Mizuho Financial Group, Inc., together with its subsidiaries, engages in banking, trust, securities, and other businesses related to financial services in Japan, the Americas, Europe, Asia/Oceania, and internationally. It operates through Retail & Business Banking Company, Corporate & Institutional Company, Global Corporate Company, Global Markets Company, Asset Management Company, and Others segments. The company provides deposit products; syndicated, housing, and card loans; business matching services; and advisory services related to overseas expansions, and mergers and acquisitions-related services. It also offers consulting services, including asset management and asset succession; payroll services; and sells lottery tickets issued by prefectures and ordinance-designated cities. In addition, it offers fund management, underwriting of equity and bonds, risk hedging products, etc. for corporate customers; solutions based on capital management, business strategy, and financial strategy; real estate services; advisory services and solutions, such as advice on proposals on various investment products to financial institutions; and financial services that include funding support and public bonds underwriting. Further, the company offers corporate finance and transaction banking srvices; sales and trading services; investment products; pension funds; and ALM and investment services, including stable capital raising and balance sheet management, as well as management of fixed income, equity, and other securities portfolios. Additionally, the company provides online banking, cash management solutions, currency transaction, trade finance, custody, yen correspondence settlement, and research and consulting services; trust, securitization and structured finance, and stock transfers; and private banking and information technology-related services. Mizuho Financial Group, Inc. was founded in 2000 and is headquartered in Tokyo, Japan.

Mizuho Financial Group looks like a classic case of a very cheap but not risk-free financial company with a strong balance sheet base. The valuation multiples of P/E 3.02, P/S 0.34, P/B 0.15, and P/FCF 1.44 are noticeably below the industry median, indicating a significant discount to the sector and limiting the case for an aggressive re-rating. At the same time, the recent trend in P/S and P/FCF has not deteriorated, and P/E, after fluctuations, remains at a low level, which supports the thesis of undervaluation. Its strengths remain the scale of assets, high cash holdings, and growth in net worth, which point to a cushion of safety and the ability to withstand stress in the banking business. However, capital and asset profitability are weak: ROE of 3.86, ROA of 0.15, and ROI of 2.94 are well below industry benchmarks, and the yearly figures show deterioration compared with the stronger levels seen in 2024–2025. Profit margin and operating margin are also below the median and have declined from higher levels, which limits the potential for a re-rating based on business quality. The debt burden looks elevated: debt/equity of 1.72 is significantly above the median, and long-term debt has increased, adding caution to the valuation. Liquidity is mixed: a current ratio of around 1 looks acceptable, but a quick ratio of zero for a bank reflects the specifics of its balance sheet and still does not provide any additional cushion. Dividend yield has fallen from higher levels last year to 1.14, so the dividend factor is currently supporting the stock less than before. In absolute terms, revenue, net income, and operating income remain large and generally stable, confirming the scale and profitability of the business. Overall, the fundamentals justify a moderate discount to the current forecast rather than an upward revision, because the cheap valuation already partially compensates for weak profitability and elevated leverage. For an investor, this is a story about a stable large financial institution with low multiples and a solid asset base, but without convincing improvement in quality that would typically be needed for stronger upside.

Mizuho Financial Group, Inc. Sponosred

Very cheap on valuation multiples, but with low profitability and elevated debt burden; the fundamentals rather justify moderate caution.

