- Constellation Energy's shares rose after the company signed a 20-year power purchase agreement with Amazon. The deal covers 690 megawatts from Constellation's nuclear plant to expand the plant's capacity and helps meet future electricity demand, driven by AI.
- Meanwhile, Zscaler restated its fiscal 2027 guidance at its Investor Day. Nvidia also kept up its strong performance, closing at a new high. These events reflect the strong market for both cybersecurity and artificial intelligence.
- TSMC is in focus following news of talks to partner with Elon Musk’s Terafab
Futures point to a higher open. Major indices recently climbed, helped by falling Treasury yields and lower oil prices. Today, the market’s focus is on AI and chip stocks, though rising yields could pose a risk.
A stable bond market would certainly help these companies. A sudden yield surge, however, could create challenges. Watch premarket activity and adjust position sizes for volatility.
Several companies show promise, supported by strong fundamentals, recent developments, and solid short-term technicals. Here are four stocks to watch today.
Nvidia Corporation
Nvidia is a top player in semiconductor hardware for AI. Demand for its high-volume graphics processing units (GPUs) and specialized data center chips still outstrips supply. On Monday, Nvidia’s stock traded near $237, passing its previous record close of $235.74 from May 14.
Buyers are keen on the company’s September 28 announcement of a $150 billion boost to its share repurchase program. That news helped the stock outperform the broader semiconductor sector. The stock’s short-term outlook is tied to bond yields.
Analysts expect strong third-quarter earnings, so the company has little room for error.
Taiwan Semiconductor Manufacturing Company (TSMC)
TSMC hit an all-time intraday high Monday after reports of potential collaboration talks with Elon Musk for his Terafab chip initiative. Sources say Terafab aims to supply Tesla, SpaceX, and xAI. This would bring a huge new customer if a deal comes together.
Intel, which joined the Terafab project in April, saw its stock dip around 2%. Further market moves will likely depend on related news. Since these talks are still in early stages, some consolidation after Monday’s big advance wouldn’t be surprising.
Zscaler (ZS)
Zscaler’s stock climbed after the cybersecurity firm confirmed its fiscal year 2027 financial outlook during its Investor Day. Management repeated their first-quarter revenue projections, expecting $935 million to $939 million, and full-year revenue forecasts of $3.908 billion to $3.938 billion. Non-GAAP earnings per share are also projected to be $4.86 to $4.90.
In a market that often puts high valuations on growth-focused software companies, Zscaler’s confirmed double-digit growth and strong profit margins look good. Investors will probably want to hear more about competitive conditions and the company’s strategy for hitting long-term annual recurring revenue targets.
Constellation Energy (CEG)
Constellation Energy’s shares rose in premarket trading after the company announced a 20-year power purchase agreement with Amazon. This deal involves 690 megawatts from Maryland’s Calvert Cliffs nuclear facility and helps fund over $3 billion in infrastructure investment.
That includes an estimated 190 megawatts of new capacity expected online sometime between 2030 and 2032. The company’s long-term, contracted revenue streams make it an attractive investment.
Nvidia stock drew attention Monday, trading around $237. That pushed it past its earlier record close of $235.74. A $150 billion buyback increase, announced in late September, helped drive the gains.
TSMC shares hit an all-time intraday high. This followed Elon Musk confirming initial discussions about collaborating on his Terafab chip initiative, though he noted nothing’s finalized.
Constellation Energy drew eyes today after signing a 20-year power purchase agreement with Amazon. The deal covers 690 megawatts from Constellation’s nuclear plant. It should help expand capacity and offers a solid view of long-term revenue.