money

Diving into the stock market can be an excellent way to build lasting wealth. One type of stock that you may find appealing is dividend stocks. A study conducted by Hartford Funds found that, over a 50-year period, dividend stocks consistently outperformed non-dividend payers with lower volatility.

Dividend Kings are companies that have consistently increased their dividends for 50 years or longer. These stalwarts have earned the trust of their shareholders and consistently demonstrated a proven ability to grow payouts year after year, regardless of the economic conditions.

If you’re looking to boost your portfolio with a passive income component and seek steady returns, here are three dividend stocks that could make excellent additions today.

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Federal Realty Investment Trust

Federal Realty Investment Trust (FRT -0.59%) operates as a real estate investment trust (REIT). It specializes in high-quality retail-based properties, which include shopping centers and mixed-use properties. As a REIT, Federal Realty is required to distribute 90% of its taxable income to shareholders, making it a popular choice among dividend investors.

Federal Realty holds the distinction of being the only REIT to earn Dividend King status, having raised its payout for 57 consecutive years. This impressive streak is a testament to its diversified holdings and strong balance sheet in what can be a volatile real estate market.

The REIT primarily invests in real estate regions characterized by high population density and affluent populations. This approach helps insulate it from changing economic conditions, as more affluent households can be resilient in the face of recessions or inflation in the economy. With a strong business and robust development pipeline supported by steady funds from operations growth, Federal Realty is a quality dividend stock to consider buying today.

Cincinnati Financial

Cincinnati Financial (CINF 0.06%) provides property and casualty (P&C) insurance to corporate and individual customers. It’s one of the top 25 largest P&C insurers in the United States.

In the insurance industry, underwriting profitable policies is the name of the game. Insurers like Cincinnati Financial operate in a highly competitive environment, so accurately assessing risk and pricing policies is crucial.

Over the past five years, Cincinnati Financial’s combined ratio has averaged a solid 94.6%. This means that for every $100 in premiums it writes, it has generated roughly $5 in profit. In the highly competitive insurance industry, the combined ratio tends to average around 100%, so consistently generating an underwriting profit is key to sustainable, long-term growth.

Cincinnati Financial boasts an impressive history of raising its annual cash dividend over the past 65 years. Only seven companies can boast a longer streak. Its long track record is a testament to its sound underwriting and stellar capital management. With a conservative dividend payout ratio of 29%, Cincinnati Financial is well-positioned to keep rewarding investors with a growing dividend.

S&P Global

S&P Global (SPGI -0.03%) provides credit ratings to entities that issue debt worldwide and serves an important role in financial markets. As a credit rating agency, it provides opinions about credit risk and the ability and willingness of entities to meet their financial obligations. Investors rely on these opinions on credit quality to help manage risk.

The company also owns the S&P 500 index (in a joint venture with CME Group), along with a variety of other index benchmarks used by professional investors. Finally, it provides data and analytics, such as through its Capital IQ Pro platform, which offers another stream of cash flow that’s uncorrelated with credit ratings.

S&P Global enjoys a robust 50% share of the credit ratings market, giving it a strong competitive advantage, especially considering the importance of credit ratings for the global economy. With its stable and diverse business model and strong balance sheet, S&P Global has grown its dividend payout for 52 consecutive years and has a solid platform to keep this streak going.

Intel (INTC -3.22%) has a new and powerful ally. On Thursday, Nvidia (NVDA 0.34%) said it will invest $5 billion in Intel and codevelop multiple generations of custom products, spanning data centers and PCs. Intel shares jumped more than 20% on the news, as investors digested what a tie-up with the leader in artificial intelligence (AI) computing could mean for the company’s multiyear turnaround.

The semiconductor veteran designs and manufactures CPUs and runs a contract manufacturing business. In recent years, Intel has wrestled with product delays, shrinking margins, and heavy losses in its foundry segment. The Nvidia partnership gives Intel access to new design opportunities and a stronger place in AI-centric systems. Whether that translates into durable earnings power is the question investors care about.

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A vote of confidence that counts

Nvidia’s announcement laid out two concrete planks. First, Intel will design Nvidia-custom x86 CPUs that Nvidia will integrate into its AI infrastructure platforms. Second, Intel will build x86 system-on-chips for PCs that integrate Nvidia RTX GPU chiplets.

As part of the collaboration, Nvidia will invest $5 billion in Intel common stock at $23.28 per share, subject to regulatory approvals.

“This historic collaboration,” Nvidia CEO Jensen Huang said, ties Nvidia’s AI stack to Intel’s vast x86 ecosystem. Intel CEO Lip-Bu Tan framed it as confidence in Intel’s roadmap and manufacturing — and a path to “new breakthroughs for the industry.”

The market reaction was swift. Intel rose more than 20% intraday, while Nvidia ticked higher as well. The move arrives as Intel trims costs, resets capital spending, and narrows its focus. Notably, the companies did not commit to shifting Nvidia’s GPU manufacturing to Intel’s fabs; investors should view this as a design and platform collaboration plus equity capital — not a wholesale manufacturing shift.

Recent results show a company still in repair

Intel’s business results have been underwhelming. Its second-quarter revenue was $12.9 billion, roughly flat year over year. Generally accepted accounting principles (GAAP) gross margin declined to 27.5%, and GAAP earnings per share was a loss of $0.67, pressured by $1.9 billion of restructuring charges and other one-time items. Non-GAAP earnings per share were a loss of $0.10.

For the third quarter, Intel guided revenue to $12.6 billion to $13.6 billion and non-GAAP earnings per share of about $0.00 at the midpoint.

There were signs of operational progress and AI relevance. Data center and AI revenue rose 4% year over year to $3.9 billion, and Intel highlighted that its Xeon 6776P is the host CPU in Nvidia’s latest DGX B300 systems.

Still, the overall picture remains mixed, with margins depressed and the foundry business a drag as Intel pares projects and slows certain builds to defend returns.

“We are laser-focused on strengthening our core product portfolio and our AI roadmap,” Tan said in the quarterly release — a reminder that the turnaround is still very much underway.

What’s next?

Viewed through an investor lens, two things matter: earnings power and price. With trailing-12-month revenue around low-$50 billion and losses on the bottom line, price-to-earnings is not useful; price-to-sales in the mid-2s is a better quick gauge for now. That leaves the stock leaning on a credible path back to healthier gross margins and operating income.

The Nvidia deal may help by anchoring Intel CPUs inside Nvidia’s AI platforms, creating a new PC silicon vector with integrated RTX chiplets, and signaling third-party confidence that can attract talent and customers. But execution — on both products and cost discipline — still has to show up in the numbers.

Of course, Nvidia’s involvement doesn’t guarantee success. Foundry losses and prior write-downs underscore how costly it is to rebuild manufacturing relevance.

Additionally, investors shouldn’t forget Intel’s challenges. Its guidance implies only modest sequential improvement, and Intel must prove it can expand gross margin back toward a level that supports sustainable free cash flow.

Finally, competition is intense, with Advanced Micro Devices growing in servers and client CPUs even before layering in its own AI accelerators. And while the partnership is meaningful, it does not remove the need for Intel to hit product and manufacturing milestones over the next several quarters.

But Nvidia’s stake and the co-development roadmap arguably do increase the odds that Intel’s turnaround gains traction. The collaboration creates real product hooks and stronger incentives for both sides to make the designs successful. If Intel converts these tailwinds into margin recovery and stable growth over time, today’s valuation could look reasonable for investors with patience.

Alphabet‘s (GOOG 1.27%) (GOOGL 1.23%) Google recently unveiled its Google Cloud Universal Ledger (GCUL), which has a lot in common with Ripple Labs’ XRP (XRP -0.69%) Ledger (XRPL). Both blockchains provide faster, cheaper, and more secure financial transactions than traditional SWIFT (Society for Worldwide Interbank Financial Telecommunication) transfers, and they both support cross-border transfers, automated payments, integrations with third-party digital wallets, and tokenized assets.