Key Points
Chipotle is pushing toward thousands of additional restaurants, Dutch Bros is still in the early stages of its national rollout, and Ulta continues to expand its reach through new brands, experiences, and customer acquisitions.
Whether it's Chipotle's customer loyalty, Ulta's dominance in prestige beauty, or Dutch Bros' growing cultural appeal, each company has built a brand that can outlast temporary economic slowdowns and competitive pressures.
There is never a quiet moment in consumer stocks. A tariff headline drops, and restaurant shares fall 10% before lunch. A perfectly healthy brand reports a single quarter of soft traffic and gets written off as broken. A newer competitor enters a category, and suddenly the incumbent is called a dinosaur. This is the rhythm of the market, and it punishes investors who take the noise too seriously.
The three companies below are all sitting inside that noise right now. Each one has a real, long-term case that hasn't changed -- and, in some ways, has gotten stronger -- while the headlines have done their damage.
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These are popular household names that I would invest in right now and forget about.
1. Chipotle Mexican Grill
Chipotle Mexican Grill (NYSE: CMG) went from Wall Street darling to punching bag in about 12 months. After cutting its sales forecast three times in 2025 and watching shares fall more than 34% from their highs, the stock entered 2026 in a very different position than investors had grown used to. Consumer spending pressure from lower-income households -- which represent about 40% of Chipotle's sales base -- was the primary culprit.
The noise says Chipotle is broken. The company's own actions say something different. CEO Scott Boatwright committed publicly to absorbing tariff-related cost increases last year rather than passing them to customers. This was a direct acknowledgment that the brand's relationship with its customers matters more than short-term margin protection. The company opened between 315 and 345 new restaurants in 2025 and is planning 350 to 370 more in 2026, with international expansion into South Korea, Singapore, and Mexico this year.
That expansion pace is the real story. Unit growth is what drives Chipotle's long-term revenue trajectory, and the company hasn't slowed. By 2029, Chipotle is projecting revenue of $16.1 billion, roughly double current levels. The question isn't whether a bad spending quarter matters -- it does. The question is whether one year of soft traffic changes the arc of a brand that has 4,000 locations and a total addressable market nowhere near saturated. I don't think it does.
2. Ulta Beauty
Ulta Beauty (NASDAQ: ULTA) is down nearly 25% in 2026 while the broader market has risen. The concern driving that disconnect is real: Investors are worried that a cautious consumer will pull back on discretionary beauty purchases, and that new competitors are chipping away at Ulta's position.
What happened in the first quarter of 2026 tells a different story. Ulta's net sales grew 11.1% to $3.16 billion and comparable sales rose 5.3%, beating analyst expectations of 4.5%. The company raised its annual profit forecast afterward. The growth was led by prestige beauty -- the higher-margin tier -- driven by celebrity brand launches including Rihanna's Fenty Beauty, Selena Gomez's Rare Beauty, and Beyoncé's Cécred. These aren't promotional gimmicks. They are the exact kind of cultural collaborations that drive Gen Z and millennial shoppers into stores and keep them coming back.
In April, Ulta held its first-ever consumer event, Ulta Beauty World, in Orlando; tickets sold out almost instantly. That kind of demand doesn't come from a brand in decline. The stock's weakness right now is a valuation story, not a business story. Ulta guided for 6% to 7% net sales growth and low-double-digit earnings-per-share (EPS) growth in fiscal 2026. For a consumer brand with that kind of execution in a year when most discretionary retailers are struggling, the current price looks like a gift.
3. Dutch Bros
Dutch Bros (NYSE: BROS) is the consumer growth stock most investors know exists but can't quite bring themselves to buy, because it always seems to be priced for perfection. The noise around Dutch Bros is that it's just another coffee chain in a world that already has Starbucks, and that its valuation doesn't leave room for error.
That framing misses what's actually happening. Dutch Bros raised prices only about 30% since 2019, compared to Starbucks' 50%-plus increases. In a market where consumers are acutely price-conscious, that gap is a genuine competitive advantage -- and it's showing up in market share. Mizuho's senior beverage analyst has publicly identified Dutch Bros as the top contender in the coffee sector specifically because of this pricing positioning.
The company reported a record financial year in 2025 and plans to open at least 181 new system shops in 2026 alone. Its long-term target is more than 7,000 potential locations -- it currently has just over 1,000. For context, Starbucks has more than 17,000 U.S. locations. Dutch Bros is a brand in the early chapters of its national footprint.
What sealed this as a long-term story for me is the consumer packaged goods expansion. In February 2026, Dutch Bros launched at-home coffee products -- iced lattes, coffee pods, creamers, and ground coffee -- available through Amazon and Walmart. That move takes Dutch Bros from a regional drive-thru experience to a national consumer brand that lives in your fridge and pantry. That's a different business than the one most investors are pricing.
The noise will continue. The growth will, too.
Should you buy stock in Dutch Bros right now?
Before you buy stock in Dutch Bros, 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 Dutch Bros 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 $417,305!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,293,148!*
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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Chipotle Mexican Grill, Dutch Bros, Starbucks, Ulta Beauty, and Walmart. The Motley Fool recommends the following options: short June 2026 $36 calls on Chipotle Mexican Grill. 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.

