Wall Street’s main indexes hit record closing highs on ​Friday and posted weekly and monthly gains as Dell results drove tech shares higher, while investors awaited details on a potential U.S.-Iran deal. President Donald Trump said in a social media post that he would make a final decision on the Iran deal on Friday. ‌Tehran earlier said it ⁠was ⁠looking for action, not words, when it came to an agreement.

Dell surged after raising its full-year profit and revenue forecasts on Thursday. The tech ​sector climbed, fueled by gains in chip stocks.

Peers Hewlett Packard Enterprise and Super Micro Computer gained. Microsoft climbed.

The software services index ​also advanced.

Earlier in the session, all three indexes hit intraday record highs, cruising on renewed optimism around AI and strong earnings growth, despite concerns about the Iran war’s impact on inflation and the global economy.

According to preliminary data, the ​S&P 500 gained 16.11 points, or 0.21%, to end at 7,579.74 points, while ⁠the Nasdaq ‌Composite gained 53.74 points, or 0.20%, to 26,971.21. The Dow Jones Industrial Average rose 363.48 ​points, or 0.72%, ​to 51,032.45.
EARNINGS-DRIVEN RALLY”There’s definitely euphoric sentiment in the market around AI. The rally has really ⁠been driven by earnings,” said Ohsung Kwon, chief equity strategist at Wells ​Fargo.

He suggested investors buy and hold AI stocks, then earn extra income by ​selling call options at prices much higher than the current stock price.

Melissa Brown, head of investment decision research at SimCorp, said over the past few weeks volume has gone up, which suggests more people are coming into the market.

The S&P 500 was on track for a ninth consecutive weekly gain, its longest winning streak since December 2023.

The S&P 500 communications services sector dropped, as Alphabet declined. Consumer staples shares were weak with heavyweights Costco and Walmart both ‌down.

The S&P automaker index dropped after reports the Trump administration wants North American-built vehicles to have 82% regional content to qualify for preferential treatment under the U.S.-Mexico-Canada Agreement.

Shares of General Motors and ​U.S.-listed shares of Stellantis ​fell. U.S. economic data on ⁠Thursday showed inflation increased at its fastest pace in three years in April, while GDP for the first quarter was revised lower to a 1.6% annual rise. The Fed’s Kansas City President Jeffrey Schmid warned the energy shock may not ​be temporary. Vice Chair for Supervision Michelle Bowman said a persistent rise in inflation might require tighter monetary policy.

Money markets expect the Federal Reserve to keep interest rates steady for the rest of the year, with expectations of a 25-basis-point hike in December. Among other movers, Gap shares tumbled after the apparel retailer cut its annual sales forecast, while American Eagle Outfitters dropped after keeping its annual comparable sales forecast unchanged.

NEW YORK — Palantir Technologies Inc. shares have delivered volatile performance in 2026, recently surging more than 8% in a single session to around $143 as investors reassess the data analytics company’s position in the artificial intelligence boom amid broader software sector strength.

The rebound broke a six-month downtrend for the stock, which remains down roughly 23% year-to-date from 2025 highs near $207. Despite the pullback, Palantir maintains a market capitalization exceeding $340 billion, reflecting sustained investor interest in its AI-powered platforms even as valuations draw scrutiny.

Analysts largely maintain a Moderate Buy consensus on Palantir. Across 31 Wall Street firms, the average 12-month price target sits near $190, implying roughly 30% upside from current levels. Targets range from a low of $70 to a high of $255, highlighting divided opinions on whether the premium valuation is justified by growth prospects.

Palantir reported strong first-quarter 2026 results, with revenue of $1.63 billion beating expectations and adjusted earnings per share of $0.33 surpassing forecasts. The company raised full-year guidance, projecting revenue between $7.18 billion and $7.20 billion, driven by accelerating commercial AI adoption and steady government contracts.

The company’s dual business model — serving both commercial enterprises and government agencies — has provided resilience. U.S. commercial revenue has grown rapidly, fueled by its Artificial Intelligence Platform (AIP) and ontology-based data integration tools. Key wins in sectors like healthcare, finance and manufacturing have expanded its customer base.

However, the stock trades at elevated multiples, with a price-to-earnings ratio exceeding 140x trailing earnings. Critics argue this valuation leaves little room for error if AI hype moderates or if customer retention falters. CEO Alex Karp has faced attention for ongoing share sales, though such activity is common among executives at high-growth firms.