That announcement might alarm Ripple’s users and XRP’s investors, but is Google really trying to kill XRP? Let’s review the key similarities and differences to find out.

Image source: Getty Images.

The similarities and differences between GCUL and XRPL

GCUL and XRPL are both designed to facilitate faster financial transactions, but there are three key differences.

First, GCUL is a centralized private platform that is only open to vetted and approved institutions. It’s geared toward regulatory compliance, stability, and institutional control, with Google Cloud initially managing its governance and infrastructure services.

XRPL is a decentralized public platform that anyone can access. Its validators are spread out across the world instead of being corralled within a single company. That can be a double-edged sword: It can be more freely accessed than GCUL, but the lack of a vetting and approval process exposes it to more illegal transactions.

Second, GCUL doesn’t have its own native token. XRPL has a native token, XRP, which is mainly used to satisfy its settlements, fees, and reserve requirements. XRPL’s fees are low, but its fees rise as its network activity increases. GCUL charges predictable monthly fees instead of relying on volatile fees driven by the blockchain system’s “tokenomics.”

XRPL also has its own native stablecoin, Ripple USD (RLUSD -0.01%), which is pegged to the U.S. dollar. Both Ripple USD and XRP are frequently used for bridge currency transfers — in which two volatile or illiquid currencies are directly converted to the native token as a “bridge” instead of being converted to a third fiat currency (like the U.S. dollar) in a slower and pricier transaction. Without its own tokens, GCUL will likely underperform XRPL in those bridge currency transfers.

Lastly, GCUL natively supports smart contracts, which are used in the development of blockchain-based applications. XRPL only natively supports lightweight “hooks” for developing simpler programs, but it’s reportedly been mulling the development of “sidechains” to integrate more Ethereum (ETH 0.50%)-based smart contracts into its ledger.

Is GCUL a threat to XRPL?

Google’s GCUL could be an appealing option for larger banks, clearinghouses, and asset managers who prefer a tightly regulated platform with predictable fees. It could also be a natural fit for large enterprise customers that are already locked into Google’s cloud-based services.

However, XRPL’s decentralized approach, resistance to regulators, and lower fees should make it more appealing to individual users and smaller financial institutions who don’t want to lock themselves into Google’s ecosystem. Google is also approving GCUL’s customers on a strict case-by-case basis, which could drive more customers to XRPL due to the sluggish process.

Moreover, Google doesn’t plan to officially launch GCUL until 2026. Before that happens, a few major catalysts could spark XRPL’s near-term expansion: the increased adoption of Ripple USD as an alternative to the U.S. dollar; the approvals of XRP’s first spot price exchange-traded funds (ETFs) in October and November, and the rollout of more sidechains to support the development of decentralized apps (dApps) and other crypto assets.

XRPL has already partnered with more than 300 banks worldwide, so there could plenty of room for both of these blockchains to flourish without trampling each other. XRPL and GCUL certainly have plenty of overlapping interests, but it’s premature to call the latter — or any other newcomer — an “XRP killer” before it even launches.

Uber Technologies (UBER 4.26%) has been hitting its stride. And the market is taking notice, as investors view the business in an extremely favorable light. As of Sept. 17, shares are up 54% in 2025 and 191% in the past three years. That’s an incredible rise that has driven its market capitalization to nearly $200 billion.

It’s important not to simply assume that the gains will continue. Investors should think about the factors that can support further upside. In this instance, it’s easy to be optimistic. Here are four reasons to buy Uber stock like there’s no tomorrow.

Image source: Getty Images.

1. Growth

The first reason to add Uber to your portfolio focuses on the company’s growth, which has been spectacular. In the latest quarter (Q2 2025, ended June 30), Uber had 180 million monthly active platform consumers (MAPCs), up from 76 million exactly seven years ago. Unsurprisingly, this has led to soaring gross bookings and revenue in both the mobility and delivery segments.

Uber is currently available in 15,000 cities across the globe. However, there is still expansionary potential. Getting consumers to use multiple services, known as cross-promotion, is a big opportunity, as is boosting usage frequency.

There’s also the Uber One subscription program, which counts 36 million members. They spend significantly more than non-members. Increasing the share of MAPCs that become Uber One members can drive substantial growth.

2. Profitability

In 2019, Uber posted a whopping operating loss of $8.6 billion. Since then, management’s intense focus on running the business in a more efficient manner has worked wonders. In the last six months, the company reported operating income of $2.7 billion. This impressive profitability is the second reason to buy the stock.

Uber is proving that it can scale up in an extremely lucrative manner. Wall Street is bullish. Consensus analyst estimates call for earnings per share to increase at a compound annual rate of 23% between 2025 and 2027, much faster than projected revenue gains.

Free cash flow is also pouring in, totaling $2.5 billion in the second quarter. This is giving the leadership team confidence. They just announced a $20 billion share buyback authorization.

3. Autonomous vehicles

There are a lot of companies out there working on autonomous vehicle (AV) technology. While Uber previously had an AV unit, it sold this segment in 2020. Instead, the business is partnering with others, whether car makers or software providers, in an effort to help develop this technology. There are currently 20 partners.

Uber is in an advantageous position because it directly controls the relationship with 180 million MAPCs. Therefore, it has access to a large pool of demand. And it has expertise in operating a huge tech platform. This gives it a capital-light way to play in the AV market.

This doesn’t mean that Uber’s strategy is completely fail-safe. For instance, there is a risk that Tesla could be successful in its efforts to scale up its robotaxi service. This would create a competing platform to Uber.

4. Economic moat

Buying and holding companies that possess an economic moat, or durable competitive advantages, can contribute to investing success. Uber has this important characteristic, which is the fourth reason to add the business to your portfolio.

As a platform, the company benefits from a powerful network effect. More riders (drivers) add more value to drivers (riders), making the service more useful as it gets bigger.

Uber also has noteworthy intangible assets that support its ongoing success. Its brand is so strong that its often used interchangeably as a verb, indicating robust user mindshare. And the company’s ability to collect and utilize its data is also worth pointing out. This has spawned a new business line with digital advertising, a segment that raked in $1.5 billion in annualized revenue in Q1 earlier this year.

Uber’s growth trajectory, rising profits, position in the AV market, and economic moat are four reasons to buy the stock like there’s no tomorrow.

According to some research, healthcare stocks are about as cheap as they have been in three decades. Many have experienced significant headwinds recently, but for opportunistic investors, now may be a great time to explore the industry for potential deals. Plenty of promising, yet beaten-down, healthcare stocks can be had at reasonable valuations relative to their growth potential.

Two that are worth serious consideration are Pfizer (PFE -0.50%) and Vertex Pharmaceuticals (VRTX -1.00%). Here’s more on these drugmakers.

Image source: Getty Images.

1. Pfizer

Pfizer is staring down the barrel of several patent cliffs that should happen by the end of the decade. For example, the company’s anticoagulant, Eliquis, will lose patent exclusivity by 2029 at the latest. The market is factoring that in, and in addition to the poor financial results Pfizer has produced lately, it explains its terrible performance on the market over the past few years.

However, Pfizer is rebounding. In the second quarter, Pfizer’s revenue increased by 10% year over year to $14.7 billion. The company’s adjusted earnings per share grew 30% year over year to $0.78. These are strong results for a pharmaceutical giant.

Furthermore, Pfizer’s pipeline should enable it to overcome the upcoming loss of patent exclusivity. The company has earned approval for several new products in recent years that are still in their early growth stages, especially considering that some of them are expected to receive label expansions. Abrysvo, a vaccine for the respiratory syncytial virus, is one such newer product whose second-quarter revenue increased by 155% year over year to $143 million.

