UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through four divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, and Investment Bank. The Global Wealth Management division offers investment advice and solutions, and lending solutions. This segment also provides estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions. The Personal & Corporate Banking division provides personal banking products and services, such as deposits, cards, and online and mobile banking, as well as lending, investments, and retirement services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, trade and export finance, and global custody solutions, as well as transaction banking solutions for payment and cash management. The Asset Management division offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. The Investment Bank division advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; distribute, trade, finance, and clear cash equities and equity-linked products; and offers clients differentiated content on major financial markets and securities. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is based in Zurich, Switzerland.

UBS looks like a large and profitable financial institution, but the market has already priced in a significant portion of the improvement. On valuation multiples, the stock trades above the industry median on P/E, P/B, and P/S, which limits the potential for further rerating and requires confirmation of stronger profitability. At the same time, P/FCF is below the industry median, which partly softens the picture and suggests acceptable free cash flow generation. Return on capital looks decent: ROE at 10.5% and growth over the years are positives, but ROA and ROI remain well below industry benchmarks, indicating relatively low efficiency in the use of assets. Net profit margin has improved over the years and now looks better than before, but operating margin is still below the sector median, so earnings quality cannot be considered unequivocally strong. Leverage is one of the main risks: debt/equity is noticeably higher than the industry average, and long-term debt is very large, which for a bank/financial group increases sensitivity to rates, regulation, and market stress. Liquidity, as measured by the current ratio, looks acceptable, but the quick ratio is zero, which is not uncommon for a financial business, yet still underscores dependence on balance sheet structure and funding confidence. Dividend yield has increased compared with previous years, supporting the investment appeal for income portfolios. UBS’s strength is its scale: assets, capital, and earnings are substantial, and net income and revenue remain high in absolute terms. Its weakness is the imperfect balance between price and quality: the premium to the industry on several key multiples is not yet fully backed by comparably strong efficiency. Overall, the fundamentals support a moderately positive view, but do not justify an aggressive increase in the target price. For an investor, this is a story of a high-quality large financial player with stable earnings and dividends, but with limited upside due to an expensive valuation and elevated leverage.

UBS Group AG Registered

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

Strong index, slightly down. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

UBS remains a profitable dividend-paying bank, but its premium P/E, P/B, and P/S valuations, together with high leverage, limit re-rating potential.

Key Points
Micron Technology is a leading supplier of high-bandwidth memory for AI workloads.
Memory prices are skyrocketing because of a severe supply-demand imbalance.
Micron stock looks cheap by one traditional valuation metric, but that doesn't necessarily mean it will move higher.
Micron Technology (NASDAQ: MU) stock closed at $958.73 on Monday, Aug. 31, which was 21% below its June all-time high. But just to keep things in perspective, the stock is still sitting on an eye-popping one-year gain of 680%.
Micron supplies some of the world's best high-bandwidth memory (HBM) for data centers, a critical component in the artificial intelligence (AI) hardware stack. Demand is currently through the roof and supply remains tight, giving the company an unprecedented ability to dictate prices.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, the supply-demand imbalance could resolve during the next year or two, potentially hurting Micron's financial performance. Therefore, although its stock is trading at a very attractive valuation, it isn't a straightforward buy right now. Here's why I'm steering clear despite the recent dip.
Why Micron stock is pulling back
According to Nvidia, the five largest hyperscale companies (which includes the likes of Microsoft and Amazon), will spend nearly $800 billion combined on AI data center infrastructure during 2026, with a substantial chunk of that money going toward chips and components. Nvidia says that spending figure could top $1.3 trillion in 2027.
Those companies have to earn a return on all of that spending; otherwise, it won't make economic sense. Some of them will make money by renting computing capacity to other businesses for a fee, whereas others will charge for the use of their AI models and software applications. But making money isn't easy with hardware costs surging; a recent report by Bloomberg suggests Nvidia has informed customers of a 15% price increase, partly because of rising HBM prices.
To recoup some of the climbing costs, companies like Microsoft and Anthropic recently implemented passive price increases for the use of their AI models and software, which has forced some organizations to rethink their spending. Uber Technologies, Walmart, AT&T, and Amazon are just some of the companies that have implemented AI usage caps on their employees to prevent budget blowouts.
According to a recent survey by UBS Group, about 60% of businesses are now routing tasks to cheaper, more efficient AI models to help reduce usage costs. These models typically consume less computing power, which might be bad news for semiconductor demand.
To make matters worse, lawmakers in more than a dozen U.S. states have introduced legislation to temporarily ban the construction of new data centers while they weigh the social, economic, and environmental impacts. This will be a problem for many planned infrastructure projects, and the effects could flow through to Micron and other chip makers in the form of lower sales.
Micron's revenue continues to skyrocket
The aforementioned AI headwinds haven't shown up in Micron's financial results. The company generated a record $41.4 billion in total revenue during its fiscal 2026 third quarter (ended May 28), a staggering 346% increase from the year-ago period. All four segments of its business produced triple-digit percentage growth, thanks to AI-related memory demand for data centers, computers, smartphones, and even cars.
The supply-demand imbalance in the memory market is giving Micron an unprecedented ability to dictate prices, which is a big reason for its rapid revenue growth. That is also boosting the company's profit margins, which is why its third-quarter earnings soared by an eye-popping 1,368% to $24.67 per share.
Management's forecast points to another set of blockbuster results in the fourth quarter, which just ended on Aug. 31. The company is expected to have $50 billion in sales and earnings of $30.73 per share. The final numbers will be revealed at the end of September.
Why I'm not buying Micron stock on the dip
Micron stock looks like an absolute bargain right now. Based on the company's trailing 12-month earnings of $44.23 per share, its stock is trading at a price-to-earnings (P/E) ratio of just 21, making it cheaper than both the S&P 500 and Nasdaq-100 indexes, which have P/E ratios of 24.5 and 34.3, respectively.
Plus, if Micron's earnings rise to $155.03 per share in fiscal 2027 like Wall Street expects (according to Yahoo! Finance), then its stock has an even more attractive forward P/E ratio of just 6.
Why would a company growing at Micron's pace be trading at a discount to the broader market? Simply put, I think Wall Street knows the company's earnings will eventually crash back down to Earth. If a slowdown in demand doesn't cause it, then an increase in supply might, because every memory company is racing to build more manufacturing capacity right now. During the next few years, higher supply levels will erode Micron's ability to dictate prices, so the company probably won't be able to maintain its current level of earnings.
As a result, if we look a few years into the future, Micron stock might be more expensive than it currently appears. That's why I don't plan to buy the recent dip.
Should you buy stock in Micron Technology right now?
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Micron Technology Stock Has Stumbled, but Here's Why I'm Not Buying the Dip

