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Don’t Be Surprised If HP Stock Takes Off on August 26
Fri, 21 Aug 2026 14:00:42 +0000
The post Don’t Be Surprised If HP Stock Takes Off on August 26 appeared first on 24/7 Wall St..
Cheap Multiple, Real Dividend, and a Confirmed Catalyst Next Week
HP (NYSE:HPQ) screens as a compelling setup for retirement-oriented portfolios heading into next Wednesday’s earnings report, and the setup is not subtle. The company confirmed its fiscal Q3 2026 release for Aug. 26 after the market close. Cheap multiple, rising dividend, accelerating AI PC mix. All three lean the same way.
Valuation That Ignores the Guidance Raise
HPQ trades at a forward P/E near 10, a price-to-sales ratio of 0.49, and an EV/EBITDA near 8. Management’s raised FY2026 non-GAAP EPS range of $2.90 to $3.10 against a $30 share price still leaves runway, even after a 35.62% year-to-date advance.
Income That Compounds a Retirement Sleeve
HPQ pays a $0.30 quarterly dividend, an annualized $1.20, yielding 3.93%. Management committed to returning roughly 100% of free cash flow to shareholders so long as gross leverage stays under two times, backed by FY2026 free cash flow guidance of $2.8 to $3.0 billion. That is a durable, well-covered payout profile.
AI PC Catalyst Is Already Landing
AI PC penetration climbed from more than 35% to 44% of HP’s shipment mix in Q2, with management guiding to 60% to 70% next fiscal year. Roughly 30% of the Windows installed base is still on Windows 10, a live refresh tailwind. Q2 revenue rose 9.0% year over year with Personal Systems operating profit up 30%, the eighth consecutive quarter of top-line growth.
Better Buy Than Hewlett Packard Enterprise
The obvious alternative for HP-branded exposure is Hewlett Packard Enterprise (NYSE:HPE). HPQ wins the head-to-head on the metrics retirement investors care about: HPQ’s 3.93% yield and forward P/E near 10 deliver more current income and a wider valuation discount than HPE, which trades at a richer multiple after absorbing the Juniper acquisition. HPQ also converts cash faster: $800 million of free cash flow in Q2 alone versus a -$100 million print a year earlier.
Risk Case, Dismissed
Printing weakness and rising memory costs are the bear case. Consumer Printing fell 10% year over year, yet total Printing revenue held flat and Personal Systems (roughly 71% of the mix) grew 13%. Management raised guidance after flagging commodity headwinds. That is the tell. Keep an eye on HPQ into the August 26 report.
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Super Micro, Dell, and HP Jump After Strong Lenovo Earnings
Thu, 13 Aug 2026 16:33:50 +0000
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Shares of AI server and PC hardware makers are rallying at midday Thursday. Super Micro Computer (NASDAQ:SMCI) leads the group, up 10% to $41. Dell Technologies (NYSE:DELL) is tracking toward $500 for the first time, up 3%. Hewlett Packard Enterprise (NYSE:HPE) is higher by 5%, and HP Inc. (NYSE:HPQ) has added 3%.
Lenovo Earnings Fuel a Read-Through Rally
The catalyst for today’s moves across server companies is a blowout quarter from Chinese peer Lenovo. For the April to June period, Lenovo reported revenue of $26.94 billion, up 43% year over year, versus Wall Street expectations of $22.44 billion. Adjusted net income rose 176% year over year to $1.1 billion, topping the $1 billion mark for the first time.
AI-related revenue climbed 60% to $9.3 billion, accounting for 35% of total revenue. The number investors zeroed in on: the AI server pipeline surged to $54 billion, up 157% sequentially.
CEO Yuanqing Yang said AI is emerging as a clear growth engine across every business group. Because Lenovo competes directly with every name on this list, a beat of that magnitude signals genuine end-market demand across the group. Strength spanned AI infrastructure and PCs, which is why the move reaches HPQ as well as the server names. Lenovo trades in Hong Kong and is not a US-listed idea. Its 215% year to date move on the LNVGY ADR shows how the market is repricing this cycle.
