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The recent market selloff has left very few areas untouched. Fear and panic are taking hold as trade wars, tariffs, and economic uncertainty ripple through the financial landscape. But it’s not all doom and gloom. While the broader market pulls back, this downturn might present some compelling opportunities, especially for stocks trading near key support levels or at what could be considered a discount.

That seems to be the case with the two stocks below. Both have sold off sharply from their recent highs, yet they’ve also posted solid earnings beats. This intriguing combination of positive fundamentals and technical pullbacks suggests that these two names might be primed for a rebound.

MercadoLibre: A Blowout Quarter, Now 11% Off Highs

MercadoLibre, Inc. NASDAQ: MELI is Latin America’s largest e-commerce and fintech platform. It operates in 18 countries, connecting millions of buyers and sellers through its online marketplace and offering various digital payments, logistics, and financial services.

Despite delivering knockout Q4 2024 earnings, MELI has tumbled more than 11% from its recent 52-week highs. The pullback seems tied to broader U.S. stock market weakness and a dose of profit-taking rather than any fundamental issues with the company itself. For long-term investors, this retreat could be a welcome buying opportunity.

MercadoLibre’s Q4 numbers were nothing short of impressive. Revenue soared to $6.1 billion, a 37% year-over-year jump that easily beat Wall Street’s $5.9 billion estimate. Net income surged to $639 million, smashing the $402 million forecast. The marketplace remains on fire, with gross merchandise volume hitting $14.5 billion, up 56% when adjusted for currency swings. Meanwhile, its fintech arm, Mercado Pago, processed $58.9 billion in payments, up 33%, and its credit portfolio expanded by 74%, reaching $6.6 billion.

With the stock returning to a key support zone, previous resistance is now turned to support. This could be a golden entry point for investors seeking exposure to one of Latin America’s most dominant tech companies. The fundamentals are strong, and this dip may not last long.

PayPal: Solid Earnings, Oversold Stock

PayPal Holdings NASDAQ: PYPL needs no introduction as one of the world’s largest and most established fintech companies, dating back to 1998. However, despite its long-standing leadership in digital payments, its stock has recently fallen out of favor.

After an aggressive selloff post-earnings, PayPal is now in correction territory, down nearly 19% year-to-date. The Q4 2024 report, released on February 4, 2025, showed solid results that topped expectations. Revenue rose 4% year-over-year to $8.37 billion, edging past analyst estimates of $8.3 billion. Net income reached $1.2 billion, with adjusted earnings per share (EPS) of $1.19, beating the $1.14 consensus forecast. Total payment volume (TPV) climbed 7% to $437.8 billion, just shy of the $438.2 billion projection.

Adding to its long-term appeal, PayPal announced a $15 billion share buyback program, with $6 billion planned for 2025. This shows strong confidence in its growing cash flow, which surged 40% to $2.1 billion for the quarter.

Yet, despite these positives, the stock dropped nearly 10% post-earnings, mainly due to concerns about slowing branded checkout growth and slightly lower transaction take rates. Still, PayPal guided for 2025 EPS of $4.95 to $5.10, exceeding Wall Street’s $4.90 estimate, signaling a clear focus on growth and operational efficiency.

Now trading below its 200-day moving average, with an oversold RSI and hovering near a support zone around $65, PayPal might be an attractive buy-the-dip candidate. For investors willing to look past the short-term noise, this could be a prime moment to grab shares of a fintech leader with a strong turnaround narrative.

The Bottom Line

While fear has gripped the markets, not all sell-offs are permanent. MercadoLibre and PayPal have delivered strong earnings yet are trading at potential discounts. These two oversold stocks may be worth a closer look for investors seeking quality names with solid fundamentals and promising technical setups.

Before you consider MercadoLibre, you’ll want to hear this.

MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and MercadoLibre wasn’t on the list.

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One of the hottest big-name stocks over the past 52 weeks has been Robinhood Markets NASDAQ: HOOD. As of the Mar. 4 close, Robinhood shares are up over 178%. The investing platform that is popular with younger users has somewhat reinvented itself. It has gone from a meme stock to a highly relevant investment platform.