Elsewhere, Pfizer has significantly improved its pipeline in recent years through licensing deals in acquisitions. The company’s oncology pipeline appears particularly promising, boasting dozens of programs, at least some of which should yield excellent clinical results in the coming years.

Lastly, Pfizer has been engaged in cost-cutting efforts. The company is on track to deliver net cost savings of $4.5 billion by the end of the year and $7.2 billion by the end of 2027. These initiatives should help boost Pfizer’s bottom line, and they are even more important considering President Trump’s aggressive tariffs.

Pfizer’s overall business still looks robust enough to recover, despite upcoming headwinds. The stock’s forward price-to-earnings (P/E) ratio of 7.7 appears dirt cheap when compared to the industry average of 16.5 for the healthcare sector. The stock is a great choice for value investors right now.

2. Vertex Pharmaceuticals

Vertex Pharmaceuticals’ forward P/E tops 20, which makes the stock look fairly expensive compared to its healthcare peers. And when we consider that the company has encountered setbacks this year, including clinical trial failures and the distribution of some illegal knockoffs of its medicines in Russia, which has impacted its sales, the picture looks even bleaker.

But at current levels, Vertex Pharmaceuticals looks attractive considering its potential. For one, the company still holds a monopoly in cystic fibrosis (CF), a rare lung disease. And in that niche, Vertex Pharmaceuticals has a reasonable amount of whitespace. Although its first CF medicine has been on the market for over a decade, Vertex has developed newer and better products.

Trikafta and Alyftrek, Vertex’s newest launches in CF, won’t lose patent exclusivity until the late 2030s. In the meantime, thousands of patients eligible for these medicines remain untreated. Translation: Expect reasonable revenue growth from this franchise for the foreseeable future.

Now add to that the company’s newer launches: Journavx in acute pain and Casgevy in beta-thalassemia and sickle cell disease. The former fills a need: It became the first approved oral, non-opioid pain inhibitor. Opioid-based therapies come with the risk of addiction and other potentially severe adverse reactions. Journavx was only approved in January. It should make a meaningful impact on Vertex’s results sooner rather than later.

Casgevy’s case is a bit different. It first earned regulatory approval in late 2023, but it has not yet contributed significantly to Vertex’s sales. That’s because it is an expensive gene editing therapy that is complex to administer. However, Vertex Pharmaceuticals is making progress in securing deals with third-party payers. Casgevy has little competition and should also, eventually, see its sales ramp up.

Beyond that, Vertex Pharmaceuticals could earn approval for zimislecel, a therapy for type 1 diabetes, within two years. The company also has late-stage candidates that could make significant progress in the meantime. Vertex still has significant upside from its current levels. The stock has faced headwinds this year, but a turnaround is, indeed, on the horizon for the biotech stock.

If you have $5,000 you can afford to invest in the stock market, a good option is to put that money into an investment that can generate recurring dividend income, while also having the potential to rise in value in the long run. That can put your money to work in multiple ways, potentially accumulating gains over time while also generating some good cash flow for your portfolio.

Exchange-traded funds (ETFs) can be excellent options to consider because they can give you a balanced investment into many stocks, possibly even hundreds or thousands of them. That means you don’t have to worry about how individual stocks are doing.

From a dividend investor’s point of view, that also means you don’t have to worry about the dreaded risk that a company will announce a dividend cut or suspension. I’ve been there, and even investing in seemingly safe dividend stocks can still end up with disappointment later on. The best way to protect yourself against that is with a well-diversified dividend ETF.

A great option is the Schwab U.S. Dividend Equity ETF (SCHD -0.44%).

Image source: Getty Images.

The Schwab U.S. Dividend Equity ETF offers a terrific yield

One of the most appealing features of this Schwab fund is undoubtedly its high dividend yield. At 3.7%, that’s a far higher payout than what you’d collect if you simply tracked the S&P 500, as its average yield is just 1.2%.

To put that into perspective, if you invested $5,000 into the ETF today, you could expect to collect approximately $185 in dividends over the course of an entire year. In comparison, however, a $5,000 investment in an ETF tracking the S&P 500 would only generate $60 per year, given the index’s low yield.

What’s great is that, because the fund invests in around 100 stocks, your eggs aren’t all in one basket and dependent on one or even a couple of high-yielding stocks.

The fund focuses on safe dividend stocks and keeps its fees minimal

The Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100, an index that prioritizes quality and sustainability when it comes to dividends. It isn’t simply adding high-yielding stocks into its portfolio. Some of the big names in the Schwab portfolio include Verizon Communications, PepsiCo, and Chevron. These are blue chip dividend stocks that are known for not only regularly paying dividends, but also for growing their payouts over time. Not every stock will have the same robust background, but it’s a good indication of the quality of the dividend stocks the fund is invested in.

Another solid feature of the fund is that its expense ratio is just 0.06%. That means if you invested $5,000, your annual fees from holding the ETF would be just $3. That’s less than the price of a cup of coffee in most places, and in exchange, you get an investment with a diversified position in some of the best dividend stocks in the world.

A great ETF to buy and forget about

The Schwab U.S. Dividend Equity ETF isn’t a high-powered growth investment, but it can be a dependable investment to hold in your portfolio for many years. When the market was in turmoil in 2022 and the S&P 500 crashed, this Schwab fund’s total returns (which include reinvested dividends) were a negative 3%. That’s a far cry from the performance of the broad index, which lost 18% in value.

This year it’s been a different story, with the Schwab U.S. Dividend Equity ETF’s total returns coming in at just 2% versus nearly 14% for the S&P 500. That’s the trade-off that you often need to take when opting for safety and security. You’ll sacrifice some gains when times are good, but in return, you can minimize your losses when times are tough.

Along the way, you can still collect an above-average dividend from this ETF without incurring significant fees. That’s why the Schwab U.S. Dividend Equity fund can be a suitable option to hang on to for the long haul.

Stocks are at an all-time high, as there have been plenty of winners during the AI boom.

However, one sector has been left behind over the last couple of years. Housing stocks have generally been reeling with mortgage rates still elevated and existing home sales down roughly 30% since pre-pandemic levels. That has impacted everyone in the sector, from home builders to real estate agencies to home-furnishing companies, which depend on home sales to drive demand.

One company, RH (RH -3.60%), is still trading down 69% from its pandemic-era peak, as its business pulled back substantially in the post-pandemic era, even though it has since regrouped and is back to delivering solid growth.

The stock pulled back last week after the high-end home furnishings company formerly known as Restoration Hardware missed estimates and cut its full-year guidance. The stock fell 4.6% on the news, even though the numbers were solid considering the challenging macroeconomic environment.

Image source: RH.

Revenue rose 8.4% to $899.2 million, below estimates for $905.4 million. Demand, which is a measure of order growth, was up 13.7% in the period, even with the impact of tariff uncertainty and a weak housing market.

Despite the weaker-than-expected revenue growth, the company continued to deliver strong profit margins with an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 20.6%, and a generally accepted accounting principles (GAAP) operating margin of 14.3%.

Adjusted earnings per share jumped from $1.69 to $2.93, showing its margins are rapidly expanding, though that missed the consensus at $3.22.

Why RH could soar

It will take a lot for RH to recover to its previous peak, which came at a time when the housing market was soaring and home-improvement stocks were delivering rapid growth.

However, considering it’s down 69% from its peak, RH doesn’t need to get all the way back there to be a winner. In fact, the Fed rate cut on Wednesday could be the trigger the company needs in the housing market.

CEO Gary Friedman hasn’t hesitated to blame what he’s called the weakest housing market in 30 years for the company’s woes, and lower mortgage rates are likely to bring more home buyers and sellers into the market. Lower rates will reduce monthly payments, and it will also encourage sellers to reenter the market as it will diminish the “lock-in effect” of the pandemic era.