Super Micro Extends Its Post-Earnings Run
Super Micro is layering the Lenovo read-through onto its own guide. On Aug. 11, the company reported Q4 FY26 revenue of $11.12 billion (up 93.2% YoY) and non-GAAP EPS of $1.70, with gross margin expanding to 17.5%. CEO Charles Liang cited more than $60 billion in new orders and a record backlog. The headline number for Wall Street was FY27 revenue guidance of $65 billion to $72 billion, versus Wall Street expectations of $53.3 billion. Analyst reaction has been mixed, with several notes flagging margin volatility even as the top-line guide reset the trajectory.
Dell, HPE, and HPQ: One Catalyst, Three Very Different Businesses
Dell’s Q1 FY27 posted revenue of $43.84 billion (up 87.5% YoY) with AI-optimized server revenue of $16.13 billion (up 757% YoY) and FY27 revenue guided to $165B to $169B.
HPE is the enterprise server, storage, and networking play. Its Q2 FY26 delivered revenue of $10.68 billion (up 40% YoY), with Networking at $2.69 billion (up 148.2% YoY) on the Juniper integration. HPQ is the PC and printing side, where Q2 FY26 revenue rose 9% to $14.41 billion and management raised FY26 non-GAAP EPS guidance to $2.90-$3.10.
Lenovo’s beat validates both the AI infrastructure side and the PC refresh side.
Group Scorecard
Ticker
Today
YTD
SMCI
10%
28%
DELL
3%
288%
HPE
5%
147%
HPQ
3%
35%
The year-to-date dispersion tells the story. The market is paying up for direct AI server exposure (Dell, HPE) and rewarding PC exposure (HPQ) at a much more modest multiple. Morgan Stanley on Thursday upgraded its US IT hardware industry view to In-Line from Cautious, citing refresh, pull-forward, and AI demand. Goldman Sachs has named Dell, HPE and NetApp as top US hardware stocks amid surging AI demand.
Super Micro has lagged peers as accounting issues dogged the company, so it will be interesting to see if this latest quarter provides an inflection point for the company’s shares.
The Risks Investors Should Not Ignore
These gains sit on top of enormous year-to-date runs. Component and memory cost inflation is a live margin threat for every server builder, the same pressure that pinched Cisco’s gross margin this week. A pipeline still has to convert to revenue. And one competitor’s quarter is one data point. Super Micro’s board is still conducting an independent review of export-control transactions, and FY26 operating cash flow was negative $(6.8) billion on working capital build.
What to Watch
Keep an eye on whether Dell holds the $500 handle into the close and whether Super Micro’s multi-day run finds a natural pause after today’s spike. As noted earlier, Super Micro is the biggest question mark in this group. It has lagged its peers due to accounting issues, but could rally if the market believes those are largely behind the company and Super Micro can ride massive AI-driven server growth.
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Dell Rises 4% and HP 6% Premarket. Cisco Sinks 7%. What’s Causing the Biggest Premarket Moves?
Thu, 13 Aug 2026 13:11:29 +0000
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Hardware stocks are splitting Thursday morning. Dell Technologies (NYSE:DELL) is indicated up 4% premarket and HP (NYSE:HPQ) is up 6%, while Cisco Systems (NASDAQ:CSCO) is down 7%. Two separate catalysts are driving the divergence: a blowout quarter out of Lenovo overnight and Cisco’s own fiscal fourth quarter results after Wednesday’s close. Premarket levels can shift by the bell.
Lenovo Blowout Lifts Dell and HP
Lenovo, listed in Hong Kong, reported quarterly revenue up 43%, its fastest growth in five years and a record high for the group, with server turnover doubling on an AI infrastructure boom. Lenovo shares jumped roughly 20% and hit a record high, and WSJ reported revenue beat expectations on robust AI demand.
The read-across matters because Lenovo competes head to head with HP Inc. in PCs and with Dell in both PCs and AI servers. The bear case on PC makers this year has been memory cost inflation. Counterpoint Research reported in July that a memory crunch ended the PC recovery, with global shipments declining for the first time since Q1 2025, and Lenovo itself had flagged a prolonged memory crunch earlier this year. That Lenovo grew 43% anyway suggests AI-driven server and premium PC demand is more than offsetting component cost pressure. That is a bullish tell for both peers.