Robinhood Markets Today

HOOD

Robinhood Markets

$44.42 -0.42 (-0.94%)

As of 03/7/2025 04:00 PM Eastern

52-Week Range

$13.98

▼

$66.91

P/E Ratio

28.29

Price Target

$60.13

Aside from crypto trading, retirement accounts and the Gold Subscription plan have been strong growth drivers. Interest income growth has also played a key role.

Still, given the massive uptick in the financial company’s share price, it is important to examine areas where Robinhood is looking to drive future growth. The company is making a significant push into international markets for expansion.

Below is an analysis of the potential of this opportunity and Robinhood’s ability to execute it.

Robinhood’s Global Expansion: How the Investing Giant Is Scaling Beyond the U.S.

Robinhood has begun its international expansion in the United Kingdom (U.K.) and Europe, now holding over 100,000 non-U.S.-funded accounts—less than 0.5% of its total customer base. This highlights the early stage of its global growth and the significant opportunity ahead.

However, it also introduces risk as the company will have to compete with more established players in these foreign markets.

The firm has also picked Singapore as the country where it will base its operations to expand into the Asia-Pacific (APAC) market. The company aims to grow its international reach to millions and then to tens of millions of customers.

Bitstamp: A Game-Changer in Robinhood’s International Growth Strategy

Robinhood’s strategy for international expansion may soon be getting a shot in the arm. In Jun. 2024, the company announced plans to acquire Bitstamp. This acquisition is on track to close by Jun. 2025. Bitstamp is the world’s longest-running cryptocurrency exchange and has key licenses and registrations in Europe, the U.K., and Asia. 

This is important, as it helps bypass some of the time-consuming legwork that Robinhood would have to go through to get these licenses itself. Also, the firm has over 5 million customers. This can help quickly boost Robinhood’s international reach. Over time, Robinhood can add more services like those it already has in the United States to boost its international revenue per user.

Kaiko Research reports that Bitstamp held the fourth spot in euro-denominated crypto volume in November 2024, with an 8% market share. So, the transaction helps Robinhood gain a notable foothold in this market. The acquisition also helps Robinhood enter the institutional crypto market. Robinhood focuses entirely on retail investors.

In contrast, Bitstamp serves both retail and institutional clients. Robinhood has $12.3 billion in cash and equivalents on its balance sheet. The company can easily absorb the just $200 million cash price it is paying for Bitstamp. Given the relatively low cost of this deal versus the potential benefits, this seems like a smart choice for Robinhood.

Still, it’s important to note that euro-denominated crypto trading volume is only about 15% of U.S. dollar (USD) denominated volume. Euro-denominated volumes grew by 116% from Jan. 2024 to Nov. 2024. Although this is very strong, it lags behind the 192% growth for USD-denominated volume.

Could Robinhood’s International Expansion Drive Future Stock Gains?

Focusing on Robinhood’s expansion in the EU, there is significant reason for optimism but also risks to consider. Entering this new market adds significant potential for growth. Getting the Bitstamp acquisition approved will make this entrance much smoother.

However, the euro-denominated crypto market is notably smaller than the U.S. market and is growing more slowly. The EU has stricter crypto rules than the United States. This could add extra costs for Robinhood and might impact the business’s overall profitability.

Still, Robinhood’s EU expansion has the potential to be solidly accretive to the business in late 2025 and beyond. However, the approval of the Bitstamp purchase is key to achieving success. This is additionally true as Robinhood looks to expand into the APAC region later on.

Crypto trading in Asian currencies represents a far larger market than Europe. Overall, the completion of the Bitstamp transaction and the international customers it can bring could be an important catalyst that provides a boost to the stock later in 2025.

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Whatever you think of Donald Trump’s tariff policies, one fact stands out: companies are looking to invest more in the United States. They want to avoid the negative impacts of tariffs on their business. One firm doing just this is Eli Lilly and Company NYSE: LLY. The firm announced it will be investing $27 billion in the U.S. to scale up its manufacturing capabilities.

Eli Lilly and Company Today

LLY

Eli Lilly and Company

$868.59 -44.17 (-4.84%)

As of 03/7/2025 03:59 PM Eastern

This is a fair market value price provided by Polygon.io. Learn more.

