI chipmaker Cerebras is reportedly set to lift its IPO price this week amid stronger-than-expected demand. Here's what you need to know today.

Stock Futures Steady After Another Week of Solid Gains

Stock futures are little changed Monday morning as investors assess developments from over the weekend in Iran, and look ahead to a busy week of economic data and earnings reports. Futures tied to S&P 500 and Dow Jones Industrial Average were down 0.1% recently, while Nasdaq futures added 0.1%. The S&P 500 and Nasdaq Composite closed at record highs on Friday and have posted gains for six consecutive weeks, while the Dow has risen in five of the last six weeks. Crude oil prices are moving higher, as there were no signs over the weekend that the Iran war could end soon (more on that below). Gold futures were down 1% recently at $4,680 an ounce, while bitcoin was trading at around $81,100, down from a weekend high of about $82,500. The yield on the 10-year Treasury note was at 4.39%, up from Friday's close of 4.36%.

Oil Rises After Trump, Iran Each Reject Latest Peace Proposals

The war in Iran doesn't seem any closer to ending to start this week, after President Trump and Iran rejected the latest peace proposals offered by each side over the weekend. The U.S. reportedly sent its latest offer late last week, which was rejected by Iranian officials, who said it was effectively a surrender, when they want a deal that includes reparations from the U.S. for starting the conflict, as well as control over the Strait of Hormuz, according to Iranian state media. Iran sent its response and own proposal over the weekend, which Trump on Sunday rejected on social media, without providing details about the offer or why it was "TOTALLY UNACCEPTABLE!" West Texas Intermediate futures, the U.S. crude oil benchmark, were up 2.5% recently to about $98 per barrel.

Coming This Week: CPI, Trump-Xi Meeting, Fed Confirmation Vote

Investors will be monitoring key economic data and political developments this week, along with some notable earnings reports. After being voted through the Senate Banking Committee last month, the full Senate is expected to vote this week on the confirmation of Kevin Warsh, Trump's pick to replace Federal Reserve Chairman Jerome Powell. Trump is scheduled to travel to China to meet with Chinese President Xi Jinping later this week, after the summit was rescheduled from last month because of the Iran war. The Consumer Price Index reading for April is due out tomorrow morning, providing the latest data point on how the Iran war is affecting inflation. Among the big names reporting earnings this week are Under Armour (UA, UAA), footwear maker On Holding (ONON), Cisco (CSCO) and buy-now-pay-later firm Klarna (KLAR).

Chip Stocks Just Keep Rallying as Intel Jumps

Intel (INTC) shares are extending their rally this morning, leading some of the chipmaker's rivals including Micron (MU) and Advanced Micro Devices (AMD) higher. Intel stock surged to record highs last month after a strong earnings report showed increasing demand for its hardware used to run AI models. The shares have set a number of new record highs in the weeks since amid a hot stretch for tech stocks, thanks to strong earnings from other chipmakers and reports that Intel's on the verge of a new deal to make chips for Apple (AAPL). Intel shares were up nearly 6% ahead of the opening bell, after soaring 14% on Friday. Micron and AMD were up 5% and 3%, respectively, in recent premarket trading.

Cerebras Set to Raise IPO Price, Report Says

The next AI stock that could potentially hit the markets is likely to get more expensive before its initial public offering. Reuters reported over the weekend that Cerebras is expected to lift its IPO price range as soon as this week. The AI chipmaker filed IPO documents last week saying it expected to offer up about 28 million shares in its IPO priced between $115 and $125 per share. Now, the offering is likely to be bumped up to as many as 30 million shares at $150 to $160 per share, as the chipmaker has seen stronger-than-expected demand, Reuters reported.

Under Armour and other apparel companies are slated to report this week.
Credit: John Keeble / Getty Images

This week will delve into the state of the American spender, with updates on inflation and retail spending and earnings from several consumer goods companies.

The the Consumer Price Index for April, due Tuesday, will offer the latest indication of how the prices paid by consumers are changing, with energy likely to be a closely watched category. The March CPI report a more-than-20% jump in energy prices, though it didn't trigger a jump in other prices. Oil, gas and diesel prices have surged as the war limits access to the Strait of Hormuz, a waterway typically used to transport one-fifth of the world's oil and gas supply.