Dell Technologies
Dell closed Wednesday at $485, up roughly 10% on the session and 288% year to date. Its most recent report showed Servers and Networking revenue of $12.944 billion, up 69% YoY, and management raised full-year AI server shipment guidance to $20 billion. Lenovo’s server results reinforce that setup.
HP Inc.
HP is the PC and print business. It is a different company from Hewlett Packard Enterprise, which reports in September. HPQ closed Wednesday at $29, up roughly 35% year to date. Its last report featured Personal Systems revenue growth of 13%, with commercial PCs up 14% on AI PC adoption.
Cisco Sells Off Despite a Clean Beat and Raise
Cisco’s fiscal fourth quarter was, on paper, a beat and raise. Revenue came in at Revenue jumped 18% to $17.25 billion, ahead of the $16.84 billion analysts modeled. On the bottom line, Adjusted EPS increased to $1.22 from $0.99 a year ago, topping the Street’s $1.17. Product strength was the story underneath, with Product sales climbed 24% to $13.46 billion, exceeding expectations of $13.04 billion. CFO Mark Patterson said, “In (the fourth quarter), we delivered record revenue, non-GAAP operating income and EPS, all exceeding the high end of our guidance ranges and demonstrating strong financial discipline and operating leverage.”
Guidance was also above consensus. Cisco called for fiscal first quarter adjusted EPS of $1.32 to $1.34 and revenue of $18 billion to $18.2 billion, against Street views of $1.16 and $16.83 billion, and full-year fiscal 2027 adjusted EPS of $5.05 to $5.11 versus the $4.83 estimate, and revenue of $72.2 billion to $73.4 billion versus $69.12 billion. Reported details are available in the company’s 8-K filing.
So why the drop? Positioning going in explains it. The stock is up nearly 61% this year as of Wednesday’s close (roughly 63% YTD through Aug. 12), meaning a beat and raise was largely priced in. The one soft line was services revenue, flat year over year at $3.79 billion and short of FactSet-polled consensus of $3.81 billion. Arista Networks (NYSE:ANET) also reported stronger than expected second quarter results last week with a strong third quarter outlook, raising the bar for Cisco heading in. Shares declined 3.9% in after-hours trading, and the premarket move has deepened.
What to Watch at the Open
Two questions frame the session. First, whether Dell and HP hold their premarket gains once the AI infrastructure trade fully digests Cisco’s 66.3% gross margin (down from 68.4%) on the same AI mix shift. Second, whether the Cisco drawdown stays contained to CSCO or spreads to Arista and other networking names as analyst notes hit the wire.
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4 Overlooked Dividend Stocks Yielding 4%+ to Buy in July
Fri, 10 Jul 2026 15:04:12 +0000
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With the S&P 500 dividend yield sitting well below 2%, income investors chasing meaningful cash flow are increasingly forced outside the usual REIT and utility sectors. The four names below all pay yields north of 4%, sit in industries most dividend screens ignore (PCs, consumer electronics retail, airlines, and semiconductors), and, more importantly, show the earnings coverage and free cash flow to keep those checks coming. Here are four higher-yield dividend stocks I think the market is distinctly overlooking.
Copa Holdings (CPA)
Copa Holdings (NYSE:CPA) is a name you may not know – but you should. It’s a Latin American airline based in Panama, whose shares are up 25% year to date and about 42% over the past year, with a current yield of 4.58%.
Copa hiked its dividend to $1.71 per quarter in early 2026, up from $1.61, an increase of 6.2%. Q1 2026 EPS came in at $5.16 versus $4.42 expected, and trailing EPS is $16.93, which leaves the $6.84 annualized dividend covered several times over. Operating margin was 24.6%, load factor hit 87.2%, and Adjusted Net Debt to EBITDA sits at just 0.6x. Analysts carry a mean target of $173.13 with 13 buy or strong buy ratings against only 2 holds.
The risk: jet fuel is expensive (and pricing is uncertain due to various macro factors), and management guided operating margin down to 8% to 12% for that quarter. Airlines are cyclical, currency-sensitive, and capital intensive.
HP Inc. (HPQ)
HP Inc. (NYSE:HPQ) trades at around $24, with a market cap of roughly $21 billion and a juicy dividend yield of 5.21%. The stock is up almost 10% year to date but still trades at just 7x forward earnings, one of the cheapest large-cap tech multiples in the market.