Supporters highlight Palantir’s sticky platform and ability to command premium pricing for mission-critical AI deployments. Recent partnerships and expansions into new verticals have reinforced its competitive moat. Defense and intelligence contracts provide stable revenue, while commercial momentum signals broader market penetration.

For investors considering Palantir as a 2026 buy, the bull case rests on continued AI infrastructure spending. If the company executes on its pipeline and demonstrates strong retention rates, analysts see potential for significant upside. Some forecasts suggest the stock could approach $200–$240 by year-end under optimistic scenarios.

Risks remain substantial. Palantir faces intense competition from larger cloud providers and specialized AI firms. Macroeconomic uncertainty, potential government budget shifts and execution challenges in scaling commercial sales could pressure results. The high valuation amplifies downside if growth disappoints.

Longer-term, Palantir’s focus on agentic AI and enterprise data platforms positions it at the center of digital transformation. The company’s ability to integrate complex data environments gives it an edge in high-stakes applications where accuracy and governance matter.

Institutional ownership remains solid, though retail enthusiasm has cooled from earlier meme-stock-like fervor. Options activity shows mixed sentiment, with some traders betting on continued volatility around earnings and major contract announcements.

Palantir’s path in the second half of 2026 will likely hinge on quarterly execution and macroeconomic conditions. Next earnings in August will be closely watched for updates on commercial deal velocity and margin trends.

Investors weighing a buy decision should consider portfolio allocation. Palantir suits growth-oriented portfolios with tolerance for volatility, but conservative investors may prefer more established tech names with lower valuations.

The broader AI sector context remains supportive. Strong results from peers like Snowflake have lifted sentiment across software stocks, benefiting Palantir on sympathetic trading days. However, concerns over AI capital expenditure sustainability persist.

Palantir has evolved significantly since its public debut. Once primarily known for government work, it has successfully expanded into commercial markets while maintaining profitability improvements. Free cash flow generation supports ongoing investment in innovation.

For those considering selling or holding existing positions, the decision depends on entry price and risk tolerance. Long-term believers in Palantir’s technology see current levels as a potential accumulation zone after the year-to-date decline, while valuation-focused investors may view it as fully priced.

Analyst sentiment has remained constructive overall. Firms like Rosenblatt have highlighted pullbacks as buying opportunities, citing exceptional growth and defense-AI momentum. Others maintain neutral stances primarily due to valuation rather than fundamental concerns.

As 2026 progresses, key catalysts include major contract wins, AI product demonstrations and potential capital returns. Palantir does not pay dividends, focusing instead on reinvestment and opportunistic share repurchases.

The stock’s beta above 1.5 indicates higher volatility than the broader market, requiring careful position sizing. Technical analysts note recent support levels around $130–$135, with resistance near $150–$160.

Ultimately, Palantir represents a high-conviction AI play. Its software platforms address real enterprise needs for data integration and decision-making tools powered by AI. Success depends on converting hype into sustained, profitable growth.

Investors should conduct thorough due diligence, reviewing the latest filings and earnings transcripts. Diversification across the technology sector can mitigate risks associated with any single high-growth name.

With AI adoption accelerating across industries, Palantir enters the latter half of 2026 with momentum from recent results. Whether the stock rewards buyers in the near term will depend on delivery against lofty expectations and valuation compression through earnings growth.

NEW YORK — As 2026 reaches its midpoint, investors continue to weigh Meta Platforms Inc. against Microsoft Corp. in one of the most closely watched comparisons among leading technology stocks. Both companies stand at the forefront of the artificial intelligence revolution, yet they pursue different strategies and offer distinct risk-reward profiles for long-term portfolios.

Meta shares recently traded near $627, while Microsoft shares hovered around $438. Year-to-date performance has been challenging for both amid broader concerns over high AI capital expenditures, with Microsoft down roughly 11-13% and Meta showing more modest declines in the single digits. Despite the pullbacks, analysts maintain largely positive outlooks, with consensus price targets suggesting meaningful upside for both names.

Meta Platforms: Advertising Powerhouse with AI Upside

Meta has delivered strong operational results driven by its core social media platforms — Facebook, Instagram, WhatsApp and Threads. The company continues to benefit from robust digital advertising demand, with AI enhancements improving ad targeting and user engagement. Analysts project solid revenue growth in the mid-teens for 2026, supported by efficiency gains and monetization improvements.

The company has committed heavily to AI infrastructure, guiding for capital expenditures between $115 billion and $135 billion in 2026. This aggressive spending reflects CEO Mark Zuckerberg’s vision for advancing AI capabilities across content recommendation, ad systems and potential new products. While this has pressured near-term margins, many investors view it as a necessary bet on future leadership in consumer-facing AI applications.