As a high-end home furnishings seller, RH is well prepared to take advantage of the housing market recovery as home sales tend to trigger new furniture purchases.

The company has also expanded significantly in Europe and with new galleries in the U.S., in addition to new trial businesses like restaurants, guesthouses, and airplane and yacht charters.

While interest rate cuts in the U.S. won’t directly affect the business in Europe, its expansion across the pond shows there’s plenty of growth runway left for the company.

Is RH a buy?

Based on analyst estimates for fiscal 2027, which ends in January 2027, RH stock trades at a forward P/E of 18, which seems like a fair price for a stock that still has significant growth potential. Additionally, Friedman envisions expanding the brand beyond home furnishings, even flipping whole, fully furnished houses, effectively getting into the housing market, a program it calls RH Residences.

Even if mortgage rates decline, it could take time for the housing market to spring back to life, especially as the lock-in effect is likely to persist for at least some homeowners.

However, investing in RH looks like a good way to take advantage of the expected rate cuts. For risk-tolerant investors, getting some exposure to the stock right now looks like a smart idea.

Stock markets have come a long way from the stereotypical trading floors we may know from the movies and TV. Most trading is electronic these days. And, while the New York Stock Exchange and Nasdaq still ring an opening and closing bell, it’s largely symbolic. After-hours trading in various forms is increasingly common and could soon become the norm.

Several established brokers already offer after-hours trading. Key exchanges and infrastructure providers are looking for regulatory approval to extend their hours of operation. And Sept. 29 will see the launch of the new, SEC-approved, 24X National Exchange. This will initially trade U.S. equities from 4 a.m. to 8 p.m ET every weekday.

But just because you can trade at almost all hours, should you?

Image source: Getty Images.

Is 24/7 trading a good thing?

The convenience of being able to manage your portfolio at an hour that suits you is one of the biggest benefits of extended trading. Regular market hours of 9:30 a.m to 4 p.m. ET may not suit many retail investors who can’t easily trade during office hours. That’s even more so for international investors who own U.S. stocks and live in a different time zone.

Depending on what type of investor you are, there’s also an appeal to being able to react to events as they unfold — we live in a 24-hour news cycle and the current after-hours and pre-market trading sessions will only take you so far.

Perhaps a company just issued a disappointing earnings release or announced a change in leadership that you think will impact its performance. Maybe there’s other breaking news such as trade deals, overseas developments, or economic data that might significantly impact a particular business. Extended trading hours give you a chance to react as things happen.

Drawbacks of 24/7 trading

On the other hand, trading outside the regular hours can carry more risk and prove costly. People are more likely to make emotional investment decisions when they can trade at any time they want, whether that’s panic selling or impulse buying. This can damage your portfolio in the long run.

Another big issue is that there isn’t as much liquidity. If you’re trading outside of regular hours, you may not be able to execute the trades you want. And if you can, you may find there’s a wide bid-ask spread. With fewer people trading, the gap can widen between what investors are willing to pay and the price the seller wants.

In terms of prices, thinner order books can translate to increased volatility. Price discovery is also harder. The securities information processors (SIPs) that collect and distribute real-time data don’t yet operate out of hours, so you may find two different systems give different prices.

Finally, if you plan to trade out of hours today, many brokerages have restrictions on which equities you can trade and what types of orders you can place. For example, Charles Schwab (SCHW 1.08%), one of the leaders in extended trading, will only take limit orders during non-traditional hours. Similarly, Robinhood (HOOD 3.13%) doesn’t offer fractional trading on all its securities and only supports certain order types in extended or overnight trading.

Round-the-clock trading is coming

A mix of forces is driving us closer to 24-hour trading. Those include technological advances, shifts in regulatory attitudes, globalization, and investor demand. Most recently, the SEC and Commodity Futures Tradition Commission said extended trading is a joint priority. Even so, we’re more likely to see 22-hour or 23-hour trading windows on weekdays than a full shift to 24/7 markets.

Here are some of the drivers toward extended trading hours:

• Tokenized assets are gaining traction. These are essentially a way to issue a token that represents ownership of anything from real estate to equities to online art. They originated in the cryptocurrency world, but are starting to have an impact on all asset classes. One of the attractions of the blockchain is that it doesn’t have set trading hours.
• Nasdaq hopes to launch 24/5 trading by the second half of 2026. It says it is working with regulators and infrastructure providers to make this possible. The exchange is also awaiting SEC approval for tokenized stock trading.
• The NYSE wants to offer 22/5 trading on NYSE Arca, its electronic trading system. If regulators approve, it wants to extend its hours from 1:30 a.m. to 11:30 p.m. ET every weekday. The idea is to launch at the end of next year.
• Back-end infrastructure is shifting to accommodate longer hours. The SIP operating committees have asked the SEC to approve plans for 23/5 operations. Clearing houses are doing the same. This would give investors the information they need to trade effectively, no matter the time.

Not quite 24/7, but nearly

We’re on the cusp of a seismic shift in how markets work. Exchanges, SIPs, clearing houses, and brokerages are all laying the groundwork for systemic change that will make after-hours trading more normal.

As an investor, it’s worth thinking about how this might impact your activities. That includes making a plan to handle breaking news and avoid panic decisions, understanding what brokerage automation tools might help, and being clear on how longer trading windows might fit with your goals and strategies.

Quantum computing is emerging as the next big investment trend, although we’re still a few years out from seeing commercially viable quantum computing. As a result, investors are wondering what the best approach to quantum computing is.

There are publicly traded quantum computing investments, like IonQ (IONQ 5.39%), that have massive upside if they work out. However, they also come with big risks if their technology isn’t adopted. Multiple big tech companies are also involved in the quantum computing arms race, like Alphabet (GOOG 1.27%) (GOOGL 1.23%). These companies have nearly unlimited resources compared to the start-ups, but don’t have near the upside. This makes them safer picks, but investors might be worried they’re leaving too much potential on the table by not taking some risk.

So, between the two, which is the best quantum computing investment right now?

Image source: Getty Images.

Investors must pay a premium for IonQ

There is a significant size difference between the two companies. Alphabet is a tech behemoth with a market cap of $2.9 trillion, while IonQ is a comparatively small $17 billion company. However, despite Alphabet’s size, the stock is far cheaper than IonQ. Let me explain.

Currently, IonQ isn’t making a ton of money. It’s relying on various research partnerships and contracts that it has signed to generate revenue. In Q2, it recognized revenue of $21 million, which is a rounding error compared to Alphabet’s results. Alphabet generated $96.4 billion in revenue during Q2, making IonQ’s revenue 0.0218% of Alphabet’s total. That’s a huge difference.

With Alphabet, you’re paying about 8 times sales for the stock, or for every dollar of sales over 12 months, you’re paying $8. IonQ trades for 242 times sales, so it’s quite a bit more expensive.

GOOG PS Ratio data by YCharts

This mismatch is because the market is far more excited about IonQ’s future than Alphabet’s. Should both companies develop commercially relevant quantum computing systems, the effect it will have on each company’s growth is quite different. For Alphabet, it will likely contribute a few extra percentage points each quarter. For IonQ, a major system sale could cause its revenue to double or triple year over year. That explosive growth is what excites investors the most with IonQ, although it’s far from guaranteed.

Buying both stocks allows investors to balance risk

There’s no guarantee that the approach Alphabet or IonQ is taking will be a winning one. There may be a hidden flaw in each company’s design that doesn’t appear for a few years, which could eliminate them from contention in the quantum computing arms race.

While this would be disappointing for Alphabet, it wouldn’t be the end of the world. It would continue down its path of AI dominance and also thrive on the advertising revenue generated by the Google search engine.