Buy These 3 Growth Stocks Now, Ignore the Noise, and Thank Yourself Later

Key Points
Earlier this month, Mizuho's Ann Hynes raised her price target to $115 per share.
Following the latest rally, this implies potential upside of around 13%.
Potential upside could be even greater for CVS Health shares, given the valuation of other healthcare service stocks, plus the prospect of further strong earnings growth.
After a rough start to 2026, CVS Health (NYSE: CVS) shares have more than made up for their initial losses, surging in recent months on the heels of promising Medicare-related developments. Shares are already up over 25% year to date.
But even as shares keep climbing toward the top of sell-side analyst price targets, including the most recently raised price target, don't assume the runway is limited to this figure. Given CVS's strong comeback and potential rerating, it could remain one of the best-performing blue chip stocks this year.
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The latest price target raise for CVS Health
On June 8, Mizuho analyst Ann Hynes, while reiterating her bullish rating on CVS Health, raised her price target by 4.5%, from $110 to $115 per share. With shares trading around $97 at the time, this represented about 18.5% upside, but CVS Health's subsequent rally has narrowed that to about 13%.
Following the stock's latest rally, investor sentiment has shifted strongly. Investors are likely no longer anticipating just "better than expected" results. There may now be an increasing pool of investors who believe that the company can continue to beat expectations. I believe this view is more than reasonable, with the potential for shares to reach levels above Mizuho's aforementioned target.
Loftier price levels within reach
Currently, CVS Health trades for just under 13.8 times forward earnings. If the stock were to rise to $115 per share, based on forecasts calling for 2026 earnings of $7.43 per share, CVS Health would be trading at a forward multiple of around 15.5.
The market now fully understands that CVS is a diversified healthcare services company today, similar to UnitedHealth Group. With UnitedHealth now rerated to a forward valuation in the low 20s, such a valuation may be reasonable for CVS as well, especially as forecasts call for further double-digit earnings growth in 2027. If this stock were to rise to a forward multiple in the high teens, or even up to 20 times forward earnings, it could hit prices near $150 per share.
Should you buy stock in CVS Health right now?
Before you buy stock in CVS Health, 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 CVS Health 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 $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 207% 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 June 15, 2026.
Thomas Niel has positions in UnitedHealth Group. The Motley Fool recommends CVS Health and UnitedHealth Group. 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.

1 Top Wall Street Analyst Thinks CVS Health Could Jump Another 13%. Should You Load Up on the Stock?

Key Points
A Mizusho analyst has upwardly revised the price target on D-Wave Quantum stock.
Two analysts hiked price targets in early June.
The company has targeted delivering a 17-qubit system in 2026.
Starting the shortened trading week on a bullish note, D-Wave Quantum (NYSE: QBTS) stock raced out of the gate this morning. With an analyst providing an auspicious outlook, investors are now running to pick up shares of the quantum computing stock.
As of 12:20 p.m. ET, shares of D-Wave Quantum are up 13.6%.
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An industry leader with a stock that has room to run
Maintaining an outperform rating, Vijay Rakesh, a Mizuho analyst, upwardly revised the price target on D-Wave Quantum stock to $35 from $29. The action echoes those of analysts who similarly raised their price targets on D-Wave Quantum stock two weeks ago. Roth Capital boosted its price target to $40 from $30, and B. Riley lifted its price target to $40 from $36.
Based on D-Wave Quantum's stock closing price of $23.37 on Friday, Rakesh's price target implies upside of more than 20%.
According to Thefly.com, Rakesh grounded his outlook in the recognition that the company has extended its gate-model roadmap, aiming to reach 10 logical qubits by 2030, steadily scaling to a 100-logical-qubit system that can successfully perform more than 1 million operations by 2032.
Is now the time to take a quantum leap in your tech exposure with D-Wave Quantum stock?
While the consensus among analysts is that D-Wave Quantum stock has room to run, those seeking quantum computing stock exposure should weigh the company's achievements more heavily than analysts' opinions. Instead of simply clicking the buy button because analysts are bullish, potential investors should look for green flags from the company that make its 2030 and 2032 targets seem achievable.
Should the company succeed in attaining its goal of delivering a 17-physical-qubit system that supports logical error rates 2 times lower than physical error rates, investors will have more material cause to buy D-Wave Quantum stock.
Should you buy stock in D-Wave Quantum right now?
Before you buy stock in D-Wave Quantum, 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 D-Wave Quantum 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 $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 207% 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 June 15, 2026.
Scott Levine 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.

