AI headlines are everywhere but the real money is being made behind the scenes.
While retail traders chase hype, hedge funds are rotating into the hardware layer powering AI itself.
Our new research reveals three U.S. companies leading this quiet surge:
- One just reported 76% year-over-year data-center growth.
- Another holds a $12 billion backlog from global hyperscalers.
- A third is generating 59%+ gross margins, supplying next-gen chips.
These aren’t speculative startups they’re profitable infrastructure giants fueling AI’s next trillion-dollar phase.
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See the full analysis, price setups, and catalysts before this rotation hits the headlines.
When everyone else notices, the easy gains will be gone.
Eli Lilly Wins Back CVS Health, Reverting Novo's Advantage
Written by Leo Miller. First Published: 6/2/2026.
Key Points
- After CVS made Novo Nordisk its preferred GLP-1 provider in 2025, Lilly shares took a huge hit.
- However, CVS will restore access to both Eli Lilly and Novo's drugs, putting the firms on a level playing field.
- Lilly is now approaching its all-time high again, making its valuation something to monitor.
- Special Report: The Biggest IPO Ever: Claim Your Stake Today
After its blockbuster Q1 2026 earnings report, which sent shares up 9.8%, pharmaceutical giant Eli Lilly and Company (NYSE: LLY) continues to rack up wins. These include a Food and Drug Administration (FDA) proposal that could pressure compounders, as well as strong clinical results for its oral GLP-1, Foundayo.
Now, the company is back in the news with a key development that underscores its strong position in the GLP-1 arena. Lilly has reached an agreement with CVS Health (NYSE: CVS), the owner of the nation’s largest pharmacy benefit manager (PBM), Caremark. The agreement will extend coverage of Lilly’s top GLP-1s, allowing patients to access them through their existing insurance.
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Discover all 4 steps to help protect your bank account nowClearly, this is positive news, as it should increase demand for Lilly’s products. However, it also weakens Lilly’s biggest competitor, as CVS reverses its prior move to cut Lilly out of coverage.
CVS Reunites With Lilly After Backing Novo
With this announcement, all three of the United States' largest PBMs will soon cover Lilly’s entire portfolio of approved obesity medications. Express Scripts, owned by Cigna Group (NYSE: CI), and Optum Rx, owned by UnitedHealth Group (NYSE: UNH), already covered the drugs. Caremark will begin covering Foundayo on June 1, while coverage for Zepbound will begin on Oct. 1.
What makes this announcement particularly interesting is the context. Just over a year ago, CVS struck a deal with Lilly’s main competitor, Novo Nordisk A/S (NYSE: NVO). That made Novo’s Wegovy CVS’s preferred GLP-1 treatment and excluded Zepbound from coverage. Combined with its slightly disappointing earnings report on May 1, 2025, this move by Lilly’s top rival and the largest PBM sent LLY shares down almost 12%.
Now, CVS has reversed that decision, which dealt a real blow to Lilly shares. According to a CVS spokesperson, “What this change means is that, for those clients that do (choose to provide coverage), they will have equal access to both the Novo and Lilly products, and consumers will have the same co-pays for each.” In other words, if an employer covers GLP-1s for obesity, employees can access Novo and Lilly’s products equally and at the same co-pay.
This should largely reverse the negative effect of CVS’s initial decision, which limited access to Lilly’s drugs and hurt demand. It also removes the advantage Novo had as the only available option for CVS clients.
Timing is another positive aspect of this decision, as Lilly is looking to increase demand for Foundayo. Its oral GLP-1 has fallen behind Novo’s Wegovy pill, which received FDA approval several months earlier. By now being on equal footing with Novo within Caremark, Lilly may have an easier time closing the gap. Lilly shares gained 4% on the day of the announcement as investors responded to the positive implications for the company.
Zooming in on Valuation Amid Lilly’s Rebound
Despite the many positive developments Lilly has seen in late 2026, the stock has underperformed overall. Shares are down around 1% compared to the S&P 500’s gain of more than 10%. This comes as its latest earnings helped kick off the recovery—prior to the report, shares were down nearly 21% in 2026. Now, Lilly trades less than 5% below its all-time high. Given this, it is worth examining the stock’s valuation for a more complete understanding of the outlook for LLY shares.
Currently, the stock trades at a forward price-to-earnings (P/E) ratio near 29x. This is substantially above the S&P 500’s forward P/E near 21x, and even further above the S&P 500 healthcare sector’s forward P/E near 17x. Based on these measures, Lilly’s valuation looks fairly elevated.
However, that is not the case when compared with Lilly’s own history. Over the past three years, Lilly’s average forward P/E has been nearly 43x. Thus, its current level is about 33% below that average, which is a much more favorable comparison. Looking over the past 52 weeks, Lilly’s average forward P/E is around 30x, only slightly above its current level.
Lilly’s forward P/E has also come down meaningfully from 32x, when the stock traded near its current price in February. This suggests that earnings estimates have caught up with the stock price a bit, which is a positive sign. Overall, Lilly is certainly not a cheap stock, and it will need to keep delivering strong growth to support its valuation. However, these metrics also show that it is not a name that necessarily screams "overvalued."
