One cloud giant may finally get a real external test for its custom AI chip strategy. One broadband infrastructure name has a better growth story, but still needs more proof on margins and execution, while one enterprise software company just delivered the cleaner AI and subscription quarter investors needed. We’ll show you where to buy and where patience still matters.
Account Turning Heads (Sponsored)
A little-known opportunity averaging 29% annually is finally getting attention outside Wall Street.
While traditional savings accounts struggle to keep up with inflation, this strategy has quietly compounded wealth for years.
Discover how “The 29% Account” works in this free presentation today.
Futures at a Glance📈
Futures are ticking higher as the S&P 500 tries to lock in another winning week despite a jumpy stretch for yields. Oil has cooled on renewed deal hopes in the Middle East, but traders are still watching bonds closely as Kevin Warsh gets set to take the Fed chair.
Want to make sure you never miss a pre-market alert?
Elite Trade Club now offers text alerts — so you get trending stocks and market-moving news sent straight to your phone before the bell.
Email’s great. Texts are faster.
You’ll be first in line when the market starts moving.
What to Watch
Earnings (Premarket):
• BJ's Wholesale Club Holdings, Inc. [BJ]
• Booz Allen Hamilton Holding Corporation [BAH]
• Frontline Plc [FRO]
• Global Ship Lease, Inc. [GSL]
• So-Young International Inc. [SY]
• Imperial Petroleum Inc. [IMPP]
Economic Reports:
• Consumer sentiment (final) (May): 10:00 am
• U.S. leading economic indicators (April): 10:00 am
Fed Speakers:
• Fed Governor Christopher Waller speech: 10:00 am
Elite Trade Club Insider
$175 Million In Insider Selling Just Hit Two Winners
Major holders at a fitness chain filed proposed sales worth more than $113 million near the stock’s 52-week high, while a 10% owner at an oilfield services name sold another $61.5 million after a 143% one-year run.
There are two strong stocks here, but only our Elite Trade Club Insider readers will see where big holders are turning big gains into cash.
You’re reading the free version. Here’s what we held back.
Every day, insiders and institutions move millions before the market catches on. We surface the data behind those moves before the rest of the market sees it.
A subscription gets you:
The insider buys, options bets, and dark pool moves the free edition can't show you. Unlocked every weekday.
A Sunday Deep Dive that tells you where to look before Monday's bell rings.
The Friday Smart Money Brief: who bought, who sold, where the big options bets landed, and where institutions are hiding volume. Three data layers. One email.
A Monthly Insider Scorecard so you always know whether smart money is buying or selling the market.
Every past Insider edition, unlocked, on elitetrade.club. Go back and see what you missed.
$25/mo or $250/yr. 30-day money back guarantee. Cancel anytime. Founding member pricing: lock in $25/mo before we raise it.
Cloud & AI Infrastructure
Microsoft Needs Maia to Become More Than an Internal AI Chip
Microsoft Corp (NASDAQ: MSFT) may finally have a bigger opening for its custom AI silicon. The company is reportedly in talks to supply its Maia AI chips to Anthropic, after Microsoft committed $5 billion to the AI lab and Anthropic agreed to spend $30 billion on Azure. A deal is not signed yet, but even the discussion matters.
Microsoft has been behind Amazon and Google in making custom AI chips a more visible part of its cloud strategy. Amazon has Trainium. Google has TPUs. Microsoft has Maia, but the chip has not yet become broadly available to Azure customers.
If Anthropic adopts Maia, it would give Microsoft a high-profile external validation point at a time when AI companies are desperate for compute capacity.
The bigger story is control. Microsoft does not want Azure growth to depend only on Nvidia supply. Anthropic has already said it has had compute difficulties, and demand for Claude and Claude Code keeps rising. If Maia can deliver better tokens per dollar and reduce reliance on third-party GPUs, Microsoft gets a better cloud margin and capacity story.
My Take For You: Microsoft is still early in proving Maia can matter outside its own workloads, but an Anthropic deal would be a real step forward. This is about turning AI capex into more control, not just more spending.
My Verdict: Buy this. The risk is that Maia adoption stays limited and Microsoft remains behind Amazon and Google in custom AI silicon.
Broadband Infrastructure
Harmonic Is Getting a Better Broadband Story, but the Valuation Debate Is Still Open
Harmonic Inc (NASDAQ: HLIT) is back on investor radar after DNA Finland selected the company’s SeaStar optical node to extend multi-gigabit broadband into brownfield apartment buildings. That contract follows recent wins with DNA Finland and Inter Venezuela, stronger first-quarter results, and raised 2026 guidance.
The appeal is clear. Harmonic’s broadband access portfolio is finding new use cases at a time when carriers and network operators are trying to upgrade older infrastructure without fully rebuilding from scratch.
That creates a practical growth lane, especially if SeaStar and related products help customers reach difficult buildings and dense housing markets more efficiently.
The valuation picture is mixed. The stock is up nearly 40% over the past year and recently traded around $12.70, but some models peg fair value closer to $12.10, while a DCF view points closer to $17.95. That split tells you the market is still deciding whether Harmonic is a modestly overvalued execution story or an underappreciated cash-flow compounder.
