Delta — Week of July 25, 2026
Market Overview
As of July 24, 2026, the S&P 500 Index closed at 7,411.98, reflecting a slight increase of 0.05% from the previous day. Over the past year, the index has seen an 18.85% rise. Meanwhile, the Nasdaq Composite Index closed at 26,040.03, down 0.66% as it continues to grapple with volatility amid mixed earnings reports from tech companies. The current annual inflation rate stands at 3.5%, showing a decline from previous months, suggesting a potential easing of monetary pressures. The Federal Reserve's benchmark interest rate is presently set at 3.63%, indicating a cautious approach to tightening while monitoring inflation and economic growth.
Long Picks
Credo Technology Group Holding Ltd CRDO
Technical Setup
CRDO closed at $215.20 after a significant selloff. The stock remains in a correction phase but shows potential for recovery with key support around $187 and a neutral RSI indicating room for upside.
Fundamental Driver
With FY2026 revenue tripling and strong guidance for FY2027, CRDO is positioned well within the AI data center growth trend, despite recent volatility.
Analyst Detail
Credo Technology Group is a leading player in AI data center optical connectivity, with strong revenue growth and substantial market potential. The recent price correction offers a potential entry point for investors looking for exposure to this rapidly expanding sector.
Ciena Corporation CIEN
Technical Setup
CIEN remains in a strong growth trend, despite a recent pullback. The stock is above its 50-day moving average, indicating bullish momentum.
Fundamental Driver
Ciena's substantial backlog and raised revenue guidance highlight robust demand for optical networking solutions critical for AI infrastructure.
Analyst Detail
Ciena is strategically positioned within the AI infrastructure boom, boasting significant market share and a solid pipeline. The current pullback presents a favorable buying opportunity as the fundamentals remain strong.
FormFactor Inc FORM
Technical Setup
FORM has experienced a correction but is trading near a significant support level. The stock's RSI indicates oversold conditions, suggesting a potential rebound.
Fundamental Driver
With robust revenue growth and a strong market position as a semiconductor testing leader, FormFactor presents an attractive long-term investment opportunity.
Analyst Detail
FormFactor is a key player in the semiconductor industry, benefiting from the growing demand for AI-related testing solutions. Upcoming earnings may act as a catalyst for recovery.
Short Picks
Bloom Energy Corporation BE
Technical Setup
BE's recent collapse of nearly 15% underscores the extreme overvaluation and bearish momentum that has developed.
Fundamental Driver
With an unsustainable P/E ratio and significant insider selling, Bloom Energy faces substantial downside risk as market enthusiasm wanes.
Analyst Detail
Bloom Energy's stock has been driven by hype around AI power demands, yet its valuation metrics indicate a severe disconnect from fundamentals, suggesting a strong short opportunity.
Arm Holdings plc ARM
Technical Setup
ARM's stock has shown significant volatility and is currently below its 50-day moving average. A head-and-shoulders pattern suggests further declines.
Fundamental Driver
Despite a dominant market position, ARM's valuation is excessively high for its growth prospects, indicating a potential for significant downside.
Analyst Detail
Arm Holdings has experienced a meteoric rise but is now facing a harsh correction phase. The recent downgrade highlights concerns over its growth sustainability in a competitive landscape.
Palantir Technologies Inc. PLTR
Technical Setup
PLTR has shown clear signs of a bearish reversal, with recent declines confirming a downward trend in price and momentum.
Fundamental Driver
Palantir remains significantly overvalued relative to its growth rate, making it a prime candidate for a correction as investor sentiment shifts.
Analyst Detail
Palantir's inflated valuation amidst declining growth prospects presents a compelling short opportunity. The upcoming earnings report could further exacerbate existing bearish momentum.