Meta trades at a forward price-to-earnings multiple that appears more attractive than historical averages following the recent pullback. Its focus on high-margin advertising and rapid innovation has appealed to growth-oriented investors, though regulatory risks around data privacy and antitrust issues remain ongoing concerns.

Microsoft: Diversified Cloud and Enterprise Leader

Microsoft offers broader diversification across cloud computing (Azure), productivity software (Microsoft 365), gaming and enterprise solutions. Azure has shown resilient growth amid AI demand, with Copilot tools integrating artificial intelligence across its product suite. The company’s enterprise lock-in and massive commercial backlog provide more predictable revenue streams compared to advertising-dependent models.

Microsoft has also increased capital spending significantly to support AI infrastructure, but its scale and diversified revenue base have helped cushion the impact. Analysts highlight steady progress in monetizing AI through existing customer relationships rather than solely pursuing new moonshot initiatives.

The stock carries a premium valuation reflecting its stability and consistent execution. Microsoft maintains a strong dividend yield and has a long track record of capital returns, appealing to investors seeking both growth and income.

Direct Comparison for 2026

Valuation metrics currently favor Meta on several forward-looking measures, particularly after the year’s correction. However, Microsoft’s diversified business model offers greater downside protection in uncertain economic conditions. Cloud growth and enterprise adoption provide Microsoft with more visible revenue visibility than Meta’s advertising-driven results.

AI represents the critical battleground. Microsoft benefits from early integration through partnerships and existing platforms, while Meta’s heavier spending aims for potentially higher long-term rewards in consumer AI. Analysts remain divided on which approach will deliver superior returns, with some favoring Microsoft’s measured execution and others betting on Meta’s aggressive innovation.

Risk factors differ notably. Meta faces higher volatility tied to advertising cycles, regulatory scrutiny and execution on ambitious AI projects. Microsoft contends with intense competition in cloud services and potential slowdowns in enterprise spending, though its scale provides a buffer.

Growth projections tilt slightly toward Meta in optimistic scenarios due to its lower base and potential for rapid AI monetization. Microsoft offers more consistent mid-teens growth with less execution risk. Both companies maintain strong balance sheets and competitive moats that support long-term compounding.

Investment Considerations

For growth-focused investors comfortable with volatility, Meta may present compelling value at current levels, especially if AI investments begin showing clearer returns in user engagement and revenue. Those prioritizing stability, dividends and diversified exposure may lean toward Microsoft, which many analysts view as a core holding for the decade ahead.

Diversification remains advisable. Owning both provides balanced exposure to consumer AI through Meta and enterprise AI plus cloud infrastructure through Microsoft. Portfolio allocation should align with individual risk tolerance, time horizon and overall market outlook.

Broader sector trends support positive outlooks for both. Continued AI adoption across industries, combined with digital transformation efforts, creates tailwinds. However, high capital intensity and potential economic slowdowns could pressure multiples if returns on AI investments disappoint.

Analyst consensus rates both as strong buys, though Microsoft often receives slightly higher average price targets relative to current trading levels in some surveys. Long-term forecasts through the end of the decade favor companies that successfully convert AI spending into sustainable profit growth.

As the year progresses, quarterly earnings and AI product updates will serve as key catalysts. Investors should monitor capital expenditure efficiency, revenue growth trajectories and competitive positioning closely.

Neither stock represents a guaranteed winner, but both offer exposure to powerful secular trends in technology. The choice ultimately depends on whether an investor seeks higher-risk, higher-reward potential with Meta or more measured, diversified growth with Microsoft.

With both trading at more reasonable valuations following 2026 corrections, the current environment may present attractive entry points for long-term believers in their respective strategies. Prudent investors will continue assessing fundamental execution alongside macroeconomic developments.

Waterloo, Ontario (AP) — BlackBerry Ltd. shares climbed sharply on Friday, trading near $8.83 and extending a powerful rally that has seen the stock hit multiple 52-week highs this week, as investors bet on the company’s entrenched position in automotive software and emerging opportunities in physical artificial intelligence.

The NYSE-listed shares (BB) rose about 0.57% in morning trading on May 29, continuing gains that pushed the stock up more than 60% in the past month. Volume has been elevated, reflecting heightened retail and institutional interest in the former smartphone maker’s transformation into a cybersecurity and embedded software provider.