Americans initially weathered $4.50 gas prices relatively well. Consumers spent 15.5% more at gas stations in March than in February, but had enough left over to fuel sales growth in several other retail categories. But there have since been signs that consumers may be growing cautious: The pace of personal spending slowed last quarter, and people spent more on cars and household equipment, potentially a bid to get ahead of expected price hikes.

Still, leaders of some major consumer companies, including Walmart and United Airlines, have said consumer spending is holding up better than headlines suggest. Starbucks posted its first quarter of income and earnings growth in two years. That said, high gas prices and stagnate wages are weighing on low-income consumers—and may be starting to slow growth at discount and dollar stores, analysts say.

Investors will also look for intel on how consumers are faring in April retail saes data, slated for release Thursday, and in earnings results. Unlike other retailers, clothing and miscellaneous stores saw sales fall last month. Investors may get fresh insight on this sector when sportswear companies Under Armour and On Holding report, as well as Birkenstock and Asics. Buy now, pay later firm Klarna is also set to hand in its numbers Thursday, and Americans have traditionally used Klarna products to buy clothing and accessories.

Market Recap

The major indexes booked another week of gains last week, with the S&P 500 and Nasdaq Composite ending Friday at record highs records. Tech stock srose on upbeat outlooks from chip and server makers, as well as signals that the White House may reach a resolution with Iran. The potential thaw in diplomatic relations weighed on the West Texas Intermediate futures, the U.S. crude oil benchmark. For more, read the Friday market recap here.

This Week's Top Events

Here's a look at the most prominent events slated for the week ahead. TradingView publishes a more detailed calendar, but clicking the link will take you off the Investopedia site.

• Tuesday, May 12: Under Armour (UA, UAA) is slated to release its fiscal fourth-quarter results at 6:55 a.m. ET, followed by a conference call at 8:30 a.m. ET. The sportswear company On Holding (ONON) is set to release its first-quarter results before the opening bell, followed by a conference call and webcast at 8 a.m. ET. Co-founders David Allemann and Caspar Coppetti—who were recently named co-CEOs—will look to reassure investors, who sold company shares when the management shakeup was announced.
• Tuesday: The Bureau of Labor Statistics is scheduled to release the Consumer Price Index's April reading at 8:30 a.m. ET. 
• Wednesday, April 13: Cisco Systems (CSCO) is scheduled to publish its third-quarter results after the closing bell, and hold a conference call at 4:30 p.m. ET. The networking giant beat revenue and earnings estimates last quarter. But company shares slipped as its profit margin fell due to soaring memory component costs brought on by a global memory shortage.
• Wednesday: Birkenstock Holding (BIRK) is set to release its second-quarter results before the opening bell, and hold a conference call and webcast at 8 a.m. ET. Asics, another shoe company that trades over-the-counter in the U.S., is also slated to report.
• Thursday, April 14: The Census Bureau is slated to release April retail sales data at 8:30 a.m. ET. 
• Thursday: Klarna Group (KLAR) plans to release its first-quarter numbers before the stock market opens, and host a webcast at 8:30 a.m. ET. 

More Investopedia Reads

Under proposed rules, companies may cycle between releasing quarterly and semi-annual results, making it harder to track their progress, Crystal Kim reports. Peter Gratton explores how junk fees and spam calls contribute to the $165 billion “annoyance economy." And Colin Laidley looks into whether anything can slow down tech shares.

Constellation Energy shares have lost about 14% of their value since the start of the year.
Credit: Scott Olson / Getty Images

Key Takeaways

• Constellation Energy is scheduled to report earnings Monday morning, with the energy stock expected to make a sizable move after the results.
• Revenue and profits are projected to have climbed amid growing demand for energy to power AI data centers.

Constellation Energy is set to report earnings Monday morning, with the energy stock seen making a sizable swing after the results.

Based on current options pricing, traders expect Constellation (CEG) shares could move up to about 7% by the end of the week in the wake of the report. A move of that size from Friday's close around $304 could see shares rise to $324, recovering some of their recent losses, or slip to $283 at the low end.

Constellation shares have lost about a third of their value since setting a record high in October. Morgan Stanley analysts suggested some investors may be concerned booming data center demand could drive an increase in clean energy supply that would eventually lead to lower prices.

