One hardware name just turned AI server demand into a much bigger revenue and profit forecast. One semiconductor equipment supplier remains a clean picks-and-shovels play on advanced chip demand, while one cybersecurity company missed revenue, guided light, and announced job cuts. We’ll show you where the AI trade still works and where to stay away.
Pre-IPO Profit (Sponsored)
SpaceX may be heading toward a historic IPO.
But Louis Navellier says the better opportunity could be a little-known AI hardware firm Elon Musk used to help power his massive supercomputer.
Now, major tech giants are using similar technology as AI spending surges.
And because this company is reportedly 39X smaller than SpaceX, investors may still have time before Wall Street catches on.
See the AI stock Louis believes could run before the SpaceX IPO.
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Futures at a Glance📈
Futures are mostly flat as traders watch the fragile U.S.-Iran ceasefire and another round of Middle East headlines. Tech is still carrying the market after fresh record closes, with Dell’s blowout move adding more fuel to the AI hardware trade.
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What to Watch
Earnings (Premarket):
• Buckle, Inc. (The) [BKE]
• The Elmet Group Co. [ELMT]
• Genesco Inc. [GCO]
• KNOT Offshore Partners LP [KNOP]
• BitFuFu Inc. [FUFU]
Economic Reports:
• Advanced U.S. trade balance in goods (April): 8:30 am
• Advanced retail inventories (April): 8:30 am
• Advanced wholesale inventories (April): 8:30 am
• Chicago Business Barometer (PMI) (May): 9:45 am
Income Strategy (Sponsored)
His official paycheck? $400,000 a year. But the real story is somewhere else:
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It’s not the stock market.
So what’s actually producing this level of cash flow and why are more investors turning to it today?
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Elite Trade Club Insider
$108 Million In Insider Selling Just Hit Two Big Winners
A crypto-linked data center CEO sold $8.4 million after a 625% one-year run, while a luxury retail founder’s trust sold nearly $100 million near the stock’s highs. You’re seeing two stocks that already made people money. Insider readers are seeing where leadership is using that strength to take chips off the table.
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AI Infrastructure
Dell Technologies Just Turned the AI Server Boom Into a Much Bigger Forecast
Dell Technologies Inc (NYSE: DELL) just delivered one of the clearest AI infrastructure blowouts of the season. Revenue jumped 88% year over year to $43.84 billion, crushing the $35.43 billion estimate, while adjusted EPS of $4.86 beat expectations for $2.94. Shares soared nearly 39% after hours as investors reset expectations for the company’s AI server opportunity.
The biggest number was the forecast. Dell now expects roughly $60 billion in AI server revenue for fiscal 2027, up from its prior view of $50 billion. It also raised annual revenue guidance to $165 billion to $169 billion, far above the prior range of $138 billion to $142 billion, and lifted adjusted EPS guidance to $17.90 from $12.90.
That is not a small upgrade. That is a full rerating of the business.
Dell is benefiting from massive AI data center spending, strong Nvidia-powered server demand, and its ability to manage the memory shortage better than rivals.
The Infrastructure Solutions Group, which includes servers, storage, and software, saw revenue surge 181%. Even PCs rose 17%, but this is now an AI server story first.
My Take For You: Dell is no longer just a legacy hardware name. It is one of the strongest direct beneficiaries of the AI data center buildout, and the new forecast gives the rally real support.
My Verdict: Buy this. The risk is that AI server demand stays strong but margins tighten as memory costs and customer pricing pressure rise.
Semiconductor Equipment
Applied Materials Is Still One of the Cleanest Picks-and-Shovels AI Plays
Applied Materials Inc (NASDAQ: AMAT) is not the flashiest AI stock, but it may be one of the most important. CEO Gary Dickerson said the semiconductor industry is in the strongest period in its history, driven by AI’s massive computing demand and the need for more advanced chips. That matters because Applied Materials sells the equipment chipmakers need to build those chips.
This is the picks-and-shovels layer of the AI boom. Nvidia, TSMC, AMD, and other chip leaders get most of the attention, but they cannot scale without manufacturing equipment.
Applied sits deep in that supply chain, alongside names like Lam Research and KLA. Dickerson also pushed back on the idea that the industry is headed back into a normal boom-and-bust cycle, saying the company has unusually strong visibility into 2027 and 2028 demand.
The stock is up more than 180% over the past year, and it trades around 42x earnings, so investors are already paying for growth. But the strategic position is hard to ignore. If AI continues driving demand for more advanced chip capacity, equipment suppliers should remain essential.