Key Points
Interactive Brokers was downgraded to neutral from buy.
The analyst calls the company "best-in-class" but thinks the stock has gotten ahead of itself.
Interactive Brokers' track record illustrates why it's worthy of a premium.
Shares of Interactive Brokers Group (NASDAQ: IBKR) slipped on Tuesday, falling as much as 6.3%. As of 2:18 p.m. ET, the stock was still down 6%.
The catalyst that drove the brokerage and trading platform lower was bearish commentary by one of Wall Street's finest.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Fully baked?
UBS analyst Michael Brown downgraded Interactive Brokers to neutral (hold) from buy, though he increased his price target to $102, up from $50. That represents potential upside for investors of roughly 5% compared to Monday's closing price -- so he's clearly playing catch-up.
Brown appears to have mixed feelings about the stock. One the one hand, the analyst views Interactive Brokers as "a best-in-class broker with a compelling growth runway." He expects the company to generate low-teens earnings per share (EPS) growth over the coming five years, fueled by account and client asset growth and increased trading activity. The analyst also called the platform "highly efficient," which will allow Interactive Brokers to maintain its gross margin in the high 70% range.
The analyst also cited a suite of new products -- including cryptocurrency, prediction markets, and advanced tools -- which he believes will deepen both customer engagement and wallet share.
So what's not to like? Brown says the current stock price "already reflects much of that advantage."
The analyst has a point. As of market close yesterday, Interactive Brokers stock was trading for nearly 39 times earnings and 36 times forward earnings. While that's not particularly egregious, the valuation is a bit stretched for a company expected to grow earnings by low double digits.
On the other hand, Interactive Brokers' stock is up 47% over the past year, well ahead of the 18% gains of the S&P 500. In fact, the stock has far outpaced the broader market over the past three and five years -- which helps illustrate why Interactive Brokers is deserving of a premium.
Should you buy stock in Interactive Brokers Group right now?
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Danny Vena, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group and short January 2027 $46.25 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why Interactive Brokers Stock Tumbled on Tuesday