HP paid out $0.30 per share in each of its most recent quarters, an annualized rate of $1.20, against trailing EPS of $2.74, so things look well-covered. Q2 FY26 non-GAAP EPS came in at $0.86 versus the $0.7151 consensus, and free cash flow swung to $800 million from negative $100 million a year earlier. Management guided FY26 non-GAAP EPS to $2.90 to $3.10 and free cash flow to $2.8 billion to $3.0 billion, which comfortably funds the payout.
The risk: memory prices are climbing, tariff exposure is real, and printer hardware units fell 7% year over year last quarter. HP is a cash cow, but it is a cyclical one.
Best Buy Co. (BBY)
Best Buy (NYSE:BBY) has been one of the quieter comeback stories of 2026, up ~20% year to date. The current yield sits at 4.84%, backed by a quarterly dividend that was raised to $0.96 in March 2026 (up from $0.95). The most recent payment landed July 9, 2026.
Q1 FY27 gave dividend investors what they needed: adjusted EPS of $1.28 versus $1.23 expected, revenue of $8.94 billion, and enterprise comparable sales of +2.0% after a negative print a year earlier. Management guided FY27 adjusted EPS to $6.30 to $6.60, which supports the $3.84 annualized payout with room to spare, and plans roughly $300 million in buybacks. Trailing EPS of $5.40 and a 14x trailing multiple leave the payout well covered.
The risk: consumer electronics remain cyclical, appliances comps were down 10.5% domestically, and the CEO transition to Jason Bonfig on November 1, 2026 introduces additional execution uncertainty.
Skyworks Solutions (SWKS)
Skyworks Solutions (NASDAQ:SWKS) is the contrarian pick. Shares are trading around $60, down 22% over the past month. That drawdown pushed the yield up to 4.57%, with the quarterly dividend at $0.71 and annualized at $2.84. Forward P/E is 12x.
Q2 FY26 non-GAAP EPS beat at $1.15 versus $1.04, and revenue of $943.7 million topped estimates. The bigger catalyst is a multi-generational design win with a leading Android OEM that management expects to generate more than $1 billion in revenue through 2030, finally reducing Apple concentration. Q1 FY26 free cash flow hit $339 million at a 32.7% margin, which is more than enough to fund the payout. CEO Phil Brace noted, “Mobile outperformed expectations on healthy demand, while Broad Markets continues to accelerate.”
The risk: the proposed Qorvo merger, approved by 81% of shareholders, still faces regulatory review and adds leverage. Semiconductor cyclicality and Apple exposure remain the wild cards.
What to Watch Next
All four of these names offer 4%+ dividends – without the direct interest rate exposure problems that plague REITs and utilities. HP and Best Buy hinge on holiday demand and tariff clarity, Copa on fuel prices, and Skyworks on the Qorvo close and the Android ramp. For income investors willing to accept cyclical exposure in exchange for yields well above the market, these offer four distinct sources of covered cash flow…from names that I think the market is distinctly overlooking.
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HP, Intel, and Xerox Are All Chasing the Same Comeback. History Says Only One Survives
Mon, 29 Jun 2026 11:25:34 +0000
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Although HP (NYSE: HPQ), Intel (NASDAQ: INTC), and Xerox (NASDAQ: XRX) each defined an entire category of American hardware, Wall Street no longer prices them as peers. One ticker has vaulted, one has drifted, and one is fighting for survival at a sub-$500 million market cap. The more useful frame is the IBM template: when a legacy hardware franchise pivots, survivors carry a real product-cycle catalyst, sufficient balance sheet runway, and operating leverage. Lou Gerstner’s 1990s mainframe-to-services rebuild is the yardstick, and only one of these three currently clears it.
Start with the scoreboard. Intel has climbed 470.3% over the past year and 283.7% since June 2023, closing at $128.32 on June 26. HP slipped 7.4% over the past year and 22.7% across three years, ending the same session at $22.88. Xerox has lost 38.3% over the past 12 months and 76.7% across three, finishing at $3.31. The Gerstner question is which move rests on a rebuild and which is noise.