Why This Matters to Investors

Though Constellation's stock has lost ground lately, it and several other nuclear energy stocks have been boosted in recent years by expectations they could benefit from the rising power demands of big tech companies for their AI data centers.

UBS analysts last month cut their price target to $388 from $420 following an investor update from Constellation, which the analysts said pressured the stock due in part to a "very conservative guidance update," adding that investors would have to remain patient while Constellation waits for regulatory clarity before it can make some key deals.

Constellation is expected to report adjusted earnings of $2.34, up 20 cents year-over-year, on a 28% jump in revenue to $8.66 billion for the first quarter, according to analyst estimates compiled by Visible Alpha.

Analysts are largely bullish on Constellation, with all but one of the eight analysts with current ratings tracked by Visible Alpha calling the stock a "buy," with one neutral rating. Their average price target just under $370 would suggest upside of about 22% from the stock's close Friday.

Major index providers are changing, or considering changing, index inclusion criteria for new mega-cap stocks.
Credit: Michael Nagle / Bloomberg via Getty Images

Key Takeaways

• S&P Dow Jones Indices, the provider of benchmark indexes like the S&P 500, is mulling changes to its index methodology for mega-cap companies.
• Nasdaq has already rolled out a set of new rules, including one that could fast-track newly listed large-cap companies into its Nasdaq 100 index.

Everyone seems to want a piece of expected mega IPOs—including the providers of the indexes that power funds held by scores of investors.

With Elon Musk's rocket company SpaceX and artificial intelligence startup Anthropic, whose private market valuations rival those of most stocks, among the big expected market debuts of the coming months, S&P Dow Jones Indices and Nasdaq (NDAQ) are making or mulling changes that could fast-track new stocks into benchmarks like S&P 500 and the Nasdaq 100. Nasdaq has rolled out "fast entry" rules that would make new mega-cap stocks—those with market values that would place them in the top 40 of the Nasdaq 100—eligible for inclusion after just 15 trading days; previously, it could take a year. S&P Dow Jones Indices, the provider behind the S&P 500, is also weighing changes to its inclusion criteria that could more quickly allow mega-cap companies into its indexes.

All this points to index providers' desires to keep their products fresh in the eyes of investors amid quickly changing public markets, particularly at a time when the appetite for high-growth companies and tech shares is strong. However, some worry about the potential knock-on effects to benchmark indexes that are tied to trillions of dollars in mutual funds and ETFs sitting in investors' retirement accounts and pensions. The Vanguard S&P 500 (VOO), the iShares Core S&P 500 (IVV), and the SPDR S&P 500 (SPY) ETFs, for example, collectively have about $2.5 trillion in assets under management.

"If the goal is to capture the largest market-cap stocks out there, this keeps the indexes more relevant," said Rich Lee, Baird's Head of Program Trading and Execution Strategy, in an interview with Investopedia. "The risk is that if a stock is fast-tracked, it may not get the time and proper vetting that an index provider would typically apply."

WHY THIS MATTERS TO YOU

Many investors have their investment dollars in index funds tied to the S&P 500 and the Nasdaq. Some, but perhaps not all, may not necessarily want their retirement money in newly listed stocks, no matter how high their profile.

S&P Dow Jones Indices last week said in a proposal that it was consulting market participants about changing how mega-cap companies qualify into their indexes, defining "mega caps" as companies with market capitalizations equal to or greater than the 100th largest company in the S&P Total Market Index—which, at present, puts the threshold at around $110 billion.

Such companies would be eligible under the proposed rules, even if they don't meet the S&P's "financial viability" standards, which require a company to show positive GAAP net income over the most recent quarter and for the sum of the most recent four consecutive quarters.

Under the proposed change, if—for example—SpaceX or Anthropic were to fetch the trillion-dollar-plus valuations they reportedly seek, they'd qualify regardless of their financials. (SpaceX is said to have generated billions in profit last year, and Anthropic is reportedly on track to break even in 2028.) S&P Dow Jones Indices may also shorten the "seasoning period" for entry into some S&P indexes by half, to six months from 12, according to the index provider.

Even if the eligibility requirements were to change across index providers, that doesn't automatically guarantee the likes of SpaceX or Anthropic a spot. That has flustered some traders at times when they've bid up shares of stocks expecting inclusion in an index based on their reading of the criteria—only to be disappointed.

