One company is becoming a more credible domestic AI infrastructure player as China pushes for alternatives to foreign chips. One bank is dealing with a planned leadership change that should be manageable but still adds uncertainty. One restaurant name continues to grow faster than most peers, but the multiple keeps the stock in the hold bucket.
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Futures at a Glance📈
Futures are ticking higher as traders look past three straight losing sessions and wait for Nvidia’s earnings to set the tone for the AI trade. Bond yields have cooled a bit, but the market still has plenty to prove with Fed minutes and big retail earnings also on deck.
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What to Watch
Earnings (Premarket):
• Analog Devices, Inc. [ADI]
• TJX Companies, Inc. (The) [TJX]
• Lowe's Companies, Inc. [LOW]
• Target Corporation [TGT]
• Roivant Sciences Ltd. [ROIV]
Earnings (Aftermarket):
• NVIDIA Corporation [NVDA]
• Intuit Inc. [INTU]
• Nordson Corporation [NDSN]
Fed Speakers:
• Fed Governor Michael Barr speech: 9:15 am
Economic Reports:
• Minutes of Fed's May FOMC meeting: 2:00 pm
Elite Trade Club Insider
A $766 Million Exit Just Hit One Travel Winner
A major shareholder filed to sell nearly $766 million worth of stock in a travel name up about 84% over the past year, while multiple executives at a mega-cap tech giant exercised options and sold more than $12.5 million combined.
You’re seeing hints of insider selling, but Elite Trade Club Insider readers will see where big holders are using strength and liquidity to take risk off the table.
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China Tech & AI
Alibaba Group Is Building a Full-Stack AI Case
Alibaba Group Holding Limited (NYSE: BABA) is trying to show investors it belongs in the AI infrastructure conversation, not just the China e-commerce basket.
The company unveiled its new Zhenwu M890 AI chip, which it says delivers 3x the performance of its prior Zhenwu 810E model. The chip also comes with 144 GB of GPU memory and 800 GB per second of interchip bandwidth.
That matters because China’s AI market needs domestic hardware alternatives as Nvidia faces export restrictions and tighter scrutiny from Beijing. Alibaba said it has already delivered 560,000 Zhenwu units to more than 400 customers across 20 industries, which gives this story more weight than a normal product announcement.
The new chip could also support the company’s expanding Qwen model lineup, including its upcoming Qwen3.7-Max.
The stock trades around 21x earnings, with a market cap above $325 billion, and remains well below its 52-week high. That gives the rerating case some room if investors start treating Alibaba as a full-stack AI company with chips, cloud, models, tools, and applications under one roof.
My Take For You: Alibaba’s AI story is becoming harder to dismiss. The chip still may not match top Western hardware, but in China’s restricted market, a credible domestic alternative can matter a lot.
My Verdict: Buy this. The risk is that chip capacity, U.S.-China restrictions, or weaker cloud demand limit how quickly the AI story turns into earnings growth.
Regional Banking
FNB Corp Has a Leadership Change, but Not a Broken Story
FNB Corp (NYSE: FNB) moved lower as investors reacted to a coming leadership change in its wholesale banking unit. Chief Wholesale Banking Officer David B. Mitchell II plans to retire effective July 2, 2026, giving the bank a defined transition date but still raising questions about strategy inside its commercial and institutional banking business.
The reaction makes sense, but it should stay in context. A wholesale banking transition can matter because that unit touches commercial relationships, lending strategy, and institutional client activity.
Investors do not like uncertainty in bank leadership, especially when rate expectations, credit conditions, and loan demand are already moving targets. That said, this is a planned retirement, not an emergency exit.
FNB still trades at roughly 10.6x earnings, pays a dividend yield around 3%, and is up nearly 20% over the past year. The stock is not expensive, and the business is not suddenly impaired because one executive is retiring. But the market may wait for clarity on succession and any strategy changes before giving the stock more credit.
My Take For You: This looks like a manageable transition, not a thesis breaker. The stock may stay choppy, but the valuation and dividend still keep it on the radar.
