Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, non-interest and interest-bearing checking accounts, and investment accounts and products; credit and debit cards; residential mortgages, and home equity loans; and direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services. The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, short-term investing options, and merchant services; working capital management solutions; debt and equity underwriting and distribution, and merger-related and other advisory services; and fixed-income and equity research, and certain market-based services. The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina.

Bank of America Corporation демонстрирует смешанную картину с точки зрения фундаментальных показателей. С одной стороны, компания имеет высокие показатели выручки и чистой прибыли, которые значительно превышают медианные значения по отрасли, что указывает на сильные операционные результаты. Однако, с другой стороны, P/E и P/B мультипликаторы превышают медианные значения, что может указывать на потенциальную переоцененность акций. Долговая нагрузка также вызывает опасения, поскольку соотношение долга к капиталу значительно выше медианы по отрасли. Дивидендная доходность снизилась, что негативно сказывается на привлекательности для инвесторов. Несмотря на это, компания продолжает показывать стабильный рост EPS и выручки, что является положительным знаком. Однако низкие показатели рентабельности по активам и собственному капиталу говорят о необходимости улучшения эффективности бизнеса. В целом, учитывая баланс сильных и слабых сторон, целесообразно пересмотреть целевую цену с учетом текущих реалий на рынке.

Bank of America Corporation

In this episode of Motley Fool Money, Motley Fool personal finance expert Robert Brokamp lays out the five steps to contributing to a backdoor Roth IRA and highlights a landmine to avoid. Also in this episode:
The stock market posted one of its best 10-day returns — what does history say happens next?
A new study finds that heirs spend inheritances remarkably quickly. What are ways to leave an inheritance that won’t be squandered?
The input costs for food companies almost doubled in March, and prices may rise even more over the next three to six months.
Happy 50th birthday to Vanguard’s S&P 500 index fund, the first index fund available to individual investors.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
A full transcript is below.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 985%* — a market-crushing outperformance compared to 200% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of April 29, 2026.
This podcast was recorded on April 25, 2026.
Robert Brokamp: Getting money in a Roth IRA through the backdoor and the Amazing Inheritance Disappearing Act. That and more on this Saturday’s Personal Finance edition of Motley Fool Money. I'm Robert Brokamp, and this week, I'm going to lay out the five steps to contributing to a backdoor Roth IRA and highlight a couple of potential land mines you definitely want to avoid.
But first, let's look at some headlines from this past week or so. The stock market has shaken off the concerns of war and rising oil prices, and is now near all-time highs. In fact, S&P 500 recently posted a 9.8% 10-day rally. According to the Carson Group, this was the 20th-best 10-day return for the index since 1950. What happened a year after the other 19? Well, the market earned a positive return in 16 of those instances, with the three instances of stocks being down a year later, all occurring during the dot-com crash of the early 2000s. The median 12-month return after all of those 19 essentially double-digit 10-day rallies was 20.8%.
The Facts versus Feelings podcast, the Carson Group’s Ryan Detrick, a previous guest on our show, pointed out that the market hitting new highs in April has nearly the same frequency as those exceptional rallies, it having happened 19 times. In all but one of those instances, the market ended the year in positive territory. As Ryan pointed out, a lot of this is just fun with numbers and not necessarily information you would use to make investing decisions, but the reasons underpinning the rally, namely growing corporate earnings and high profit margins, are good signs.
Next up, what do people do when they inherit money? Apparently, a lot of people spend it. That's the conclusion of a recent study from Cory Thompson of the University of Alabama and Russell James of Texas Tech University. They looked at data from 2010-2018 to investigate how people handle inheritances compared to other windfalls, like gifts, lawsuit rewards, insurance settlements, things like that. The headline finding is that inheritances get burned through remarkably fast. Each inherited dollar increased next-wave net worth by only 61 cents when measured roughly a year later, meaning that nearly 40 cents of every inherited dollar had been spent, and 42% of heirs had completely spent their inheritances. What makes this especially striking is the profile of these inheritors. They averaged nearly $1 million in net worth, half had college degrees, and 89% were homeowners. This isn't a story about financially unsophisticated people. It happened across the wealth spectrum.
Study also found that, controlling for demographics and the amount of money received, people were more likely to spend down inheritances than other types of windfalls. The practical implication may be that the standard estate planning approach of a lump-sum bequest at death may be the worst possible design, since it delivers a large amount of money at precisely the moment beneficiaries are psychologically primed to spend it away. The authors argue for time-phase distribution, so maybe staggered principal releases or spendthrift trust or newitized beneficiary designations, and propose that advisors reframe the estate planning conversation from how much should I leave to how much annual income should my Heirs receive.
Now the number of the week, which is 7.9%. That's how much costs for food companies jumped in March year over year, according to Bank of America Global Research and highlighted by Bloomberg. That's up from 4.2% in February right before the Iran War. The biggest cause for the jump, of course, is the spike in fuel prices. But 3-6 months from now, we could see additional upward pressure from higher costs for packaging, fertilizer, and other items that are either made from petroleum or have seen their shipments significantly curtailed by the closing of the Strait of Hormuz.
Next up, how to get money into a Roth IRA, even if you earn above the income limits when Motley Fool Money continues. People look forward to retirement as a time of fewer obligations. It could also be a time of lower taxes, especially if you have money in Roth retirement accounts. Contributions are not tax deductible, but growth and withdrawals from Roths are tax free as long as you follow the rules. Roths also offer another form of obligation freedom. Unlike traditional retirement accounts, Roth accounts are not subject to required minimum distributions at age 73 or age 75, if you were born in 1960 or later. Does that sound appealing to you that consider contributing to a Roth IRA? In 2026, an individual can contribute $7,500 with an additional $1,100 if you'll be 50 or older by December 31.
Just know that you have to meet some requirements to be able to contribute to a Roth IRA, you or your spouse, if filing jointly, must have taxable compensation at least equal to the contribution, but you can't make too much money. The amount you can contribute gradually phases out, starting at a specific modified adjusted gross income based on your filing status. In 2026, the ability to contribute to a Roth IRA phases out for single filers and head of household filers at incomes between $153,000 and $168,000. Those figures are $242,000-$252,000 for those who are married and filing jointly. Is your income too high? Well, take heart because you can enter through the back door. A backdoor Roth IRA is a strategy that allows high-income workers to fund a Roth IRA by first making a nondeductible contribution to a traditional IRA and then converting the traditional IRA to a Roth IRA.
