Today's Highlights
📌 Top story -- scroll down for more updates
Intel Rises on New Nvidia News
12:05 pm -- INTC +1.8%
Intel (INTC +1.09%) shares climbed Monday after CEO Lip-Bu Tan teased "exciting new products" in development with Nvidia (NVDA +2.58%). The collaboration centers on high-performance data center chips and AI-driven consumer PCs that integrate Nvidia’s RTX graphics into Intel’s silicon. This partnership, bolstered by Nvidia’s $5 billion stake in Intel, is a cornerstone of a massive turnaround that has seen shares surge nearly 500% over the last year. Further fueling the rally, reports indicate Intel has secured a preliminary deal to manufacture chips for Apple (AAPL 0.38%), signaling that its foundry business is finally gaining the scale needed to challenge Taiwan Semiconductor (TSM 1.60%).
- The Logic of Autonomous Bots: While GPUs handle heavy AI training, Intel is capturing the "inference" market where its CPUs power the actual actions taken by autonomous AI agents.
- Foundry Momentum: Intel’s manufacturing arm grew 16% to $5.4 billion last quarter, proving it can attract top-tier rivals like Advanced Micro Devices (AMD +2.23%) and Qualcomm (QCOM +8.72%) as contract customers.
NASDAQ: INTC
Key Data Points
Chipotle Sticks to Its Core Menu
11:40 am -- CMG -2.4%
Chipotle Mexican Grill (CMG 1.94%) CEO Scott Boatwright is doubling down on operational simplicity to drive long-term value, ruling out "random initiatives" like breakfast or fish tacos. Despite pressure to boost 2026 sales, Boatwright argues that breaking into the crowded breakfast daypart is too risky, while fish tacos are disqualified because the chain famously refuses to use freezers for its ingredients. While the brand is still "innovating back at the ranch" on dessert ideas, the focus remains squarely on maximizing the efficiency of the lunch and dinner rushes that have defined the company since 1993.
- Ethos Over Expansion: By rejecting frozen proteins, the company maintains a premium "food with integrity" moat that sets it apart from rivals like McDonald's (MCD 0.70%) or Taco Bell (YUM 1.30%).
- Operational Discipline: Avoiding menu bloat ensures faster throughput in the assembly line, which remains the primary driver of margin expansion and store-level profitability.
Meta AI Accused of Aiding Global Scammers
11:25 am -- META -1.4%
Meta Platforms (META 1.29%) is facing a major legal challenge after Santa Clara County filed a lawsuit alleging the tech giant knowingly profited from fraudulent advertisements. The complaint, representing all California residents, claims Meta earned up to $7 billion annually from "high-risk" scam ads on Facebook and Instagram. Prosecutors allege that leaked documents show Meta implemented "guardrails" to prevent anti-fraud measures from hurting the bottom line. Most concerning for investors, the suit suggests Meta’s generative AI may be assisting unethical marketers and that the company can "adjust the flood" of scam ads to meet specific revenue targets.
- Algorithmic Complicity: The lawsuit alleges Meta targeted scam ads at users based on their past clicks, essentially creating an automated pipeline for fraudsters.
- Internal Conflict: While Meta claims it aggressively fights scams to protect user experience, civil prosecutors argue the company sold protected accounts to middlemen to bypass its own enforcement.
NASDAQ: META
Key Data Points
High Rates Freeze April Home Sales
10:10 am
April home sales stalled, rising just 0.2% and missing analyst expectations of a 3% bounce. The lethargy stems from a sharp mortgage rate spike triggered by the conflict with Iran, pushing the 30-year fixed rate to 6.42%. While the S&P 500 sits at record highs, potential buyers face a record-high median April home price of $417,700. Tight inventory continues to benefit homebuilders like Lennar (LEN 1.64%) and D.R. Horton (DHI 1.24%), as existing homeowners remain "locked in" to lower rates, keeping the secondary market supply at a restrictive 4.4-month level.
Affordability Tug-of-War: Despite price gains, NAR reports that average income growth is outrunning home appreciation, though soaring borrowing costs largely neutralize these wage gains for new entrants.
Cash is King: All-cash deals maintained a 25% share of the market, insulating a quarter of transactions from the volatility seen by mortgage-dependent buyers and companies like Rocket Companies (RKT 5.23%).
Opening Bell
9:35 am
The S&P 500 and the Nasdaq are catching their breath this Monday following a historic six-week winning streak. Early gains were capped as President Trump dismissed Iran's latest peace proposal as "totally unacceptable," reigniting fears of a prolonged conflict. Consequently, West Texas Intermediate futures climbed 1% to over $96 per barrel. Despite the geopolitical friction, investors are leaning on last Friday’s blowout jobs report, where hiring doubled expectations, to support a "secular bull market" thesis. Markets remain near all-time highs as traders weigh a slowing economy against resilient corporate earnings.
