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The Hidden AI Trade Hiding Behind Oracle's Earnings Miss
Oracle missed. Stock got hammered. But the spending guide hiding in the report is the real signal for AI infrastructure, and a Micron print on June 24 could re-rate the whole group. Wall Street isn't positioned for either side of this.
Markets jumped Wednesday after Trump pulled back planned strikes on Iran. Oil cracked. Risk assets caught a bid.
Underneath all the macro noise, though, the real tech story is playing out in semis, memory, and power.
Here's what's setting up for the next leg.
Tax Strategy (Sponsored)
Many investors overlook deductions that could help minimize capital gains tax, such as:
Eligible investment expenses
Cost basis adjustments
Selling costs tied to property
Each comes with IRS rules and reporting requirements.
That’s why consulting a fiduciary financial advisor is often recommended.
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Creator Tools
Meta Pushes AI Deeper Into The Creator Economy
Meta Platforms (NASDAQ: META) is transforming Edits from a simple mobile video editor into a full creator platform by adding an AI assistant and introducing a desktop version of the app.
The AI assistant will analyze Instagram performance, explain why videos succeed or fail, suggest new content ideas, recommend trending audio, and help creators plan future posts.
At the same time, desktop support offers larger workspaces and more advanced editing capabilities for longer, more complex projects.
Creator Tools Become Smarter
Video platforms are increasingly competing on software instead of algorithms alone.
Meta wants creators to brainstorm, edit, analyze performance, and publish content without leaving its ecosystem.
AI now sits at the center of that strategy, replacing manual analytics with conversational guidance and personalized recommendations based on real audience data.
The approach also reduces reliance on third-party AI assistants and editing software, keeping more of the creative process inside Meta's own products.
Competition Extends Beyond Social Media
Edits launched as a direct challenger to ByteDance's CapCut, but the competitive landscape is much broader.
YouTube, TikTok, and independent AI startups are all racing to build smarter creator tools that automate production and increase engagement.
Adding desktop support removes one of CapCut's biggest advantages, while AI assistance gives Meta another way to attract professional creators.
The next creator battle may not be won by the platform with the biggest audience. It could be won by the platform that makes creating content the easiest.
Streaming
Netflix Is Building An Entertainment Platform Beyond Streaming
Netflix (NASDAQ: NFLX) is accelerating its mobile-first strategy across Asia-Pacific with a broader rollout of its redesigned app, while adding new features focused on short-form video and interactive experiences.
The updated app, already available in several markets, will launch in South Korea and Japan next, before expanding further across the region.
At the center of the redesign is Clips, a vertical video feed that lets users browse quick highlights from movies and series instead of committing to a full episode.
Netflix is also testing themed Clip collections based on genres, moods, and trending moments.
Streaming Meets Gaming
Netflix is also expanding Netflix Playground, its dedicated gaming hub for children. The latest update brings interactive mini-games based on KPop Demon Hunters, one of the platform's biggest animated hits.
Rather than simply watching characters on screen, younger audiences can now play through stories and explore the same universe inside the app.
Gaming is becoming another way for Netflix to keep families engaged without leaving its ecosystem, extending popular franchises beyond traditional streaming.
Entertainment Platforms Keep Evolving
Competition is no longer limited to streaming libraries. Netflix is now competing with TikTok for attention, YouTube for discovery, and mobile games for engagement.
Short videos, interactive experiences, and gaming are becoming part of a broader strategy designed to increase time spent on the platform and create stronger connections with its content.
Shocking Truth (Sponsored)
America’s biggest banks have quietly earned outsized returns for years - while everyday savers collect fractions of a percent.
Now, one income strategist says a little-known investment delivering far higher long-term returns may be available to regular investors.
Enterprise Software
IBM And ServiceNow Team Up To Modernize Enterprise AI
IBM (NYSE: IBM)and ServiceNow have expanded their partnership to tackle one of the toughest challenges in enterprise technology: decades-old software that was never built for artificial intelligence.
Instead of asking companies to replace critical systems, the two firms are building tools that modernize existing applications, organize enterprise data, and make it usable for AI models and autonomous agents.
The joint solutions are expected to launch in the second half of 2026.
Legacy Software Gets An AI Upgrade
Many of the world's largest banks, manufacturers, healthcare providers, and government agencies still rely on software written years or even decades ago.
Replacing those systems is expensive and risky, making modernization a far more practical approach.
IBM plans to combine automation software, Red Hat technologies, and infrastructure tools with ServiceNow's AI Platform to help businesses improve data quality, automate IT operations, and connect information spread across multiple systems.
Enterprise AI Race Moves Beyond Chatbots
Technology companies are increasingly shifting their focus from consumer AI to enterprise transformation.
Success depends less on building bigger language models and more on connecting AI with real business data and mission-critical operations.
IBM is positioning itself at the center of that transition by helping companies modernize the technology they already own rather than replacing it.