Here are five steps to doing it. Step 1: Open a traditional IRA, make a contribution. Anyone who has earned income or is married to someone with earned income can contribute to a traditional IRA regardless of the level of that income.
Step 2: Contact your IRA custodian and request a conversion of your new traditional IRA to a Roth. If you don't have a Roth yet, you'll first have to open one, and you may be able to do all this with just a few clicks of a button online. Now, there's some debate about how long you should wait between making the contribution and doing the conversion due to something called the step transaction doctrine, which could lead the IRS to determine that instead of taking the two steps to contribute to a non-deductible traditional IRA and then another step to convert the Roth, for all intents and purposes, you actually just took one step and contributed to a Roth IRA, which you may not have been allowed to do if you earned too much income. Now, the debate has been going on for years in the financial planning and tax communities about how long you should wait before you do the conversion with more and more experts concluding that it's pretty much fine to do it as soon as the money hits your account. As far as I know, no one has ever gotten in trouble with the IRA for converting their backdoor Roth IRA too soon.
But if you want to be a little bit more cautious, here's the advice from CPA, Sean Mullaney, who is a former guest on the show and has really dug into this topic. He suggests that you wait until the end of a month passes before doing the conversion. That way, you have the previous months statement showing money in the traditional IRA. Just know that any earnings that accumulate in the traditional IRA before the conversion will be taxable upon conversion, but it shouldn't be very much.
Let's move on to Step 3, which is, once the money lands in your Roth IRA, put it to work. Don't just let it sit there in cash. The whole point is tax-free growth, and that requires actually investing the money in stocks, funds, ETFs, or whatever your long-term strategy calls for.
Step 4: Include the contribution and conversion in your tax returns. You'll receive Form 5498, which reports the IRA contribution, and Form 1099R, which reports the conversion. At tax time, file Form 8606, this tells the IRA that you made a non-deductible after-tax contribution to your traditional IRA. This creates a paper trail showing that this money has already been taxed, so you won't be taxed on it again when you convert. If you work with a tax professional, make sure you tell her or him that the contribution was after tax, so she or he will notify Form 8606.
Step 5: Repeat every year as appropriate. The backdoor Roth IRA isn't a one-time trick. It's a strategy that you can execute every single year you have earned income if that's the right move for your circumstances. Those are the five steps. Not too difficult, but there's one big ugly fly in the ointment, known as the pro rata rule.
If you have other money in other traditional IRAs, doing a backdoor Roth IRA gets a lot more complicated. Here's why. When you convert money from a traditional IRA to a Roth IRA, the IRAs doesn't just look at the specific dollars you're converting. It looks at the total balances of all your traditional IRAs, including SEP IRAs, simple IRAs, and rollovers from 401(k)s, and then calculates what percentage of that total is after-tax money versus pre-tax money? This is known as the pro rata rule.
Here's an example. Suppose you contribute $7,500 in after-tax money for your backdoor Roth conversion, but you also have a rollover IRA with $67,500 of pre-tax money from an old 401K. Your total traditional IRA balance is now $75,000. Only 7,500 or 10% is after tax. The other 90% is pre-tax. When you convert $7,500 to a Roth IRA, the IRAs says, "Well, only 10% of that conversion is after tax. The other 90% is pre-tax and is taxable." The result is that $6,750 of the conversion or 90% will be taxed as ordinary income. Only $750 is tax free.
Fortunately, there is a way around the pro rata rule. If your employer's 401K or 403B accepts incoming rollovers from traditional IRAs, you can roll your pre-tax money into that plan. This removes those pre-tax dollars from the pro rata calculation. After the rollover, your only traditional IRA balance is the $7,500 after tax contribution you just made. Your conversion is now 100% tax free. The downside to this strategy is that you would likely have to sell all the investments in your traditional IRA before doing the rollover, and then once the money lands in your 401K or 403B, choose from among the investment options in your employer-sponsored plan, which are often much more limited. This may not be a trade-off you're willing to make, especially if you like investing in individual stocks, and your 401K doesn't have a brokerage account feature.
Here are three other notes about the pro rata rule. Number 1, the IRS cares about the balances in your IRAs as of December 31 of the year of the conversion. Let's say you do a backdoor Roth IRA conversion in June when you don't have any other money in a traditional IRA, you think that you don't have to worry about the pro rata rule. But then in December, you roll over money in a pre-tax 401K to a traditional IRA, and the money is there on December 31. Now the pro rata rule comes into play.
Number 2, you only have to consider money, and your traditional IRAs, your spouse's IRs aren't part of the calculation.
Number 3, inherited IRAs are also generally ignored when doing the pro rata calculation. One exception, you inherit an IRA from your spouse and you choose to make it your own IRA rather than keep it as an inherited IRA, and only spouses have this type of option. A close by pointing out that contributing to an IRA isn't the only way to increase the amount of money you have for Roth accounts. Nowadays, most employer-sponsored plans offer the Roth option. If yours doesn't ahead and ask for it. No reason not to offer it.
There are no income restrictions on a Roth 401K, 403B, or the Federal this Savings Plan. Anyone can contribute. Also, the annual contribution limits are much higher. For 2026 for 401Ks, the contribution limit is $24,500, if you will be 49 or younger by the end of the year, $32,500 between the ages of 50 and 59 or 65 and older, and $35,750 if between the ages of 60 and 63. If your plan allows for after-tax contributions and in-plan Roth conversions, you can contribute even more via a strategy known as the mega backdoor Roth, which is a whole other ball of wax.
Finally, you can always convert traditional assets to Roth assets and just pay the consequent tax bill. This may make sense if you expect to be in a higher tax bracket in retirement and/or you expect your eventual RMDs to be quite large. The backdoor Roth IRA is just one way to build up your tax-free Roth assets. However you do it, your future self will thank you.