Why D-Wave Quantum Shares Are Soaring Today

Key Points
Several analysts initiated coverage on Cerebras stock this week.
Despite the analysts' bullish ratings and price targets, investors would be wise to place greater emphasis on the company's fundamentals in deciding whether or not to buy Cerebras stock.
After sinking more than 15% last week, shares of Cerebras (NASDAQ: CBRS) have been heading in the other direction over the past few days. With several analysts initiating coverage on the artificial intelligence (AI) stock and setting auspicious price targets, investors have found sufficient cause to click the buy button.
According to data from S&P Global Market Intelligence, Cerebras shares are up 10.2% from the close of trading last Friday through yesterday's close.
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Wall Street has a warm welcome for this AI powerhouse
Immediately after Cerebras's initial public offering (IPO), there weren't many analysts expressing opinions on the stock's prospects. But that changed this week.
On Monday, several analysts initiated coverage with bullish outlooks.
Barclays analyst Tom O'Malley assigned an overweight rating and $280 price target.
Mizuho assigned an outperform rating and $300 price target.
UBS assigned a buy rating and $300 price target.
TD Cowen analyst Joshua Buchalter assigned a buy rating and $275 price target.
Morgan Stanley analyst Joseph Moore assigned an overweight rating and $250 price target.
Analysts identified several factors that supported their optimistic takes on Cerebras stock. According to Thefly.com, Joseph Moore, for example, recognized that Cerebras' contracts suggest the company could generate $6 billion in revenue in 2028, with the potential to grow even more. For context, Cerebras reported sales of $510 million in 2025.
On the other hand, a Craig-Hallum analyst, who rated Cerebras as a buy and set a $325 price target, recognized "a need for speed in AI inferencing," adding that both OpenAI and Amazon's AWS both embraced Cerebras "because they [Cerebras] are the fastest in the world."
Should Main Street investors follow Wall Street's lead?
As the developer of a leading full-stack AI infrastructure solution, Cerebras stock has garnered considerable market interest since the company's IPO. While the tide of bullish analyst sentiment is noteworthy this week, investors would be better served to focus on the company's financials to ensure its growth prospects remain intact.
Should you buy stock in Cerebras Systems right now?
Before you buy stock in Cerebras Systems, 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 Cerebras Systems 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 $438,283!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% 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 June 12, 2026.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Barclays Plc. 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.

Why Cerebras Stock Is Rising This Week

Key Points
S&P Global is spinning off its Mobility business into a standalone company.
The new company, Mobility Global, will start trading on the NYSE on July 1 under the ticker MBGL.
The spinoff should benefit SPGI, allowing it to focus more resources on its market-leading businesses.
S&P Global (NYSE: SPGI) is best known for its credit ratings and indexes, but it also has a strong institutional consulting and analytics arm.
Its Market Intelligence business, which provides data, analytics, and insights for companies, is one of its largest revenue drivers, generating $1.3 billion in revenue last quarter, an 8% year-over-year increase.
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It also has an energy consulting business, formerly known as Plattʻs, that provides data on energy and commodities.
In addition, it has S&P Mobility, which was formed in 2022 after S&P acquired IHS Markit. This segment provides data and intelligence on the automobile industry.
But as of July 1, Mobility will no longer be part of S&P Global as it is being spun off into its own company, Mobility Global, which will trade on the New York Stock Exchange under the ticker MBGL.
What does this mean for S&P Global investors?
How the spin-off will benefit SPGI
The spin-off of the Mobility business has been in the works for more than a year now, but it was finalized in late May.
As part of the deal, S&P Global shareholders will receive one share of Mobility Global common stock for every share of S&P Global common stock held at the close of business on June 15. The distribution of Mobility Global shares is expected to be effective on July 1. Normal trading of Mobility Global stock will begin on July 1.
Mobility is S&P Global's smallest business, generating about $454 million in revenue last quarter, up 8%, and $93 million in operating profit, up 9%. It was the slowest grower last quarter, profit-wise, but operating profits grew a robust 21% last year.
When the spinoff was first announced last year, S&P Global President and CEO Martina Cheung said it would allow the company to focus more on its core businesses -- credit ratings, indexes, market intelligence, and commodity insights. Further, it will simplify operations and free up resources for the company to pursue innovation, artificial intelligence initiatives, and growth opportunities within its other market-leading businesses.
93% of analysts say buy
Wall Street analysts are bullish on the spinoff, as SPGI has received price target upgrades in recent weeks from Goldman Sachs (NYSE: GS), JPMorgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC), and Mizuho Financial Group, among others.
Some 93% of analysts rate S&P Global stock as a buy with a median price target of $543 per share. That would suggest 28% upside for the stock over the next 12 months.
The stock price is down 18% this year, but it has been a consistent long-term performer due to its market leadership across multiple business segments. Over the past 10 years, it has had an average annualized return of 15%. Also, it is a Dividend King, with 53 straight years of dividend increases.
This blue chip winner is also about as cheap as it's been in a while, trading at just 21 times forward earnings.
Mobility was not a significant revenue generator for S&P Global, but spinning it off could spur more growth as the company focuses its resources on its market-leading core businesses.
Should you buy stock in S&P Global right now?
Before you buy stock in S&P Global, 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 S&P Global 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 $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% 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 June 1, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group, JPMorgan Chase, and S&P Global. 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.

S&P Global Is Spinning Off Its Mobility Business This Summer. Here's What Shareholders Need to Know.

