AI Stocks & Markets

Today's Stories

1. 1

   Visa's AI Security Push and Q3 Beat

   Visa reported strong fiscal Q3 2026 results, expanded its open-source AI cybersecurity framework (Visa Vulnerability Agentic Harness, VVAH), deepened payment security collaborations with Bluefin, re-entered Syria with its first live international transaction, and saw Bill Ackman's Pershing Square add Visa to its portfolio. These developments support Visa's growth narrative, particularly its push into higher-margin AI security offerings and value-added services, even as competition in core payments intensifies. However, they do not materially change the near-term focus on cross-border volumes as a key catalyst, nor the central risks from regulation and real-time payment alternatives.

   Visa's narrative projects $61.1 billion revenue and $33.3 billion earnings by 2029, requiring 11.2% yearly revenue growth. The community's valuation range for Visa is between US$321.93 and US$451.54, with a fair value estimate of $411.63, suggesting an 8% upside to its current price.

2. 2

   Merck, Amgen, JNJ Beat S&P 500 by 29 Points

   Merck & Company, Amgen, and Johnson & Johnson are highlighted as AI-linked healthcare stocks that have outperformed the S&P 500 this year. Merck stock is up 42% year to date, beating the market by about 29 percentage points. Amgen is up 34%, beating the market by around 21 points, and Johnson & Johnson is up 28%, outperforming by 15 points. These companies combine AI-driven drug discovery and medical technology with steady dividends, offering income and growth outside the usual AI trade. Healthcare demand is seen as permanent, making these businesses durable. Merck partners with Google Cloud for AI, Amgen uses NVIDIA tech to predict protein properties, and Johnson & Johnson runs the Polyphonic AI Fund for Surgery.

   Each stock pays a forward annual dividend and holds a Moderate Buy rating from analysts. Merck pays $3.40 per share (about 2.17% yield), Amgen pays $10.08 per share (about 2.3%), and Johnson & Johnson pays $5.36 per share (about 2%). Amgen is trading close to its high target price, while Merck and JNJ have potential upside.

3. 3

   NVIDIA vs AMD: Which AI Stock Is the Better Buy Now

   NVIDIA reported $96.2 billion in revenue for fiscal Q2 2027, up 106% year over year, with Data Center revenue at $89 billion, up 117%. AMD reported $11.5 billion in Q2 2026 revenue, up 50% year over year. NVIDIA shows both strong growth and high profitability, with 75% GAAP and non-GAAP margins, while AMD's Data Center revenue more than doubled. NVIDIA's Vera Rubin platform is in full production, and AMD's Helios platform is ramping up.

   NVIDIA projects fiscal Q3 2027 revenue of $108 billion (plus or minus 2%), while AMD expects Q3 revenue of $13 billion (plus or minus $300 million). Both companies are positioned for continued growth, but NVIDIA's larger scale and profitability may give it an edge.

4. 4

   KLA's AI packaging demand fuels earnings beat

   KLA reported a fiscal fourth-quarter earnings beat and a positive near-term outlook, driven by surging demand for its process-control and inspection systems tied to AI infrastructure and advanced semiconductor packaging. The company's advanced packaging revenues are growing rapidly, and its services business is strengthening. This deepens KLA's role in chip manufacturing workflows as chip complexity rises, supporting the key near-term catalyst of AI-related capital expenditure in advanced packaging.

   KLA's July guidance for Q1 FY2026 calls for around US$4.0 billion in revenue and solid gross margins. Risks include trade restrictions, tariff-related margin pressure, and potential customer capex cuts in high-exposure segments.

5. 5

   WDC Stock +475% This Year, AI Storage Boom May Continue

   Western Digital (WDC) posted a record fiscal Q4 with revenue up 44% year over year to $3.75 billion and non-GAAP EPS more than doubled to $3.56. The stock still dipped initially because expectations were even higher. AI demand for high-capacity hard drives, especially from cloud customers (89% of sales), drove the beat. Gross margin expanded 1,320 basis points to 54.4%, showing pricing power. The company guides fiscal Q1 2027 revenue to roughly $4.1 billion and EPS to $4.00.

   WDC trades at 17.6x forward earnings, below peer Seagate's ~28x. New 40TB drives are shipping, and 44TB HAMR products arrive in early calendar 2027. The convertible notes exchange (about $191 million) closes near September 2.

6. 6

   AI data centers boost copper investment case

   The AI data center boom and power grid upgrades are strengthening the investment case for copper, according to a report from Mining.com. Copper is essential for electrical wiring in data centers and power grids, so rising demand from AI infrastructure supports its long-term outlook.

   Investors are watching how AI-driven electricity demand and grid investments will impact copper prices and supply.