52-Week Range

$711.40

▼

$972.53

Dividend Yield

0.69%

P/E Ratio

74.17

Price Target

$1,007.50

Before they even went into effect on Mar. 4, Trump’s tariffs were already impacting markets. The S&P 500 Index is now down over 3% since Trump took office as of the Mar. 4 close. Some of this is attributable to tariff fears as well as weakening economic indicators. The University of Michigan Consumer Sentiment Index notably dropped to its lowest level since Nov. 2023 in February.

U.S. government bond interest rates have exhibited a largely parallel shift down across all maturities longer than two years. This means investors are demanding more bonds, signaling a flight to safety from risky assets to safe ones. Markets worry that tariffs and a less optimistic consumer could raise inflation and slow growth. This would result in a bad economic outcome. This examines how a major U.S. investment and prevailing market concerns affect Eli Lilly, the largest pharmaceutical company globally.

Lilly’s $27 Billion U.S. Expansion: A Strategic Response to Tariff Uncertainty

In its Feb. 26 press release, Lilly outlined a plan to invest an additional $27 billion in the United States over the next five years. This would bring the company’s U.S. manufacturing investment to $50 billion since 2020. Lilly will build four new manufacturing facilities. They will boost the production of Lilly’s drugs “across therapeutic areas,” not just for its immensely popular weight loss and diabetes drugs. Three of these sites will be used to produce more of the active ingredients in its medicines. One will focus on making injectable pens for Mounjaro and Zepbound medications.

In addition to approved drugs, the sites will help Lilly increase capacity for pipeline drugs that aren’t approved yet. This move comes just days after the President had a meeting with leading pharma executives. He warned that tariffs could soon hit these firms if they fail to relocate their manufacturing to the United States. Trump is mulling a 25% tariff on imported pharmaceuticals, among other products.

Analyzing the Market Reaction and Implications of the Lilly Announcement

On the day of the announcement, Lilly shares were up around 2%. This signals that markets were moderately supportive of this move. This is a good sign, considering large investments often cause shares to fall. Investments in manufacturing are expensive and can hurt profit margins in the medium term.

However, from Lilly’s standpoint, these investments make sense. The company recently resolved its tirzepatide shortage. Tirzepatide is the main ingredient in Mounjaro and Zepbound. Given the rabid demand for these medicines, investing in manufacturing only helps ensure a shortage won’t return. This prevents a headwind on sales growth because supply can keep up with demand.

Another reason to like this announcement is that it doesn’t represent a massive change from what Lilly was already doing. With $23 billion in U.S. investment since 2020, this new announcement represents less than a $1 billion increase in investment per year for the next five years. This indicates Trump’s threats might not have unduly impacted the company. They likely weren’t the only factor behind the announcement. It is possible these threats simply influenced Lilly to make this announcement faster than it otherwise would have.

Built-in Characteristics and a Price Reduction Can Help Support Lilly in a Potential Downturn

It’s still unclear if the American economy is heading for an extended period of lower growth and higher inflation. This would not be great for Lilly’s business; however, it has some built-in protection. Since it sells drugs, insurance covers most of its sales. Within commercial insurance, Zepbound has an 87% coverage rate.

This means if American pocketbooks get squeezed, most will not have to demand less of the drug because their insurance covers it. For people without coverage, Lilly is also making smart moves to extend access. The company just reduced the cost of its out-of-pocket payment program for Zepbound by 9% to 29%, depending on the dosage. This can help support out-of-pocket demand if economic conditions worsen.

Despite Lilly’s high valuation, these factors bolster its investment appeal. Analysts at TD Cowen notably raised their price target to $1,050, signaling a 15% upside from the Mar. 4 closing price.

Before you consider Eli Lilly and Company, you’ll want to hear this.

MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Eli Lilly and Company wasn’t on the list.

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Target Today

$115.11 +1.06 (+0.93%)

As of 03/7/2025 03:59 PM Eastern

This is a fair market value price provided by Polygon.io. Learn more.

52-Week Range

$112.10

▼

$181.86

Dividend Yield

3.89%

P/E Ratio

12.21

Price Target

$147.00

Target NYSE: TGT is not out of the weeds, but the signs are unmistakable. The market for its stock is bottoming. The caveat is that it may take time for the market and stock price to regain traction. Headwinds and clouds are on the horizon that will impact the price action in March, but even they have a silver lining. 