Unfortunately, if this happens to IonQ, the stock would likely go to $0, losing investors a ton of money. This scenario is probably more likely for IonQ than quantum computing success, and investors must be aware of this risk.

So, which one is the better buy? I’d say if you’re afraid of a stock going to zero, then IonQ is one to avoid, and Alphabet is more attractive. However, I think there’s a better approach. By devoting no more than 1% of your portfolio positioning to a quantum computing long shot like IonQ, you can capture some of the upside if it makes it big while limiting downside risk. Additionally, by purchasing shares of Alphabet to balance this risk out, investors can get two impressive quantum computing plays. This basket approach is a smart way to invest in an emerging field like quantum computing, as it balances out risk by investing in multiple companies.

It is tempting for a dividend investor to simply select the highest yielding stocks. The problem with that approach is that it exposes you to the risk of dividend cuts if the yield is too high for the company to support.

Which is why dividend lovers also need to consider dividend history as they look at a company. And, when you do that, you’ll find that companies like Pfizer (PFE -0.50%), which has a huge 7.2% yield, don’t match up to companies like Johnson & Johnson (JNJ 1.03%), Omega Healthcare (OHI -0.50%), and Merck (MRK -0.03%).

Here’s what you need to know about these three healthcare dividend stocks.

Image source: Getty Images.

1. If you need the money to live, dividend reliability is key

Pfizer is actually a well-run company. Sure, it is facing hard times right now, but it has dealt with difficult periods before and survived. It is highly likely that it will do so again, noting that some of the issues it is dealing with are a natural part of the pharmaceutical industry. For example, patent expirations are on the horizon, and it needs to find new drugs to replace older ones. Investors rightly worry about such patent cliffs, but they aren’t the least bit unusual for drug makers.

That said, Pfizer’s huge 7.2% dividend yield is also a reflection of the downbeat view among regulators and consumers around vaccines. So there’s more to watch here than the normal industry swings. But the same things could, largely, be said of Merck, one of Pfizer’s competitors. The drugs and vaccines in question are different, but the worries are basically the same. You could easily buy either one if you wanted exposure to the pharma sector. Why pick Merck and its less impressive, though still high, 4% yield?

The answer is simple. Merck has a long history of supporting its dividend even through difficult periods. Pfizer cut its dividend in 2009 when it bought Wyeth. The acquisition was good for Pfizer, but the dividend cut was terrible for income investors. If dividend consistency matters to you, Merck wins here.

Data by YCharts.

2. Omega Healthcare has survived the hardest of times

If Merck’s dividend resilience over time impresses you, you’ll probably find Omega Healthcare even more exciting. The company owns senior housing facilities, which were hard hit during the COVID-19 pandemic. To put it simply, older people in group settings were at severe risk of dying from the pandemic. That had the exact negative impact you would expect on nursing homes and similar properties. And yet Omega Healthcare, a senior housing-focused real estate investment trust (REIT), didn’t cut its dividend like many of its competitors.

It didn’t raise the dividend, either, but it did stand behind the payment, realizing that investors were relying on that quarterly check. That should make Omega’s nearly 6.4% yield look a lot more attractive, even for more conservative dividend investors.

Data by YCharts.

And don’t forget that the pandemic is now mostly in the rearview mirror. The second quarter of 2025 saw Omega invest in new assets, which should help spur growth and post an 8% year-over-year increase in adjusted funds from operations (FFO). With the business looking like it is on the mend, the dividend is likely more secure now than it has been in years.

3. The Dividend King approach

If you are looking to stick to only the most reliable of dividend companies, however, then you’ll want to buy a Dividend King. These are stocks that have raised their dividends for over 50 years. Johnson & Johnson’s string of over 60 annual dividend increases makes it the healthcare stock to beat when it comes to dividend reliability. Of course, investors know how reliable this drug and medical device maker is, so the stock is usually afforded a premium valuation. Right now, the yield is around 3% or so, the lowest on this list. However, it is still higher than the 1.7% yield of the average healthcare stock, making J&J a good pick for investors who place a high value on dividend consistency.

Clearly, Johnson & Johnson has its own warts to consider. For example, it faces all of the same issues in the pharma space as Merck and Pfizer. It is also dealing with a lingering class action lawsuit around talcum powder that it once sold. So even this Dividend King isn’t risk-free. But if history is any guide, you can count on the dividend continuing to be paid through thick and thin.

Don’t just jump at the highest yield

Although there’s nothing particularly wrong with Pfizer, a comparison to Merck, Omega, and J&J shows that a high yield isn’t the only factor you should consider if you are looking for a good dividend stock. If reliable dividend stocks are what you want populating your dividend portfolio, you will clearly want to look past Pfizer’s yield. And when you do that, you’ll likely find that Merck, Omega, and Johnson & Johnson all offer a more compelling combination of income reliability and yield.

CoreWeave (CRWV 2.77%) just announced that it has landed an order from AI chip giant Nvidia (NVDA 0.34%) worth at least $6.3 billion. The deal obligates Nvidia to purchase its residual unsold capacity until April 13, 2032, if it is not already purchased by CoreWeave’s customers.

CoreWeave is a longtime Nvidia client. It has purchased hundreds of thousands of GPUs, which CoreWeave rents out to clients. With the agreement, CoreWeave gains an additional revenue source.

Still, investors need to remember that the spare capacity was valuable enough to pay CoreWeave $6.3 billion, raising questions about which company will reap the greater benefit. Thus, investors should take a closer look at the deal to see whether CoreWeave or Nvidia benefits more.

Image source: Getty Images.

How CoreWeave benefits

CoreWeave obviously benefits from the deal since it has a guaranteed customer, and it will receive $6.3 billion in revenue over the length of the agreement.

But understanding the benefit fully means knowing what CoreWeave offers to the market. CoreWeave is an artificial intelligence (AI) based cloud computing company. It differs from cloud providers like Amazon‘s AWS as it builds servers specifically for workloads related to AI, machine learning, high-performance computing, and visual effects.

It also provides customers with the latest hardware, can handle heavy workloads at lower costs, and its per-instance pricing allows customers to manage their costs more closely. Such an approach makes CoreWeave valuable to the AI industry, but it can also leave it with unused capacity. Nvidia’s move to claim that spare capacity should therefore provide CoreWeave with some degree of stability.

Knowing that, investors should note where CoreWeave stands financially. Its $58 billion market cap is a tiny fraction of Nvidia’s $4.25 trillion size. Also, even though CoreWeave’s revenue of $2.2 billion in the first half of 2025 grew by 275% yearly, it still lost $605 million during that time. Such losses mean it will likely have to turn to capital markets to raise funds.

That need is even more acute because it pledged to spend between $20 billion and $23 billion in capital expenditures (capex) in 2025 alone. So it needs deals like the one with Nvidia so it can recoup its capex investments and eventually grow into a profitable operation.

Why Nvidia made this agreement

What may confuse investors is how the deal helps Nvidia. Even though Nvidia and CoreWeave are close partners, CoreWeave’s business requires it to purchase Nvidia’s latest AI accelerators. But investors may not understand why it chose to spend $6.3 billion to help this particular customer.

For one, Nvidia owns 24.3 million shares of CoreWeave as of June 30, about 5% of the outstanding shares. The agreement goes a long way toward solidifying Nvidia’s investment and the relationship between the two companies.

Intense demand for AI has led to a shortage of cloud capacity, so this deal also gives Nvidia a claim over a scarce commodity. Thanks to this deal, Nvidia will have to rely less on large cloud providers like Amazon and Microsoft, giving it more control over its destiny in this regard.

Furthermore, having CoreWeave in a more solid financial position means CoreWeave will more likely meet the aforementioned goals on capex spending. With that, it will spend more on Nvidia GPUs, helping to boost the size and expanse of the AI ecosystem over which it has considerable control.