HP: Managed Decline With a Cash Sleeve
HP’s most recent quarter looks clean on the surface. Q2 FY26 revenue of $14.408 billion rose 8.99% year over year and beat consensus by 2.4%, while non-GAAP EPS of $0.86 beat the $0.72 estimate by 20.26%. Personal Systems surged 13%, Commercial PS jumped 14%, and free cash flow swung to $800 million from negative $100 million a year earlier. Management narrowed the full-year non-GAAP EPS band to $2.90 to $3.10.
However, the core franchise still carries mature-market scars. Printing was flat, Consumer Printing dropped 10%, total PC units fell 7%, and stockholders’ equity remained negative at –$144 million. A restructuring program targets roughly $1 billion in run-rate savings by FY2028 with 4,000 to 6,000 job cuts, while $100 million in buybacks and a $0.30 quarterly dividend return cash to shareholders. The thesis is cost discipline and capital return. That profile matches managed decline rather than Gerstner-grade reinvention.
Intel: High-Stakes Reinvention
Intel’s Q1 FY26 earnings report is the closest match to the survivor profile in this group. Revenue of $13.577 billion grew 7.2% and beat by 9.22%, while non-GAAP EPS of $0.29 crushed the $0.0127 consensus estimate. Data Center and AI revenue vaulted 22% to $5.052 billion, and Intel Foundry grew 16% to $5.421 billion, now roughly 40% of total revenue. Non-GAAP gross margin expanded to 41.0% from 39.2%, marking the sixth consecutive quarter above revenue expectations.
The catalyst stack is tangible. A multiyear Google partnership covers Xeon and custom ASIC IPUs, Intel Xeon 6 was selected as the host CPU for NVIDIA’s DGX Rubin NVL8, and a Terafab project lines up SpaceX, xAI, and Tesla. A $5.0 billion NVIDIA equity investment and a U.S. government equity stake backstop the runway, while cash of $17.247 billion, up 92.77% year over year, funds the foundry buildout. CEO Lip-Bu Tan put it bluntly: “The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.” The tradeoffs are meaningful: a $4.07 billion Mobileye-related charge drove a $3.73 billion GAAP net loss, foundry remains unprofitable, and capex stays heavy. The profile matches genuine reinvention rather than a capex-cycle trade.
Xerox: Racing the Clock
Xerox is running the abandon-the-old-battlefield script. The Lexmark deal and the ITsavvy and Powerland tuck-ins push the company toward IT and managed services. The balance sheet is the catch. Total liabilities stand at $9.37 billion against just $305 million of shareholders’ equity. Q1 2026 revenue of $1.846 billion rose 26.7% on acquisitions, but pro forma revenue declined 3.7%, and equipment gross margin collapsed to 10.8% from 27.9%, and adjusted EPS of negative $0.43 missed by 56.36%. Free cash flow ran to negative $165 million, and non-financing interest expense surged to $84 million from $33 million on acquisition debt.
CEO Louie Pastor told investors, “We are closer to an inflection point than the external narrative suggests.” The market disagrees. The analyst consensus price target is $2.75, with bearish sentiment, while trailing EPS stands at –$8.34, book value at $2.286, and the forward multiple at 3x. That is a credit-distress profile. The strategy fits the Gerstner playbook on paper. The capacity to execute it fits the Kodak playbook on the filings.
The Ranked Verdict
Measured against the IBM survivor template (product-cycle catalyst, balance sheet capacity, operating leverage), the order is unambiguous.
Intel. The only profile here with a genuine AI tailwind, $17.247 billion in cash, NVIDIA and Google ecosystem validation, and margin expansion alongside a structural mix shift into foundry.
HP. A disciplined operator with an FCF inflection and steady capital return, but no reinvention engine to anchor the next decade.
Xerox. A textbook pivot attempted from a Kodak-shaped balance sheet. Direction is correct, runway is short.
Long term, Wall Street keeps rewarding platform reinvention over hardware nostalgia. The decade-long tape says the same: Intel up 291.8% over a decade, HP up 86.6%, and Xerox down 86.7%. Same battlefield, three very different futures.
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Live Nasdaq Composite: Markets Open June With Caution as Oil Spikes and Nvidia Powers Tech Higher
Mon, 01 Jun 2026 13:49:48 +0000
The post Live Nasdaq Composite: Markets Open June With Caution as Oil Spikes and Nvidia Powers Tech Higher appeared first on 24/7 Wall St..
