JHVEPhoto/iStock Editorial via Getty Images The near-term outlook for key semiconductor customers in the auto and industrial markets is still murky, but exposure to growth opportunities in data centers, sensing, robotics, and power continues to resonate well with investors. To that end, STMicroelectronics’ ( STM ) recent efforts to highlight its leverage to these markets, as well as growing confid...
JHVEPhoto/iStock Editorial via Getty Images The near-term outlook for key semiconductor customers in the auto and industrial markets is still murky, but exposure to growth opportunities in data centers, sensing, robotics, and power continues to resonate well with investors. To that end, STMicroelectronics’ ( STM ) recent efforts to highlight its leverage to these markets, as well as growing confidence that the worst is behind the business, have boosted sentiment for these shares. STMicro shares are up about 20% since my last update , a strong result relative to the broader semiconductor space, as well as more direct comparables like Infineon ( IFNNY ), NXP Semiconductors ( NXPI ), ON Semiconductor ( ON ), and Renesas Electronics ( RNECY ). Provided that the ongoing hostilities between the United States, Israel, and Iran don’t trigger a broader downturn for the economy, STMicro’s business should recover in 2026, with notable acceleration in the second half of the year continuing into 2027 and beyond. Moreover, while STMicro does face meaningful competition across multiple markets, opportunities in areas like data centers (or DCs), power, robotics, and sensing do support a more bullish outlook. A Quick Look Back Expectations for STMicro’s fourth quarter were modest, and the company basically met them. Revenue was basically flat from the prior year and up more than 4% from the prior quarter, which was good for a small beat relative to the Street. While the auto business remains pressured (down 15% yoy and up 3% qoq), personal electronics, industrial, and communications markets were all stronger. Gross margin declined 250bp from the prior year as excess capacity continues to weigh, but did improve about two points sequentially on a better mix. Operating income declined 28% yoy and rose 23% qoq, with margin down about three points yoy to 8%, with pronounced weakness in its auto-driven Power & Discrete Products driving the weakness. Inventory days improved by 5 to 130 in ...
PhonlamaiPhoto/iStock via Getty Images X-Energy Is Seeking An IPO On High Cash Burn X-Energy, Inc. ( XE ) has filed to raise general corporate working capital from an IPO, according to an S-1 registration statement . The company is developing small modular reactors (SMR) and related fuels. XE is seeking what may be as high as a $300 million IPO for its general R&D and operating costs as it pushes ...
PhonlamaiPhoto/iStock via Getty Images X-Energy Is Seeking An IPO On High Cash Burn X-Energy, Inc. ( XE ) has filed to raise general corporate working capital from an IPO, according to an S-1 registration statement . The company is developing small modular reactors (SMR) and related fuels. XE is seeking what may be as high as a $300 million IPO for its general R&D and operating costs as it pushes forward in commercializing its SMR technologies in the U.S. amid strong demand from AI data center operators. While the market environment is favorable, the firm’s ability to navigate through regulatory and approval processes after decades of inertia is its primary challenge. I’ll provide an update once we learn additional details about the IPO. What Does X-Energy Do? X-Energy designs small modular reactors and manufactures nuclear fuels in the United States. It is developing its flagship product, the Xe-100 High Temperature Gas-cooled Reactor (HTGR) type SMR, which is designed to generate 80 megawatts of electric power or 200 megawatts of heat or a combination of the two. The technology has been in development by the company for ten years but has a longer operating history in previous versions, ‘including those at Peach Bottom in the U.S., and Dragon in the U.K. in the 1960s-1970s, and more recently with China’s ongoing deployments of HTGRs in the 21st century.’ The firm has developed a close relationship with the U.S. Department of Energy and has been awarded contract funds from the DoE’s ARDP (Advanced Reactor Demonstration Program) as one of two awardees of the $2.4 billion program. X-Energy is eligible for up to $1.2 billion in reimbursement from that program and has been reimbursed $438 million through the end of 2025. The firm’s 2025 revenue contribution is shown in the chart below: SEC XE is led by Chief Executive Officer J. Clay Sell, who has been with the firm since 2019 and was previously president of Hunt Energy Horizons, the renewable energy unit of Hunt Consol...
Sundry Photography/iStock Editorial via Getty Images Synopsys ( SNPS ) partnered with Arm ( ARM ) to produce the UK-based company's new AGI CPU , which was designed for data centers. Synopsys provided electronic design automation, interface IP, and hardware-assisted verification during the process. "Designing data center silicon for increasingly complex AI workloads requires rigorous validation ac...
Sundry Photography/iStock Editorial via Getty Images Synopsys ( SNPS ) partnered with Arm ( ARM ) to produce the UK-based company's new AGI CPU , which was designed for data centers. Synopsys provided electronic design automation, interface IP, and hardware-assisted verification during the process. "Designing data center silicon for increasingly complex AI workloads requires rigorous validation across the full system," said Mohamed Awad , executive vice president of Arm's Cloud AI Business Unit. "The Arm AGI CPU reflects the strength of our SoC design and the effectiveness of our collaboration with Synopsys. Their design, IP, and verification solutions supported the development and validation of our breakthrough performance-per-watt chip for next-generation AI infrastructure." The new CPU for data centers means Arm will be competing in the space with chipmakers such as Nvidia ( NVDA ), Intel ( INTC ), and AMD ( AMD ). Meta Platforms ( META ) will be one of the initial major customers of the new chip, which will be produced by Taiwan Semiconductor ( TSM ). More on Synopsys and Arm Holdings Arm Holdings: Resilience In Smartphone Revenue Justifies Hold For Now (Rating Upgrade) Synopsys: Design IP Weakness Doesn't Really Matter Post Transition Arm Holdings: Best Business Model In Its Sector, But There Are Concerns Arm unveils data center CPU as it looks to take on Intel, AMD Elliott's stake in Synopsys a 'near-term positive,' focus on 'margin' - analysts
Vladimir Zakharov/iStock via Getty Images Market Summary Technology stocks, particularly AI-related names, remained in the spotlight during the fourth quarter, with much market attention on the rally's sustainability and the scale of capital expenditures. Investor concerns grew about whether outsized investments in AI would deliver expected returns, prompting some to reduce overweight tech positio...
