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Dear Reader,
I've just revealed a powerful investing strategy that boils down to "Sell This, Buy That."
It's a way to rid yourself of overpriced AI stocks before the tech trade breaks down this summer...
And instead move that money into smaller, lesser-known names that are showing real potential to dethrone the "Mag 7".
I even give away a Hotlist and Hitlist of buy and sell ideas that you can act on right now.
Like my recommendation I call "an upgrade to Tesla stock." It's a little-known company that just inked a groundbreaking partnership with the king of AI, Nvidia. This deal virtually hands this under-the-radar firm the keys to the self-driving industries' biggest customers, putting them miles ahead of Tesla in the autonomous vehicle race.
That's why I want to put this stock on your radar before markets open.
You can get the name and ticker symbol here.
Sincerely,
Marc Chaikin
Founder, Chaikin Analytics
Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading?
By Ryan Hasson. Publication Date: 8/2/2026.
Key Points
- Financial stocks have hit new highs and outperformed the broader market as technology and semiconductor shares corrected sharply over the past month.
- JPMorgan Chase and Bank of America both posted strong second-quarter earnings beats, hit fresh highs, and trade at relatively modest valuations with growing dividends.
- Financials have become a key support for the broader market, and any reversal in the sector could weaken market breadth and hurt the S&P 500.
- Special Report: Forget SpaceX. Buy the company Musk can't replace.
While fear and panic have gripped the AI trade and the broader technology sector, one corner of the market has recently made new 52-week highs. The Financial Select Sector SPDR Fund (NYSEARCA: XLF) recently touched a fresh all-time high of $57.60 before easing back into the mid-$50s.
Over the past month, as semiconductor stocks and the broader AI complex corrected sharply, financial stocks have gained close to 5.5%. That kind of relative strength, at a moment when the market's former leaders are struggling, is exactly the type of rotation worth watching.
Why the Money Is Moving Here
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Click here to learn this company's name for free todayThe sector's outperformance in recent days and weeks is not random. Q2 earnings season delivered blowout results across the big banks, with JPMorgan (NYSE: JPM), Bank of America (NYSE: BAC), and Goldman Sachs (NYSE: GS) all beating estimates. Wall Street's investment banks have been riding a wave of IPOs and megadeals, while the AI buildout itself has become a fee machine for the banks financing it. Several reports have recently framed the group as an overlooked beneficiary of the AI trade, and that framing is catching on.
There is also a slightly defensive aspect to the sector. As capital moves out of mega-growth technology names, it has been reallocated to more defensively valued pockets of the market, including financials, staples, and healthcare. After several years in which capital crowded into richly priced technology names, banks trading near 14 times earnings while growing profits and raising payouts look like a reasonable place to rotate. Within the sector, two heavyweights stand out for their recent relative strength and results.
JPMorgan: Record Highs With a $1 Trillion Milestone in Sight
Like the broader sector, JPMorgan Chase recently hit a new all-time high near $360 and is up roughly 9% year to date. The company now has a market cap of almost $926 billion, keeping the first-ever $1 trillion valuation for a U.S. bank within reach. The Q2 report on July 14 set the tone and spurred the upward momentum, with revenue of almost $58 billion and earnings per share (EPS) of $6.14, comfortably topping expectations.
Despite recently hitting new highs, the stock is still fairly cheap. It trades at just 14.8 times earnings, with a consensus Moderate Buy rating across 28 analysts and a price target of $358.67. JPMorgan ranks in the 87th percentile of MarketBeat's MarketRank and offers an attractive 1.74% dividend yield. As long as the stock holds its prior breakout level near $340, it could continue to lead the market and its sector.
Bank of America: The Cheaper Heavyweight With a Fresh Dividend Hike
Bank of America has been the stronger performer of the pair this year, up almost 11% year to date and close to 27% over the past 12 months. Like the broader sector and JPMorgan, it recently made a new high of $62.99 last Friday. Its recent Q2 report, released on July 14, beat expectations for both EPS and revenue. Notably, the consumer unit earned nearly $3.3 billion, while CEO Brian Moynihan noted that consumer spending continues to hold up. The bank followed the report with a 14% dividend increase to 32 cents per share, announced last week and payable in September.
At a forward price-to-earnings (P/E) ratio of about 13, BAC is the cheaper of the two heavyweights. MarketBeat's MarketRank also scores it higher than JPMorgan, placing it in the 95th percentile of all finance stocks. The consensus is Moderate Buy across 27 analysts, with the consensus price target implying over 3% upside potential. Like JPMorgan, its income component adds another layer of appeal, with a 2.1% yield and an 11-year track record of dividend growth.
The Caveat That Matters
The recent outperformance is notable, but it comes with a condition. Bank stocks dropped from their record highs on Tuesday ahead of the Fed meeting and continued moving lower on Wednesday.