Time to get to Den Fools, and this week, I suggest you evaluate your mutual funds and stock picking prowess in light of the fact that this year is the 50th anniversary of the launch of Vanguard's S&P 500 Index Fund, the first index fund available to individual investors. To mark the occasion, Vanguard recently released 50 stats about indexing, including the fact that since its launch, the Vanguard 500 has earned an annualized 11.58%. If you had invested $10,000 in the fund at its inception, today, you'd have nearly $2.2 million as of the end of February. It's tough to be in an index fund, partially due to rock-bottom fees. If you invest in actively managed funds or pick investments yourself, make sure you're keeping yourself honest by monitoring whether those funds or you are outperforming a relevant index fund over a span of five years or so. If not, then you might be better off just investing in a diversified collection of index funds and letting the market do its magic.
That, my Foolish friends, is the show. Thanks for listening, and thanks as always to Bart Shannon, the engineer for this episode. People on the program may have interest in the investments that talk about, and The Motley Fool may have formal recommendations for or against. Don't buy or sell investments based solely on what you hear. All personal finance content follows Motley Fool editorial standards and is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. See our full advertising disclosure, please check out our shows. I'm Robert Brokamp. Fool on, everybody.
Bank of America is an advertising partner of Motley Fool Money. Robert Brokamp, CFP has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

A Guide to the Backdoor Roth IRA

On 5/1/26, Bank of America Corp's 6.000% Non-Cumulative Preferred Stock, Series GG (Symbol: BAC.PRB) will trade ex-dividend, for its quarterly dividend of $0.375, payable on 5/18/26. As a percentage of BAC.PRB's recent share price of $25.31, this dividend works out to approximately 1.48%, so look for shares of BAC.PRB to trade 1.48% lower — all else being equal — when BAC.PRB shares open for trading on 5/1/26. On an annualized basis, the current yield is approximately 5.92%, which compares to an average yield of 6.60% in the "Financial" preferred stock category, according to Preferred Stock Channel. The chart below shows the one year performance of BAC.PRB shares, versus BAC:
Below is a dividend history chart for BAC.PRB, showing historical dividends prior to the most recent $0.375 on Bank of America Corp's 6.000% Non-Cumulative Preferred Stock, Series GG :
Project your dividend income with confidence: Income Calendar tracks your income portfolio like a personal assistant.
According to the ETF Finder at ETF Channel, Bank of America Corp (Symbol: BAC) makes up 22.27% of the AGF U.S. Market Neutral Anti-Beta Fund ETF (BTAL) which is trading relatively unchanged on the day Wednesday. (see other ETFs holding BAC).
In Wednesday trading, Bank of America Corp's 6.000% Non-Cumulative Preferred Stock, Series GG (Symbol: BAC.PRB) is currently off about 0.2% on the day, while the common shares (Symbol: BAC) are off about 0.6%.
Click here to learn which S.A.F.E. dividend stocks also have preferred shares that should be on your radar screen »
Also see:
Diagnostics Dividend Stocks
Top Ten Hedge Funds Holding XLKI
High Yield Preferred Stocks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Cash Dividend On The Way From Bank of America's Preferred Stock, Series GG

JPMorgan’s JPM first-quarter 2026 results, announced on April 14, were impressive. The company’s top and bottom-line numbers outpaced the Zacks Consensus Estimate, aided by a record Markets performance, robust IB business and higher net interest income (NII).
In the Commercial & Investment Bank (CIB) segment, Markets revenues rose 20% year over year to $11.6 billion, supported by gains in both Fixed Income Markets and Equity Markets. Investment banking (IB) revenues in the CIB segment rose 38% to $3.14 billion, driven by higher advisory and equity underwriting fees, partly offset by lower debt underwriting fees. Likewise, NII was up 9% to $25.37 billion on a reported basis, driven by higher deposit balances and higher revolving balances in Card Services, partly offset by the impact of lower rates.
Against such a robust performance, JPMorgan stock currently trades at a discount to the industry. The stock is trading at a price-to-tangible book (P/TB) of 3.03X, below the industry’s 3.15X.
JPM’s P/TB
Image Source: Zacks Investment Research
If we compare JPMorgan’s current valuation with two of its closest peers – Bank of America BAC and Citigroup C – it appears expensive. At present, Bank of America has a P/TB of 1.89X, while Citigroup is trading at a P/TB of 1.35X.
Despite being a prominent name in the U.S. banking sector, JPM’s not-so-favorable valuation compared with its peers may compel investors to stay away from the stock despite its robust quarterly performance. Similar to JPMorgan, the quarterly performance of Bank of America and Citigroup was strong. Both recorded an increase in earnings and revenues on a year-over-year basis and outpaced the Zacks Consensus Estimate on the back of higher NII and a solid capital markets business.
Coming back to JPM, should investors buy the stock solely because of its inexpensive valuation? Not necessarily. While valuation is an important consideration, it cannot be the only factor driving an investment decision. Investors must also assess the underlying fundamentals, earnings potential and long-term prospects before deciding whether the stock deserves a place in their portfolio.
Beyond Robust Q1 2026: Other Factors at Play for JPMorgan
NII Trajectory: Last year, the Federal Reserve lowered interest rates by 75 basis points (bps), following a 50-bp cut in 2024. Although lower rates remain a headwind for JPMorgan’s asset-sensitive balance sheet, balance sheet growth and higher revolving card balances are still expected to support continued NII expansion. This dynamic was evident in first-quarter 2026 results too.
Building on this, JPMorgan now expects NII for 2026 to be approximately $103 billion, or up more than 7% year over year. Previously, the company targeted NII to be $104.5 billion. NII excluding Markets is expected to be almost $95 billion (unchanged from the prior guidance). This implies that Markets NII are likely to witness weakness later this year after a robust performance in the first quarter.
Unlike JPM, Bank of America expects its 2026 NII to increase 6-8% year over year, higher than its prior outlook of 5-7%, supported by deposit stability, modest loan growth and a more favorable rate backdrop. Meanwhile, Citigroup continues to guide 5-6% NII growth this year, after delivering 11% year-over-year growth in 2025. The bank’s outlook is underpinned by a steadier rate environment and constructive balance sheet trends.