Wells Fargo & Company WFC is stepping up efforts to expand its wealth management business by recruiting hundreds of independent financial advisers, according to a Bloomberg report published by Yahoo Finance. The hiring push builds on the bank’s multi-year effort to strengthen its Wealth & Investment Management (WIM) division and deepen relationships with affluent and high-net-worth clients.
WFC has been revamping its WIM business since 2020, when it reorganized its operations into five major business lines. WIM offers wealth management, brokerage, financial planning, lending, private banking, trust and fiduciary services to affluent, high-net-worth and ultra-high-net-worth clients. This broad offering enables the bank to address multiple financial needs, deepen client relationships and generate more revenue from wealthy customers beyond traditional banking activities.
Expanding its independent adviser network is a key part of this strategy. Independent advisers are becoming an increasingly important growth channel as financial professionals seek greater control over their practices while retaining access to institutional technology, investment products and infrastructure. WFC’s model gives advisers greater flexibility while allowing them to leverage the bank’s resources.
The bank is also strengthening its adviser capabilities through expanded investment offerings and technology. In May 2026, WFC launched Advisor Gateway, giving advisers one-click access to more than 200 tools and applications, including BlackRock’s Aladdin Wealth technology and generative AI capabilities. Last year, WIM added alternative investments to its Personalized Unified Managed Account program in collaboration with InvestCloud, enabling qualifying clients to hold traditional and alternative assets in a single account. These enhancements are expected to help WFC attract more advisers and assets, improve productivity and capitalize on growing demand for alternative investments.
The wealth management push also aligns with WFC’s broader strategy under CEO Charlie Scharf. Since 2019, the bank has been exiting non-core and lower-return operations to focus resources on its core, higher-return businesses. Meanwhile, the company has been expanding across multiple business lines since the Federal Reserve lifted the asset cap that had constrained its growth since 2018. Reallocating resources toward higher-return businesses, including wealth management, will likely support growth in fee-based recurring revenues, client assets, deposits and lending. However, successful execution will be key to driving sustainable growth and higher returns.
How Are WFC Peers Scaling Wealth Management Business?
Similar to WFC, UBS Group UBS and Morgan Stanley MS are strengthening wealth management operations through acquisitions, partnerships and technology investments to expand capabilities, deepen client relationships and diversify revenues.
UBS Group has strengthened its wealth franchise through the acquisition and integration of Credit Suisse, while expanding its private-market capabilities through a partnership with MSCI. UBS Group also received a U.S. national bank charter for UBS Bank USA in March 2026, supporting its banking and wealth management offerings.
Similarly, Morgan Stanley has expanded wealth and investment management businesses through acquisitions, including E*TRADE Financial and Eaton Vance. The businesses accounted for nearly 54% of total net revenues in 2025, up from 26% in 2010, highlighting the growing contribution of wealth and investment management to Morgan Stanley’s overall business mix.
WFC’s Price Performance, Valuation & Estimates
Shares of Wells Fargo have gained 3.4% in the past year compared with the industry’s growth of 22%.
From a valuation standpoint, WFC trades at a forward price-to-earnings (P/E) ratio of 11.03X, below the industry’s average of 14X.
Price-to-Earnings F12M
The Zacks Consensus Estimate for WFC’s 2026 and 2027 earnings implies year-over-year increases of 15.5% and 9.5%, respectively. Estimates for both years have been revised marginally upward over the past month.
Estimate Revision Trend
WFC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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WFC Broadens Wealth Focus: Can Its Multi-Year Revamp Drive Growth?

For Immediate Release
Chicago, IL – August 26, 2026 – Today, Zacks Investment Ideas features like Bloom Energy BE, Micron MU, NVIDIA NVDA, UBS UBS and Moderna MRNA
3 Reasons AI Stocks Are Primed for a Rebound
Although AI stocks have been highly volatile over the past two months, they likely aren’t finished moving higher. Below are three reasons why:
The Situational Awareness Saga Is Over
Last month, momentum stocks, particularly AI stocks, suffered one their worst drawdowns in history. Situational Awareness, one of the newest and hottest hedge funds, got caught on the wrong side of long trades in leading AI-related stocks like Bloom Energy and Micron with extreme leverage. The fund, up a staggering 439% in the first half of the year due to 4x leverage, dropped nearly 70% in July, leading to a record $35 billion in losses.
To stay solvent after steep losses, Situational Awareness sold its entire public book to Wall Street kingpin Citadel for over $4 billion. A handful of days later, Citadel sold its Situational Awareness positions for a massive profit. The Citadel sales likely explain the recent volatility and weakness in AI stocks.
NVIDIA Earnings Loom
Zacks Rank #2 (Buy) stock NVIDIA is the largest company in the world and the most important in the leading artificial intelligence industry. Wednesday, NVIDIA will report earnings after the market close. In recent quarters, NVIDIA has released earnings growth that is unprecedented for a company of its size.
However, according to the latest hyperscaler capital expenditure estimates, NVIDIA’s growth curve may gain even more momentum. CAPEX spending is expected to surge to more than $1 trillion over the next few years. According to UBS, CAPEX spending will surge 60% by 2028. That’s good news for NVIDIA, which captures roughly 39% of every hyperscaler dollar spent.
Meanwhile, despite its high double-digit top-and bottom-line growth rate, NVIDIA remains surprisingly cheap with a P/E ratio of just 35.70x.
AI is a Gamechanger for the Biotech Sector
Until recently, most investors AI mostly benefited AI-centric stocks. That said, AI’s positive impact is finally being seen across sectors. Last week, Moderna announced that its personalized melanoma cancer therapy succeeded in a 1,137-patient Phase 3 trial. However, the Phase 3 win is much more than a biotech story. The Moderna data shows that AI computation allowed Moderna to personalize the medicine, making it far more effective than legacy biotech drugs. Moderna shares jumped 176% on the news. The Moderna news is likely just the tip of the iceberg.
Bottom Line
While recent market turbulence tested momentum, the washout of extreme leverage combined with surging multi-year infrastructure spending and real-world biotech breakthroughs means the AI rally is far from over.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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%.
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UBS Group AG (UBS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Ideas feature highlights: Bloom Energy, Micron, Nvidia, UBS and Moderna