Live Updates
A $1,000,000 Income PortfolioIf you’ve saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life.Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor)Anthropic IPO1:47pm ETAnthropic, the AI company behind chatbot Claude, has confidentially filed an S-1 with the SEC, setting the stage for what could be one of the most closely watched IPOs in recent memory. As LLM companies jockey for position, the filing puts Anthropic ahead of rival OpenAI, which is reportedly preparing its own confidential submission. For investors looking to gain direct exposure to the frontier AI buildout, the opportunity has arrived, though the timing of Anthropic’s IPO remains unclear.
Factory Activity Expands11:09am ETOn the macro economic front, the ISM Manufacturing PMI came in at 54.0 for May, beating estimates and delivering its strongest showing since 2022. Factory activity has been growing for the past five straight months. New Orders were a bright spot, printing at 56.8 against expectations of 54.8, signaling healthy demand momentum heading into the summer. The Prices Paid component eased to 82.1 from an estimate of 85.0, a welcome development suggesting some softening in input cost pressures, though the reading remains elevated and will keep inflation watchers on alert.
Diller's Deal9:49am ETBarry Diller is making a move to take MGM Resorts (NYSE:MGM) private, according to a report in the Wall Street Journal. Diller’s People Inc., formerly known as IAC, already holds a 26.1% stake in the casino giant and submitted a nonbinding proposal Monday to acquire the remainder at $48.30 a share in cash, placing the total enterprise value at $18 billion. Diller has previously made the case that MGM represents a business less vulnerable to technology disruption than most, and if the board accepts the offer, the Las Vegas-based casino operator would exit the public markets under People Inc.’s full control.
This article will be updated throughout the day, so check back often for more daily updates.
The Nasdaq Composite is kicking off June on a cautious note, with futures pointing modestly lower Monday morning. A fresh flare-up in Middle East tensions sent oil prices surging and offset what would otherwise be a straightforward tech-driven rally. Nasdaq-100 futures slipped 0.2%, S&P 500 futures dipped 0.1%, and Dow futures shed 17 points, or 0.03%, as traders weighed a complicated geopolitical backdrop against a market that closed May in record territory.
Oil is the session’s loudest variable, with WTI crude futures jumping 5% to around $91 a barrel and Brent climbing 4% to near $95, reversing course after the U.S. benchmark posted its steepest monthly decline since April 2025, tumbling nearly 17% in May. The catalyst is hard to ignore: Iranian state media reported the country’s negotiators are cutting off communications with the U.S. following Israeli attacks on Lebanon, while U.S. Central Command confirmed American forces intercepted two Iranian ballistic missiles overnight that were targeting U.S. troops in Kuwait.
Here’s a look at where things stand as of morning trading:
Dow Jones Industrial Average: 50,896 Down 0.27%
Nasdaq Composite: 27,016 Up 0.13%
S&P 500: 7,581 Up Up 0.05%
Market Movers
Nvidia (NASDAQ:NVDA) is making its move into the consumer PC chip market with the launch of RTX Spark, an Arm-based CPU/GPU/AI chip designed for Windows laptops and mini-PCs. The flagship configuration packs 20 CPU cores, 6,144 GPU cores, and up to 128GB of unified LPDDR5X memory, targeting local AI agents, creators, developers, and gamers. The rollout already has significant industry backing, with more than 30 laptops and 10 desktops in development across a partner list that includes Microsoft, Dell, HP, Asus, Lenovo, MSI, Acer, and Gigabyte, signaling that Nvidia’s ambitions well beyond the data center are very much underway.
Michael Saylor’s Strategy (Nasdaq: MSTR) unloaded 32 Bitcoin’s last week, generating proceeds of $2.5 million.
Honeywell’s (NASDAQ: HON) quantum computing unit Quantinuum is aiming higher ahead of its public debut, seeking up to $1.46 billion in its upcoming IPO, a significant step up from the prior $1.05 billion target. The upsized raise signals growing investor appetite for quantum computing exposure as the sector attracts increasing attention from both institutional money and the broader market.
CoreWeave (NASDAQ:CRWV) has become the first AI cloud provider to successfully bring up and validate Nvidia’s Vera Rubin NVL72 on its platform, a milestone that puts the company at the front of the line for one of Nvidia’s most advanced AI systems.