Fee Income to Witness More Upside: Easier monetary policy will lift client activity, deal flow and asset values, supporting a broad rebound in JPMorgan’s non-interest income. Lower borrowing costs are expected to encourage corporate financing, including debt issuance, M&As and equity offerings, extending the recovery in capital markets after a subdued 2022-2023. JPMorgan’s leading investment banking (IB) franchise (ranked #1 globally with a 9.8% wallet share in the first quarter of 2026) positions it to capture a larger share of advisory and underwriting fees as conditions become more supportive, though macroeconomic and geopolitical uncertainty remains a key risk.
Rate transitions have heightened volatility in fixed income, currencies and commodities, thus boosting client hedging and trading activity. With a top-tier trading platform, JPMorgan is positioned to benefit from stronger FICC and equities volumes as investors reposition for a lower-rate environment, even as trading activity normalizes over time.
In wealth and asset management, declining yields often shift investor preferences toward equities and alternatives, helping drive market appreciation, inflows and higher fees. Improved sentiment should support growth in assets under management and fee revenues across JPMorgan’s private banking and wealth platforms.
Branch Openings & Opportunistic Acquisitions: With 5,095 branches as of March 31, 2026, more than any other U.S. bank and a presence in all 48 contiguous states, JPM continues to invest in brick-and-mortar to strengthen its competitive edge in relationship banking, despite the digital shift. JPMorgan plans to open 500 more by 2027. These efforts will deepen relationships and boost cross-selling across mortgages, loans, investments and credit cards.
JPMorgan isn’t alone in branch expansion. Bank of America is growing its financial center network, with plans to open 150 more centers by 2027, despite most interactions being digital.
JPMorgan has expanded through strategic acquisitions, including a larger stake in Brazil’s C6 Bank, partnerships with Cleareye.ai and Aumni, and the 2023 purchase of First Republic Bank. These moves boosted profits and supported its strategy to diversify revenues and grow digital and fee-based offerings.
Tech Spendings: JPMorgan continues to view technology as a long-term growth driver rather than a discretionary expense. For 2026, management expects technology spending of about $19.8 billion, up 10% year over year, driven by business growth, demand for new capabilities, and higher infrastructure, software and hardware costs. While the bank is past peak infrastructure modernization, investment is now shifting toward modernizing applications and data to better capture AI-driven opportunities.
AI remains central to this strategy. JPM has expanded AI use cases across customer service, personalized insights and software development, helping improve efficiency and business outcomes. Its internal GenAI tools are also moving employees from experimentation to secure integration across workflows and applications.
Beyond AI, the bank is investing in blockchain, tokenization and broader platform innovation to strengthen payments, custody and client solutions, supporting long-term business growth.
Fortress Balance Sheet and Solid Liquidity: As of March 31, 2026, the company had total debt of $516.8 billion (the majority of this is long-term in nature). The company's cash and due from banks and deposits with banks were $312.1 billion on the same date. The company maintains long-term issuer ratings A-/AA-/A1 from Standard and Poor’s, Fitch Ratings and Moody’s Investors Service, respectively.
Hence, JPMorgan continues to reward shareholders handsomely. It cleared the 2025 stress test impressively and announced an increase in its quarterly dividend by 7% to $1.50 per share, as well as authorized a new share repurchase program worth $50 billion. As of March 31, 2026, almost $25.7 billion in authorization remained available.
Similar to JPM, Bank of America and Citigroup cleared the 2025 stress test. Following this, Bank of America raised its quarterly dividend 8% to 28 cents per share and authorized a new $40 billion share repurchase program. Citigroup also announced a dividend hike of 7% to 60 cents per share. It is continuing with the previously announced buyback plan, which had $0.5 billion worth of authorization remaining as of March 31, 2026.
Asset Quality: Lower rates will likely support JPMorgan's asset quality, as lower rates will ease debt-service burdens and improve borrower solvency. The overall effect is expected to be moderate and vary by loan segment and macro conditions. Variable-rate consumer and leveraged corporate portfolios might see the most direct benefit, reflecting the lower risk of near-term credit losses as rates fall.
JPMorgan expects that lower rates will help stabilize or even modestly improve overall credit performance, especially in consumer and corporate loan books, as long as the U.S. economy remains resilient. Hence, JPMorgan expects the card service NCO rate to be roughly 3.4%.
However, the ongoing Middle East conflict is likely to hurt JPMorgan’s asset quality at least in the near-term as it builds reserves to counter the fallout of rising prices.
How to Approach the JPMorgan Stock Now?
Since the start of the year, U.S. markets have remained subdued as shifting AI expectations, sticky inflation and geopolitical tensions (including the Middle East conflict) weighed on sentiment. JPMorgan has not been immune to these pressures.
This year, shares of JPMorgan have lost 3.3% against a 4.8% rise for the S&P 500 Index. Likewise, Bank of America has declined 4.4%, while Citigroup shares have gained 10.6%, in the same time frame.
YTD Price Performance
Image Source: Zacks Investment Research
Analysts are bullish on JPMorgan’s prospects, with earnings estimates for 2026 revised upward over the past month, while those for 2027 have been moved down marginally. The Zacks Consensus Estimate for JPM’s 2026 and 2027 earnings implies a 9.9% and 5.3% year-over-year increase, respectively.
Earnings Estimates
Image Source: Zacks Investment Research
JPMorgan continues to project non-interest expenses of $105 billion this year, up more than 9% from 2025. Apart from 10% increase in tech spending, primary reasons for higher expenses include an increase in growth and volume-related spending (like compensation costs, costs for branching/expansion and costs related to credit card business growth), structural inflation-related costs and general operating overhead expenses.
JPM benefited from strong Markets revenues, higher IB fees and a 9% rise in NII, underscoring the strength of its diversified franchise. However, the stock’s valuation is not compelling when compared with key peers. While JPM trades below the industry on a price-to-tangible book basis, it remains more expensive than Bank of America and Citigroup, both of which also delivered strong quarterly results.
