Delta Flew Higher, but This AI Stock Was Tuesday's True Winner

Stocks had a strong day, making up for much of the market's losses over the past week. The Nasdaq Composite (^IXIC 2.02%) led Wall Street higher, but gains were sizable for the S&P 500 (^GSPC 1.02%) and Dow Jones Industrial Average (^DJI 0.40%) as well.

Data source: Yahoo! Finance.

Stocks across the market showed gains, with airline stock Delta Air Lines (DAL 0.08%) standing out among more cyclical areas of the economy. Yet AI stocks continued to do well, and Unity Software (U 3.47%) was one of the day's biggest winners. Here are the details you'll want to know.

Delta's cleared for takeoff

Shares of Delta Air Lines finished higher by 7% on Tuesday. The airline giant made a filing with the U.S. Securities and Exchange Commission (SEC) in advance of its investor day presentation, and what Delta said gave shareholders a lot of confidence in what the future could bring.

Delta was encouraging about the state of global travel. Internationally, passengers have returned to the skies as pandemic-era travel restrictions have largely come to a close. Meanwhile, within the U.S., domestic travel trends remain favorable as well, even though high inflation levels and concerns about a potential economic recession have weighed on consumer sentiment to some extent. Delta believes that the summer travel season will set new records, eclipsing pre-pandemic levels and reflecting a full recovery.

More specifically, Delta said that it expects adjusted earnings to come in at the high end of its previous guidance range of $5 to $6 per share. The airline also pushed its free-cash-flow projections to $3 billion, up from just over $2 billion previously. For 2024, Delta remains confident that it can earn more than $7 per share and post free-cash-flow levels above the $4 billion mark.

Falling prices for jet fuel have made many airline stocks attractive, but Delta has advantages within the business travel community that give it a competitive edge. If the summer goes well, Delta stock could have further to climb.

Unity announces new AI features

Gains for Unity Software were even larger, as the stock climbed 15%. The company made a pair of announcements heralding its AI prowess, catering to investors hungry to invest in the hot trend.

Unity launched a dedicated AI marketplace in its Unity Asset Store that will help to accelerate AI-driven game development and playing enhancements through curated content solutions. Developers can turn to the marketplace to tap into multiple features, including generative AI tools, AI/machine learning-integration solutions, and AI-based behavior.

In addition, Unity also launched its Sentis and Muse AI platforms to boost creator productivity. Unity Sentis helps deploy AI models in Unity-based projects, while Muse will help specifically with the creation of real-time 3D content. This will help game developers create immersive and interactive experiences more effectively.

Unity has gotten a lot of publicity because of high-profile partnerships with tech giants. Investors are hungry for companies that can benefit from AI, but it remains to be seen just how important these new game-development tools will be for Unity and how well the company will demonstrate a connection to the broader trends pushing artificial intelligence forward.