Key Points
Arm stock has soared in 2026.
Arm stock is trading at a rich valuation, so investors may be more comfortable investing in an AI ETF.
Thanks in large part to the market's rampant enthusiasm for artificial intelligence (AI) stocks, Arm Holdings (NASDAQ: ARM) stock has soared more than 210% since the start of 2026, and one firm thinks that the stock is poised to rocket even higher. This new, bullish outlook on Arm stock is driving the semiconductor stock higher during today's market session.
As of 11:36 a.m. ET, shares of Arm are up 13%.
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This firm sees Arm stock ascending to a new all-time high
Maintaining an outperform rating, Mizuho hiked its price target on Arm stock to $360 from $290. According to Thefly.com, the firm raised its price target on the belief that demand for dynamic random access memory (DRAM), a type of computer memory used to temporarily store data that your computer is actively using, will remain strong through 2027; moreover, Mizuho recognizes that the high bandwidth memory's total addressable market is growing -- two factors that bode well for semiconductor specialist Arm.
Based on Arm's closing price of $302.71, the new price target implies upside of 19%. Should Arm stock, in fact, rise to $360, it will represent a new all-time high. As of this writing, Arm's intraday high was $345.60 earlier today.
Will Arm stock cost you an arm and a leg?
While Mizuho sees Arm stock continuing to rise, investors should bear in mind that shares are trading at a steep valuation -- about 356 times trailing earnings. In light of this, AI investors may be more comfortable investing in an AI ETF that includes Arm stock among its holdings to gain exposure to Arm stock.
Should you buy stock in Arm Holdings right now?
Before you buy stock in Arm Holdings, 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 Arm Holdings 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 $471,072!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,303,352!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 210% 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 May 28, 2026.
Scott Levine 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.

Why Arm Holdings Stock Jumped Higher Today

Key Points
Nvidia continues to dominate the AI chip market, backed by strong demand across industries.
TSMC is a key beneficiary of the surging demand for advanced chip manufacturing capabilities.
Microsoft and Broadcom are emerging as key enablers of AI infrastructure construction, while Palantir is gaining traction in real-world AI deployment.
Technology investing has always been about identifying the next key industry trend. It is no surprise that artificial intelligence (AI) has emerged as the dominant force in today's market, even as some investors worry that AI spending may be nearing a peak.
Those concerns are understandable after the strong stock rallies seen over the past couple of years, but the underlying opportunity remains significant. AI infrastructure spending by several of the biggest customers is expected to reach roughly $700 billion in 2026, while several large tech companies continue to report strong revenue growth in the double digits or higher tied to AI demand.
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 »
Investors with $5,000 to spare after paying bills or meeting contingencies can consider building positions in companies that provide exposure to the hardware, cloud, and software powering AI. Here are five stocks that meet the criteria.
Nvidia
Nvidia's (NASDAQ: NVDA) revenue for fiscal 2026 (ending Jan. 25) surged around 65% year over year to $215.9 billion, driven largely by hyperscalers aggressively investing in data centers. CEO Jensen Huang sees a data-center AI opportunity exceeding $1 trillion through 2027, up from earlier estimates of about $500 billion. This upward revision reflects an accelerated demand for its Blackwell and Rubin systems.
Nvidia's full-stack approach -- built on a tightly integrated system spanning chips, networking, and software -- has made it a crucial enabler of the global AI infrastructure building boom. According to researcher Mizuho, the company is estimated to hold more than a 75% share of the market for AI training and inference chips for data centers.
Its commitment to innovation and expanding global demand continues to support the company's growth. Its $20 billion deal with Groq is also strengthening its position in inference workloads by adding specialized technology and engineering talent.