Further, JPMorgan lowered its 2026 NII outlook to nearly $103 billion from the prior $104.5 billion view, indicating some moderation ahead. Elevated expenses, including higher technology, compensation, branch expansion and credit card-related costs, may also weigh on profitability. Given near-term macro, geopolitical and valuation concerns, investors should wait for a better entry point before adding JPMorgan shares to their portfolio.
At present, JPMorgan carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

JPM Off to a Solid 2026 Start: Should Investors Buy the Stock?

Key Points
Warren Buffett retired as CEO on Dec. 31 and handed Berkshire Hathaway's proverbial keys to longtime understudy, Greg Abel.
In Buffett's and Abel's respective letters to shareholders, neither listed this former No. 2 position as an indefinite holding or one that "will compound over decades."
Additionally, this brand-name company isn't the screaming bargain it once was -- and that could be a big problem for the value-focused Abel.
It's a new era for Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB). After spending more than half a century leading Berkshire and seeing it grow into a trillion-dollar company, Warren Buffett hung up his work coat for the final time as CEO on Dec. 31.
The Oracle of Omaha's successor is his longtime understudy, Greg Abel, who's been with the company for over a quarter century. Although Buffett remains chairman of Berkshire's board, it's Abel who now has the final say on the company's day-to-day operations and its closely watched, 48-stock investment portfolio.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
In many respects, Buffett and Abel are cut from the same cloth. They're value investors above all else, and tend to focus on companies with strong management teams, easily identifiable competitive advantages, and robust capital-return programs.
But this isn't Warren Buffett's Berkshire anymore, and changes should be expected under new leadership. Arguably, the most eye-popping change is the possibility that Abel will dump the Oracle of Omaha's former No. 2 holding, Bank of America (NYSE: BAC). Although Form 13Fs will tell the tale, there are several signs and hints to suggest that BofA is getting the heave-ho.
Bank of America wasn't labeled a "forever" stock by Buffett or Abel
In early 2024, when Berkshire's now-retired billionaire boss released his 2023 annual letter to shareholders, he outlined eight holdings he viewed as "indefinite."
As you might expect, Buffett pointed to Coca-Cola (NYSE: KO) and American Express (NYSE: AXP) as untouchable. These are the two longest-tenured holdings -- Coca-Cola since 1988 and Amex since 1991 -- and are generating annual yields on cost of 63% and 45%, respectively.
Buffett also highlighted integrated oil and gas company Occidental Petroleum as an indefinite holding. Despite having an on-again, off-again relationship with energy stocks since this century began, Berkshire's former boss strongly believes in Occidental's long-term success.
The sogo shosha (Japan's five trading houses) were the final five companies Buffett outlined as forever-type holdings. This includes Mitsubishi, Mitsui, Itochu, Marubeni, and Sumitomo. Abel played an integral role in establishing and building up Berkshire's stakes in the sogo shosha.
In late February, Greg Abel released his first letter to shareholders as Berkshire's CEO, and added two new names to the list of companies he believes "will compound over decades." These two stocks are Apple and Moody's.
Seven of Berkshire's 10-largest holdings were labeled as indefinite or compound-type investments by Warren Buffett or Greg Abel. Bank of America was missing from both lists, signaling it's not viewed as a forever holding.
Berkshire's Bank of America position has been pared down for six consecutive quarters
The next clue that BofA may be sent to the chopping block by Buffett's successor can be seen in Berkshire's 13Fs.
A Form 13F is a required quarterly filing by institutional investors with at least $100 million in assets under management. These filings allow investors to track which stocks and exchange-traded funds Wall Street's brightest money managers have been buying and selling.
According to Berkshire's 13Fs, Warren Buffett was a persistent seller of Bank of America stock for six consecutive quarters leading up to his retirement. Here's the breakdown:
Q3 2024: 235,168,699 shares sold
Q4 2024: 117,449,720 shares sold
Q1 2025: 48,660,056 shares sold
Q2 2025: 26,306,156 shares sold
Q3 2025: 37,197,363 shares sold
Q4 2025: 50,774,078 shares sold
Between July 17, 2024, and Dec. 31, 2025, Buffett reduced his company's stake in BofA by nearly 515.6 million shares, or roughly 50%. The more than 1.03 billion shares previously held made Bank of America Berkshire's No. 2 holding behind Apple.
Greg Abel and Buffett are similar in their approaches to paring down large positions. Halving a 1.03-billion-share position in 18 months strongly suggests that Bank of America is no longer viewed as a core holding, let alone a long-term one.
Bank of America's valuation no longer makes sense to a diehard value seeker
Last but not least, Bank of America stock is no longer the screaming bargain it once was.
The Oracle of Omaha initially took a position in BofA in August 2011, shortly after the worst of the financial crisis had passed. In exchange for $5 billion in capital to shore up Bank of America's balance sheet, Berkshire received $5 billion in BofA preferred stock, yielding 6% annually.
However, the crown jewel of this deal was the stock warrants Berkshire received. In the summer of 2017, Buffett exercised 700 million stock warrants at $7.14 per share, netting his company an instant $12 billion windfall.
Aside from Bank of America being a brand-name company with strong leadership, it was likely BofA's 62% discount to book value in August 2011 that enticed Buffett to act. However, when 2026 began, Bank of America shares were trading at a 43% premium to book value. While this isn't egregiously pricey for a money-center bank, it's also not a bargain amid a historically expensive stock market.
There may also have been concerns that BofA's interest income would disproportionately suffer during a Federal Reserve rate-easing cycle. While this rate-easing cycle has likely been thrown out the window, courtesy of the inflationary effects of the Iran war, BofA's heightened interest rate sensitivity can lead to knee-jerk reactions by its investors.
With Greg Abel unwilling to compromise when it comes to value, BofA's notable premium to book value may cement its eventual exit from Berkshire Hathaway's investment portfolio.
Should you buy stock in Bank of America right now?
Before you buy stock in Bank of America, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bank of America wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Moody's. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Signs Point to Warren Buffett's Successor, Greg Abel, Dumping the Oracle of Omaha's Former No. 2 Holding at Berkshire Hathaway

The first-quarter 2026 earnings season has started with strong momentum. So far, major banks and financial institutions have reported their quarterly numbers. As of April 24, 138 companies from the S&P 500 Index reported earnings.