The next wave of AI growth may not come from flashy consumer apps. It could come from quietly upgrading the software that runs the world's largest businesses.
Poll: Which AI company outside of the Magnificent 7 do you think has the most interesting investment case? |
Recent Tech Movers
Micron Technology (NASDAQ: MU)
Memory Maker Heading Into a Loaded Q3 Print
Micron Technology (NASDAQ: MU) has been climbing as the Street wakes up to the HBM (High Bandwidth Memory) story. Fiscal Q3 results hit after the close on, with the company expected to post around in revenue.
HBM demand is growing at roughly 40% annually for the next several years, DRAM pricing remains tight, and gross margins last quarter expanded from 38% to 56%. Every major AI accelerator needs Micron's memory.
Action: Build a starter position ahead of the fiscal Q3 earnings print on. If management guides next quarter higher (likely), the stock re-rates again.
Risk: Memory is cyclical. Any whisper of slowing DRAM demand or HBM pricing pressure could knock 10 to 15% off the stock fast.
Qualcomm (NASDAQ: QCOM)
JPMorgan Just Put It on Positive Catalyst Watch
Qualcomm (NASDAQ: QCOM) has been quietly building momentum into its Investor Day, where management is expected to lay out its diversification roadmap into automotive, IoT, and on-device AI.
JPMorgan put the stock on positive catalyst watch ahead of the event, citing the chance for upward estimate revisions.
The mobile handset business is stabilizing, and the AI PC and edge inference stories are starting to get real revenue attached.
Action: Worth a position ahead of the Investor Day. Specifics on automotive design wins and edge AI revenue contribution are the swing factor.
Risk: If Apple accelerates its in-house modem timeline, that's a multi-year revenue hole. Watch the commentary closely.
Onto Innovation (NYSE: ONTO)
Oppenheimer's Top Smid-Cap Idea for a Reason
Onto Innovation (NYSE: ONTO) was named Oppenheimer's top small/mid-cap semiconductor pick going into the back half of 2026.
The thesis: ONTO's metrology and inspection equipment is mission-critical for advanced packaging, the exact bottleneck slowing down AI chip production.
With TSMC, Samsung, and Intel all scrambling to add CoWoS-class capacity, ONTO's order book has nowhere to go but up. Market cap sits at roughly, making it a true mid-cap with re-rating potential.
Action: This is the quiet compounder of the AI packaging trade. Accumulate on any pullback to the before the next quarterly earnings report.
Risk: A spending pause from any of the top three foundry customers hits ONTO's revenue mix harder than the diversified peers.
SpaceX Profit Path (Sponsored)
SpaceX may be heading toward a historic IPO.
But Louis Navellier says the better opportunity could be a little-known AI hardware firm Elon Musk used to help power his massive supercomputer.
Now, major tech giants are using similar technology as AI spending surges.
And because this company is reportedly 39X smaller than SpaceX, investors may still have time before Wall Street catches on.
The Memory Spin-Off Wall Street Hasn't Properly Discovered Yet
Sandisk (NASDAQ: SNDK)
The Setup
Sandisk (NASDAQ: SNDK) was spun off from Western Digital in early 2025 as a pure-play NAND flash and storage company. The market has been treating it like a commodity memory maker. That's the mistake.
NAND prices are firming after a brutal two-year downcycle.
Enterprise SSDs (the high-margin part of the business) are seeing demand acceleration from AI training and inference workloads, which are pushing storage requirements through the roof.
Every AI cluster needs petabytes of fast storage to feed the GPUs.
Where the Numbers Get Interesting
Wall Street is modeling roughly 38% revenue growth and 38% earnings growth for Sandisk, per Yahoo Finance's high-growth tech screen. That puts it in rarefied air for a hardware company.
The stock still trades at a discount to other AI infrastructure names because the spin-off story hasn't been fully picked up by analysts.
The Catalyst
Sandisk's next earnings report is the big one.
Management has been guiding cautiously, which is exactly what you want before a print where the AI storage tailwind starts showing up in the gross margin line. If they beat and raise, the multiple expands quickly.
Action: This is a higher-risk, higher-reward bet on AI storage demand. Build a half-position now ahead of the, with room to add if they confirm enterprise SSD strength.
Risk: NAND pricing has been volatile for years. If consumer demand softens faster than enterprise picks up, gross margins reverse hard.
Everything Else
🤖 An AI ranks every stock across six dimensions and delivers the 10 highest rated names to your inbox daily free.
🛢️ Trump signaled the Iran deal is close, and tech got a green-light bid on the headline-driven relief rally.
💻 Taking Kharg Island would pose risks for US troops.
🤖 India rupee surges as oil nosedives on rising bets of US-Iran peace deal.
📱 Oil extends losses as Trump calls off planned strikes on Iran.
That's our coverage for today; thanks for reading! Reply to this email with feedback or any tech stocks you want me to check out.
Best Regards,
—Noah Zelvis
Tech Stock Insider