With strong cash generation and deep integration across the AI stack, Nvidia remains a smart long-term pick.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (NYSE: TSM) has become one of the clearest enablers of the AI boom. In its 2026 first quarter (ending March 31), revenue rose about 39% year over year to $35.9 billion. Gross margin expanded by 3.9 percentage points sequentially to 66.2%, highlighting the company's strong pricing power.
AI demand is now the primary growth engine. High-performance computing accounted for 61% of total first-quarter revenue, while advanced nodes below 7-nanometer contributed 74% of wafer sales.
Management expects revenue to grow above 30% year over year in 2026. With demand for advanced nodes still exceeding supply, the company is positioned to remain a key beneficiary of the ongoing AI infrastructure build-out.
Broadcom
Broadcom (NASDAQ: AVGO) is benefiting from rising demand for custom chips, as large technology companies focus on optimizing performance and costs. The company is guiding for revenue to grow 47% year over year to around $22 billion, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to be around 68% of total revenue in the second quarter of fiscal 2026.
Semiconductor sales are forecast to grow 76% year over year to $14.8 billion, driven by surging AI demand. AI semiconductor revenue is predicted to rise 140% year over year to $10.7 billion.
The company's custom AI accelerator business is scaling up, with deployments across multiple hyperscalers and AI developers, including Alphabet, Meta Platforms, and Anthropic. Broadcom also expects to generate over $100 billion in AI-related chip revenue by 2027, supported by multiyear contracts and secured supply chains.
With strong profits and close partnerships in custom chips and networking, Broadcom is playing a key role in building the next generation of AI systems.
Microsoft
Microsoft (NASDAQ: MSFT) is quietly turning into one of the most important players in the AI boom, with its cloud platform and long-term contracts driving steady growth. Analysts expect revenue to rise roughly 16.2% year over year to $81.4 billion and earnings per share to grow 17.7% year over year to $4.07 in the third quarter of fiscal 2026.
Microsoft exited the second quarter with commercial remaining performance obligations (RPOs, a measure of contractual backlog) of $625 billion, up 110% year over year. Hence, the company has impressive revenue visibility, supported by multiyear AI contracts.
It is also focusing on monetizing its Copilot virtual AI assistant. The company had about 15 million paid Microsoft 365 Copilot seats at the end of the second quarter, highlighting its strong enterprise adoption and usage growth.
Evercore analyst Kirk Materne expects Azure AI revenue to grow around 41% year over year to nearly $25.7 billion in calendar 2026, significantly higher than its previous estimate of $21.8 billion. The analyst also forecasts Azure acceleration mostly in the second half of 2026, as data center capacity is tight and may need time to scale up.
Thanks to its impressive presence in the cloud, AI platforms, and enterprise software, Microsoft is becoming a long-term enabler of AI adoption across industries.
Palantir Technologies
Palantir Technologies (NASDAQ: PLTR) has become a key in applying AI to defense intelligence and real-world business operations.
The Pentagon's recent decision to utilize Palantir's Maven AI platform has ensured long-term stable funding from U.S. military budgets. Previously, the Army consolidated multiple deals into a single agreement with Palantir, valued at around $10 billion over 10 years. These contracts highlight the durability and visibility of the company's government revenue.
Palantir is also gaining in commercial markets through its Artificial Intelligence Platform (AIP), which helps organizations derive insights by connecting AI models directly with their enterprise data and operational work flows. This is driving strong adoption across industries such as aerospace, healthcare, and energy.
Although trading at an expensive valuation of nearly 79 times forward earnings, Palantir is still an attractive pick due to its increasingly prominent role in global data-driven decision-making.
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 $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 25, 2026.
Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Broadcom, Evercore, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, and Taiwan Semiconductor Manufacturing. 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.