Total earnings for these 138 index members are up 23.1% from the same period last year on 9.6% higher revenues. Moreover, 76.8% beat EPS estimates and an equal proportion surpassed revenue estimates. Looking at Q1 2026 as a whole, total earnings of the S&P 500 companies are expected to increase by 14.5% from the same period last year, on 9.7% higher revenues.
Here, we recommend three investment bank giants that have posted strong first-quarter financial numbers with a solid outlook. These are: Morgan Stanley MS, Bank of America Corp. BAC and Citigroup Inc. C. Each of our stocks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our three picks in the past three months.
Image Source: Zacks Investment Research
Morgan Stanley
Morgan Stanley’s first-quarter 2026 results showed capital market strength. Increased focus on asset and wealth management operations, along with its strategic alliances and acquisitions, will support MS’ top line.
The EquityZen acquisition broadens private market capabilities and should deepen client relationships over time. The performance of the investment banking (IB) business will continue to be driven by a strong pipeline, resilient M&A demand, lower rates and MS’ global footprint. Its efficient capital distributions reflect a solid balance sheet.
Morgan Stanley expects a modest sequential gain in the Wealth Management segment’s net interest income (NII) for the second quarter. Given the incremental loan growth expectation and deposit mix, NII is projected to continue trending higher.
Morgan Stanley has an expected revenue and earnings growth rate of 8.3% and 15.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 4.1% over the last 30 days.
Bank of America Corp.
Bank of America has been witnessing an increase in revenues over the past several years. BAC has been steadily embedding artificial intelligence (AI) across its operations, and this quiet transformation is emerging as a meaningful driver of operating margin expansion.
By integrating AI-driven digital capabilities with a targeted physical branch expansion strategy, the bank is building a “phygital” model that balances efficiency with customer engagement, an approach that is expected to allow BAC to streamline operations while simultaneously strengthening its revenue-generating capacity.
BAC provided strong guidance. Full year 2026 NII growth has been projected to 6% to 8% from 5-7% projected earlier. Operating leverage likely to stay at more than 200 basis points.
Bank of America has an expected revenue and earnings growth rate of 9.3% and 16.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.8% over the last 30 days.
Citigroup Inc.
Citigroup’s first-quarter 2026 results benefited from higher year-over-year NII. Ongoing transformation initiatives, including consumer business exits, cost cuts and operational streamlining, will likely support revenue growth of C as stranded costs and transformation spend begin to moderate.
Management expects revenues to see a 4-5% compound annual growth rate through 2026. C’s expansion into private credit boosts diversification, with a strong capital base supporting shareholder returns.
For 2026, management expects NII (excluding Markets) to increase 5-6% on a year-over-year basis in 2026. Citigroup anticipates an efficiency ratio of 60% in 2026, with another year of positive operating leverage.
Management continues to target a return on tangible common equity (RoTCE) of 10-11% in 2026. U.S Cards net credit loss (NCL) as a percentage of average loans is expected to be 4-4.5%. In 2025, U.S. Cards NCL was 4.1%.
Citigroup has an expected revenue and earnings growth rate of 8.4% and 33.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.8% over the last seven days.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Buy These 3 Investment Bank Giants After Solid Q1 Earnings and Outlook

Key Points
Bloom Energy has delivered a 9.5x gain since its 2018 IPO and is up more than 13x over the last 12 months.
The company has been at the right place at the right time with the explosive growth of AI data centers.
Whether Bloom can repeat the past's success depends largely on how long the AI supercycle lasts.
Some stocks are late bloomers. Bloom Energy (NYSE: BE) is one of them.
After Bloom Energy went public in 2018, it initially looked like a hot IPO stock. Shares skyrocketed 40% higher within two months of the company's IPO. By the end of the year, though, the stock was down 60%. Six years later, Bloom Energy's share price remained below its first-day price.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
But the story wasn't over. In the second half of 2025, Bloom Energy again took off. The industrial stock has delivered a staggering 13x gain in just 12 months. An initial $10,000 investment in Bloom Energy is now worth roughly $95,000.
Bloom Energy has made early investors who loaded up on the stock rich. Can it do it again?
In the right place at the right time
The solid oxide fuel cells that Bloom Energy makes for on-site power generation attracted attention from the beginning. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), then known as Google, was the company's first customer in 2008. Other early customers included Bank of America (NYSE: BAC), The Coca-Cola Company (NYSE: KO), FedEx (NYSE: FDX), and Walmart (NASDAQ: WMT).
However, Bloom Energy's recent fortunes stem from being in the right place at the right time with the explosive growth of AI data centers. AI models require enormous amounts of electric power, to the point that power availability has become a major constraint for companies operating data centers.
Bloom's onsite power generation provides a solution to the problem. Instead of waiting for connections to power grids, data centers can get Bloom's Energy Servers installed and operational in as little as 90 days.
Oracle (NYSE: ORCL) provided a huge catalyst for Bloom Energy. In July 2025, the tech giant announced that it would deploy Bloom's technology at several of its U.S. data centers. Oracle selected Bloom because its technology provides "reliable, clean power that can be quickly deployed and easily scaled."
Other data center operators have also recognized Bloom's value. In addition to Oracle, the company's major data center customers include Amazon (NASDAQ: AMZN), CoreWeave (NASDAQ: CRWV), Equinix (NASDAQ: EQIX), AT&T (NYSE: T), Intel (NASDAQ: INTC), and Verizon (NYSE: VZ).
Ready for a repeat performance?
Can Bloom Energy make investors who buy the stock today rich? Maybe, but the task could be more difficult.
For one thing, Bloom's valuation is now off the charts. Shares trade at roughly 167 times forward earnings. The stock's price-to-earnings-to-growth (PEG) ratio, which includes five-year earnings growth projections, is a lofty 6.7.
Bloom seems likely to continue to deliver strong revenue growth. However, whether it can repeat the past's success will depend largely on how long the AI supercycle lasts.
Should you buy stock in Bloom Energy right now?