Dell Technologies (NYSE:DELL) is up more than 1% and HP (NYSE:HPQ) is gaining around 4% in the company’s wake. Intel (NASDAQ:INTC), which has long held dominance in the PC chip market, is on the other side of the trade, falling more than 6% as Nvidia’s entrance into its territory sharpens the competitive threat.
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10 of 11 Sectors Higher: Why the S&P’s Rally Looks Healthier Than the Headlines Suggest
Mon, 25 May 2026 19:50:30 +0000
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The headline performance data rolling across trading desks on Friday afternoon looks almost too clean to be real. The benchmark S&P 500 extended its massive winning streak to eight consecutive weeks as ten of the eleven market sectors finished cleanly in positive territory, with healthcare leading the charge. CNBC’s Julia Boorstin framed it cleanly on Friday’s broadcast: “The S and P posting its eighth straight winning week, that win streak coming despite volatility throughout the week in oil prices and treasury yields.”
The sheer underlying breadth of this market expansion is becoming the real story for institutional investors. Dangerous rallies led exclusively by a handful of over-allocated tech names are notoriously fragile over the long run. Broad participation across consumer cyclicals, defensive value sectors, and technology names within the same week typically precedes further equity continuation rather than an immediate reversal. The fact that this broad market surge occurred with West Texas Intermediate crude oil pushing toward ninety-seven dollars a barrel and the benchmark ten-year Treasury yield holding firm near five percent makes the entire upward trajectory look vastly more impressive to observers.
Breadth, Volatility, and the Macro Backdrop
Implied volatility measures show that the broader options market is cooperating beautifully with this ongoing equity rally. The VIX closed at 16.76 on May 21, down 14% over the past month and well below its 12-month average of 18.2. That structural drop matters because the index peaked above 31 in late March, and sustained institutional de-risking from that elevated level usually signals a powerful, long-term improvement in global market sentiment.
The main underlying counterweight to this bullish momentum is that the University of Michigan Consumer Sentiment Index dropped sharply to 49.8 in April, well below the traditional 60 recessionary threshold. Equities are aggressively rallying, with regular everyday consumers currently sitting at their gloomiest sentiment level in a full year. That deep ongoing tension between Wall Street and Main Street represents the real systemic risk to monitor moving forward.
Dell Leads the AI Hardware Trade
Boorstin called out the standout move: “A trio of tech stocks, HP, Dell, and Qualcomm, all posting double-digit gains. Dell led the way up 17% following better-than-expected earnings from competitor Lenovo.” Dell Technologies (NYSE:DELL) finished Friday at $295.19, up 17% on the day and 168% over the past year.
Dell’s Q4 FY26 report in February delivered revenue of $33.38 billion, up 40% year over year, with non-GAAP EPS of $3.89 versus a $3.51 estimate. The real number was AI infrastructure: $8.95 billion in AI-optimized server revenue in Q4 alone, up 342% YoY, with $64 billion in FY26 AI server orders and a $43 billion backlog entering FY27. Management guided FY27 revenue to $140 billion at midpoint, up 23%, with AI servers roughly doubling to $50 billion.
HP’s AI PC Cycle
HP (NYSE:HPQ) closed at $25.24, up 15% Friday and 21% on the week. Q1 FY26 results in February showed Personal Systems revenue of $10.25 billion, up 11% YoY, with Consumer PS up 16%. Interim CEO Bruce Broussard credited “continued momentum in AI PCs”. The Windows 11 refresh cycle is translating into hardware demand.
Qualcomm’s Data Center Pivot
Qualcomm (NASDAQ:QCOM) closed at $238.16, up 12% Friday and 65% over the past year. Handsets dragged Q2 FY26, but Automotive revenue hit a record $1.33 billion, up 38%, while IoT grew 9%. CEO Cristiano Amon flagged the bigger pivot: “We are equally excited by our entry into the data center, where a leading hyperscaler custom silicon engagement is on track for initial shipments later this calendar year.” The June 24 Investor Day on Data Center and Physical AI is the next catalyst.
Take-Two: Where Investors Are Discriminating
The counterpoint mattered as Take-Two Interactive (NASDAQ:TTWO) closed at $227.55, down 4% Friday and 6% on the week. Boorstin noted the setup: “Take-Two Interactive reaffirmed that his blockbuster game, Grand Theft Auto Six, is still on pace to be released in November, but the company also issued cautious guidance that took the stock down 5%.”
