Wall Street is set to cap off this week with a decline, as rate-sensitive technology stocks and chip names fall. We have also seen rising U.S. Treasury yields after a significantly stronger-than-expected May jobs report.
Even so, there have been big stock moves in both directions.
Here are Investing.com's stocks of the week:
Broadcom
Broadcom shares are down around 8.9% this week after the chipmaker posted quarterly results that, while modestly ahead of expectations, disappointed investors hoping for a more aggressive AI revenue outlook.
Management reiterated its fiscal 2027 AI revenue guidance of $100 billion or more, falling short of buy-side expectations that had stretched considerably higher.
Evercore ISI analyst Mark Lipacis kept his Outperform rating and $582 price target on the stock, calling the post-earnings weakness a buying opportunity.
"We believe risk/reward is attractive at after-hours levels," Lipacis said not long after the release, adding that earnings commentary was consistent with channel checks indicating premium ASIC margins were under pressure and that TPU production was shifting to other suppliers for lower-end variants.
Hewlett Packard Enterprise
HPE is among the week's biggest winners despite a decline over the last few sessions, climbing 15.5% after delivering a strong fiscal second quarter.
The company reported earnings of $0.79 per share, well ahead of the $0.53 consensus estimate, on revenue of $10.7 billion versus expectations of $9.76 billion. Full-year earnings guidance was raised to $3.35–$3.45 per share, compared to the prior consensus of $2.42.
BofA Securities analyst Wamsi Mohan more than doubled his price target on HPE to $80 from $38, maintaining a Buy rating.
"HPE reported a strong F2Q driven by ISS from CPU-driven inferencing demand," Mohan said, adding that the company's initial fiscal 2027 guidance for revenue growth of 8%–12% and earnings growth of 12%–16% would "likely prove conservative."
MGM Resorts
MGM Resorts has gained 10.2% after confirming it had received a takeover proposal from Barry Diller's People Inc. at $48.30 per share in cash. The company's board said it would review the proposal carefully, but offered no indication of whether it intended to accept, reject, or seek improved terms.
Stifel analyst Jeffrey Stantial reiterated a Buy rating and $48 price target on MGM, arguing the bid materially undervalues the company.
"We think it is possible that MGM's Board rejects this initial offer and seeks a higher takeout premium," Stantial said, noting the stock was trading above the offer price during the session, a signal, in his view, that investors share that view.
Coherent
Coherent added 3.8% over the week, though gains were pared after an earlier surge. The optical components maker rallied sharply mid-week after Nvidia CEO Jensen Huang praised rival Marvell's optical capabilities and suggested it could become a trillion-dollar company.
Enthusiasm spread broadly across the optical sector, lifting Coherent and peers before the initial momentum faded.
Taylor Morrison Home
Taylor Morrison Home jumped after Berkshire Hathaway announced a definitive agreement to acquire the homebuilder for $72.50 per share in cash, representing a 24% premium to its May 29 closing price.
The total enterprise value of the deal is approximately $8.5 billion. Berkshire CEO Greg Abel said the company plans to eventually combine its site-built homebuilding operations with Taylor Morrison into a unified platform.
source https://www.investing.com/news/stock-market-news/investingcoms-stocks-of-the-week-4729046