Got $5,000? 5 Tech Stocks to Buy and Hold for the Long Term.

Key Points
Artificial intelligence (AI) agents are being used to spot asymmetry in the stock market amid unusual levels of volatility.
Anthropic's Claude model identified Microsoft and Broadcom as high-conviction buys prior to their rallies following the Iran ceasefire announcement.
Microsoft and Broadcom both play critical roles in the development of AI infrastructure.
When geopolitical tremors rocked the stock market ahead of the Iran ceasefire, most investors pounded the sell button. But an artificial intelligence (AI) agent built on Anthropic's Claude models did the opposite -- quietly loading up on Microsoft (NASDAQ: MSFT) and making Broadcom (NASDAQ: AVGO) its single largest position.
Now, both stocks are surging. The AI agent's move wasn't a lucky guess. It was the product of a system unburdened by fear -- one that analyzes balance sheets, validates backlog pipelines, and assesses adoption curves. While Wall Street scanned the same data and saw outsize risk, Claude identified asymmetry.
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 »
Unlike humans, AI agents are unemotional
Claude's portfolio isn't influenced by headlines or rhetoric that drive stock momentum. Rather, the algorithm runs on ruthless optimization: locating the widest gaps between valuation and intrinsic compounding power.
In late March, an account on X (formerly Twitter) known as The Claude Portfolio revealed that a custom agent allocated 10% of the fund to Broadcom and swapped 8% of its turnover budget into Microsoft. Positions of this size are not incremental tweaks. They represent high-conviction ideas within the broader portfolio because Claude's models calculated expected returns north of 20% while the next-best names hovered around low single digits.
The difference between a Claude agent and a real-life analyst isn't an ability to process data faster. It's simply that bots lack the emotions driving sentiment and psychology. Therefore, it behaves differently compared to a human. Humans have a habit of fixating on the latest headline, rumor, or one specific figure from an earnings report.
Claude, by contrast, treats these variables as inputs to its model rather than as definitive conclusions. In essence, AI dilutes potential concerns into simple questions:
In 10 years, which companies are positioned to own the rails of artificial intelligence?
At what price is this infrastructure being offered today?
The ceasefire in Iran was, frankly, just noise rattling the technology sector. The ongoing structural buildout of AI is what's most relevant to the storyline.
Microsoft remains a quality compounder despite a temporary fire sale
Prior to its bounce back post-ceasefire, Microsoft stock had fallen roughly 28% from its highs -- its worst start to the year since 2008. The company was trading at a forward price-to-earnings (P/E) multiple of 20 -- 34% below the software sector average and the cheapest valuation in five years.
To Claude, this valuation compression wasn't a signal of weakness or fracture in Microsoft's business. The selling pressure was merely a mispricing of one of the world's largest enterprise cloud platforms at a moment when its fortress was widening.
Claude identified two vectors colliding simultaneously. First, Azure is guiding for 38% growth next quarter, supported by a staggering $625 billion revenue backlog. Second, Copilot crossed 4.7 million paid subscribers, proving that generative AI is not a science experiment but a legitimate revenue engine embedding itself inside Office -- one of the most sticky enterprise software suites on the planet.
The risk to Microsoft's growth seems obvious: Over $100 billion in AI capital expenditures will compress free cash flow in the near term. But Claude views this spending far differently than Wall Street.
The AI trading model sees Microsoft's infrastructure budget not as a capital drain but more as the required price of scaling operating systems for the AI era. If Azure continues to grow and Copilot keeps embedding across Microsoft's vast ecosystem, the current multiple compression should be temporary as the company's earnings power becomes a staple.
Wall Street is pricing Microsoft for fear, whereas Claude is pricing the internet giant as a long-term compounder.
Broadcom is quietly becoming the pick-and-shovel king of custom silicon
While Microsoft supplies cloud infrastructure, Broadcom supplies the silicon that fuels cloud intelligence. In late March, the Claude agent made Broadcom 10% of the portfolio -- its largest single position.
Why was Claude so bullish on Broadcom? Because the AI recognizes that Broadcom has built a near-monopoly in the custom AI chip landscape -- controlling 60% to 80% of the custom silicon market. These chips, known as application-specific integrated circuits (ASICs), are specialized accelerators that hyperscalers use to train and run next-generation models.
During the first quarter, AI semiconductor revenue grew 106% year over year to $8.4 billion, while Broadcom's order book is on pace to reach $100 billion through 2027. Notably, Broadcom boasts hyperscalers including Alphabet, Meta Platforms, and OpenAI as part of its growing backlog.
Shortly after the earnings report, the thesis around Broadcom was validated as Google extended its TPU partnership through 2031. Moreover, Anthropic has committed to 3.5 gigawatts of Broadcom-powered AI TPUs starting next year. Analyst Vijay Rakesh from Mizuho estimates that the Anthropic relationship alone could add $21 billion in revenue for Broadcom this year and reach $42 billion by 2027.
While Wall Street discounts semiconductor stocks for cyclical risk amid macro uncertainty, Claude sees structural inevitability: AI hyperscalers are racing to build their own silicon because clusters of general-purpose chips are no longer enough to keep pace with new applications across agentic AI, robotics, and autonomous systems.
Broadcom isn't selling commoditized shovels. The company is designing the custom-forged steel from which the shovels are made. When the ceasefire was announced and sentiment flipped, Broadcom stock simply rerated to the backlog that's been supporting the company's growth trajectory all along.
Is it too late to buy Microsoft or Broadcom stock?
Claude didn't buy Microsoft and Broadcom as swing trades. The agent understands that the next decade of AI will run on their rails, and those rails are only beginning to be laid. For human investors willing to adopt a similar disciplined approach to an AI-optimized portfolio, the opportunities Claude spotted are still very much alive.
Should you buy stock in Broadcom right now?
Before you buy stock in Broadcom, 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 Broadcom 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 $555,526!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,156,403!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 191% 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.
Adam Spatacco has positions in Alphabet, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Broadcom, Meta Platforms, and Microsoft. 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 Claude Agent Bought These 2 Trillion-Dollar Artificial Intelligence (AI) Stocks Before the Ceasefire With Iran. Now They Are Both Rallying -- Is It Too Late to Buy?