My Take For You: Applied Materials gives investors a cleaner way to play AI chip demand without betting on one designer or one cloud customer. The demand visibility makes the premium easier to defend.
My Verdict: Buy this. The risk is that any slowdown in AI capex or foundry spending hits equipment orders before investors expect it.
Strange Energy Project (Sponsored)
For years, we've been told SpaceX is a rocket company.
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It could soon replace our need for foreign oil forever and ignite a $10 trillion boom for the stocks involved.
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Cybersecurity
SentinelOne Shows Why Not Every AI Software Story Deserves Patience
SentinelOne Inc (NYSE: S) gave investors a rough reminder that AI positioning does not fix weak guidance. The cybersecurity company missed first-quarter revenue estimates, guided second-quarter revenue below expectations, and announced plans to cut about 8% of its workforce. Shares fell nearly 18% after hours on the update.
The numbers were not disastrous, but they were not good enough. First-quarter revenue came in at $276.7 million, just below the $277.3 million estimate. For the second quarter, management expects revenue of $289 million to $291 million, under the $292 million consensus. Adjusted EPS guidance of $0.06 to $0.08 also came in light versus expectations for $0.08.
The bigger issue is competition. SentinelOne faces larger rivals like CrowdStrike, Palo Alto Networks, and Microsoft, while customers are scrutinizing budgets and stretching sales cycles.
The company is trying to redirect spending toward AI, data, and cloud, but the restructuring charge of roughly $25 million shows the shift comes with real pain. In cybersecurity, demand is strong overall, but not every vendor gets equal pricing power or budget priority.
My Take For You: SentinelOne may have a useful platform, but the market is right to punish weak guidance in a crowded security market. AI messaging is not enough without stronger growth.
My Verdict: Avoid this. The risk is that competition and longer sales cycles keep revenue growth under pressure even after the restructuring.
Trivia: The Nasdaq's dot-com bust is still the benchmark for "bubble bursts" in tech. From its peak in March 2000 to its trough in October 2002, approximately how far did the Nasdaq composite fall?
Movers and Shakers
NetApp [NTAP]: Premarket Move: +15%
NetApp is jumping after a clean beat and strong guide. Revenue rose 12.5% to $1.95 billion, adjusted EPS hit $2.43, and next-quarter revenue guidance came in well ahead of expectations.
AI storage demand is doing real work here, with management pointing to roughly 500 AI and data-prep wins in the quarter.
My Take: Buy after it drops, not right now. NetApp is no longer just a sleepy storage name. AI and cloud demand give this move staying power.
ServiceNow [NOW]: Premarket Move: +7%
ServiceNow is moving higher after a strong Q1, with revenue up 22.1% to $3.77 billion and EPS of $0.97. The $2 billion buyback helps, but the bigger story is AI adoption, with enterprise AI customers up 130% sequentially.
The stock is still down hard over the past year, so buyers are treating this as a reset opportunity.
My Take: Stay long. ServiceNow has AI momentum, revenue growth, and buyback support. This bounce has room.
Gap [GAP]: Premarket Move: -16%
Gap is getting hit because the revenue miss and weaker sales outlook outweighed the EPS beat. Q1 EPS came in at $0.38 versus $0.37 expected, but revenue missed at $3.5 billion, and management cut full-year sales growth guidance to 1% to 2%.
Gap brand was strong with a 10% comp gain, but Athleta fell 11%, and tariffs hit merchandise margins hard.
My Take: Stay away for now. The turnaround is too uneven, and a lower sales guide is not the setup to buy.
Everything Else
📈 Small-cap momentum is starting to build, as under-the-radar names tied to AI, clean energy, and defense begin attracting the kind of early attention that often shows up before bigger moves.
🚀 Blue Origin’s New Glenn rocket suffered a test explosion, which is not the kind of Artemis warm-up NASA wants to see.
🪖 A Russian drone hit an apartment block in NATO-state Romania, adding another dangerous wrinkle to Europe’s security picture.
💊 Innovent shares jumped after a Pfizer pact worth up to $10.5 billion, giving biotech investors a very large number to chase.
🏦 The Bank of Italy is engaging with global AI firms, because even central banks are trying to figure out where this technology fits.
🧠 Huawei is betting on speed over smaller transistors, which is one way to keep pushing AI chips around U.S. sanctions.
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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