What may look like charity to CoreWeave will likely serve Nvidia’s interests in the end.

Does CoreWeave or Nvidia benefit more from the deal?

This deal will probably benefit both companies, although CoreWeave is likely to derive more benefit, at least from an investor perspective.

Nvidia may benefit more in an abstract sense, as it gains influence over the AI ecosystem. Nvidia’s larger size also makes it a safer investment, a welcome relief to investors who feel uncomfortable buying into a money-losing company spending heavily on capex.

Still, the Nvidia deal offers a considerable boost to CoreWeave’s top line. This makes it more likely that CoreWeave’s massive spending will ultimately deliver positive returns for the company.

CoreWeave’s much smaller size also means it can attain higher percentage growth from a much smaller base. The doubling of CoreWeave’s value takes its market cap to $116 billion. The same percentage move would take Nvidia’s market cap to $8.5 trillion, a challenging feat in a market that has yet to see a company with a $5 trillion market cap.

In the end, CoreWeave comes with higher risks than Nvidia. However, if you are willing to take a chance, CoreWeave offers greater potential for higher-percentage returns.

For the first time since artificial intelligence (AI) captured Wall Street’s imagination, investors are beginning to broaden their scope beyond the “Magnificent Seven.” Two names that have attracted growing attention this year are Oracle and CoreWeave.

Unlike the tech titans that dominate headlines, Oracle and CoreWeave are carving out their niche at the infrastructure layer of the AI ecosystem. The opportunity they’ve identified is straightforward but also mission-critical: providing cloud-based access to GPUs. These chips — designed primarily by Nvidia and Advanced Micro Devices — remain supply constrained as they are largely absorbed by the world’s largest companies.

This supply imbalance has created an opportunity to enable AI model development by offering GPUs as a service — a business model that allows companies to rent chip capacity through cloud infrastructure. For businesses that cannot secure GPUs directly, infrastructure services are both time-saving and cost-efficient.

In the background, however, a small, albeit capable, company has been competing with Oracle and CoreWeave in the GPU-as-a-service landscape. Let’s explore how Nebius Group (NBIS 5.54%) is disrupting incumbents and why now is an interesting time to take a look at the stock for your portfolio.

17.4 billion reasons to pay close attention to Nebius

Last week, Nebius announced a five-year, $17.4 billion infrastructure agreement with Microsoft. For reference, up until this point, Nebius’ management had been guiding for $1.1 billion in run rate annual recurring revenue (ARR) by December. I point this out to underscore just how transformative this contract is in terms of scale and duration.

The Microsoft deal not only places Nebius firmly alongside peers like Oracle and CoreWeave in the AI infrastructure conversation, but it also serves as validation that its technology is robust enough to meet the standards of a hyperscaler.

For Microsoft, the partnership is equally strategic. With GPUs in chronically short supply and long lead times to expand data center capacity, this agreement allows Microsoft to secure adequate compute resources without stretching internal infrastructure or assuming the upfront capital expenditure (capex) budget and execution risks that come with it.

Image source: Getty Images.

Why this deal matters for investors

AI investment is not a cyclical trend — it’s a structural shift. Enterprises are deploying applications into production at unprecedented speed, workloads are scaling rapidly, and new use cases in areas like robotics and autonomous systems are emerging.

For companies that supply the compute underpinning this increasingly complex ecosystem, these dynamics create durable secular tailwinds. By securing Microsoft as a flagship customer, Nebius has established itself within this foundational layer of the AI infrastructure economy.

Is Nebius stock a buy right now?

Since announcing its partnership with Microsoft, Nebius shares have surged roughly 39% as of this writing (Sept. 16). With that kind of momentum, it’s natural to wonder whether the stock has become expensive. To answer that, it helps to put its valuation in context.

Prior to the Microsoft deal, Nebius was guiding for $1.1 billion in ARR by year-end. If I assume Microsoft’s $17.4 billion commitment is evenly spread across five years (2026 to 2031), that adds about $3.5 billion annually — bringing Nebius’ pro forma ARR closer to $4.6 billion.

Against its current market cap of $21.3 billion, Nebius stock trades at an implied forward price-to-sales (P/S) ratio of 4.6. On the surface, that looks meaningfully discounted to peers like Oracle and CoreWeave.

ORCL PS Ratio data by YCharts

That said, there are important caveats to consider. My analysis assumes no customer attrition over the next several years — this is unrealistic due to competitive pressures. While Nebius may continue winning large-scale contracts, it’s also reasonable to expect some customer churn.

Moreover, comparing Nebius’ future ARR to Oracle’s and CoreWeave’s current revenue base is not an apples-to-apples match. Oracle, for example, has reportedly inked a $300 billion cloud deal with OpenAI. Meanwhile, CoreWeave also has multiyear, multibillion-dollar commitments tied to OpenAI. The catch is that OpenAI itself doesn’t have the cash on its balance sheet to fully fund these agreements — leaving questions about their viability.

In short, Nebius appears attractively valued relative to its peers — but the landscape is evolving quickly and riddled with moving parts. The more important takeaway is that Nebius is now winning significant business alongside its brand-name peers.

In my eyes, this validation in combination with ongoing structural demand tailwinds makes Nebius a compelling buy and hold opportunity as the AI infrastructure narrative continues to unfold.

The S&P 500 has continued to notch new record highs this year, thanks in large part to soaring interest in artificial intelligence (AI) technology, which is fueling massive spending on both hardware and software. But as impressive as the S&P 500’s 17% gains over the past year have been, they pale in comparison to AI data analytics company BigBear.ai Holdings‘ (BBAI 9.63%) 273% climb over that period.

When a stock delivers returns like this in such a short amount of time, it’s understandable that some investors might start to think that buying and holding it could help them retire as millionaires. We’re in the early innings of AI, after all, so why can’t brighter days still be ahead for this stock?

Unfortunately, I don’t think that’s the right way to think about BigBear.ai. In fact, it might be best not to own this stock right now at all. 

Image source: Getty Images.

Why BigBear.ai stock is soaring

There’s a lot of optimism among investors right now surrounding artificial intelligence stocks, as companies and governments invest in AI data center infrastructure and increase their use of AI software. One way BigBear.ai is tapping into this demand is by offering AI logistics and analytics, which can improve the efficiency of everything from supply chains to national security.

Management says the company’s total addressable market was $80 billion in 2024, but it forecasts that it could grow to $272 billion by 2028 for the combined private and public sectors. Part of the enthusiasm for the company’s shares comes as the U.S increases its spending on AI defense, a market that could be worth up to $70 billion by the mid-2030s. BigBear.ai makes a “significant portion” of its revenue from government contracts, and AI defense is an important component of its potential.

Also, because AI stock enthusiasm is sky high right now, BigBear.ai has at times surged for no obvious reason. Case in point: Last week, after trending down over a period of a couple of months, it jumped by more than 10% in a single session on no news at all.

Why BigBear.ai won’t help you retire a millionaire

If the good news is that BigBear.ai’s stock has made impressive gains over the past year (albeit quite bumpy ones), the bad news is that the company has little to show in the way of growth. Revenue fell 18% year over year to $32.5 million in Q2, following another decline in Q1.

With sales slipping, management recently cut its revenue guidance for the year to about $132 million — 22% lower than the midpoint of its previous forecast. Lower sales volumes from some government contracts were the problem during the quarter, but upon closer inspection of the details, BigBear.ai’s situation doesn’t look much better.

The company’s gross margins slid to 25% in the quarter, down from nearly 28% in the year-ago period. That continued a pattern of inconsistency over the past year. Worse, BigBear.ai is nowhere near profitable. Its non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) came to a loss of $8.5 million in the quarter, significantly worse than its adjusted loss of $3.7 million in Q2 2024.