More importantly, financials have become one of the few pillars supporting the broader market as technology corrects. If the sector were to reverse course and lose key support levels, the spillover would matter well beyond the banks themselves. Breadth could weaken meaningfully, and the S&P 500 could begin playing catch-up to the hard-hit technology sector rather than being cushioned by financial strength.
For now, the trend is intact, and earnings support it. But the group's leadership has quietly become a market-level variable, making the coming weeks worth watching closely, both for financials bulls and for everyone else.
Quantum Earnings Could Decide Whether the Sector’s Sell-Off Has Gone Too Far
By Nathan Reiff. Publication Date: 7/31/2026.
Key Points
- Quantum computing stocks have sold off sharply ahead of second-quarter earnings, leaving investors focused on whether company-specific catalysts can offset sectorwide weakness.
- IonQ’s expected SkyWater acquisition close and D-Wave’s expanded AT&T agreement may strengthen their long-term stories, even if neither fully shows up in Q2 results.
- Rigetti’s revenue growth and Novera QPU sales remain important, but rising losses and investment needs could keep pressure on the stock.
- Special Report: Forget SpaceX. Buy the company Musk can't replace.
The first week of August 2026 will be another major test for the quantum computing industry, as several leading companies are slated to release their second-quarter 2026 earnings. Heading into earnings season, it's understandable that investors would be skeptical. Shares of pure-play quantum computing firms have been slammed throughout much of the year, with shares of leaders such as IonQ Inc. (NYSE: IONQ) and D-Wave Quantum Inc. (NYSE: QBTS) falling approximately 25% and 35% year to date (YTD), respectively.
In recent weeks, it has appeared that the appeal of speculative, pre-profit quantum names has cooled considerably. This came even as some firms in the space posted better-than-expected results for the first quarter of the year. One question investors may seek to answer heading into earnings is whether any of these firms has had a large enough catalyst to reverse the industry's downward trend. IonQ and D-Wave both have promising developments that could help in this respect, although neither is likely to be reflected directly in second-quarter earnings.
IonQ's SkyWater Acquisition May Provide a Boost
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Click here to learn this company's name for free todayIonQ announced in January 2026 that it intended to acquire SkyWater Technology (NASDAQ: SKYT), a major domestic semiconductor foundry. The acquisition recently received final regulatory approval and closed on July 31. The deal should dramatically accelerate IonQ's capacity to build quantum chips while strengthening its domestic supply chain. This may be transformational, as it allows the company to complete much of its production without relying on imported goods or dealing with applicable tariffs.
How the acquisition might be reflected in the company's upcoming earnings, however, is unclear. The deal's most significant financial impacts are likely to appear in future quarters, but IonQ management may use the earnings call to share key updates about its plans to integrate SkyWater's operations. Those updates could give investors insight into what to expect in the coming months.
Otherwise, investors will likely be watching to see whether IonQ can continue its positive revenue trend, which stood at 755% year-over-year (YOY) growth in the first quarter. The company established itself as one of the fastest-growing pure-play quantum firms in terms of sales, so it will be imperative that it maintain—or, ideally, improve—that revenue trajectory in the second quarter.
D-Wave's Major Agreement With AT&T Shows a New Path
While IonQ's first-quarter results were strong in multiple respects, D-Wave's stood out for less positive reasons. The company saw a sharp year-over-year decline in revenue because of lumpiness in large system sales and came in well below analyst expectations for the quarter. Still, with bookings up significantly and a healthy pipeline, D-Wave may be poised for a turnaround in the second quarter.
D-Wave has set itself apart with its two-pronged approach to quantum technology. Although this strategy has shown promise, it has yet to translate into distinctive revenue performance compared with other quantum firms. The recent announcement of the company's agreement with AT&T (NYSE: T), however, may signal a change. AT&T plans to use D-Wave's annealing technology to help power its agentic AI tools. The company has announced that early applications have reduced certain processing times from one hour to less than 15 seconds, indicating massive transformative potential.
The key development, however, may be that AT&T is also exploring D-Wave's gate-model technology for a separate set of potential applications involving quantum security and communications. This suggests a path forward for D-Wave in which it can provide two distinct sets of quantum tools for different applications that may appeal to the same customers. That could help the firm stand out relative to others in the quantum space and drive customer retention.
Rigetti's Mounting Costs Remain a Concern
Rigetti Computing (NASDAQ: RGTI) has been hit hardest among these three companies, with shares falling nearly 40% YTD. One of the biggest challenges facing the company is rising costs. In the first quarter of 2026, operating expenses surged to more than $27 million, leading to a non-GAAP net loss of nearly $15 million. With costly fab upgrades and other capital expenditures (CapEx) anticipated throughout the year, costs could remain a challenge in future earnings reports.
Still, Rigetti's revenue growth has been solid, and the company has already made clear that it will include a portion of its Novera QPU revenue in its second-quarter earnings. The question will be whether revenue growth is sufficient to overcome investor concerns about costs for the remainder of the year.
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