FY27 guidance came in workable but uninspiring: Net Bookings of $8.0 to $8.2 billion and GAAP diluted EPS of $0.55 to $0.75. CEO Strauss Zelnick anchored the thesis on the November 19, 2026, launch of Grand Theft Auto VI. Reddit retail showed the split, with wallstreetbets threads explicitly arguing GTA 6 is “already priced in”.
What to Watch Next
The overarching market setup heading into June looks highly constructive but remains entirely conditional on upcoming data. Three major variables to track include whether the benchmark 10-year yield holds safely below its May 19 peak of 4.67%, whether consumer sentiment stabilizes above the April low, and whether massive AI hardware orders successfully convert into forward guidance updates from tech giants. Broad equity rallies tend to persist when actual corporate earnings catch up to price levels. The upcoming quarter will conclusively tell us if they do.
The post 10 of 11 Sectors Higher: Why the S&P’s Rally Looks Healthier Than the Headlines Suggest appeared first on 24/7 Wall St..]]>
5 Forgotten Old-School Tech Dividend Stocks That Could Crush the Market in 2026
Fri, 10 Apr 2026 12:15:19 +0000
The post 5 Forgotten Old-School Tech Dividend Stocks That Could Crush the Market in 2026 appeared first on 24/7 Wall St..All the Magnificent 7 stocks that absolutely ruled the S&P 500 for three years are down in 2026, and with their decline, a tidy $ 2.1 trillion in market capitalization has been removed and is gone with the wind. Now, don’t think for a moment that most, if not all, will be back at some point this year, but one thing is for sure. Old-school legacy dividend tech stocks may be the best total-return idea for the final three quarters of 2026, as most mature tech companies have transformed from growth stories into cash-generating machines. After decades of dominance, they’ve built durable revenue streams from enterprise contracts, services, and infrastructure, which support consistent dividends regardless of market cycles.
After years of rate hikes, the top legacy technology stocks got beaten down alongside the broader market. Now, many trade at low P/E multiples relative to their cash flow, meaning you’re getting more earnings per dollar invested than you would have in 2020 and 2021. This comes as the cash flows of many top Mag 7 companies are expected to plummet due to overspending on AI and data center growth. In addition, and especially for older growth and income investors, legacy tech stocks with enterprise software contracts, government relationships, and long-term service agreements give these top companies stickier revenue than consumer tech. In a slowing economy, that stability is valuable.
We decided to profile five legacy tech stocks, including those that pay among the highest dividends, which help deliver dependable passive income streams. All five are rated Buy at top Wall Street firms that we cover here at 24/7 Wall St.
Cisco Systems
Investors who bought shares of Cisco Systems (NASDAQ: CSCO) at the height of the dot-com bubble just broke even recently. The company designs and sells a range of technologies that power the internet, and it pays a solid 2% dividend. Cisco is integrating its product portfolios across networking, security, collaboration, applications, and cloud—the backbone of enterprise networking. Switching, routing, and security are not going away. It generates huge free cash flow, has been aggressively buying back shares, and the dividend is very well covered. Cisco is boring in the best possible way.
The company’s segments include:
The Americas
Europe, the Middle East, and Africa
Asia Pacific, Japan, and China
Its Networking product category represents its core networking technologies, including switching, routing, wireless, fifth-generation (5G) silicon, optics, and compute products.
The Security product category comprises cloud and application security, industrial security, network security, and user and device security offerings. Its Collaboration product category consists of meetings, collaboration devices, calling, contact center, and platform-as-a-service (CPaaS) offerings.
The Observability product category consists of its full-stack observability offerings.
Truist Financial has a Buy rating with a $94 target price.
HP
The name stands for the past and Hewlett-Packard, two legacy tech giants who ruled Silicon Valley 50 years ago. HP (NYSE: HPQ) is a global provider of sustainable devices, services, and subscriptions for personal computing (PC), printing, three-dimensional (3D) printing, hybrid work, gaming, and other related technologies. The dividend yield of 6.08% is very attractive, and the payout is conservative relative to free cash flow.
HP is oft