Although AI stocks have been highly volatile over the past two months, they likely aren’t finished moving higher. Below are three reasons why:
The Situational Awareness Saga is Over
Last month, momentum stocks, particularly AI stocks, suffered one their worst drawdowns in history. Situational Awareness, one of the newest and hottest hedge funds, got caught on the wrong side of long trades in leading AI-related stocks like Bloom Energy (BE) and Micron (MU) with extreme leverage. The fund, up a staggering 439% in the first half of the year due to 4x leverage, dropped nearly 70% in July, leading to a record $35 billion in losses.
To stay solvent after steep losses, Situational Awareness sold its entire public book to Wall Street kingpin Citadel for over $4 billion. A handful of days later, Citadel sold its Situational Awareness positions for a massive profit. The Citadel sales likely explain the recent volatility an weakness in AI stocks.
NVIDIA Earnings Loom
Zacks Rank #2 (Buy) stock NVIDIA (NVDA) is the largest company in the world and the most important in the leading artificial intelligence industry. Wednesday, NVIDIA will report earnings after the market close. In recent quarters, NVIDIA has released earnings growth that is unprecedented for a company of its size. However, according to the latest hyperscaler capital expenditure estimates, NVIDIA’s growth curve may gain even more momentum. CAPEX spending is expected to surge to more than $1 trillion over the next few years. According to UBS (UBS), CAPEX spending will surge 60% by 2028. That’s good news for NVIDIA, which captures roughly 39% of every hyperscaler dollar spent.
Meanwhile, despite its high double-digit top-and bottom-line growth rate, NVIDIA remains surprisingly cheap with a P/E ratio of just 35.70x.
Image Source: Zacks Investment Research
AI is a Gamechanger for the Biotech Sector
Until recently, most investors AI mostly benefited AI-centric stocks. That said, AI’s positive impact is finally being seen across sectors. Last week, Moderna (MRNA) announced that its personalized melanoma cancer therapy succeeded in a 1,137-patient Phase 3 trial. However, the Phase 3 win is much more than a biotech story. The Moderna data shows that AI computation allowed Moderna to personalize the medicine, making it far more effective than legacy biotech drugs. Moderna shares jumped 176% on the news. The Moderna news is likely just the tip of the iceberg.
Bottom Line
While recent market turbulence tested momentum, the washout of extreme leverage combined with surging multi-year infrastructure spending and real-world biotech breakthroughs means the AI rally is far from over.
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
UBS Group AG (UBS) : Free Stock Analysis Report
Bloom Energy Corporation (BE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

3 Reasons AI Stocks are Primed for a Rebound

Key Points
Marvell received two positive analyst notes today.
The semiconductor sector also outperformed, thanks to a big announcement from OpenAI committing to a massive new data center in Ohio.
Shares of connectivity and custom chipmaker Marvell Technology (NASDAQ: MRVL) rallied on Monday, rising 6.2% as of 1:30 p.m. EDT.
Marvell benefited from a sectorwide increase in semiconductor stocks today, following OpenAI's announcement that it is committing to a massive 4.25-gigawatt data center in Ohio. For reference, a gigawatt of compute costs between $38 billion and $60 billion in spending, with much of that going toward chips, memory, and networking. The new announcement once again seemed to raise the bar for AI compute demand, lifting several U.S. semiconductor companies in the AI ecosystem, including Marvell.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, another factor lifting Marvell was two bullish notes from Wall Street analysts, with positive company-specific commentary ahead of Marvell's earnings report next week.
UBS and GF Securities give Marvell the thumbs-up
Today, two different sell-side analysts wrote positively about Marvell. First, UBS (NYSE: UBS) analyst Timothy Arcuri wrote about several incremental positives for Marvell ahead of its upcoming earnings report on Aug. 27.
Arcuri flagged the increased capital expenditure plans from the big hyperscalers as incrementally positive for Marvell. Furthermore, Arcuri's recent channel checks point to strength in Nvidia (NASDAQ: NVDA) Blackwell systems and the ramp of the newer Rubin systems, which feature Marvell optical networking content. Arcuri also said investors may be short-changing Marvell's custom ASIC business, in which it produces part of the silicon for custom chips designed by the big hyperscalers. Specifically, Arcuri believes Marvell's business with Microsoft (NASDAQ: MSFT) for its Maia custom AI chips may be larger than expected over the next couple of years.
Marvell's optical networking business also received another shout-out from GF Securities analyst Alicia Yap. Yap referenced last Friday's unveiling of Nvidia's Spectrum-X CPO (co-packaged optics) switches, which apparently entered mass production that same day. Although Marvell doesn't appear to have any content specifically in the Spectrum-X CPO switch, it does help connect custom hyperscaler ASICs to Nvidia's NVLink technology. Additionally, the industry's broader transition to co-packaged optics should help Marvell with other customers, given its strong optical connectivity business. Marvell also counts Amazon (NASDAQ: AMZN) Trainium as a custom ASIC customer and, in May, landed an investment from Nvidia to link custom ASICs with Nvidia NVLink technology.
Marvell has tailwinds, but the stock doesn't look cheap
Marvell got a nice lift today, driven by real tailwinds in the AI networking space. However, the stock currently trades at roughly 59 times this year's earnings estimates for the fiscal year ending in January 2027. That doesn't leave much margin of safety for the stock today; however, Marvell seems well-positioned to sustain strong earnings growth as the AI build-out progresses.
Should you buy stock in Marvell Technology right now?
Before you buy stock in Marvell Technology, 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 Marvell Technology 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 $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!*
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*Stock Advisor returns as of August 17, 2026.
Billy Duberstein and/or his clients have positions in Amazon, Apple, and Microsoft. The Motley Fool has positions in and recommends Amazon, Apple, Marvell Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why Marvell Technology Rallied Today

