This week, which stocks lagged or dragged? Weekly Winners column keeps up with market trends, helping Tigers sort out the week's hottest sectors, stock winners and important news.
Below are top 10 S&P 500 stock gainers for the week ended May 29:
Dell Soars 42% After It Lifts Forecasts as AI Data Center Buildout Fuels Demand
Dell shares rose over 42% this week. Dell boosted its annual revenue and profit expectations on Thursday, showing data center expansion by clients is fueling demand for its AI-optimized servers that are powered by Nvidia's advanced chips.
U.S. tech giants including Alphabet and Amazon plan to spend over $700 billion on AI infrastructure this year, which would drive up demand for server and data center equipment from suppliers such as Dell and Super Micro Computer.
The strong results show how Dell has turned into one of the biggest winners of the generative AI boom as the company is managing the memory chip crisis well by implementing price increases and adjusting its supply chain.
Super Micro Stock Rally as Dell Drags Super Micro and HPE Along for the Ride
Super Micro Computer stock surged Friday as earnings from artificial-intelligence server peer Dell Technologies had investors excited about the growth ahead for hardware stocks. But Dell’s success could also be a red flag for Super Micro shareholders.
Super Micro stock jumped 11.6% to $46.09 on Friday following Dell’s report. Dell stock also soared, after the company said Thursday night that quarterly revenue for its AI-optimized servers rose 757% from the prior year. Hewlett Packard Enterprise stock rose 12.6% to $43.03 on Friday.
Super Micro is another big U.S.-listed player in the AI server market. Friday’s stock move suggests Wall Street is confident that server companies will continue to see broad demand, as customers keep buying up the hardware needed to power AI.
Micron Stock Hits $1 Trillion. Trump and Wall Street Unite Behind the Chip Titan
Micron Technology hit a $1 trillion market capitalization for the first time Tuesday. The memory-chip company was being buoyed by a broad semiconductor rally, with extra lift from President Donald Trump and Wall Street.
Micron shares were up 29.29% at $971 for the week. The move was more pronounced than other chip stocks, which could be due to presidential approval.
“Micron, boy Micron’s great, they’re investing hundreds of billions,” Trump said in a rally in Suffern, New York on Friday.
Wall Street thinks further gains lie ahead. UBS analyst Timothy Arcuri raised his target price on the stock to $1,625 from $535, reiterating a Buy rating. The target is based on a price-to-earnings ratio of 15 times Arcuri’s forecast for Micron’s 2029 earnings.
AppLovin Stock Jumps 27% after Bullish Morgan Stanley Call
$AppLovin(APP)$ stock surged 27% this week, after Morgan Stanley analyst Matthew Cost reiterated his Buy rating and a $720 price target, saying the company’s ad‑tech engine still has far more room to grow than most investors expect. Cost noted that AppLovin’s biggest driver is its conversion rate, and the gap between the company and the top players is still massive.
Cost said that AppLovin has already lifted its conversion rate by 30 basis points over the past 18 months. Also, each extra 10 bps of improvement could add about 17 points of net revenue growth.
Looking ahead, he highlighted that if AppLovin can keep raising its conversion rate by 20 bps per year, the company’s revenue and EBITDA could come in about 50% above current Street estimates by 2030.
Best Buy Forecasts Upbeat Quarterly Sales On Steady Gadgets Demand
Best Buy on Thursday forecast second-quarter sales above Wall Street estimates and beat first-quarter earnings expectations on steady smartphone and gaming console demand as well as growth in its ads and marketplace channels. Shares of the U.S. electronics retailer rose 26% this week.
CEO Corie Barry is set to step down at the end of October and will be succeeded by Jason Bonfig, a company veteran who is expected to focus on expanding its higher-margin advertising and marketplace businesses.
Best Buy has been doubling down on offerings such as Geek Squad support and paid memberships, with Switch 2, PS5 and Xbox, AI glasses and health wearables supporting demand. Comparable sales rose 2% in the quarter ended May 3, rebounding from a 0.7% drop a year earlier and above analysts' expectation of about 1%, according to data compiled by LSEG.