"Index providers have criteria, but they also have the flexibility to decide," Baird's Lee said. "There is a subjective component to [the process]."

Take A Number: A Striking Figure In Economic News Today

Credit: Investopedia / Elizabeth Guevara

Key Takeaways

• U.S. companies paid $8.3 billion in March of a tariff that a court has now ruled was illegal.
• The ruling could set off a fresh scramble for refunds on top of the $166 billion in import taxes to be refunded from the tariffs the Supreme Court struck down in February.
• It's unclear whether consumers, who ultimately paid the tariffs, will ever see any of the money.

Add at least another $8.3 billion to the already massive pile of money at stake in the battle over the tariffs the government collected that courts have since found to be illegal.

On Thursday, the U.S. court of International Trade ruled against the 10% global tariff President Donald Trump imposed in February after the Supreme Court struck down his "Liberation Day" tariffs. Although the ruling currently only bans the tariffs in Washington State where the plaintiff in the case is located, it could set off a fresh stampede of businesses seeking refunds for the import taxes. A total of $8.3 billion was collected under the newly invalid tariffs from U.S. businesses in March alone, according to We Pay the Tariffs, an anti-tariff lobbying group, citing Census data analyzed by the Trade Partnership Worldwide research group.

What This Means For The Economy

The ongoing legal disputes over the tariffs add to the uncertainty faced by businesses about trade policy. That cloud of doubt has caused many companies to delay hiring and expansion plans, slowing down hiring and the economy.

The ruling further clouds the outlook for tariff policy, which has changed frequently since early 2025 when Trump began a campaign of raising steep tariffs on most U.S. trading partners. The tariff campaign, meant to revive U.S. manufacturing, has been chaotic for businesses to navigate. Companies are still lining up for an estimated $166 billion in refunds from the last tariff-related court battle. Meanwhile, the government is preparing a fresh round of import taxes using a different legal justification.

Another open question is whether consumers will ever see any of the tariff refund money. Economists and trade experts say importers passed most of the tariff costs along to their customers, who in turn passed them down the supply chain, ultimately to people who bought the tariffed goods at stores.

"If I go on Amazon last year and I buy a three pack of Oral B electric toothbrushes for $19 and let's say there was $2 of tariff in that, I ultimately paid it," Pete Mento, a director of global trade management services at Baker Tilly, told Investopedia in an interview. "But it's the retailer who would go back and get that money. So do I sue Amazon for my three bucks? I don't think that'd be a very worthwhile pursuit, but ultimately, a lot of these tariffs were paid at retail. So where's their opportunity to recover the money? Amongst us trade nerds, amongst my covenant of weirdos, we talk about this all the time. We have no idea how we're going to get that money."

The Nasdaq has gained about a quarter of its value in the last six weeks alone.
Credit: Michael Nagle / Bloomberg via Getty Images

Key Takeaways

• Tech stocks extended a weeks-long rally on Friday as AI enthusiasm sent semiconductor and memory stocks sharply higher.
• Some analysts expect tech to continue to lead the market, buoyed by strong earnings growth that has prevented stock valuations from ballooning with share prices.

Watching the stock market, you'd be forgiven for thinking "AI" stood for "ascending indefinitely."

Tech stocks ripped higher on Friday, extending a relentless rally off of late March’s lows. The tech-heavy Nasdaq rose more than 1.5% Friday to close at a fresh record. The index has advanced more than 26% since March 30, a stretch that includes a 13-day winning streak early last month. The S&P 500's tech sector, meanwhile, added some 2.7% today.

Semiconductor stocks have been at the vanguard of the rally. The PHLX Semiconductor Index (SOX) is up more than 60% in the past six weeks, propelled by Big Tech’s massive AI data center investments. Shares of Nvidia (NVDA), a $5 trillion company, are up 30% in that time and touched an intraday record Friday morning. Broadcom (AVGO), the U.S. chip industry’s second-largest company, is up 45%. Intel (INTC) is flying today, continuing a rush past record highs that stood for decades.

Why This Is Important

The AI data center boom and Wall Street's enthusiasm for it have caused the tech sector's weight within the S&P 500 to swell to historic levels. As a result, trillions of dollars in funds that track the benchmark index are increasingly tied to the fate of the nascent technology.