My Take For You: Harmonic has a stronger broadband growth angle than the market gave it credit for a few months ago. But the stock still needs more proof that contract wins can translate into durable margin expansion.
My Verdict: Hold this. The risk is that deployment delays or customer concentration issues keep the broadband story from converting into faster earnings growth.
Next Reveal Looms (Sponsored)
Tesla may be preparing for a major product shift at its Fremont factory.
Elon Musk has hinted at a new production-ready device that some are comparing to an “iPhone moment” for Tesla. But the bigger opportunity may not be Tesla itself — it could be the small companies positioned around the supply chain before the next reveal hits.
Enterprise Software
Workday Finally Gives Investors a Cleaner Turnaround Quarter
Workday Inc (NASDAQ: WDAY) gave investors the kind of report they needed after a brutal year for the stock. Fiscal first-quarter revenue came in at $2.54 billion, slightly ahead of the $2.52 billion estimate, while subscription revenue grew 14.3% year over year. Shares jumped more than 10% premarket as investors responded to stronger demand for its AI-powered finance and HR software.
The bigger point is that Workday is starting to answer the growth and margin questions that came with Aneel Bhusri’s return as CEO.
The company said its AI agent user base more than doubled from the prior quarter, while its Recruiting Agent supported 14 million hiring processes, up 44% year over year. That gives the AI story more substance than a generic software buzzword.
Guidance helped too. Workday expects fiscal second-quarter subscription revenue of $2.455 billion, representing 13% growth, and full-year subscription revenue between $9.925 billion and $9.950 billion. It also raised full-year non-GAAP operating margin guidance to 30.5%, showing that efficiency is improving alongside product demand.
My Take For You: Workday is still down hard from last year, but this quarter gave investors a cleaner reason to come back. AI adoption, subscription growth, and better margins are finally moving in the same direction.
My Verdict: Buy this. The risk is that one strong quarter is not enough to fully restore confidence if subscription growth slows again later this year.
Poll: What's your Friday morning mindset heading into the final trading session of the week?
Movers and Shakers
Estée Lauder [EL]: Premarket Move: +9%
Estée Lauder is rising because investors are relieved the Puig merger talks are dead. The market did not like the size, complexity, or portfolio questions tied to the deal, especially with Charlotte Tilbury’s minority stake reportedly creating another headache.
The stock has already been in recovery mode, and walking away from a messy transaction keeps management focused on fixing the core beauty business instead of absorbing another major brand platform.
My Take: Buy the relief move. Estée Lauder still has turnaround work to do, but avoiding a complicated Puig deal is the right call for shareholders.
Zoom Communications [ZM]: Premarket Move: +7%
Zoom is moving higher after a clean earnings beat. EPS came in at $1.55 versus $1.42 expected, revenue hit $1.24 billion, and enterprise revenue grew 7.2%. AI Companion usage jumped 184%, which gives the company a better growth story than the old work-from-home hangover narrative.
The valuation helps too. At roughly 16x earnings, Zoom does not need hypergrowth to work from here.
My Take: Buy it. Zoom is cheap, profitable, cash-rich, and finally showing enough AI and enterprise momentum to deserve a higher multiple.
Summit Therapeutics [SMMT]: Premarket Move: -5%
Summit is dropping after Bernstein started coverage with an Underperform rating and a $7.70 target, far below the current stock price. The call is blunt: Bernstein sees the company’s Phase 3 readouts failing to hit statistical significance and recommends investors exit or short the stock.
That is a serious shot at the core bull case. Summit has no approved drugs, no revenue, no other late-stage backup asset, and a large trailing EBITDA loss. This is now a high-risk clinical binary with more downside pressure.
My Take: Stay away. This is not a dip to buy unless you have high conviction in the trial data. The risk-reward is too ugly right now.
Gold is Back (Sponsored)
Global trade is changing as more countries explore payment systems outside the U.S. dollar.
If dollar demand weakens over time, investors may look more closely at gold and other hard-asset opportunities.
A free report explains why some analysts are watching gold-linked assets that may still trade at a discount compared with gold’s recent strength.
See the Free Gold Report.
Everything Else
💼 Durable income stocks are drawing interest, as investors look for companies built to keep rewarding shareholders when markets get rough.
🌯 Guzman y Gomez is leaving the U.S. to focus on Australia, which is one way to admit the burrito map got too ambitious.
🎬 IMAX is in early talks with potential buyers, so the big-screen business may have its own blockbuster deal brewing.
💉 Eli Lilly’s weight-loss drug cleared an obesity trial, giving the GLP-1 race another very expensive plot twist.
🏴☠️ Italy busted a $300 million streaming piracy ring, because free TV was apparently running like a full-blown business.
🚀 SpaceX scrubbed its Starship launch, proving even rocket timelines need a rain check.
That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.
Best Regards,
— Adam Garcia
Elite Trade Club
Click here to get our daily newsletter straight to your cell for free.
P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.