The picture that should be coming into focus here is that BigBear.ai isn’t much of a growth stock. A temporary slowdown in business could be forgivable, but that’s not happening with the company. Instead, its sales continue to slide, and its losses are widening.

With all that in mind, I have serious doubts that BigBear.ai stock could grow from here in a way that would help its shareholders retire as millionaires. The stock is riding the AI wave right now, but financial reality will eventually catch up with it.

Micron (MU -3.63%) stock got hit with a valuation retracement in Friday’s trading. The company’s share price fell 3.6% in the day’s trading, and had been off as much as 5.6% earlier in the session. Meanwhile, the S&P 500 (^GSPC 0.49%) gained 0.5% in the session, and the Nasdaq Composite (^IXIC 0.72%) rose 0.7%.

Micron stock lost ground today despite gains for the broader market and little in the way of clear-cut, company-specific news. Even with today’s pullback, Micron’s share price is still up 32% over the last month.

Image source: Getty Images.

Micron slips as investors take profits

Micron stock has posted big gains over the last month thanks to positive indicators for demand in the cloud-infrastructure services space. Positive demand indicators for CoreWeave, Nvidia, Broadcom, and other players in artificial intelligence (AI) have helped support gains for Micron stock in recent trading. As provider of memory chip services, Micron is poised to benefit as AI infrastructure build-outs continue to move forward.

What’s next for Micron?

Micron is a leading provider of high-bandwidth-memory (HBM) solutions, and its strong position in this category positions it to be a beneficiary as AI-focused cloud data centers continue to expand. While the company has historically been subject to demand shifts in connection with trends for the storage and memory chip markets, there are some indicators that suggest that Micron could be in the early stages of long-term demand tailwinds.

Micron continues to be a relatively high-risk investment, but there are some indicators that suggest that the business could be poised to benefit from demand trends that could power big gains for patient shareholders.

Few figures in the business world command attention quite like Elon Musk. Known for his ability to shape narratives and capture Wall Street’s attention, he has once again grabbed the spotlight — this time with comments about Tesla‘s (TSLA 2.27%) ambitions to design its own artificial intelligence (AI) chips.

Just had a great design review today with the Tesla AI5 chip design team! This is going to be an epic chip.

And AI6 to follow has a shot at being the best by AI chip by far.

Switching from doing 2 chip architectures to 1 means all our silicon talent is focused on making 1…

— Elon Musk (@elonmusk) September 6, 2025

Tesla’s efforts to move into custom silicon could be significant for the company’s next-generation products — but what might they mean for semiconductor powerhouse Nvidia?

What is the AI5 chip, and why does it matter?

AI5 — and its successor AI6 — are simply Tesla’s internal codenames for its next generation of custom chips. While Musk’s comments may fuel a debate over which company is designing the most advanced silicon, investors should look past the surface-level narrative. His underlying message points to something larger: Tesla is pursuing deeper vertical integration of its technology stack.

The rationale is straightforward. By consolidating its high-end computing onto a single family of purpose-built chips, Tesla gains greater control over both performance and cost — and can streamline engineering cycles and accelerate product development. From a financial perspective, this strategy also has the potential to improve unit economics by reducing supply chain risk and expanding profit margins over time.

Image source: Getty Images.

How do these investments impact Tesla’s AI ambitions?

Tesla’s AI ambitions can be divided into two categories: self-driving cars and humanoid robotics. While these markets target different end users, the unifying theme is autonomy.

Importantly, autonomy will not be achieved as a singular breakthrough — it will be the product of constant iteration. Both Tesla’s robotaxis and its Optimus robots rely on taking in fresh real-world data and using machine learning loops to steadily become “smarter” and more capable over time.

Is this a checkmate move against Nvidia?

Given the context above, it’s critical to note that Nvidia remains the leader in powering the training side of AI workloads. Tesla may have bold ambitions in custom silicon design, but the key question for investors is whether its efforts could truly disrupt Nvidia’s dominance in the data center landscape.

At present, I see that as highly unlikely. Nvidia’s entrenched position — anchored not only by its hardware but also by its widely used CUDA computing platform — gives the company broad ecosystem advantages. Coupled with its rapid pace of product development — it rolled out its Blackwell Ultra GPUs earlier in this quarter, and will launch its next-gen Rubin GPUs in 2026 — these factors make it difficult for any competitor to materially erode Nvidia’s lead in AI infrastructure at this time.

Nvidia’s dominance is not solely a function of its chips. Rather, the company’s comprehensive hardware-software stack creates immense friction for enterprises considering moving some of their business to rival platforms. This creates a formidable technological moat and durable competitive advantage for Nvidia.

With this in mind, the broader takeaway is that Nvidia’s flywheel is unlikely to come to a sudden halt simply because one company is choosing to become more self-reliant. While Tesla may eventually compete with Nvidia in the autonomous vehicle chip market, it is quite likely to remain a complementary player — or even an Nvidia customer — when it comes to AI training protocols.

Against this backdrop, Tesla’s progress in developing its own infrastructure is notable, but those efforts are still in their early stages. All the while, Nvidia continues to roll out improved successor architectures to its already industry-leading GPUs.

The bottom line is that while Tesla may find ways to meet some of its chip needs in-house over time, it is still far from achieving a checkmate position against the AI chip leader.

Shares of hard disk drive manufacturer Seagate Technology (STX 2.12%) rallied this week, up 11.8% this week through 1:54 p.m. ET Friday, according to data from S&P Global Market Intelligence.

Seagate had a relatively quiet week in terms of company-specific news; however, positive data around demand for storage at the edge due to a spike in artificial intelligence (AI) inferencing has led to several analyst upgrades this week.

Seagate gets massive upgrades

Artificial intelligence and semiconductor-related stocks were already on the rise this week, following the last week’s blockbuster AI guidance from Oracle, along with the Federal Reserve’s interest rate cut this week — the Fed’s first cut since last year.

Lower interest rates generally mean lower costs of capital, and large tech stocks are spending boatloads of cash on AI infrastructure this year. So lower interest rates bring the prospects of only fueling that spending even more.

Meanwhile, the composition of that infrastructure is changing, moving from training generative AI models to inferencing, which is the use of those models in everyday tasks.

Inferencing is leading to a new wave of investment in edge storage, where Seagate’s HAMR technology leads the industry in terms of squeezing more TB of data onto each disk. That led to a couple of sell-side analysts upgrading the stock this week.

On Monday, Bank of America upgraded its price target on Seagate from $170 to $215 while reaffirming its “buy” rating, based on a more optimistic outlook for AI spending. Then today, Mizuho analyst Vijay Rakesh increased his target on Seagate by an even greater amount, from $160 all the way to $245. Rakesh’s upgrade follows channel checks indicating strong demand and rising prices for both hard disk drives and NAND flash.

Image source: Getty Images.

But remember: Storage is cyclical

After this week’s surge, Seagate is up a whopping 155.4% year to date, exceeding the gains of many more popular AI leaders.

And while things look rosy today, the memory and storage industry has been quite cyclical in the past, leading to a boom-and-bust dynamic. We’re clearly in a “boom” stage right now, and the length of that stage will be determined by how long the AI infrastructure build-out will take. Many believe it will take several years, but investors should be aware that any macroeconomic hiccups or flagging demand for AI services could lead to severe pullbacks.

Shares of Rigetti Computing (RGTI 15.44%) are rising on Friday, up 15.4% as of 2:59 p.m. ET. The jump comes as the S&P 500 and the Nasdaq Composite gained 0.3% and 0.4%, respectively.

The quantum computing stock continues to ride momentum from a federal contract win announced yesterday.

Rigetti secures $5.8 million Air Force deal

The company announced that it has secured a $5.8 million, three-year contract from the Air Force Research Laboratory, focusing on quantum networking technology.

