From Chips to Quantum, Tech Momentum Accelerates
Weekly Breakdown for the Week of May 18-22, 2026
AI Carries the Tape Higher
The week started with some hesitation as markets dipped early, but buyers quickly stepped in, and momentum flipped after Nvidia (NVDA) earnings.
That report acted as a catalyst for risk appetite, pushing major indices (QQQ) back toward highs and reinforcing the current leadership in AI and semiconductors.
Breadth improved as the week progressed, with lagging sectors catching bids, but the real strength remained concentrated in anything tied to AI infrastructure, compute, and data center demand.
The overall tone was constructive, with dips continuing to get bought and positioning leaning back toward growth and momentum names.
Nvidia Delivers Again
Nvidia (NVDA) once again set the tone for the market with a strong earnings report that exceeded expectations on both revenue and guidance.
Data center revenue remained the standout driver, fueled by relentless demand for AI chips and infrastructure.
Management highlighted continued supply constraints alongside massive forward demand, signaling that hyperscalers and enterprises are still aggressively investing in AI buildouts.
Guidance came in strong, reinforcing the idea that the AI cycle is not slowing down anytime soon, which helped spark a broad rally across semis and AI-adjacent names.
CPU Trade Reignites
The CPU and semiconductor trade caught a strong bid following commentary tied to Nvidia (NVDA) and further support from leadership at Advanced Micro Devices (AMD).
Optimism around AI compute demand extended beyond GPUs and into broader chip ecosystems, lifting names like Arm Holdings (ARM).
The move signaled that investors are starting to price in a more expansive AI-driven upgrade cycle across compute platforms.
With both hyperscale demand and enterprise adoption accelerating, the CPU segment is once again being viewed as a key beneficiary of the next leg higher in AI infrastructure.
Situational Awareness Trade Gains Attention
Shares of T1 Energy (TE) continued to see increased attention following new 13F filings tied to the Situational Awareness fund.
This AI-focused fund has gained traction over the past year by focusing on real-world demand signals such as energy efficiency, infrastructure upgrades, and electrification trends.
The fund’s positioning in names like T1 reflects a broader theme of capital flowing into companies benefiting from long-duration structural tailwinds.
Traders have been paying closer attention to these filings as a way to identify emerging themes early, which has helped drive incremental interest and momentum in these names.
Quantum Momentum Builds
Quantum computing stocks saw a fresh wave of momentum after updates from International Business Machines (IBM) around its quantum roadmap and continued investment in the space with government backing.
The announcement helped validate the longer-term potential of quantum technology, sparking renewed interest across the sector.
Mid-cap names like Rigetti Computing (RGTI) caught strong bids as traders looked for higher-beta ways to express the theme.
While still early in terms of commercialization, the narrative strength and institutional backing have been enough to drive meaningful price action.
Lenovo Lights Up the PC Trade
Strong earnings from Lenovo (LNVGY) helped reignite interest in the broader computing and PC space.
The company pointed to improving demand trends and stabilization in the hardware cycle, which had been under pressure over the past year.
This optimism spilled over into peers like Dell Technologies (DELL) and HP Inc. (HPQ), both of which saw increased buying interest.
The read-through suggested that the PC market may be moving out of its downturn phase, with AI-enabled devices and enterprise refresh cycles acting as potential tailwinds.
Intuit Slides on Weak Outlook
Intuit (INTU) moved lower following its earnings report, as guidance and forward commentary raised concerns about slowing demand in parts of its business.
The reaction highlighted a growing theme in the market where AI is beginning to disrupt certain service-based models, especially in areas where automation can replace traditional workflows.
Investors are becoming more selective, rewarding companies that are leveraging AI effectively while penalizing those seen as vulnerable to disruption.
The selloff in Intuit reflects that shift in sentiment.
Sector Weekly Performance
Current Themes & Volatile Movers
Headline Reactions
ZS up 10% after Keybanc raised its price target to $190.
POET down 13% after a $400M offering.
D up 9% following reports that NextEra Energy is discussing a deal valuing the company at $66B.
MSTR down 4% as Bitcoin dropped to $76K with rising bond yields.