Target’s headwinds are not business-specific but shared by industry peers. They may send the stock prices of Walmart NYSE: WMT, Costco NASDAQ: COST, TJX Companies NYSE: TJX and even Dick’s Sporting Goods NYSE: DKS into a deep correction, while Target’s stock price, which has already suffered years of bearish activity, is unlikely to fall much further.

Eventually, the headwinds will pass, and long-term-oriented investors with the foresight to buy in early 2025 will be positioned for leveraged gains aided by Target’s high-yielding dividend and share repurchases. 

Target Outperforms in Q4 and Issues Cautious Guidance 

Target’s Q4 and full-year 2024 results are not robust but indicate a bottom as organic growth begins to offset its business rationalization. The $30.92 billion is down more than 3.0 % compared to the prior year but outpaced the consensus by 30 basis points on strength in comp sales and digital channels.

Comp sales grew by 1.5% on an 8.7% increase in digital, offsetting slight in-store weakness. Same-day delivery is the report’s star, rising by 25% compared to the prior year and expected to remain solid in 2025. 

Margin news is mixed but favorable to shareholders. The company experienced margin pressure at the year’s end and reported margin contraction but less than MarketBeat’s reported consensus forecast. The $2.41 in adjusted earnings is down almost 20% YOY but $0.16 better than expected by analysts, with earnings strength expected to improve in 2025. 

The guidance is why the stock price fell following the Q4 release. The company forecasts a solid 2024 with top-line growth near 1% and a wider margin but expects a weak Q1 due to softness in February numbers. The takeaway for investors is that soft Q1 figures are insufficient to upset the company’s financial strength and capital returns, which are critical to the stock price rebound. 

Target Improves Shareholder Value in 2024

Highlights from Target’s 2024 include improving balance sheet strength, a high-yielding dividend, and count-reducing share buybacks. Regarding the balance sheet, the company reports increased cash, inventory, current, and total assets with reduced long-term debt and relatively flat total liability. 

The net result is a 9.2% increase in equity despite the 1% quarterly reduction in share count and the dividend payment.

The dividend is worth 3.75%, with the stock trading near long-term lows, and the distribution will likely increase in F2025.

The payout ratio at the end of 2024 was less than 50%, a healthy level for a Dividend King after over 50 years of consecutive increases.

Analyst and institutional trends align with a market bottom.

The analysts’ trends include increased coverage relative to early 2024, a Hold rating with a bullish bias, and a steady consensus target forecasting a 50% upside from the critical support target.

The institutional trends include buying on balance every quarter in 2024 and the buying activity ramping to a multi-year high in Q1 2025. 

Target Stock Moves to Multiyear Low: Enters Buy Zone

Following the Q4 earnings release, Target stock fell and could move as deeply as the $100 level. The $100 level is likely the bottom for this market and an attractive entry point for investors. At that level, the stock will trade under 11x its 2025 earnings, rock bottom for a dividend-paying stock like this one.

The question is how long the market will wallow at these levels and when the rebound will begin. The rebound could start as soon as Q2 2025 when the FQ1 earnings report and guidance update are released. 

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MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Target wasn’t on the list.

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TJX Companies Today

TJX

TJX Companies

$119.18 -1.47 (-1.22%)

As of 03/7/2025 03:59 PM Eastern

This is a fair market value price provided by Polygon.io. Learn more.

52-Week Range

$92.35

▼

$128.00

Dividend Yield

1.26%

P/E Ratio

28.04

Price Target

$135.06

TJX Companies NYSE: TJX is a top-shelf blue-chip quality dividend growth stock on par with Cintas NASDAQ: CTAS, Casey’s General Stores NASDAQ: CASY, and Kroger NYSE: KR. 

Its market position within a staple retail consumer category, growth, cash flow, balance sheet, and capital return quality are reflected in its stock price, which has steadily risen for decades and is on track to sustain the parabolic increase over time.

The company’s resilience in various economic conditions further strengthens its appeal as a long-term investment.