- Structural Shock Absorbers: Some analysts argue that while high energy prices may dampen growth, deep-seated structural strengths should prevent a total economic derailment.
- Geopolitical Stalemate: The rejection of Tehran's 14-point memorandum shifts the focus back to potential supply disruptions in the Strait of Hormuz, a key risk factor for global logistics and energy plays.
Market indexes
Top of the Morning
9:25 am -- CVSA flat in pre-market trading
By Jim Gillies
If you've spent any time watching my appearances on Fool24 or are a member of Hidden Gems Canada, where I spend most of my days, you'll know that my "schtick" is the small, the perhaps strange, the misunderstood. Basically, companies that don't get a lot of love around Fooldom aside from me.
One such company reported last week, and let's just say that early results validate that I've chosen to recommend it twice in HG Canada. I'm talking about Covista (CVSA 2.83%), the for-profit education company with a focus on medical professions (nurses, doctors, nurse practitioners, veterinarians). If that company name doesn't seem familiar, you may remember Covista under its prior name, Adtalem Global Education, with the name (and ticker) switch becoming official in February of this year.
The theme from Covista's fiscal third quarter can probably be summarized as, "We did what we said we were going to do."
Happy Monday! MNDY Surges on AI-Driven Efficiency Gain
8:00 am -- MNDY +19.33% in pre-market trading
Work management powerhouse monday.com (MNDY +1.73%) delivered a robust first-quarter beat, reporting revenue of $351.3 million--a 24% year-over-year increase that handily cleared internal and analyst expectations. Leadership highlighted a strategic shift toward consumption-based pricing and the successful rollout of its AI Work Platform as primary catalysts. Perhaps most significant for the long-term investor is the company's newfound operating leverage; CFO Eliran Glazer noted that internal AI productivity gains are now allowing the firm to scale top-line revenue without a corresponding increase in headcount. Despite a 190 basis point drag from foreign exchange, non-GAAP operating margins held steady at 14%, signaling a business that is becoming leaner as it grows more complex.
- The Efficiency Inflection Point: By decoupling revenue growth from headcount, the company is demonstrating a software-as-a-service (SaaS) holy grail: widening GAAP operating margins, which doubled to 6% this quarter.
- Cash Flow Machine: The firm generated over $102 million in adjusted free cash flow, providing a massive capital cushion to further invest in autonomous AI agents that "do the work" for its 250,000+ customers.
NASDAQ: MNDY
Key Data Points
This Morning's Breakfast News
7:30 am -- GOOG -0.65%, NVDA -0.51% in pre-market trading
Alphabet (GOOG 1.79%) is on the verge of becoming the world's largest company, says Bloomberg, while "Big Short" investor Michael Burry warns it's "feeling like the last months of the 1999–2000 bubble." Alphabet stock has climbed around 150% over the past 12 months, nearly twice as far as current market-cap leader Nvidia's (NVDA +2.58%) rise.
- "Alphabet holds a significant spot in almost every corner of the AI ecosystem": Luke O'Neill at CooksonPeirce says this combined with the rest of Alphabet's offerings "puts it in a prime position to be the biggest winner of AI." If Nvidia hadn't ended last week with a three-day surge, the two market caps would have been neck and neck Friday.
- "Stocks are not up or down because of jobs or consumer sentiment": Burry, meanwhile, added "They are going straight up because they have been going straight up" in a Substack post on Friday. All he could hear on financial TV and radio sources was "absolutely non-stop AI."
Cirrus Logic Reaches All-Time High on Outlook
6:45 am -- CRUS +0.77% in pre-market trading
By CMFGouldberg, Home Fool & Ticker Guide
Cirrus Logic (CRUS 0.05%) wrapped up fiscal year 2026 in strong fashion, beating analyst expectations on both revenue and adjusted EPS in Q4. The company crossed the $2 billion annual revenue threshold for the first time, driven primarily by largest customer Apple (AAPL 0.38%) -- which accounted for more than 90% of sales. While that level of customer concentration remains a genuine risk, Cirrus Logic is working to broaden its business, with a fast-growing laptop chip operation, next-generation camera controller chips in development, and a new power management chip being designed in collaboration with Apple for use in facial recognition technology (although this product is still roughly two years from reaching the market). Adding to investor optimism, the company's guidance for the current quarter came in well above what analysts had been expecting, sending the stock to new all-time highs. For investors, the primary concern (with apologies to the Talking Heads) is the same as it ever was: Can Cirrus Logic continue to execute at a high level for Apple while also building out new revenue streams that could eventually reduce its dependence on that single relationship? I'll also be keeping an eye on whether Cirrus can manage rising R&D costs and potential tariff headwinds without sacrificing its healthy profit margins and free cash flow.