The gains have been most pronounced for memory chip makers like Micron (MU), whose revenue and stock have soared due to surging demand from AI data centers. The company late last year said it was sold out of high-bandwidth chips through 2026, and in March said its quarterly revenue tripled from the prior year. The stock has gained more than 150% this year, and rose 15% Friday. Earlier this week, Micron’s South Korean competitor, Samsung, became the latest company to reach a $1 trillion market capitalization after last week reporting its memory chip revenue doubled and profit tripled in the first three months of the year.

Even software stocks, which were pressured earlier this year by worries about AI-driven disruption, have caught an updraft. Shares of Datadog (DDOG) skyrocketed more than 30% on Thursday after the software vendor topped earnings estimates and touted two sizable new deals with major AI labs, boosting investor confidence AI models can be a complement to software, rather than a direct competitor. The iShares Expanded Tech-Software Sector ETF (IGV) is in the red this year, but it has risen more than 17% since late March. 

The tech rally has at times sparked debate about an AI bubble characterized by runaway spending on data centers and sky-high stock valuations. But those jitters have been quelled during the recent run up by an historically strong round of earnings reports. With just one-tenth of the S&P 500 left to report first-quarter results, 84% of the index has topped earnings estimates, the highest share since 2021, according to FastSet Research. The index is on track to post profit growth of nearly 28%, also its highest since 2021.

Tech results have been especially strong. Semiconductor earnings have doubled since last year, driving a 50% increase in profit for the tech sector as a whole. The Communications Services sector’s earnings are up 49% year-over-year; exclude tech giants Alphabet (GOOG) and Meta (META) and its profits are actually down 5%. 

Some investors fear that AI enthusiasm is making stock market returns as concentrated as the media sector's profits. The five largest companies in the S&P 500—Nvidia, Alphabet, Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN)—account for about 30% of the index in terms of market capitalization, and the top 25 represent more than 50%, according to a recent analysis from Wolfe Research. More than half of those 25 companies are widely considered tech stocks. 

Wolfe researchers expect the market will remain top-heavy and tech-dominated until enthusiasm for AI wanes. “Our sense is that a peace deal [with Iran] could spark a short-term broadening out in markets, as oil prices and bond yields fall,” the analysts wrote. “However, we believe that ultimately investors will shift back to the AI theme to drive the market, given the outsized earnings growth and relatively attractive valuations exhibited by these companies.”

Update—May 8, 2026: This story was updated with performance data as of Friday's close.

Intel's stock has been red-hot in recent months.
Credit: Omar Marques / SOPA Images / LightRocket via Getty Images

Key Takeaways

• Intel stock keeps climbing to record highs. This week's driver: reports that it might soon land a deal to make chips for Apple.
• The possibility of a big client for Intel's foundry business has enticed investors to extend a dramatic upward run for the chipmaker's shares.

Intel is closing the week on a rocket ride.

Shares of the resurgent chipmaker—Intel (INTC) recently blew past all time highs that had held since 2000, and have kept climbing since—jumped in Friday trading, pushed higher by reports that the company was moving closer to landing a deal to make chips for a Magnificent 7 client. Such a deal would mark a substantial milestone in the company's yearslong turnaround effort.

Intel and Apple (AAPL) "have reached a preliminary agreement for Intel to manufacture some of the chips that power Apple devices," The Wall Street Journal reported Friday, citing people familiar with the matter. The Journal's report followed another from Bloomberg earlier in the week that reported preliminary talks between the companies. Intel declined to remark on the report. Apple did not respond to Investopedia's request for comment in time for publication.

Shares of Intel were recently up 13%, making them among the S&P 500's top gainers, as broader markets rose. The move has the stock up more than 200% this year and close to 500% over the past 12 months.

The latest news has helped extend an upward run for Intel, which has been helped by an environment that has been friendly to chip stocks broadly. The PHLX Semiconductor index, or "SOX," up about 5% today, is ahead some 162% over the past 12 months.

Strong earnings, driven by what management called "unprecedented demand" for chips that can support the AI buildout, have also lately helped Intel shares—and, for now, set aside valuation questions some analysts posts after other recent moves upward.