This is a look at why it’s a good buy for investors in 2025. 

TJX Companies to Increase Its Capital Return in 2025

The Q4 F2025/C2024 earnings release and F2026 guidance highlight plans to increase the capital return, a tailwind for stock prices. The company announced a 13% distribution increase, expanding the streak of annual increases to four following the COVID-related suspension, and buybacks will also be significant.

The forecast is for $2.0 to $2.5 billion in share repurchases, steady compared to 2024 and equal to 1.6% of the early March market cap. The net impact of buybacks in calendar 2024 reduced the share count by 1.46%, and a similar result is expected in calendar 2025 and each subsequent year. 

TJX Companies’ dividend yield aligns with the S&P 500 average in early 2025. Still, its outlook for sustained, double-digit distribution growth is more robust, supporting an outlook for higher share prices over time. The company’s payout ratio is less than 40% of GAAP earnings, and the cash flow is solid, leaving ample room for distribution increases at an above-average pace. 

The company’s F2025 balance sheet highlights also point to higher share prices over time. The highlights include reduced cash offset by increased receivables, inventory, current and total assets. Current and total liabilities are also up but insufficient to offset the asset gains, leaving equity up by 15%. That is a significant gain considering the impact of share repurchases and the 15% increase posted in the prior year; a similar gain is expected in 2025. 

Sell-Side Interest Provides a Strong Tailwind for TJX Companies

The sell-side interest in TJX Companies is telling and provides a strong tailwind for the market. Analysts rate the stock at a consensus of Moderate Buy, are lifting price targets following the F2026 guidance, and see the stock advancing 10% from early March levels to set a new all-time high. The most recent targets put this market in the high-end range, another 10% upside.

Institutional activity is equally strong, with them owning more than 90% of the stock and the balance of activity shifting significantly in Q1 of this year. Institutions that had sold on balance in Q4 2024 reverted to buying in Q1 2025 and ramped the buying activity to a multiyear high, netting nearly 2% of the stock. 

The long-term outlook for TJX is also solid. The company’s position as the leading off-price retailer has it set up to sustain a mid-single-digit top-line growth pace through the middle of the next decade. The company is also expected to improve its operating leverage and deliver a higher single-digit earnings growth pace. Earnings are expected to top $9.50 by 2034, putting the forward valuation near 12x earnings, making it a deep-value opportunity.

TJX Market Winds Up for Next Big Movement

The price action in TJX stock fell following the Q4 results but is not indicated to fall far. The long-term outlook, as indicated by the monthly price action, is far more bullish, including a Bullish Flag Pattern. The Bullish Flag Pattern is a sign of bullish activity potentially leading to the continuation of underlying trends. In this case, the market is up 10% in the near term, 25% in the mid-term, and 100% in the longer term, providing robust targets for 2025. Moving to new highs would indicate trend continuation and bring targets of +10%, +25%, and +100% into play. 

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MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and TJX Companies wasn’t on the list.

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Intel Today

$20.64 -0.11 (-0.53%)

As of 03/7/2025 04:00 PM Eastern

52-Week Range

$18.51

▼

$46.63

Price Target

$26.88

Intel Corporation NASDAQ: INTC is at a critical juncture. Reports are coming out that two major industry players are considering Intel’s advanced 18A manufacturing process. This development marks a pivotal test for Intel Foundry Services, the foundation of the company’s IDM 2.0 strategy.

The outcome could determine Intel’s resurgence in the competitive chip manufacturing sector. The market’s immediate and volatile reaction to Intel’s foundry comeback bid caused their stock price to drop by almost 7%. This drop highlights the high stakes and uncertain outcome of the company’s new endeavor. Investors are closely watching, as this moment could redefine Intel’s competitive standing and reshape the semiconductor sector.

Inside Intel 18A: Engineering a Foundry Revolution

Intel’s 18A process has garnered significant attention from investors due to its potential to redefine the company’s position in the semiconductor industry. This process node, Intel’s most advanced yet, is designed to deliver unparalleled performance and efficiency, potentially surpassing industry leaders like Taiwan Semiconductor Manufacturing NYSE: TSM and Samsung OTCMKTS: SSNLF. Intel 18A is more than an incremental advancement because it represents a strategic move by Intel to reclaim technological leadership and outpace competitors.

