■ AI & Semiconductor Leaders
Nvidia (NVDA)
Reports indicate Nvidia is expected to invest $20 billion in OpenAI.
Despite previous rumors of hesitation, CEOs Jensen Huang and Sam Altman denied such claims, confirming Nvidia's participation in the funding round.
While this marks Nvidia's largest single investment in OpenAI to date, it falls significantly short of the $100 billion maximum discussed back in September.
AMD (AMD)
Q4 revenue reached $10.27 billion, beating the $9.67 billion forecast, while adjusted EPS of $1.53 surpassed the $1.32 estimate.
Q1 2026 revenue guidance was set at approximately $9.8 billion, exceeding the $9.38 billion expectation.
However, shares are reflecting disappointment as some analysts had anticipated even stronger guidance amid the ongoing AI processor spending boom.
Super Micro Computer (SMCI)
Fueled by intense demand for AI-optimized servers, SMCI reported a massive Q2 beat.
Adjusted EPS hit $0.69 (vs. $0.49 est), and revenue reached $12.68 billion (vs. $10.23B est).
The company raised its FY2026 revenue guidance to at least $40 billion.
■ Healthcare & Biotechnology
Eli Lilly (LLY)
Reported stellar Q4 adjusted EPS of $7.54 on revenue of $19.29 billion, crushing estimates of $6.67 and $17.96B, respectively.
For 2026, Lilly projects revenue between $80 billion and $83 billion, well above the $77.62B consensus.
Annual adjusted EPS guidance was set at $33.50–$35.00, topping the $33.23 market estimate.
Novo Nordisk (NVO)
Q4 results were solid with an adjusted EPS of $1.02 and revenue of $12.53 billion, beating expectations.
However, the stock faces pressure after the company projected 2026 revenue and operating profit to decrease by 5% to 13%.
Barclays noted this may be a "reset" to clear negative news, similar to concerns seen last year that did not materialize.
GE Healthcare (GEHC)
Q4 adjusted EPS reached $1.44 on revenue of $5.7 billion, both beating estimates.
Issued strong 2026 adjusted EPS guidance of $4.95–$5.15, representing 7.9%–12.3% growth.
■ Fintech & Consumer Services
PayPal (PYPL)
Canaccord downgraded PayPal to Hold, citing fading e-commerce competitiveness and pressure from Apple/Google Pay.
HSBC also lowered its rating to Hold ($47 PT) due to a sharp slowdown in branded payment volume in Q4.
Citizens downgraded to Neutral, warning that "agentic commerce" is increasing competitive risks and causing market share loss.
Booking Holdings (BKNG)
Mizuho Securities upgraded to Outperform ($6,000 PT), suggesting AI fears are exaggerated.
Analyst noted that during the 2018 shift to meta-search, Online Travel Agencies (OTAs) actually gained market share.
Projected 19% growth in 2026 adjusted EPS also supports the bullish outlook.
■ Retail Sector Pivot
Walmart (WMT) & PepsiCo (PEP)
Jefferies anticipates widespread price cuts across the sector, favoring Walmart.
PepsiCo announced price reductions of up to 15% on Lay's and Doritos to combat volume stagnation and competition from private labels.
Walmart is seen as the winner due to superior pricing power and its recent milestone of surpassing a $1 trillion market cap.
■ Key Mid-Cap & Sector Updates
■ Enphase Energy (ENPH): Shares surged on optimistic Q1 revenue guidance of $270M–$300M.
■ Silicon Laboratories (SLAB): Surged after Texas Instruments (TXN) agreed to acquire the company for $7.5 billion.
■ Quantum Computing (QUBT): Completed the $110M cash acquisition of Lumina Semiconductor to speed up commercialization.
■ Boston Scientific (BSX): Plunged 9% after providing disappointing annual guidance.
■ Varonis Systems (VRNS): Dropped as 2026 EPS guidance ($0.06–$0.10) missed the $0.35 consensus.
■ Take-Two (TTWO): Rose after raising 2026 net bookings guidance to $6.65B–$6.7B.
