Live Nasdaq Composite: Tech Stocks Fuel Historic May Gains as AI Earnings Impress
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All three major indexes hit fresh all-time highs to close May, with the Nasdaq leading after an 8% monthly surge.
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DELL's AI-optimized server revenue surged 757% to $16 billion, prompting Piper Sandler to more than triple its price target to $497.
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Morgan Stanley projects DDR4 memory chip prices will climb another 20% in Q3, with supply-demand gaps of up to 20% persisting through 2028.
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Rocket Ripples
A Blue Origin test gone wrong is sending chills down the spine of the space industry. A New Glenn rocket being prepped by Jeff Bezos’ Blue Origin for an upcoming mission exploded Thursday night on the launchpad, sending a fireball into the sky, though all personnel have been accounted for. The incident is dragging space stocks lower across the board, with AST SpaceMobile taking the hardest hit, down roughly 15%, while Rocket Lab, Voyager Technologies, and Intuitive Machines are each off between 5% and 10% in Friday’s session.
Morgan Stanley on Memory Chip Market
Morgan Stanley is predicting a tighter-than-expected setup in the older memory chip market, with the bank projecting DDR4 pricing could climb another 20% in Q3 as supply continues to shrink. Morgan Stanley is now modeling a 19% to 20% supply-demand gap in H2 2026, with similarly wide deficits of 18% to 20% expected to persist through 2027 and 2028.
This article will be updated throughout the day, so check back often for more daily updates.
The broader stock market is opening May’s final trading session on a high note Friday, with all three major indexes pushing into fresh all-time intraday high territory in early trade. The S&P 500 and Nasdaq Composite are each up 0.2%, while the Dow is adding 170 points, or 0.3%, as investors look to lock in gains against a backdrop of easing oil prices and cautious optimism surrounding the Middle East ceasefire.
The Nasdaq is the standout and is showing no signs of slowing down to close it out, carrying an 8% May advance and a weekly gain of more than 2% into Friday’s session. Tech continues to do the heavy lifting, with Dell Technologies (NYSE:DELL | DELL Price Prediction) emerging as one of Friday’s early catalysts, adding fresh momentum to a sector that has been the driving force behind the tech-heavy index’s record-setting run all month.
Here’s a look at where things stand as of morning trading:
Dow Jones Industrial Average: 50,855 Up 0.36%
Nasdaq Composite: 27,072 Up 0.57%
S&P 500: 7,595 Up 0.42%
Market Movers
Bank of America analysts argue social media giant Meta Technology’s (Nasdaq: META) push into the business AI space could serve as a valuable release valve if its massive AI infrastructure buildout generates excess capacity. The firm sees enterprise AI as a potential source of more durable, less economically sensitive revenue for Meta, while acting as a buffer against margin pressure in an overbuilding scenario. BofA notes that even a modest slice of that opportunity could move the needle in a meaningful way for Meta.
Dell Technologies (NYSE:DELL) posted an impressive Q1 earnings report that cleared estimates by a wide margin, with revenue of $43.8 billion surpassing the $34.81 billion consensus by 26% on an 88% year-over-year gain, while adjusted EPS of $4.86 nearly doubled the $2.88 estimate for a 214% jump. AI-optimized server revenue was the standout, coming in at $16.1 billion for a 757% year-over-year increase. Full-year guidance was raised well above expectations, with Dell projecting revenue of $165 billion to $169 billion versus the $143.9 billion estimate, and AI-optimized server revenue of roughly $60 billion, up 144% year over year and above the prior $50 billion forecast.
Piper Sandler analysts more than doubled their price target on Dell stock on the heels of the PC maker’s earnings print to $497 from $167 per share with an “overweight” rating attached.
Other participants in today’s broad-based rally include SOFI, SMCI, PLTR and SPCE.
Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
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