Key Points
Earlier this year, CVS Health shares fell after reports that Medicare payment rates would only increase by 0.09% next year.
However, with Medicare's final ruling selecting a much higher 2.5% escalation, CVS, like other healthcare stocks, have bounced back in price.
Cheaper than peers, and with forecasts of further earnings runway, there's still time to buy into what may become an extended rally for CVS Health.
In a matter of months, a key issue affecting CVS Health's (NYSE: CVS) performance has seemingly vanished. On April 7, the Centers for Medicare & Medicaid Services (CMS) finalized the amount by which it will increase payments to providers operating under the Medicare program.
As you may recall, the original proposed increase was poorly received by investors, mostly because it was barely above zero and heightened concerns about a further squeeze on industry margins. But now, with the official increase far better than expected, healthcare stocks like CVS Health have surged again.
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 »
Rather than being the recipient of a short-lived rally, the latest Medicare rate increase could kick off a further surge in shares.
What makes the Medicare decision a big deal for CVS
Back in January, news of CMS's proposed 0.09% Medicare rate increase sparked a sharp sell-off in top healthcare stock, including CVS. To some, this may be surprising. After all, isn't CVS just a pharmacy chain?
That hasn't been the case for quite some time. Currently, CVS is a highly diversified provider of healthcare services. Besides operating its eponymous chain of pharmacies, CVS Health is the parent company of health insurance provider Aetna. As a major provider of Medicare Advantage plans, the prospect of just a 0.09% increase signaled lower profitability ahead.
However, with CMS's finalized payment policy calling for a nearly 2.5% increase, perceptions regarding future profitability have improved considerably. With this increase, insurers will collect $13 billion more in payments than previously expected.
Although payment increases still lag rising costs of as much as 9% annually, sell-side analysts like Mizuho's Jared Holz believe plan providers like CVS Health's Aetna unit have a greater chance of increasing their margins next year, mostly through benefit cuts.
Why the rally could continue
The biggest takeaway with the Medicare payment rate decision news is what it could mean for CVS Health's earnings in the coming year. Although managed care accounts for only a portion of CVS's overall business, the aforementioned news bodes well for confidence in management's 2026 earnings guidance.
As stated in the Q4 2025 earnings report, management expects CVS's adjusted earnings per share to come in between $7 and $7.20 per share. Shares have rallied from the low $70s since the Medicare announcement, implying the stock is trading at around 11 times forward earnings. Health insurance stocks like UnitedHealth Group and Humana trade at 15 to 20 times forward earnings.
That's not to say that CVS is destined to reach valuation parity with these stocks, but even partially bridging the valuation gap could have a considerable impact on CVS's stock price. For instance, at 13 or 14 times forward earnings, based on current guidance, a move to $90 or $100 per share may be reasonable. The potential upside, both in the near and longer term, could be even greater.
The high end of analyst estimates calls for CVS to report EPS of $7.40 this year, with the larger Medicare payments perhaps driving a further double-digit earnings growth in 2027. Alongside growth potential, an investment in CVS Health offers steady gains via the stock's 3.4% forward dividend yield.
Should you buy stock in CVS Health right now?
Before you buy stock in CVS Health, 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 CVS Health 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 $555,526!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,156,403!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 191% 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 13, 2026.
Thomas Niel has positions in UnitedHealth Group. The Motley Fool recommends CVS Health and UnitedHealth Group. 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.

CVS Health Just Got a $13 Billion Reprieve. Here's Why the Stock Could Keep Climbing.

The average one-year price target for Mizuho Financial Group, Inc. - Depositary Receipt (NYSE:MFG) has been revised to $10.66 / share. This is an increase of 27.53% from the prior estimate of $8.36 dated February 23, 2026.
The price target is an average of many targets provided by analysts. The latest targets range from a low of -$3.69 to a high of $22.16 / share. The average price target represents an increase of 21.16% from the latest reported closing price of $8.80 / share.
What is the Fund Sentiment?
There are 395 funds or institutions reporting positions in Mizuho Financial Group, Inc. - Depositary Receipt. This is an increase of 23 owner(s) or 6.18% in the last quarter. Average portfolio weight of all funds dedicated to MFG is 0.03%, an increase of 55.49%. Total shares owned by institutions increased in the last three months by 14.73% to 242,400K shares. The put/call ratio of MFG is 1.26, indicating a bearish outlook.
What are Other Shareholders Doing?
Natixis Advisors holds 16,561K shares. In its prior filing, the firm reported owning 2,398K shares , representing an increase of 85.52%. The firm increased its portfolio allocation in MFG by 632.94% over the last quarter.
Goldman Sachs Group holds 16,267K shares. In its prior filing, the firm reported owning 14,550K shares , representing an increase of 10.55%. The firm increased its portfolio allocation in MFG by 23.09% over the last quarter.
Bank Of America holds 15,677K shares. In its prior filing, the firm reported owning 12,602K shares , representing an increase of 19.61%. The firm increased its portfolio allocation in MFG by 38.79% over the last quarter.
Lazard Asset Management holds 10,507K shares. In its prior filing, the firm reported owning 11,095K shares , representing a decrease of 5.60%. The firm increased its portfolio allocation in MFG by 38.65% over the last quarter.
Northern Trust holds 10,381K shares. In its prior filing, the firm reported owning 10,315K shares , representing an increase of 0.64%. The firm decreased its portfolio allocation in MFG by 0.74% over the last quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.