My Verdict: Hold this. The risk is that the leadership change leads to strategy uncertainty or weaker commercial banking momentum.
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Restaurants
CAVA Group Keeps Growing Fast, but the Valuation Still Needs Discipline
CAVA Group Inc (NYSE: CAVA) delivered another strong growth quarter. Revenue rose 32.2% year over year to $434.4 million, beating the $418.2 million forecast, while same-restaurant sales increased 9.7%. The most important number was traffic, which rose 6.8%, showing that growth is not just coming from price increases.
That is why investors keep giving CAVA the premium treatment. The company is opening strong new units, digital and loyalty engagement are growing, and management raised full-year guidance for sales and restaurant openings.
Restaurant-level profit was $108.9 million, equal to 25.1% of revenue, and the balance sheet remains clean with zero debt and $403 million in cash and investments.
The problem is price. CAVA trades around 145x earnings, which means the market is already paying for years of strong execution.
Salmon and energy costs are also creating margin headwinds, and EPS of $0.20 was down slightly from $0.22 a year ago. The growth is real, but the stock still needs perfect delivery to justify the multiple.
My Take For You: CAVA is one of the better restaurant growth stories in the market, but the valuation leaves little room for mistakes. The business is strong. The stock is demanding.
My Verdict: Hold this. The risk is that food and energy costs pressure margins while the high multiple makes even small disappointments painful.
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Movers and Shakers
Marvell Technology [MRVL]: Premarket Move: +4%
Marvell is higher after Nvidia announced a $2 billion investment tied to AI chip development and silicon photonics. That is a major vote of confidence in Marvell’s role inside next-gen data center networking, especially as AI systems need faster optical interconnects and better chip-to-chip communication.
The stock is not cheap after a 187% one-year run, and insiders have sold nearly $30 million over the past three months. But Nvidia putting real capital behind the partnership changes the weight of the story.
My Take: Stay long. Nvidia’s money gives Marvell a stronger AI infrastructure case, and I would buy pullbacks instead of fading the move.
Viavi Solutions [VIAV]: Premarket Move: -5%
Viavi is down after announcing plans for a $500 million stock offering. The company plans to use the proceeds to repay its $450 million Term Loan B, which helps the balance sheet but still dilutes shareholders today.
That is why the stock is getting hit. Viavi has already run more than 400% over the past year, so investors were ready to punish anything that adds new shares into the market.
My Take: Do not buy this dip yet. Let the offering price settle first. The debt paydown is useful, but dilution after a huge run usually needs time to digest.
Intel [INTC]: Premarket Move: +4%
Intel is bouncing as investors rotate back into CPU demand tied to the next phase of AI. The market is starting to look beyond GPUs and toward inference, agentic AI, and general-purpose processing, where Intel still has a real seat at the table.
Analyst upgrades from Citi and Benchmark are helping too, especially after the stock pulled back from its recent rally. The key issue is still execution: Intel needs heavy investment, better earnings visibility, and proof that AI CPU demand can meaningfully lift results.
My Take: Buy the rebound, but keep it disciplined. Intel finally has a better AI angle, and the stock can keep working if Nvidia earnings support the broader chip trade.
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Everything Else
📈 Income and growth are both in play, as investors look for stocks that can deliver steady payouts while still offering breakout upside in the second half of 2026.
⚠️ U.S. Treasurys are now in the danger zone, which is not the phrase bond investors want to hear before coffee.
🚀 SpaceX picked Goldman Sachs to lead its record IPO, because apparently the rocket company wants a launchpad on Wall Street too.
💻 Hedge funds favored tech leaders last month, according to Hazeltree data, so the crowded AI trade is still very crowded.
⚙️ Samsung’s union resumed pay talks one day before a strike deadline, which is cutting it pretty close for a chip giant.
🔐 AI-related data breaches have now passed stolen credentials in cyber incidents, because the future apparently comes with new security nightmares.
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
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