Before you buy stock in Bloom Energy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bloom Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 27, 2026.
Bank of America is an advertising partner of Motley Fool Money. Keith Speights has positions in Alphabet, Amazon, and Verizon Communications. The Motley Fool has positions in and recommends Alphabet, Amazon, Bloom Energy, Equinix, Intel, Oracle, and Walmart. The Motley Fool recommends FedEx and Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Bloom Energy Has Made Early Investors Rich. Can It Do It Again?

Key Points
NuScale Power is chasing a $10 trillion opportunity.
Now is the time to buy, but not for the reason you think.
Buying in before May 7 gets you skin in the game for NuScale's future.
If you've been eyeing nuclear stocks like NuScale Power (NYSE: SMR), now may be the time to buy. So far this year, shares have shed nearly one-third of their value, making the stock much cheaper than it was just a few months ago.
NuScale Power's next earnings announcement is expected to be held on May 7. There's one obvious reason you should buy shares of this nuclear stock before that day, and it's not what you think.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
NuScale Power is chasing a $10 trillion opportunity
NuScale Power specializes in small modular reactors, or SMRs. SMRs are essentially smaller versions of conventional nuclear power plants. This small package allows for several advantages. SMRs have smaller footprints, shorter construction times, and lower initial costs. They can also be modular -- meaning customers have the ability to add to the system's generation capacity over time -- with the ability to be located in remote or areas that are otherwise difficult to access. And at least on paper, they can have improved safety metrics.
Many experts believe that SMRs will play a key role in the world's energy future thanks to the rising energy demands of the artificial intelligence (AI) industry. For the most part, AI technology requires data centers to function. Data centers, however, are currently very energy intensive. With $7 trillion expected to be spent on new data center construction over the next three or four years, we'll need a lot of new energy generation capacity to come online quickly.
This is where SMRs could fit in. Conventional nuclear power plants can be cheaper on a per-watt basis once in operation. But many large-scale nuclear power plants have taken more than a decade to build, plus many billions of dollars. In theory, NuScale Power's SMRs could be brought online much faster, with lower initial costs, making them a cleaner near-term fit for meeting rising energy demand.
In total, Bank of America believes more than $10 trillion may be spent on building new nuclear systems over the next few decades, with SMRs playing a minor but meaningful part in that opportunity. It's still early -- as of 2024, only two SMRs were in operation globally. But right now, there are over 80 commercial SMR designs being developed that could see commercial units built and put into operation over the next decade. NuScale Power hopes to get its first designs online in a real-world setting by 2030, though further delays are possible.
One reason NuScale Power stock is a buy right now
Buying into SMR stocks like NuScale Power is a long-term game. This thesis will play out over decades, not a handful of quarters. Then why might it be a good idea to buy shares before the next quarterlyearnings callon May 7? In my book, there's one obvious reason: to get skin in the game.
Any quarter now, we could receive a game-changing update from NuScale Power. Perhaps a new major client will be signed, or construction will begin on an existing deal already in the company's pipeline. Conversely, we may get bad news, like a construction or permitting delay. Either way, the stock price could swing dramatically at a moment's notice.
This is the thing about stocks with huge upside potential and stories that will last decades: No one knows the right time to go all in. There will be plenty of volatility along the way, full of huge upwards swings followed by deep sell-offs that generate temporary buying opportunities. Dipping your toes in now gets you in the game, giving you options no matter where the stock price heads over the short term.
Should you buy stock in NuScale Power right now?
Before you buy stock in NuScale Power, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NuScale Power wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $500,572!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,900!*
Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 24, 2026.
Bank of America is an advertising partner of Motley Fool Money. Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why NuScale Power Stock Is a Buy Before Earnings on May 7

Parker Hannifin, the global leader in motion and control technologies, today announced that its Board of Directors has declared a quarterly cash dividend of $2.00 per share of common stock to shareholders of record as of May 8, 2026. The dividend is payable June 5, 2026. The dividend represents an 11% increase over the previous quarterly cash dividend of $1.80 per common share and will be the 304th consecutive quarterly dividend paid by the company.
The Board of Directors of Ameriprise Financial today announced a 6 percent, or $0.10 per share, increase in the company's regular quarterly cash dividend to $1.70 per share payable on May 22, 2026 to shareholders of record at the close of business on May 4, 2026.
SiriusXM today announced that its Board of Directors declared a quarterly cash dividend of $0.27 per share of common stock. This regular quarterly dividend is payable in cash on May 27, 2026, to stockholders of record at the close of business on May 11, 2026.
Delta Air Lines' Board of Directors today declared a quarterly dividend of $0.1875 per share. The dividend is payable to shareholders of record as of the close of business on May 14, 2026, and will be paid on June 4, 2026.
Bank of America today announced the Board of Directors declared a regular quarterly cash dividend on Bank of America common stock of $0.28 per share, payable on June 26, 2026 to shareholders of record as of June 5, 2026.
The Board of Directors of Charles Schwab at its meeting today declared a regular quarterly cash dividend of $0.32 per common share. The dividend is payable May 22, 2026 to stockholders of record as of the close of business on May 8, 2026.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Daily Dividend Report: PH,AMP,SIRI,DAL,BAC,SCHW

Key Points
Oklo Inc. stands to benefit directly from the ongoing nuclear renaissance.
This stock is only for patient investors looking for maximum upside potential.
Artificial intelligence is already a huge and rapidly growing market. But in the long term, the size of the AI industry will be enormous. Roughly $7 trillion alone is expected to be spent on data center infrastructure over the next few years to support the compute needs of artificial intelligence applications. Several other trillion-dollar markets are expected to form in support of the burgeoning AI industry, spanning everything from software to energy.
Few companies are as well positioned as Oklo Inc. (NYSE: OKLO). A developer of small modular reactors, or SMRs, Oklo hopes to bring this innovative approach to nuclear energy directly to data center operators. Unsurprisingly, the company was initially backed by Sam Altman, the CEO of OpenAI, the company behind ChatGPT. Altman was the Chairman of Oklo for many years, and clearly understands how the company's nuclear technology can help meet the rapidly growing energy needs of the AI and data center industries.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
With a market cap of just $10 billion, could Oklo stock be your ticket to 1,000% returns? Let's crunch the numbers.
