📊 Today's Playbook
The market continues its AI-fueled ascent, with S&P 500 at all-time highs, yet a 'split screen' view persists as geopolitical tensions and energy infrastructure concerns loom. Today's playbook sees AI megacaps like MSFT, NVDA, and META anchoring the tape, appearing on dip-watch lists as traders eye strategic entries post-earnings, while AMZN and MU show strong momentum. Beyond the giants, AMD and quantum play RGTI offer volatility setups, and PLTR signals potential reversal, indicating a hunt for specific technical plays across the AI and data infrastructure spectrum. This blend of overextended leaders and dip-watch opportunities suggests a nuanced approach is key, balancing FOMO with disciplined entry points amidst the broader tech leadership.
#1
- Shares were down roughly 4% post-earnings, bringing 12-month return to flat.
- Azure cloud growth of 40% was a major positive, expected to continue next quarter.
- Valuations are compelling with forward P/E at 23x and EV/EBITDA at 15.5x.
- Has been a laggard among Mag 7 stocks, down 15% on the year.
Watch: Watch: price reaction around recent support/resistance to confirm direction
Why it made the list: Post-earnings dip combined with attractive valuations and strong Azure growth, despite being a recent laggard.
#2
- Stock had a huge run, climbing nearly 30% in April leading into earnings.
- Post-earnings reaction was muted, seesawing from red to green.
- Free cash flow dipped into the red due to massive capital expenditures for AI.
- AWS grew 28% year-over-year, and custom Tranium chips are a key bright spot.
Watch: Watch: price reaction around recent support/resistance to confirm direction
Why it made the list: Significant pre-earnings run-up and muted post-earnings reaction, suggesting it might be overextended.
#3
- Central to the AI revolution with over 90% data center GPU market share.
- Highest margin customer, likely to get priority at fabs during supply shortages.
- Most exposed stock if hyperscaler spending on OpenAI pulls back significantly.
- Captures most upside if AI demand holds or continues to grow.
Watch: If the market panics and Nvidia stock has a huge decline, it will be a buying opportunity.
Why it made the list: AI market leader with high upside potential but also significant exposure to demand shifts.
#4
- Has a deal giving OpenAI the option to buy up to 10% of the company at 1 cent per share.
- The deal's value increases significantly as AMD's stock price rises.
- Future value of the deal is tied to OpenAI hitting certain deployment milestones.
- OpenAI's ongoing court battle with Elon Musk adds uncertainty to this specific deal.
Watch: If earnings beat extreme expectations → potential move toward $400 strike; miss could trigger profit-taking
Why it made the list: Unique equity deal with OpenAI creates event-driven risk and reward.
#5
- Sitting on support, but 13-week and 200-day MAs are resistance.
- Forming an inverse head and shoulders pattern, neckline around 160.
- Volume is starting to pick up, suggesting potential accumulation.
- Earnings are next Monday after hours, expected to be good.
Watch: If price breaks and holds above 160 → potential for further price move; failure to clear 160 invalidates the inverse head and shoulders.
Why it made the list: Showing an inverse head and shoulders pattern with increasing volume and upcoming earnings as a catalyst.
#6
- Shares are down 8% post-earnings despite a double beat on EPS and revenue.
- Increased capex guidance (125-145 billion) for AI investments spooked investors.
- Revenues, operating profits, and margins are at all-time highs.
- Historical playbook suggests capex-driven pullbacks have been buying opportunities.
Watch: Watch: price reaction around recent support/resistance to confirm direction
Why it made the list: Significant post-earnings pullback driven by increased capex, presenting a potential buy-the-dip scenario.
#7
- Shares were up 9% post-earnings, marking one of its best days.
- Google Cloud was impressive with a big beat and revenues rising to $20 billion.
- Company's backlog surged to over $460 billion, indicating demand exceeds capacity.
- Valuations are now approaching a 30 times multiple after the significant move.
Watch: Watch: price reaction around recent support/resistance to confirm direction
Why it made the list: Strong post-earnings surge and significant year-to-date gains have pushed valuations higher, leading to a cautious 'hold' rating.
#8
- Two contracts account for 63% of the 2026 revenue estimate.
- Delivery timelines for key contracts shifted from H1 to H2 2026.
- Investment is a bet on their superconducting roadmap.
- Quantum hardware orders are prone to slipping, adding uncertainty.
Watch: Watch: price reaction around recent support/resistance to confirm direction
Why it made the list: High concentration risk in revenue and shifted delivery timelines for key quantum hardware orders.
#9
- Only American memory company, gaining strategic advantage if Korean supply chains are disrupted.
- Can charge more for high bandwidth memory (HBM) needed by Nvidia.
- Forward price-to-earnings ratio is under 8, making it a cheap large cap in the AI supply chain.
- Expected to grow earnings by almost 100% next year.
Watch: If the stock drops, it is a primary target for a buying opportunity.
Why it made the list: Unique supply chain positioning and strong valuation in the AI sector.
#10
- Saw volume attention on Monday the 20th, but volume has tapered.
- RSI is in bullish territory, price above 5, 13, and 50 MAs.
- Needs a major volume drive to regain momentum.
- Watching for a break above 1170 to confirm buying pressure.
Watch: If price breaks above 1170 with major volume → potential for renewed momentum; continued tapering volume suggests consolidation.
Why it made the list: Showing bullish technicals after a volume spike, now awaiting a new volume catalyst.