Key Points
It's becoming increasingly clear that OpenAI and Anthropic are driving much of the spend on artificial intelligence compute at data centers.
However, these companies are still not in the best financial state.
Chinese competitors are also releasing open-source models with improving performance that are reportedly much cheaper than OpenAI and Anthropic.
Investors who saw the artificial intelligence trade coming 10, five, and three years ago have done extraordinarily well.
The launch of large language models (LLMs) from OpenAI, Anthropic, and others has driven incredible demand for chips, memory, compute, and other parts of the AI supply chain -- so much so that investors have been scouring that chain for areas where demand could be constrained.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
But as the market has gone up and up, investors have grown wary, whether due to the hundreds of billions of dollars companies are investing in AI infrastructure or regarding valuations that, at times, have seemed ludicrous.
No one knows how this will all end, but here's the scenario in which the AI trade blows up. It has to do with OpenAI, Anthropic, and China.
Over-reliance on OpenAI and Anthropic
As I mentioned, hyperscalers such as Microsoft, Amazon, Alphabet, and Meta Platforms are preparing to spend north of $700 billion on AI-related capital expenditures (capex) for chips, memory, data centers, and other AI infrastructure.
Management teams in their respective second-quarter earnings calls also indicated that capex could reach even higher levels next year. Investors have grown skeptical because this spending has led to significant deterioration in free cash flow, and some of the above hyperscalers are now experiencing negative free cash flow.
Investors also question whether this kind of spend will translate into strong returns on invested capital (ROIC).
The hyperscalers argue that they are not gambling with these investments because they already have customer commitments through 2027 and 2028, giving them a clear line of sight into revenue and strong returns. Who is anyone to argue? After all, the leaders of these companies are incredibly smart and have built some of the strongest companies in history.
However, an increasing number of reports suggest that most of this demand is coming from OpenAI and Anthropic, which need more compute as their models become more complex and more widely used worldwide.
For instance, analysts at Barclays recently issued a research report suggesting that Amazon Web Services (AWS) will generate 73% of its AI-related revenue this year from OpenAI and Anthropic.
Amazon has seen AWS sales increase by about 33% in the first six months of the year, compared to the same period last year.
Meanwhile, UBS projects that 28% of Google Cloud's AI revenue will come from the two LLM giants this year, and 48% next year. Other companies are in similar positions. For instance, $300 billion of Oracle's backlog is reportedly expected to come from OpenAI.
All this demand for data centers has driven demand for chips from Nvidia and for memory to feed the chips' data from companies like Micron and SK Hynix. It's a large tangled web.
OpenAI and Anthropic do not appear to be impenetrable
Cracks are starting to emerge in OpenAI and Anthropic. OpenAI lost $38.5 billion in 2025.
Perhaps a bigger issue is that the moats the companies have built may not be impenetrable. OpenAI and Anthropic run closed-loop, proprietary models. While they have reportedly had the best performance thus far, they are also quite expensive for companies to use.
Meanwhile, Chinese companies have begun releasing open-source models, meaning anyone can access the source code and modify them. These models are reportedly 60% to 90% cheaper than those from OpenAI and Anthropic, with performance supposedly catching up, too.
Now, there are concerns about the models coming out of China from a national security perspective, and the belief that they need to be regulated.
Recently, hyperscalers and others in the AI ecosystem, such as Nvidia, issued a joint letter urging lawmakers not to act too hastily in regulating open-source models.
If there is a pricing war and OpenAI and Anthropic lose a significant amount of their market share and pricing power, what happens to all the compute deals they've signed? The hyperscalers will have just spent hundreds of billions on AI infrastructure.
If investors see clear evidence that there won't be strong returns on the invested capital, their stocks are likely to get hit hard.
Are OpenAI and Anthropic too big to fail?
The scenario laid out above is hypothetical, of course, and may never come to fruition. In fact, most market crashes are driven by events that very few see coming. What I've laid out above has been discussed widely in the financial media and among many experts and pundits.
We've also seen evidence that OpenAI and Anthropic may simply be too big to fail, given how many companies depend on deals they have struck with the two LLM companies.
The Wall Street Journal recently reported that Nvidia is considering guaranteeing $250 billion in debt that OpenAI wants to use to lease a huge AI data center in Pike County, Ohio. The report cited anonymous sources, so it's not official yet.
There's also a chance the U.S. government could take a stake in OpenAI. The government might say that it can't let this company fail due to national security concerns about winning the AI race between the U.S. and China, as well as the economic implications.
So, it's quite possible that OpenAI and Anthropic will end up being OK. It's also possible that competitors can fill the void in AI compute if Anthropic and OpenAI suddenly pull back.
I also think most hyperscalers would be able to navigate a potential blowup from one of these LLM giants, though their stocks would still take a big hit.
In the first half of the year, AWS accounted for 21% of Amazon's total revenue and 61% of operating income, so the loss of AI revenue would hurt the company greatly but likely not kill it. Even before AI, many companies around the world had not transitioned to the cloud.
While a blow-up may never happen, investors should always understand the other side of their trade and the worst-case scenario for stocks they might own or that are lifting the broader market.
Should you buy stock in Amazon right now?
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Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Micron Technology, Microsoft, Nvidia, and Oracle. 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.

