Watch Verizon, EQT, and ARM
In Tuesday morning trade, watch shares of Verizon Communications (VZ) follow through with Monday’s rally. VZ stock gained 4.04% to close at $42.49 after posting quarterly results. This ended a downtrend that started in late February.
Verizon posted a 5% Y/Y revenue increase, to $34.5 billion. It led the industry with $20.9 billion in wireless equipment revenue. The firm expects to post adjusted EBITDA and EPS growth. In 2025, it will spend $17.5-$18.5 billion in capital expenditure. VZ stock is attractive for its dividend.
EQT dropped by 9.55% on no business news. It might have fallen in sympathy with EOG Resources (EOG), Devon Energy (DVN), and Occidental Petroleum (OXY) trading lower.
ARM Holdings (ARM) continued an uptrend that began in April. It continues to benefit from generative AI computing demand. For example, ARM-based chips grew by 14-fold since 2021, to 70,000, as of July 9.
Chip makers are racing to catch up to Nvidia (NVDA). Alphabet’s (GOOG) Google unit has Tensor chips that cost less than Nvidia’s products. AMD should report growing market share as demand increases for its MI400 series AI accelerator, expected to launch in 2026.
Analysts are bullish on ARM stock. UBS and Wells Fargo recently increased their price targets to $175 and $185, respectively.