The Whale Watch: Intel Foundry Test

NVIDIA Corporation NASDAQ: NVDA and Broadcom Inc. NASDAQ: AVGO‘s potential evaluations of Intel’s 18A process could transform the industry. Securing either or both of these companies as clients for Intel Foundry Services would be a monumental validation of Intel’s technology and foundry capabilities. 

These are precisely the kind of “anchor clients” that can catapult a foundry business into the major leagues, lending instant credibility, driving substantial revenue streams, and attracting a cascade of other customers. Landing manufacturing contracts with NVIDIA and Broadcom would signal to the entire industry that Intel is not just a contender but a serious and capable foundry partner for the most demanding, leading-edge chip designs. 

However, it is crucial to maintain perspective. The current reports indicate that NVIDIA and Broadcom are only testing Intel’s 18A process. These evaluations could be preliminary assessments, exploratory probes, or rigorous qualification processes. There is no guarantee that these tests will translate into firm manufacturing commitments or long-term contracts. Whether these evaluations represent genuine steps towards major foundry wins or simply remain as tests will be a critical determinant in gauging the true significance of this news for Intel’s foundry comeback.

Xeon 6 Launch: Internal Innovation and Foundry Focus

Intel continues to drive innovation and advancements in its core product lines, even as external attention is focused on its foundry ambitions. The recent launch of Intel Xeon 6 processors, which deliver exceptional performance and efficiency for diverse workloads, including AI applications, exemplifies this commitment. 

Unveiled at Mobile World Congress 2025, these processors offer substantial performance-per-watt improvements and integrated AI acceleration, making them ideal for data-intensive environments. The Xeon 6 launch signifies that Intel’s innovation engine remains active across its business segments. While the foundry transformation is a crucial long-term strategy, the continuous evolution of core products like Xeon is essential for maintaining Intel’s competitive edge and meeting customer requirements. This internal innovation is vital as Intel pursues its ambitious foundry goals.

The Grueling Path to Intel’s Comeback

Despite the promising developments surrounding 18A and potential customer interest, it’s essential to maintain a realistic perspective on Intel’s foundry prospects. The semiconductor foundry industry is notoriously challenging, with high capital requirements, rapid technological advancements, and established industry leaders. Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics have built substantial leads over decades, creating significant barriers to entry. Intel is playing catch-up, trying to compete with companies that already have established customer relationships, large-scale production, and well-developed ecosystems.

Intel Foundry Services is still in its early stages, and the path to profitability and sustainable market share will likely be long and challenging. While the potential rewards are substantial, investors should recognize that Intel’s foundry ambitions represent a long-term and uncertain endeavor that requires patience, resilience, and exceptional execution in the face of intense competition.

Intel Stock Drop: Opportunity or Omen?

The stock market’s response to recent Intel news has been volatile. Intel shares initially started to climb in the pre-market due to reports of NVIDIA and Broadcom testing 18A. Still, they then experienced a drop at market open, wiping out earlier gains and sending the stock down about 7%. Several factors could contribute to this market uncertainty. Lingering analyst skepticism about Intel’s turnaround and financial difficulties may overshadow the positive 18A developments. Broader market concerns or sector-specific downturns could also put downward pressure on Intel’s stock.

The Intel Foundry Gamble: Patience and Vigilance

For investors contemplating Intel Corporation, the current terrain demands a strategy defined by patience and vigilance. The potential rewards are undeniably substantial. If Intel’s foundry comeback, spearheaded by the 18A process, proves successful and attracts major clients like NVIDIA and Broadcom, the upside for the stock could be significant. Government support through initiatives like the CHIPS Act further bolsters the bull case, potentially creating a favorable policy environment for domestic chip manufacturers like Intel. 

However, the risks remain considerable. Intel faces immense execution hurdles in its foundry transformation, navigating a fiercely competitive market against well-established giants. Intel’s financial metrics continue to reflect underlying challenges, and analyst sentiment, while acknowledging positive developments, remains largely cautious. Therefore, a rush to invest based solely on speculative news or short-term stock fluctuations would be imprudent. 

