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More Reading from MarketBeat
These 3 AI Stocks Just Crushed Earnings: Still Time To Buy?Written by Dan Schmidt. Published: 5/2/2026. 
Key Points
- Seagate’s fiscal Q3 results and raised fiscal Q4 outlook underscored strong AI-storage demand, but the stock’s valuation and already large run may limit near-term upside.
- Silicon Motion’s Q1 revenue and Q2 guidance came in far ahead of expectations, supporting the rally while also raising the odds of volatility after a sharp re-rating.
- NXP’s beat-and-raise quarter improved sentiment around automotive and broader end-market demand, though some of the “new narrative” claims require verification.
- Special Report: Elon Musk already made me a “wealthy man”
It's peak earnings season in the tech sector, but it’s not just the AI hyperscalers making headlines this quarter. Some of the biggest surprises this quarter have come from companies powering the infrastructure behind AI buildouts. Three AI-adjacent names just posted results that shocked the market in a good way and pushed shares sharply higher.
When the SpaceX IPO launches, most investors will already be too late. The real opportunity isn't the IPO itself - it's the infrastructure behind it.
One small-cap company supplies a mission-critical component to Musk's xAI Colossus site that can't be built around. While retail waits for a ticker that doesn't exist yet, early money is moving into this supplier at a fraction of its potential value. See the small-cap stock powering the SpaceX buildout today
Semiconductors and memory continue to be the catalyst for the recent market surge, and each of these stocks gained 20% or more in the days following their earnings releases. Investors are now wondering: after a big post-earnings move, is there still meaningful upside, or are expectations now doing most of the heavy lifting? Seagate Technology: Strong Fundamentals But Upside Story Priced InSeagate Technology Holdings PLC (NASDAQ: STX) was one of 2025’s biggest winners, soaring more than 300%. And for its 2026 encore? Already up more than 150% year-to-date (YTD), it just posted one of the most impressive quarters in company history. On April 28, Seagate reported EPS of $4.10 and revenue of $3.11 billion, easily beating analyst expectations of $3.51 and $2.96 billion, respectively. Management is now targeting an annual sales growth rate of 20% on the back of stable, AI-driven demand. Fiscal Q4 2026 guidance calls for revenue of approximately $3.45 billion and EPS of $4.80 to $5.20 — figures that were also well above expectations. The company has also been addressing its balance sheet, retiring another $641 million in obligations in fiscal Q3, a move that helped earn its debt a re-rating to investment grade from Fitch. Seagate may have the cleanest fundamentals of the three companies discussed here, but its growth story is well known, and its valuation is extended. The stock trades well above the industry average at roughly 55x forward earnings, and a large portion of revenue is concentrated among AI hyperscalers. While analysts rushed to raise price targets following the fiscal Q3 2026 report, the consensus target from the 25 firms covering the stock sits at $709 — below the current market price. 
STX shares are still operating with long-term upward momentum, but the Relative Strength Index (RSI) spent most of April in overbought territory. Investors can likely expect some post-earnings profit-taking in the next few weeks as the market digests a stunning 600% gain in less than two years. The valuation and insider selling patterns suggest this rally could be reaching the later innings, with exponential gains giving way to a slower grind. Silicon Motion Technology: Blowout Numbers, Volatility Likely Along the WayOne of the more explosive post-earnings moves came from tiny Silicon Motion Technology Corp. (NASDAQ: SIMO), which develops NAND controllers for solid-state drives (SSDs). Memory demand has been a major focus for data centers, and Silicon Motion is generating record sales from robust AI capex. Management had projected a revenue range of $292 million to $306 million for its April 28 report — an optimistic figure that would’ve represented year-over-year (YOY) growth of nearly 90% at the high end. The actual number blew past even the most optimistic projections: $342 million in revenue for Q1 2026, up more than 105% YOY and 25% from Q4 2025. In addition, its $1.58 EPS beat analyst expectations of $1.31. Q2 2026 also looks set to be another record: management projects revenue of $393 million to $411 million, which would again represent YOY growth of over 105%. SIMO shares climbed more than 30% following the Q1 release, bringing its YTD gain to over 140%. Despite the surge, the stock still trades at roughly 25x forward earnings, suggesting additional upside may not be fully priced in. 
The strong earnings and guidance justified the move, and analysts are moving price targets to levels as high as $275. The potential is enticing, but the chart is flashing warning signs: the RSI is extremely overbought (above 85), and the wide gap on the Moving Average Convergence Divergence (MACD) indicator hints that some mean reversion could be on the way. Investors may find better entry points if profit-taking occurs over the next few sessions. NXP Semiconductors: High Upside With Game-Changing NarrativeNXP Semiconductors N.V. (NASDAQ: NXPI) isn’t frequently in the AI conversation because its primary revenue source has historically been the automotive sector. However, that narrative is quickly changing thanks to the company’s growing data center revenue and an unexpected revival in auto sales. NXP reported its Q1 2026 earnings on April 28, posting a slight beat on both EPS and revenue. Its $3.05 EPS topped estimates of $2.98, and revenue of $3.18 billion surpassed expectations of $3.14 billion. But a modest beat alone wasn't enough to send the stock up 25% after hours; the real catalyst was guidance, which now projects revenue of $3.35 billion to $3.55 billion thanks to accelerating auto-sales growth (10% YOY) and a data center ramp that could contribute more than $500 million in 2026 sales. 
Of the three names discussed, NXPI likely has the most remaining upside because its re-rating story is just beginning. The automotive recovery is a genuine catalyst, and data center growth gives the company revenue optionality it previously lacked. The stock is also inexpensive compared to peers, trading at about 23x forward earnings and 5.9x sales, and the latest round of analyst price target raises indicates plenty of upside remains. The technical setup is a bit messy — the RSI is elevated and the 50-day moving average remains below the 200-day — but the changing narrative suggests short-term volatility is unlikely to derail the company’s longer-term potential. |
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