Here's How the AI Trade Blows Up (Hint: It Has to Do With OpenAI, Anthropic, and China)

For Immediate Release
Chicago, IL – August 10, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple AAPL, United Microelectronics UMC, NTT NTTYY and UBS UBS.
Here are highlights from Friday’s Analyst Blog:
Macro Takeaways from Apple Earnings: Zacks AUG Strategy
The following is an excerpt from Zacks Chief Strategist John Blank's full Aug Market Strategy report To access the full PDF, click here.
I. For Investors, Apple's Q2 Earnings Report Shared a Broader Macro Narrative
A. Key Takeaways
· On July 31st, Apple reported record Q3 FY2026 (aka Q2) revenue of $109.42 billion (+16.4% YoY), outperforming Wall Street expectations of $108.9B–$109.0B, while diluted EPS jumped +28.7% YoY to $2.02 (exceeding the $1.88 consensus estimate).
· Diluted EPS included a +$0.11 benefit from tariff refunds.
· Excluding this one-time item? Adjusted EPS was $1.91, which still beat consensus expectations.
· Apple's reported gross profit margin reached 50.1% (vs. guidance of 47.5%–48.5%).
· Adjusting for the ~200 basis point tariff refund benefit? The underlying gross margin was 48.1%, landing at the upper bound of previous guidance.
· iPhone sales surged +21.7% YoY to $54.25 billion, and Mac revenue soared +28.7% YoY to $10.35 billion, offsetting a -5.9% YoY decline in iPad sales ($6.19 billion).
· Despite record financial results and double-digit growth across every geographic region, AAPL shares declined -7.3% on July 31st.
Hmmmm....
Management flagged intensifying component supply constraints — and rising AI computing cost pressures — heading into the third quarter of 2026.
Zacks AAPL Share Price, EPS Surprise, and Annual EPS Consensus:
B. Segment Dynamics: Hardware Expansion and Services Scale
· iPhone ($54.25B, +21.7% YoY): Represented 49.6% of total revenue. Strong upgrade cycles for the iPhone 17 family and adoption of Apple Intelligence features drove accelerated replacement demand.
· Mac ($10.35B, +28.7% YoY): Dramatically beat consensus forecasts ($8.67B), propelled by enterprise and consumer demand for M5-powered MacBooks and the lower-priced MacBook Neo.
· Services ($30.73B, +12.1% YoY): Reached another all-time high, anchored by active device expansion across global markets.
· iPad ($6.19B, -5.9% YoY) & Wearables ($7.88B, +6.5% YoY): iPad missed consensus expectations ($8.67B) due to difficult YoY comparisons, while Wearables, Home, & Accessories maintained steady modest growth.
C. Balance Sheet, Capital Allocation, and Strategic Outlook
Operating cash flow hit a June-quarter record of $34.4 billion.
During the nine-month YTD period, Apple returned over $61.8 billion via share repurchases and paid $11.73 billion in dividends, declaring a quarterly dividend of $0.27 per share payable in August 2026.
Looking ahead to Q4 FY2026, investor focus shifts toward management continuity as CEO Tim Cook transitions to Executive Chairman and John Ternus steps into the CEO role on September 1st.
Although core product demand remains elevated — management cautioned that semiconductor supply constraints and rising infrastructure expenses for AI integration could weigh on Q4 margins — explaining the cautious stock market reaction post-earnings.
Yes!
A broad semiconductor price surge is very real.
Wait for the Xmas shopping season to confirm it.
Next, let's explore the top-down conditions seen in Zacks latest industry ranks.
This month, internal sector strength matches perfectly with Apple's Q2 narrative.
II. Zacks August Sector/Industry/Company Telescope
July 31st, 2026 data show Info Tech remains dominant, at Very Attractive. Misc. Tech, Electronics, and Semi led.
Communication Services rose to Attractive from Market Weight. AI Telco Equipment group ranked high, again.
Financials rose to Attractive from Market Weight. Investment Banking led.
Industrials fell notable to Market Weight from Very Attractive. Transports stay strong.
Energy fell to Market Weight; Coal led again. Health Care fell to Market Weight. Medical Care led again.
Consumer Discretionary fell to Unattractive from Market Weight.
Utilities fell to a Very Unattractive rating. Materials fell to Very Unattractive as well.
Consumer Staples stayed Very Unattractive.
(1) Info Tech stayed Very Attractive. Misc. Tech, Electronics, and Semis led.
Zacks #1 Rank (STRONG BUY): United Microelectronics
(2) Communications Services rose to Attractive from Market Weight. Telco Equipment stayed strong, again. An AI group.
Zacks #1 Rank (STRONG BUY): NTT
(3) Financials rose to Attractive from Market Weight. Investment Banking looked best.
Zacks #1 Rank (STRONG BUY): UBS
(4) Industrials fell to Market Weight from Very Attractive. Transport and Pollution Control looked best.
(5) Energy fell to Market Weight from Attractive from Very Attractive. Coal led.
(6) Health Care fell to Market Weight from Attractive. Medical Care looked best.
(7) Consumer Discretionary fell to Unattractive from Market Weight. Home Furnishing - Appliances looked OK. That's it.
(8) Utilities fell to Very Unattractive from Unattractive. Utility-Gas Distr. looked best.
(9) Materials fell to Very Unattractive from Unattractive. Building Products looked best.
(10) Consumer Staples stayed Very Unattractive. Solely, agri-business looked best.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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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.