Under the contract, Rigetti plans to work with Netherlands-based start-up QphoX to explore methods for combining their technologies. The goal is to enable information transfer between quantum computers.

While the announcement excited investors, CEO Subodh Kulkarni made clear this is an experimental program, describing it as “a far-out kind of research program” that’s “very much in the R&D phase.”

Image source: Getty Images.

The quantum networking opportunity remains distant

The potential of quantum is enormous, but the technology is earlier in its development than investors believe it to be. Rigetti and its peers are heavily overvalued. The company’s price-to-sales is an astronomical 779. Despite sales last year of just $10.8 million — which was less than 2023’s sales — the company’s market cap is over $9 billion.

There are more risks here than upside with a valuation like that. The quantum computing market is full of a lot of hype and enthusiasm that I think is leading investors astray. I would stay away from Rigetti stock and others like it. Instead, investors should look at stocks like Alphabet.

Shares of leading pet goods e-commerce juggernaut Chewy (CHWY -0.85%) are up 11% this week as of 1 p.m. ET on Friday, according to data provided by S&P Global Market Intelligence.

Chewy reported earnings last Wednesday, Sept. 10, and immediately saw its shares drop after it offered up guidance that traders deemed was too conservative.

At that time, I argued that the sell-off seemed to be an overreaction and that the company’s underlying business looked stronger than ever. One week later, Chewy’s stock has bounced back on minimal news, so perhaps long-term investors have turned the tide against short-term traders selling due to 90 days’ worth of information.

Chewy: Building the strongest pet care ecosystem

The primary reason that I am confident in Chewy’s stock to succeed over the coming decades is the potential for its profit margins to rise. However, Chewy also offers numerous qualitative factors that make it an outstanding stock to consider, alongside its improving financials.

First off, Chewy ranked as the 29th top brand among millennials, according to Comparably. Landing at the No. 1 spot on Forrester’s Customer Experience Index, Chewy and its willingness to go above and beyond for its customers and their furry friends shine through.

Image source: Getty Images.

This customer satisfaction creates an immensely loyal base of patrons to build an ecosystem around.

Home to the Chewy+ membership program, 12 Chewy Vet Care clinics, a heavily used autoship offering, the most pet pharmaceutical sales in the U.S., and a growing list of private label products, the company has quickly become a one-stop shop for pets.

Trading at 30 times forward earnings, Chewy’s rising margins, budding ecosystem, and 10% annualized growth rate over the last three years look attractively valued.

Nvidia (NVDA -0.18%) has made an incredible ascent to the top of the stock market, and it’s in a league of its own as the only stock with a market cap above $4 trillion. It’s up 1,300% over the past five years, and it doesn’t look like it’s anywhere near done.

Its growth prospects are up for debate amid increasing competition and its sheer size, which makes it harder to report high percentage growth. Still, there are many reasons to believe in Nvidia’s future. Here’s one reason investors still have time to buy Nvidia stock.

Image source: Getty Images.

Hyperscalers are spending

There are several ways to envision Nvidia’s opportunity, and one of them is to analyze how its largest clients are spending money on its products.

Nvidia works with the largest cloud operators in the world, the hyperscalers like Amazon, Microsoft, and Meta Platforms. These companies are building out their large language models (LLM) and offering top artificial intelligence (AI) solutions to their millions of customers, who in turn are using these platforms to create the next generation of generative AI apps.

This is the AI revolution that’s changing how people do business, shop, pay, and more, and these hyperscalers need Nvidia’s powerful chips to drive their AI models.

Just take a look at how much these three companies are spending this year on capital expenditures, and you can see how Nvidia’s business is going to be a crucial part of this process for the foreseeable future. Amazon is spending at a run rate of $120 billion, Microsoft at $100 billion, and Meta at about $65 billion. These are accelerations from last year, and as companies require more power, those numbers are likely to keep going up. Nvidia doesn’t collect every dollar of these sales, but it dominates this market.

I wouldn’t bet on Nvidia offering the same kind of growth it has in the past over the next five years, but it’s still likely to beat the market and offer value for shareholders.

Broadcom (AVGO -0.06%) and Oracle (ORCL 1.72%) have been two of the best-performing mega-cap growth stocks in 2025. As of this writing, Broadcom is up 19% since reporting earnings on Sept. 4, and Oracle soared 36% on Sept. 10 in response to its own blowout earnings and guidance.

Broadcom is getting closer to reaching a $2 trillion in market cap, and Oracle is knocking on the door of $1 trillion. Yet, you won’t find either of these stocks in the “Magnificent Seven,” which only includes Nvidia (NVDA -0.20%), Microsoft (MSFT 0.73%), Apple (AAPL 2.98%), Amazon (AMZN 1.04%), Alphabet (GOOG 0.69%) (GOOGL 0.65%), Meta Platforms (META -1.32%), and Tesla (TSLA 1.48%).

The “Ten Titans” corrects that error by adding Broadcom, Oracle, and Netflix (NFLX 1.38%) to the group. Combined, these 10 growth stocks now make up 39.1% of the S&P 500 (^GSPC 0.28%).

Here’s how the Ten Titans have disrupted the stock market in just a few years and why their dominance in the S&P 500 can still impact your investment portfolio, even if you don’t own any of the Ten Titans outright.

Image source: Getty Images.

A lot has changed in less than three years

The S&P 500 is up a staggering 70% since the start of 2023, and a big reason for that is artificial intelligence (AI). Specifically, a few major companies are profiting from AI through semiconductors and associated networking hardware, software infrastructure, cloud computing, automation, and efficiency improvements.

The Ten Titans encapsulate this theme. The group is now double the market cap of China’s entire stock market and is largely responsible for moving the S&P 500 in recent years.

At the end of 2022, the Ten Titans made up 23.3% of the S&P 500. But since then, many of the Titans have increased in value several-fold, with Nvidia and Broadcom leading the pack.

Data by YCharts.

The Ten Titans’ combination of size and rapid gains has redefined the structure of the S&P 500. Here’s a look at each company’s weight in the S&P 500 as of this writing.

Data source: Slickcharts.

Oracle’s surge on Sept. 10 briefly pole-vaulted it to become the tenth-largest company by market cap. At that time, the nine largest names in the S&P 500 were all tech companies — a far cry from the days when the most valuable U.S. companies were from the oil and gas, consumer staples, financials, and industrial sectors.

The Ten Titans’ influence is growing

Even if you don’t own any of the Ten Titans stocks, their rise may still have ripple effects for your financial portfolio.

The biggest impact would be if you own index funds or exchange-traded funds (ETFs) with exposure to these holdings. Market-cap weighted passive funds that follow a growth theme or the general market will likely have sizable positions in the Ten Titans. And S&P 500 funds that mirror the index, like the Vanguard S&P 500 ETF, SPDR S&P 500 ETF, the iShares Core S&P 500 ETF will all have around 39% of their holdings in the Titans.

The sheer size of the Ten Titans means that the S&P 500 is no longer a balanced index, at least for now. Rather, it’s more of a growth index, similar to how the Nasdaq Composite is typically viewed.

The S&P 500 may contain hundreds of holdings, but its performance is now based on just a couple dozen companies. Investors looking for mid-cap or even large-cap stocks should venture outside the index because the S&P 500 offers little exposure to non-mega-cap names.

Navigating a Ten Titans-dominated market

The rise of the Ten Titans has benefited their shareholders, S&P 500 index fund investors, and folks with exposure to these stocks through ETFs. However, because they are so big, they will likely make the S&P 500 more volatile going forward.

Investors can offset the Ten Titans concentration by investing in value and dividend stocks that no longer make up a large percentage of the S&P 500. On the other hand, if you’re looking for a low-cost and straightforward way to get exposure to top growth stocks, the S&P 500 may be one of the simplest ways to do so.