Vladimir Zakharov/iStock via Getty Images Market Summary Technology stocks, particularly AI-related names, remained in the spotlight during the fourth quarter, with much market attention on the rally's sustainability and the scale of capital expenditures. Investor concerns grew about whether outsized investments in AI would deliver expected returns, prompting some to reduce overweight tech positions, with interest broadening to other areas, including biotech and metals & mining stocks. Despite tech's prominence, healthcare was the quarter's top sector in the S&P 500® Index, which tracks 500 of the largest U.S. companies. Across market capitalizations, value stocks were favored over growth stocks, and investors appeared to be positioning for a cyclical upswing, supported by lower interest rates and expectations for accommodative fiscal policy. Fund Performance The Virtus KAR Small-Cap Value Fund returned -2.80% (Class I) in the quarter, underperforming the Russell 2000® Value Index's 3.26% return. Stock selection in financials, combined with stock selection and an underweight position in healthcare, detracted from performance. Stock selection and underweight positions in information technology and real estate contributed positively to performance. RBC Bearings ( RBC ) and CSW Industrials ( CSW ) were the largest contributors to performance during the quarter. RBC Bearings, an international manufacturer of highly engineered precision bearings and products, continues to benefit from robust growth across its aerospace business. > CSW Industrials, which manufactures industrial chemical products, benefited from an upward revision in the valuation of the business due to its perceived prospects going forward. Construction Partners ( ROAD ) and Houlihan Lokey ( HLI ) were the largest detractors from performance in the quarter. Construction Partners, a leading civil infrastructure company specializing in road construction and maintenance, reported strong operating results, bu...
Relmada Therapeutics ( RLMD ) traded higher on Tuesday after Piper Sandler launched its coverage with an Overweight recommendation, arguing that shares of the Florida-based biotech have yet to reflect the full potential of its lead cancer candidate, NDV-01. An intravesical formulation of chemotherapy, gemcitabine, and docetaxel, NDV-01, is currently undergoing mid-stage development as a treatment ...
Relmada Therapeutics ( RLMD ) traded higher on Tuesday after Piper Sandler launched its coverage with an Overweight recommendation, arguing that shares of the Florida-based biotech have yet to reflect the full potential of its lead cancer candidate, NDV-01. An intravesical formulation of chemotherapy, gemcitabine, and docetaxel, NDV-01, is currently undergoing mid-stage development as a treatment for non-muscle invasive bladder cancer (NMIBC). “RLMD shares seem to currently reflect minimal value for NDV-01 despite a clear value proposition in the large NMIBC market; high translatability of the existing gem/doce evidence, in our view; and cash through 2029,” analyst Kelsey Goodwin wrote. She argued that the drug, designed to enable the gradual release of gemcitabine and docetaxel over 10 days, offers several key advantages over existing options, including a sustained-release formulation for increased exposure. The analyst issued a $12 per share target for RLMD, assuming 20% and 15% peak market share for NDV-01 in BCG-unresponsive high-risk NMIBC and intermediate-risk NMIBC, at a probability of success of 35% and 25%, respectively. More on Relmada Therapeutics Relmada Therapeutics, Inc. (RLMD) Q4 2025 Earnings Call Transcript Seeking Alpha’s Quant Rating on Relmada Therapeutics Historical earnings data for Relmada Therapeutics Financial information for Relmada Therapeutics
Tesla Inc. and SpaceX CEO Elon Musk shared fresh details about the upcoming Terafab AI chip project, touting it as a major leap in his enterprises’ AI capabilities. Terafab Invites Doubts On Sunday, user @markusdd5 posted on X that the Terafab project, given its scale, could be unsuccessful. “I assign a major probability to this either failing or delaying much beyond the intended timeline,” the us...
Tesla Inc. and SpaceX CEO Elon Musk shared fresh details about the upcoming Terafab AI chip project, touting it as a major leap in his enterprises’ AI capabilities. Terafab Invites Doubts On Sunday, user @markusdd5 posted on X that the Terafab project, given its scale, could be unsuccessful. “I assign a major probability to this either failing or delaying much beyond the intended timeline,” the user said in the post. He went on to explain that chip production is a complex process and is the “far
We just covered the Jim Cramer Stock Portfolio: Top 10 Stock Picks. Advanced Micro Devices Inc. (NASDAQ:AMD) ranks #10 (see the Jim Cramer’s top 5 stock picks in 2026 here). Jim Cramer isn’t as enthusiastic about Advanced Micro Devices Inc. (NASDAQ:AMD) as he is for Nvidia, but the stock remains in his Charitable Trust’s portfolio. […]
We just covered the Jim Cramer Stock Portfolio: Top 10 Stock Picks. Advanced Micro Devices Inc. (NASDAQ:AMD) ranks #10 (see the Jim Cramer’s top 5 stock picks in 2026 here). Jim Cramer isn’t as enthusiastic about Advanced Micro Devices Inc. (NASDAQ:AMD) as he is for Nvidia, but the stock remains in his Charitable Trust’s portfolio. […]