A measured and strategic approach is recommended over immediate investment. Investors should prioritize the careful monitoring of Intel’s turnaround progress by focusing on tangible metrics. Key indicators include concrete announcements of major IFS customer wins beyond testing phases, verifiable progress in the 18A manufacturing ramp and yield improvements, and sustained improvements in Intel’s financial performance, particularly gross margins and profitability. 

Investors should remain cautiously optimistic and diligently observe Intel’s performance and the ongoing chip wars until metrics show a clear upward trend. The future of Intel and its success in navigating the complexities of the chip wars depends on the execution of its ambitious plans and the unfolding data. Only time will tell if Intel is truly turning the tables.

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When it comes to AI, there are many different types of businesses that participate in this complex technological value chain. Some companies design or make advanced chips that perform intense computational work. Others build massive data centers or provide high-speed cables that let chips talk to each other. Eventually, these investments lead to the creation of computer programs that utilize AI workloads.

One important part of this AI value chain is server companies. These companies purchase graphics processing units (GPUs) from suppliers like NVIDIA NASDAQ: NVDA. They then put those chips, along with other components, together to create a server. In its simplest form, a server is just a computer.

A GPU is just one of many components needed to make a computer work. Motherboards, storage, and RAM are other parts that are needed. Server companies bring all these parts together and then sell them as a package. They have specific packages optimized for AI workloads. Together, these three server companies may bring in $40 billion in AI revenue in 2025.

Dell Technologies: AI Servers Could Make Up 15% of the Business in 2025

Dell Technologies NYSE: DELL believes AI servers will become a significantly more important part of its overall business in 2025. The tech company just had its fiscal full-year 2025 earnings release.

For Dell, this fiscal period is the same as the 2024 calendar period. Over that year, the firm achieved AI server shipments of nearly $10 billion. Many consider shipments a close proxy for revenue, as companies can typically recognize these shipments as revenue once they deliver them. Overall, this $10 billion accounted for just over 10% of Dell’s total revenue for the year.

Dell also announced specific guidance related to AI servers. In fiscal 2026, or the 2025 calendar year, Dell is forecasting $15 billion in AI server shipments. Based on the firm’s total revenue guidance of $103 billion, Dell is predicting that AI server revenue as a percentage of total revenue will increase to nearly 15%.

Hewlett Packard Enterprise: Smaller But Rapidly Growing AI Systems Business

Next up is Hewlett Packard Enterprise NYSE: HPE. In fiscal Q4, which equates to the three months ended Oct. 31, 2024, HPE saw what it calls “AI-systems” revenue of $1.5 billion. Aside from servers, the company also breaks out revenue for AI services. This includes things like consulting and training enterprise customers on how to best utilize its AI servers. Its total revenue from AI systems of $4.1 billion in fiscal 2024 was a 173% increase over fiscal 2023.

HPE didn’t give specific guidance around how much AI-systems revenue it will see in 2025, but there are some trends we can use to deduce this number. Assuming the same level of AI-systems revenue from fiscal Q4, HPE would bring in $6 billion from this source in fiscal 2025. This would represent around 46% growth in terms of total AI-systems revenue compared to fiscal 2024. The company also reported that it has around $3.5 billion in backlogs for AI systems.

Overall, its AI-systems revenue is likely to be between $4 billion and $6 billion in fiscal 2025, corresponding to the first 12 months ended Oct. 31, 2025. The number could be even higher, considering the firm reportedly inked a $1 billion deal to supply the social media company X with AI servers. HPE beat out Dell and the next company on this list to get these sales.

Super Micro Computer: $20 Billion in AI Revenue Is on the Table in 2025

Super Micro Computer NASDAQ: SMCI is a hot topic in the market these days. Its AI-related revenue might reach double what Dell and HPE bring in combined. The company recently released its financial results for fiscal Q2 2025, equivalent to the Q4 2024 calendar quarter. Management said that AI-related platforms contributed to more than 70 percent of the company’s revenue that quarter.

Based on company-provided guidance, analysts predict $28.4 billion in total revenue over the next four quarters. If AI-related platforms keep bringing in 70% of revenue, the company will earn $20 billion in sales from them in 2025.