The Zacks Analyst Blog Highlights Apple, United Microelectronics, NTT and UBS

Key Points
LINK was cut in half over the past 12 months.
But it could rally as Chainlink locks in more blockchains and financial institutions.
LINK (CRYPTO: LINK), the native token of the Chainlink oracle network, doesn't attract as much attention as blue chip cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ether (CRYPTO: ETH). It's also plunged more than 50% over the past 12 months as fears of interest rate hikes and other macro headwinds chilled the broader crypto market. However, LINK has plenty of irons in the fire -- and it could soar much higher once the crypto market warms up again.
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What sets LINK apart from other cryptocurrencies?
Chainlink isn't a blockchain. It's a decentralized oracle network that fetches real-world data -- including news headlines, weather reports, stock tickers, sports scores, and shipping updates -- and delivers that information to developer-driven blockchains like Ethereum. Those developers use that real-time data to create decentralized apps (dApps).
Chainlink's network is powered by independent node operators, who aggregate that real-time data in exchange for LINK tokens. They can then stake (lock up) those tokens as collateral to earn interest-like rewards. But if they feed false data into the network, their tokens can be confiscated and their reputation scores (for attracting new requests) reduced.
LINK's entire supply of one billion tokens was pre-minted on Ethereum, and no more tokens can ever be created. But as Chainlink expands and attracts more developers and node operators, LINK's value should rise. Chainlink is already the world's largest oracle network, and it's working with major financial institutions such as UBS, JPMorgan, and Euroclear to accelerate blockchain transactions and tokenize real-world assets (RWAs).
It's also helping older platforms -- including SWIFT (for interbank transfers) and the DTCC (for U.S. stock trades) -- streamline their settlements. If the CLARITY Act finally passes, that regulatory clarity could prompt more financial institutions to tether their ecosystems to Chainlink, which in turn could lead more investors to value LINK as a utility token rather than a speculative altcoin.
How high could LINK soar?
If Chainlink becomes a "picks and shovels" play on decentralized apps and blockchain-driven upgrades for legacy financial institutions, LINK will attract much more attention. Some bullish analysts expect it to soar back to the double digits over the next few years.
That said, LINK's volatility could still curb Chainlink's near-term growth. If its institutional partners think the token is too volatile, they might negotiate private agreements in which their node operators are paid in stablecoins or even fiat currencies. But if LINK stabilizes and gradually appreciates, it could become just as important as Bitcoin or Ether.
Should you buy stock in Chainlink right now?
Before you buy stock in Chainlink, consider this:
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*Stock Advisor returns as of August 4, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Chainlink, Ethereum, and JPMorgan Chase. 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 1 High-Upside Cryptocurrency That Investors Keep Underestimating