Oklo can produce 1,000% returns if these catalysts arrive on time
A giant opportunity is opening up for nuclear energy in general. Bank of America thinks the upcoming "nuclear renaissance" will be worth around $10 trillion globally. But this opportunity won't just be relegated to SMR technology -- the specific approach that Oklo is pursuing. Conventional nuclear power plants, which are bigger, more complex, and more costly to construct, will take the biggest share of this value. But over time, Bank of America analysts see SMR adoption accelerating, commanding a 15% market share of nuclear spending by 2050.
While there is plenty of competition within the SMR industry, Oklo has a legitimate opportunity to command a leading market share. Altman's involvement, though reduced in recent months, gives the company direct access to one of the biggest AI companies in the world. And unlike competitors like NuScale Power (NYSE: SMR), Oklo's go-to market strategy involves locating its power plants directly with data center infrastructure, rather than just feeding into the broader grid. It's no wonder, then, that the company has signed a long list of potential data center customers, whereas NuScale has struggled in this department.
If SMRs command a 15% market share by 2050, as Bank of America predicts, the overall market should be worth several hundred billion dollars globally. Oklo attaining a $100 billion market cap in that environment -- which would imply 1,000% upside from today's prices -- seems very plausible. But there are a few hurdles.
First, Oklo must execute on its current pipeline, bringing its first projects online on time and on budget. Second, the global buildout of data center infrastructure must continue as expected, with growth sustained even during a potential recession. And finally, the company must find a way to survive and scale without diluting shareholders too heavily, which would eat into those potential 1,000% gains.
I'm a fan of Oklo and its business model. SMR technology certainly has a place in the future's energy landscape. But make no mistake -- this is an investment thesis that will take years, or even decades, to fully play out. There's a lot of potential upside, but the holding period may be too onerous for most investors.
Should you buy stock in Oklo right now?
Before you buy stock in Oklo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oklo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $502,837!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,241,433!*
Now, it’s worth noting Stock Advisor’s total average return is 977% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 23, 2026.
Bank of America is an advertising partner of Motley Fool Money. Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How Buying Oklo Inc. Stock Today Could 10X Your Net Worth

Key Points
Nvidia is joining forces with Oklo and the Los Alamos National Laboratory to advance AI in nuclear research.
The trio will also work to accelerate the deployment of the next generation of nuclear energy.
Nuclear energy is making a comeback in the U.S. in a big way. Fossil fuels contribute to global warming, and solar and wind energy face limitations. Add to that the rapid adoption of energy-hungry artificial intelligence (AI) data centers, and you have a perfect storm driving demand for nuclear power.
It's a bit ironic, then, that Nvidia (NASDAQ: NVDA), whose graphics processing units (GPUs) underpin advances in AI, is partnering with nuclear start-up Oklo (NYSE: OKLO) to advance the next generation of nuclear power.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
In a press release that dropped on Thursday morning, Oklo announced that it was partnering with Nvidia and the Los Alamos National Laboratory (LANL) to advance nuclear research, nuclear fuel, and critical infrastructure.
"The collaboration is intended to combine advanced nuclear power, AI, digital twins, modeling, and simulation to support critical infrastructure development and accelerate the deployment of nuclear energy," according to the press release.
The trio plans to develop physics- and chemistry-based AI models, with an emphasis on AI inference models to support nuclear fuel validation, the process used to ensure nuclear fuel rods meet all the applicable safety and regulatory standards necessary for use in a nuclear reactor.
They will also conduct research and development into the materials and fabrication of plutonium-based fuels. There will be studies on power generation, grid reliability, and redundancy, and stabilization, in support of nuclear-powered AI factories at LANL.
This collaboration comes just months after Oklo signed a deal with Meta Platforms to develop a 1.2-gigawatt power-generation campus in Pike County, Ohio. The plans are for the facility to provide power to Meta's data centers in the area. As part of the agreement, Meta can prepay for power, providing funding to ensure the project moves forward.
A renaissance for nuclear power generation
Nuclear energy is enjoying a renaissance. After years of living in the shadow of Three Mile Island, the acceptance of nuclear power generation is beginning to gain momentum in the U.S. The timing of this revival isn't a coincidence.
According to a report released by Bank of America, nuclear energy represents a $10 trillion opportunity in the coming years and could "hold the answer to the world's power shortages." The report goes on to say that "nuclear energy has, in many ways, been recently 'rediscovered' amid surging electricity demand. Compared with other energy sources, it offers reliable baseload power, a smaller carbon footprint, and a higher energy return on investment."
Given the magnitude of the opportunity, it's no surprise that Nvidia is expanding its AI-centric reach into nuclear power. The company has been investing in Neocloud providers, optical connectivity in data centers, and even chip foundries to capitalize on the growing adoption of AI.
For its part, Oklo will likely get further validation of its compact, fast-fission powerhouses, which are part of the Department of Energy's (DOE's) Reactor Pilot Program to "accelerate advanced nuclear deployment and to modernize nuclear licensing." The company's fast fission reactor can recycle used nuclear fuel (nuclear waste) for power generation. This provides Oklo with an abundant energy source for years to come.
The company's vision of the future is making the leap from the drawing board to reality, attracting the attention of Wall Street.
Analysts at HSBC initiated coverage on Oklo with a buy rating and a $96 price target. That represents potential upside of 33% compared to Wednesday's closing price. The analysts cited Oklo's goal of integrating fuel, power, and isotope production under one roof. Moreover, the company's potential to generate revenue, coupled with its strong balance sheet, results in an attractive opportunity.
To be clear, Oklo doesn't yet generate meaningful revenue, and the company's future hinges on the eventual regulatory approval for its next-generation small modular reactors.
Investors should weigh these factors carefully before considering an investment.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $502,837!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,241,433!*
Now, it’s worth noting Stock Advisor’s total average return is 977% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 23, 2026.
HSBC Holdings is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Danny Vena, CPA has positions in Meta Platforms and Nvidia. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool recommends HSBC Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.