Adding $20 billion from Super Micro, $15 billion from Dell, and presumably $5 billion from HPE brings the combined figure to $40 billion for 2025. Overall, these companies are growing their business by taking advantage of the value they can offer in the AI ecosystem.

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Elastic Today

$94.94 -4.41 (-4.44%)

As of 03/7/2025 03:59 PM Eastern

This is a fair market value price provided by Polygon.io. Learn more.

52-Week Range

$69.00

▼

$123.96

P/E Ratio

172.61

Price Target

$131.52

Elastic NV NYSE: ESTC isn’t a household name like Microsoft Corp NASDAQ: MSFT or NVIDIA Corp NASDAQ: NVDA, but it’s been one of the best-performing tech stocks in recent months. After climbing more than 50% since September, shares of the $11 billion AI-driven search company pulled back nearly 8% in March 3rd’s session despite delivering an earnings report that crushed analyst expectations.

This dip could be nothing more than profit-taking – but for investors who haven’t been paying attention, it may also be one of the best entry points in months.

With record-breaking revenue, strong AI demand, and a wave of bullish analyst upgrades, Elastic is proving itself as a major player in the AI software space. Let’s break down what’s driving this rally – and whether Monday’s drop is a buying opportunity or a warning sign.

Earnings Blowout: AI Demand Is Fueling Growth

Elastic didn’t just meet expectations last quarter; it smashed them. Non-GAAP EPS landed at $0.63, well above analyst forecasts of $0.47, while revenue climbed 16.5% year-over-year, setting a new all-time high for the company.

CEO Ash Kulkarni credited the company’s strong execution, AI-driven demand, and rapid innovation for the outperformance. He told investors, “We exceeded guidance across all revenue and profitability metrics in the third quarter. Our results reflect ongoing momentum across all aspects of our business, led by strong sales execution, continued market demand for our products, and our relentless pace of innovation, reinforcing Elastic as the leader in Search AI.”

One of the biggest growth drivers? Generative AI applications. More customers are looking for AI-powered search solutions, and Elastic is positioning itself as a leader in this space. With companies consolidating onto single platforms for AI-based search solutions, Elastic is benefiting from strong enterprise adoption – a trend that’s likely to continue fueling growth.

Analysts See Massive Upside Despite the Dip

The post-earnings dip, including Monday’s 8% sell-off, clearly hasn’t shaken Wall Street’s confidence.

Truist Financial reaffirmed its Buy rating on Monday afternoon and raised its price target to $145.

This echoed the stances taken by UBS, Scotiabank, and Morgan Stanley, who all reiterated their bullish outlook last week.

UBS’s $148 price target, in particular, is worth noting as it suggests a nearly 40% upside from Monday’s close.

For a stock that just crushed earnings expectations, analysts are making it clear: this pullback isn’t a cause for concern; it’s a potential buying opportunity.

Strong Fundamentals Suggest the Pullback Could Be Temporary

There were reports on Monday of a pending class-action lawsuit being taken, which likely spooked investors, but the reality also is that after a 50% rally in five months, some profit-taking was inevitable. Even the strongest stocks don’t move in a straight line. There’s also the broader market uncertainty at play. The S&P 500 has looked a little shaky in recent sessions, and if market sentiment turns more risk-off, high-growth stocks like Elastic could see more short-term downside.

That being said, the fundamentals remain strong, and with an RSI of 48, Elastic has plenty of room to run before it’s considered overbought. If the broader market stabilizes, this stock could be primed for another leg higher.

Keep Elastic on Your Radar—This AI Stock May Not Stay Cheap for Long

Elastic’s AI-driven growth story is hard to ignore. The company just delivered record revenue, surging demand, and a strong long-term outlook, yet the stock is still pulling back on profit-taking.

With top analysts maintaining Buy ratings and targets pointing to a nearly 40% upside, this dip could be an opportunity for investors who missed the initial rally.

For those looking to add a high-growth AI play to their portfolio, Elastic could be one of the most compelling opportunities in tech right now. Keep this one on your radar because once the market regains its footing, Elastic may not stay this cheap for long.

Before you consider Elastic, you’ll want to hear this.

MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Elastic wasn’t on the list.

While Elastic currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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