Key Points
Micron Technology is one of the world's top suppliers of high-bandwidth memory for data centers, which is a critical part of the artificial intelligence (AI) hardware stack.
But memory prices are soaring, which is driving up the cost of serving AI software, causing many companies to restrict their usage.
Micron stock is inexpensive by one traditional valuation metric, but the uncertainty surrounding the AI spending boom makes it a tricky investment.
Micron Technology (NASDAQ: MU) is one of the world's top suppliers of high-bandwidth memory (HBM) for data centers, which helps maximize processing speeds in artificial intelligence (AI) workloads. Demand for this hardware is off the charts, resulting in a severe shortage that is giving Micron the ability to dictate prices.
But despite these favorable conditions, Micron stock recently plummeted by 32% from its June record high. Concerns are growing about the sustainability of the AI infrastructure spending boom, as the soaring cost of chips and components threatens the financial viability of deploying AI software.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
To keep things in perspective, Micron stock is still sitting on a one-year gain of almost 700%, so the sky isn't exactly falling just yet. But here's why I won't be buying the recent dip.
Why Micron stock is sinking
According to a forecast by Bloomberg, there will be around 118 gigawatts' worth of data center capacity installed across the U.S. by 2030 to support the AI boom. Nvidia CEO Jensen Huang says building a single gigawatt worth of capacity requires $50 billion worth of capital investment, so if Bloomberg's forecast proves to be accurate, America's tech giants will have spent a staggering $5.9 trillion by 2030.
Those companies have to generate a return on all of that capital spending, otherwise it wouldn't make economic sense. Some of them will achieve this by renting computing capacity to other businesses for a fee, while others will charge for the use of their AI models and software applications. But as hardware prices continue to soar, AI companies have to charge their customers more money, and it's quickly becoming unsustainable.
Microsoft and Anthropic recently implemented price increases for some of their AI software products, with concerning results. For example, Uber Technologies burned through its entire 2026 AI budget in just four months by using Anthropic's Claude Code, and the company's chief operating officer said it's becoming hard to justify the current rate of spending.
Amazon and Walmart recently joined Uber in capping AI usage for their employees to prevent further budget blowouts. But they aren't alone, because a survey by UBS Group found that 60% of businesses are now routing tasks to cheaper, more efficient AI models to help reduce costs.
Any reduction in AI software spending will mean less demand for computing capacity, and the knock-on effects will eventually hit chipmakers like Micron in the form of weaker sales. The recent decline in Micron stock is Wall Street's way of pricing in this potential risk.
Micron's revenue continues to soar
The recent AI jitters haven't shown up in Micron's financial results. The company delivered a record $41.4 billion in total revenue during its fiscal 2026 third quarter (ended May 28), a whopping 346% increase from the year-ago period. AI-related memory demand for data centers, computers, smartphones, and even cars fueled significant sales growth across all four segments of the business.
Micron also generated earnings of $24.67 per share during the quarter, a remarkable 1,368% increase from the year-ago period. As I mentioned earlier, the global memory shortage is giving the company incredible pricing power, and this is boosting its profit margins.
Micron's guidance for the current quarter (which concludes at the end of August) points to further strength, with $50 billion in revenue and earnings of $30.73 per share potentially on the table. However, there is still time for a demand slowdown to impact the official results.
Micron stock is cheap, but I'm not a buyer
Based on Micron's trailing 12-month earnings of $44.23 per share and its closing stock price of $823 last on Friday, July 31, it's trading at a price-to-earnings (P/E) ratio of just 18.6. That is a substantial discount to the Nasdaq-100 index which has a P/E ratio of 32.6, suggesting Micron is undervalued compared to its big-tech peers.
Moreover, Wall Street expects Micron to grow its earnings to $153.74 in fiscal 2027, placing its stock at a forward P/E ratio of just 5.3. By all accounts, this stock looks like an absolute bargain right now.
But if demand for AI hardware does soften, then Wall Street's earnings forecast might be too ambitious. There is also risk on the supply side, because Micron and all of its competitors are frantically building more manufacturing capacity to meet demand, so they will eventually give up some of their pricing power. At that point, it will be difficult for Micron to maintain its current level of earnings, so its stock might actually be more expensive today than its forward P/E ratio implies.
It's hard to nail down a fair price for Micron stock in the face of all this uncertainty, so I won't be taking advantage of the recent dip.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, 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 Micron Technology 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 $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!*
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*Stock Advisor returns as of August 2, 2026.
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Micron Technology, Microsoft, Nvidia, Uber Technologies, and Walmart. 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.

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