Analysts Remain Constructive on Lilly’s Upside Potential
The outlook for Lilly shares, according to Wall Street analyst price targets, remains positive. The MarketBeat consensus price target on the stock currently sits near $1,227, implying about 15% upside in shares.
The average of targets updated after the company’s earnings report is moderately higher at $1,239.
Among these updates, Rothschild & Co Redburn’s $900 target is the most bearish. Meanwhile, Barclay’s $1,400 target is the most bullish.
What Exactly Is Agentic AI, and Why Are Some Stocks Blowing Up Because of It?
Written by Sam Quirke. First Published: 6/1/2026.
Key Points
- Agentic AI has become the hottest phrase in financial markets right now, with stocks moving dramatically on any meaningful association with the theme.
- Unlike the generative AI wave that preceded it, agentic AI represents a fundamental shift in what artificial intelligence can actually do on behalf of users and businesses.
- Understanding where value lies in an agentic world is increasingly important for investors seeking to capitalize on the AI revolution unfolding before our eyes.
- Special Report: The Biggest IPO Ever: Claim Your Stake Today
There is a new phrase dominating Wall Street right now, and if you have been paying attention to earnings calls, analyst notes, or market-moving headlines recently, you have almost certainly heard it. Agentic AI is being credited with sending certain stocks soaring and reshaping how the smartest money in the market thinks about the technology sector.
ServiceNow Inc. (NYSE: NOW) is up more than 35% over the past month alone. Snowflake Inc. (NYSE: SNOW) jumped more than 40% this week after impressing investors with its agentic AI roadmap. And Apple Inc. (NASDAQ: AAPL) is on its best run in months as analysts argue its ecosystem is perfectly positioned for the age of agency.
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Discover all 4 steps to help protect your bank account nowAt the same time, SanDisk Corporation (NASDAQ: SNDK) has gained more than 4,200% over the past year as the memory infrastructure that agentic AI requires becomes increasingly scarce.
Given the speed with which new technology and buzzwords are hitting the market right now, investors would be forgiven for wondering exactly what agentic AI is and why some stocks are surging because of it.
The answers are more straightforward than you might expect—let’s take a closer look below.
So What Actually Is Agentic AI?
The world encountered AI for the first time as something that answers questions. You type a prompt, the model responds, and the interaction ends there. That is generative AI in its most familiar form, and it was genuinely transformative when it emerged with ChatGPT in late 2022. But it had an obvious limitation: it requires a human to initiate every action and decide what to do next.
Agentic AI removes that limitation. Rather than simply responding to prompts, an AI agent can reason through a multi-step task, pull context from external systems, coordinate with other tools, and then execute actions autonomously.
The difference isn’t just technical. It’s the difference between an AI that tells you what to do and one that goes and does it itself. That shift, from AI as a tool to AI as an actor, has far-reaching applications across multiple industries, and this is what has the market so excited.
The Infrastructure Play: Memory Is the New Bottleneck
The first and most dramatic investment implication of agentic AI is its impact on infrastructure demand. Generative AI, in its early phase, was primarily passive and reactive. Agentic AI is the opposite, as agents are active and always on, requiring them to retain vast amounts of context in memory for extended periods rather than processing a single query on an ad hoc basis.
That simple dynamic has turned memory into one of the most sought-after commodities in the technology supply chain, and no company illustrates this better than SanDisk. Its extraordinary run, which has shown little sign of slowing, reflects a market pricing in a structural, multi-year shortage of the memory that agentic workloads require.
The Platform Play: Whoever Controls the Agent Controls the Value
The second implication that’s been getting investors excited concerns platform control. In a world where AI agents serve as the primary interface through which people search, shop, schedule, and transact, the platform that mediates those interactions wields enormous leverage.
ServiceNow's 35% run since the start of May reflects the market pricing in its position as a leading orchestration layer for agentic AI, a platform through which businesses deploy and govern agents across their workflows. Its deepening partnership with Anthropic's Claude gives it a credible claim to being one of the foremost infrastructure stocks today.
Apple's positioning is different but equally compelling. Bank of America has been pointing out that in an agentic world, value accrues to whoever controls user identity, payments, and app access, all of which the iPhone already owns at a scale no AI lab can replicate. The market has been steadily repricing Apple on the back of this argument.
The Data Play: Clean Data Is the Agent's Raw Material
The third implication, and perhaps the most underappreciated, concerns data. An AI agent is only as useful as the data it can access and act upon. This is precisely why Snowflake's earnings had the stock surging more than 40% in just a few days. Investors are waking up to the idea that companies managing enterprise data at scale are not merely beneficiaries of the AI wave. In an agentic world, they’re foundational.
Snowflake's move this week is a reminder that agentic AI isn’t just a hardware story or a software story. It’s driving a full repricing of where value lives in the technology ecosystem. Investors who grasp the implications early will be best positioned to benefit from them in the coming months and years.
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