REGN down 9% after Phase 3 trial results failed to meet the primary endpoint.
ALAB up 33% after Evercore ISI raised its price target to $297.
SLV down 4% as silver prices weakened on rising bond yields.
MRVL up 10% after Evercore ISI raised its price target to $155.
EQT up 4% on strength in natural gas prices.
QCOM mixed, initially down 4% after a conference appearance, then up 14% on expanded Stellantis partnership.
VRT down 8% following its investor conference.
LLY up 7% with no clear catalyst.
PANW up 9% on a price target increase from Truist.
AAL up 10% as airline stocks rallied on lower oil prices.
FCEL up 24% as fuel cell momentum returned.
BE up 11% on continued momentum from its AI infrastructure deal with Nebius.
ARM up 45% on AI sector strength, with additional support later in the week following NVDA earnings.
ENPH up 24% driven by a Goldman Sachs price target raise and a new GaN technology white paper.
INFQ up 35% after signing a LOI with the U.S. Department of Commerce for $100M in funding tied to quantum computing.
SNDK up 4% as memory names rebounded later in the week.
IBM up 15% after announcing a $1B award and plans for a U.S.-based quantum chip foundry.
FUTU down 33% after China moved to crack down on illegal cross-border trading.
RGTI up 52% as quantum computing names rallied on government-related momentum.
NOK up 8% on continued AI-related strength.
CBRS down 14% as IPO momentum faded.
HPQ up 19% following strong results from Lenovo, lifting sentiment.
EL up 10% after terminating discussions with Puig.
SPOT up 20% after multiple price target increases and strong long-term margin commentary.
DELL up 21% after a price target raise tied to strong industry outlook.
Earnings Reactions
Up on Earnings
NVDA mostly unchanged despite strong earnings, revenue, and guidance that beat expectations.
RL up 14% after better-than-expected results and a price target raise.
Down on Earnings
INTU down 18% after weak guidance and multiple price target cuts.
HAS down 8% after mixed Q1 results and soft FY26 guidance.
WMT down 8% after results and guidance that came in below expectations.
DE down 6% after earnings and reaffirmed tariff exposure concerns.
Market & Economic News
Trump postponed Tuesday’s planned strikes on Iran amid negotiations and pleas from the UAE.
A jury dismissed all claims in Musk’s lawsuit against OpenAI, removing an obstacle as the company intends an IPO.
Japan assured markets of bold action regarding currency stability amid rising yields.
Bessent stated that the U.S.-China truce on critical minerals and tariffs can be extended through subsequent meetings this year.
SpaceX has filed for its IPO on Nasdaq under the ticker symbol $SPCX.
Fed meeting minutes showed the majority of policymakers see rate hikes as likely if inflation persists.
Oil prices were volatile amid conflicting headlines around a potential draft agreement between the U.S. and Iran.
OpenAI generated about $5.7B in revenue in Q1, according to The Information.
The U.S. stock market will be closed on Monday, May 25, for Memorial Day.
Fed’s Waller stated it’s “crazy” to talk about rate cuts in the near term.
Upcoming Earnings
Monday 5/25/26
U.S. Stock Market is Closed for the Memorial Day Holiday
Tuesday 5/26/26
ESLT, ZS, AZO, SQM, PONY, BOX, CGRO, API, SKY, OOMA
Wednesday 5/27/26
DKS, MRVL, CRM, BBWI, BNS, SNOW, SNPS, CPRI, PDD, HPQ, P, ANF, BMO, AMSC
Thursday 5/28/26
BBY, DELL, PLAB, PATH, MBD, HRL, BURL, COST, WB, ADSK, S, XPEV, OKTA, ARBE, KSS, FUTU, GAP
Friday 5/29/26
ELMT, KNOP, FUFU
Upcoming Economic Events & Data
Monday 5/25/26
U.S. Stock Market is Closed for the Memorial Day Holiday
Tuesday 5/26/26
Chicago Fed National Activity Index
S&P/Case-Shiller Home Price
House Price Index
CB Consumer Confidence
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2-Year Note Auction
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Wednesday 5/27/26
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5-Year Note Auction
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Thursday 5/28/26
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7-Year Note Auction
Friday 5/29/26
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