BlackBerry has shed its consumer hardware roots to focus on two main divisions: QNX, its real-time operating system widely used in vehicles and industrial systems, and Secure Communications, centered on mission-critical government and enterprise tools. The shift has produced consistent profitability improvements, with the company posting its eighth consecutive quarter of GAAP profitability in its fiscal fourth quarter ended February 2026.

QNX Powers Growth in Vehicles and Robotics

QNX remains the crown jewel. The software runs in more than 275 million vehicles globally and posted record revenue of $78.7 million in the fiscal fourth quarter, up 20% year-over-year. The division’s royalty backlog swelled to nearly $950 million, according to company disclosures.

A new QNX-commissioned study released this week underscored growing demand. The research, surveying 1,000 robotics developers, found that 89% view physical AI as critical to their future strategy. Software architecture and integration emerged as the top performance bottleneck for 27% of respondents, outpacing hardware concerns at 16%.

“Hardware advances are no longer the bottleneck; software now leads,” the report emphasized, highlighting needs for deterministic real-time performance and safety in mixed-criticality systems.

Analysts and industry observers see QNX benefiting from the rise of software-defined vehicles and autonomous systems. Partnerships, including expanded collaboration with Nvidia for AI platforms, position BlackBerry to capture royalties as vehicles become more intelligent.

Secure Communications Gains Federal Backing

BlackBerry’s Secure Communications segment also advanced. In mid-May, the company announced that its AtHoc emergency notification platform achieved FedRAMP Class D (High) re-certification, the U.S. government’s highest standard for handling sensitive unclassified data.

The certification supports growing demand from federal agencies for reliable crisis communications. BlackBerry AtHoc is used by about 80% of U.S. federal government organizations for emergency alerts.

In the fiscal fourth quarter, Secure Communications revenue rose 8% to $72.5 million, with annual recurring revenue reaching $218 million.

Financial Turnaround and Capital Returns

For the full fiscal 2026 year, BlackBerry reported revenue of $549.1 million, up 3% from the prior year. Adjusted EBITDA rose sharply, and net income turned positive at $53.2 million compared with a loss in the previous fiscal year.

The company has initiated share repurchases, including a $100 million program announced earlier, signaling confidence in its valuation and cash generation.

Fiscal first-quarter 2026 results, covering the period ended May 2026, are scheduled for release around June 25. Investors will watch for continued QNX momentum and guidance updates.

Market Reaction and Analyst Caution

The rally has drawn attention. Shares have more than doubled year-to-date in some periods of strong momentum, fueled by options activity, social media buzz, and optimism around AI-adjacent software.

However, Wall Street maintains a largely Hold consensus. The average 12-month price target sits around $4.88 to $5.22 from multiple analysts, suggesting potential downside from current levels if growth expectations are not met. Targets range from lows near $4.40 to highs around $6.00 to $8.50 in more optimistic cases.

Concerns include execution risks in a competitive software market, dependence on automotive cycles, and valuation multiples that have expanded rapidly. BlackBerry trades at a premium on forward earnings compared with some software peers.

Company Background and Strategy

Founded in 1984 in Waterloo, Ontario, BlackBerry pioneered secure mobile communications but struggled as smartphones commoditized. Under CEO John Giamatteo, the company has streamlined operations, separated divisions internally, and emphasized high-margin, recurring revenue streams.

CFO Tim Foote has highlighted progress in margins and profitability. Gross margins have improved, with adjusted figures reaching the high 70s in recent quarters.

BlackBerry’s QNX holds a strong reputation for reliability in safety-critical environments, from cars to medical devices and now robotics. Its deterministic real-time capabilities make it suitable for systems where failure is not an option.

Broader Industry Context

The surge aligns with investor enthusiasm for AI infrastructure plays. While much attention focuses on chips and large language models, the “physical” layer — robots, vehicles, industrial automation — requires secure, real-time operating systems. BlackBerry’s decades of experience in regulated industries give it an edge.

Global supply chain resilience and cybersecurity threats further support demand for trusted platforms. BlackBerry’s heritage in secure communications complements its embedded systems business.

Outlook

With fiscal 2027 revenue expected to grow in the mid-single digits or better according to some forecasts, BlackBerry aims to sustain momentum. Upcoming investor events and potential new partnerships could provide further catalysts.

The stock’s volatility remains high, typical for a smaller-cap technology name with a shifting business model. Traders should monitor volume, options flows, and any pre-earnings commentary.

BlackBerry’s revival story reflects broader themes in tech: legacy companies leveraging deep domain expertise to pivot into high-growth niches. Whether the current rally proves sustainable will depend on delivering consistent results and capitalizing on the software-defined future of machines.

This article was written by

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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