NASDAQ: CRUS
Key Data Points
Mindset Monday: Don't Monitor Volatile Stocks Too Often
6:00 am -- UPST +0.10% in pre-market trading
Member CandiceLee recently wrote on the Hidden Gems Primary Database in relation to Upstart (UPST 0.24%): "I have no idea how to understand any of it, and that's exactly why I bought into TMF lol. I am a complete dummy at this so I have to trust TMF. That is why I am here and also why I get distressed and confused."
Home Fool TMFVicki replied with the following:
"Are there companies that you do understand like Starbucks (SBUX +0.98%) or Costco (COST 1.56%) or Apple (AAPL 0.38%)? Do you own any of these? We recommend all three in Stock Advisor.
Not understanding how a finance company works, particularly one that is using AI to determine whether it should offer someone a loan and at what percentage rate, does not make anyone a dummy. It is a specialized field. While it is OK to invest in companies you don't understand, your level of distress makes it sound like maybe you have too large a position? Being able to sleep at night is important.
Upstart is a young company. It is competing against a lot of big companies. It is making progress. It might be the kind of company that you don't want to check in on too often. The stock price is going to move around on lots of things that aren't news about the company."
Today's Take: CEOs Who Play the Long Game
5:10 am -- NET +0.60% in pre-market trading
Here's a sneak preview, but head to the article to add your vote for the CEO that plays the long game the best, or to submit questions to any of the featured analysts today!
By Jason Moser
Team Rule Breakers
Cloudflare (NET 1.27%) co-founder and CEO Matthew Prince seems 100% committed to the long game. One quick glance at the financials might scare many away. The company has no GAAP profits and even free cash flow takes a hit thanks to stock-based compensation. But once you realize that's by design, then it starts to make a bit more sense. And we can't ignore the fact that the company has grown revenue at a 38% annualized rate over the past five years. He may rub some tech leaders the wrong way with his focus on the internet as an open, decentralized space (as opposed to being controlled by "walled gardens"), but the man has vision and drive. I've owned shares since 2021 and hope to own them for years to come.
NYSE: NET
Key Data Points
Switch 2 Price Hike Stalls Nintendo Rally
5:00 am -- NTDOY -11.29%
Nintendo (NTDOY +5.92%) shares tumbled more than 11% on Monday after the gaming giant announced a surprise price hike for the Switch 2 and issued a conservative forecast for the year ahead. In response to skyrocketing memory chip costs, the company will raise prices in Japan by ¥10,000 on May 25, followed by a $50 increase in the U.S. starting September 1. While the console sold a record 19.86 million units in its first year, Nintendo expects hardware sales to decline to 16.5 million units for fiscal 2027. Investors are increasingly wary that a lack of confirmed AAA blockbuster titles, combined with higher entry costs for casual gamers, could stall the platform's momentum in its critical second year.
- Margin Defense over Volume: Management is prioritizing profitability over unit growth by passing off rising component costs to consumers, a risky move as peer Sony (SONY +5.68%) maintains more aggressive pricing for the aging PlayStation 5.
- The "Bar is Low" Strategy: Despite the sell-off, some analysts suggest the downbeat guidance is a defensive play, noting that Nintendo has beaten its initial operating profit forecasts for four consecutive years.
OTC: NTDOY
Key Data Points
Before the Opening Bell
4:05 am
Stock futures retreated Monday morning as hopes for a swift end to the Iran conflict evaporated following a sharp rebuke from the White House. President Trump dismissed Tehran's revised peace proposal--which reportedly demanded war reparations and full control of the Strait of Hormuz--as "totally unacceptable," effectively dashing the "peace dividend" optimism that drove indices to record highs last Friday. In response, Brent crude surged 4.2% to $105.57 per barrel, reigniting inflation fears even as the latest U.S. labor data showed a surprisingly resilient 115,000 new jobs for April. While tech-heavy markets in Asia remained buoyed by the ongoing artificial intelligence boom, the broader global outlook has shifted back to a "higher-for-longer" stance on energy costs and interest rates.
Moderna Gains Amid Hantavirus Vaccine Interest
4:00 am -- MRNA +3.99% in pre-market trading
Moderna (MRNA 1.99%) shares rose following renewed attention to potential mRNA-based hantavirus vaccine development. The interest comes after reports of a hantavirus outbreak on the MV Hondius cruise ship from Argentina to Cabo Verde highlighted the lack of approved human vaccines for the virus.
- Unconfirmed partnerships drive speculation: Online reports and patent discussions have linked Moderna to early stage mRNA hantavirus research, potentially involving academic and government partners, though detailed program updates have not been widely publicized by the company.
- Biotech sector benefits from outbreak concerns: The stock gained ground amid broader vaccine sector interest following the cruise ship outbreak, with investors focusing on companies positioned to address emerging infectious disease threats through rapid mRNA platform deployment.
