Editor’s Note: If you want to know which chipmaker could be the next NVIDIA, just ask Jeff Brown.
He knows more about AI chips than practically anyone on the planet — Thanks to his senior executive roles at Qualcomm, Juniper Networks, and NXP Semiconductors…
And Jeff just uncovered that one tiny chipmaker — 148 times smaller than NVIDIA — is set to provide Musk 5 billion chips in the next two years alone.
Click here for the full story or read more below.
Dear Reader,
Elon Musk just declared war on every AI company on earth.
SpaceX and xAI carried out a $1.25 trillion mega-merger…
And almost nobody understands the significance.
Musk's next move means he no longer needs data centers from Microsoft, Amazon, or Google.
And it's about to completely rewrite the rules of AI.
Make no mistake:
This isn't about competing with OpenAI on chatbots.
It's about controlling the backbone of the entire AI economy…
And when it's done, the top of the tech leaderboard could look completely different.
Today's trillion-dollar giants could be yesterday's news.
And one tiny company almost nobody has heard of could be the next NVIDIA.
Renowned tech expert and angel investor Jeff Brown has tracked it down…
A Musk supplier 148 times smaller than NVIDIA itself, set to ship him 5 billion chips over the next two years.
He explains everything in this urgent briefing.
Click here to watch it before we take it down.
Regards,
Lindsey Hough
Managing Director, Brownstone Research
Zscaler Stock Drops 30%: Why the Dip Is a Buy Opportunity
Authored by Thomas Hughes. Article Posted: 5/27/2026.
Key Points
- Zscaler is well-positioned to entrench itself further in cloud-based cybersecurity: zero-trust works for AI.
- Spending increases support revenue gains and earnings growth: margin recovery will come in time.
- The late-May price plunge opens up a buying opportunity that's not likely to linger long.
- Special Report: Elon’s “Hidden” Company
Zscaler’s (NASDAQ: ZS) stock price tanked 30% following its fiscal Q3 earnings report and guidance update, opening up what looks like a solid buy-the-dip opportunity. While the results were mixed, they were not the main reason for the decline. The bigger concern was the company’s spending plans, as it aims to increase investment in AI to capitalize on strong demand.
While near-term headwinds are weighing on price action today, long-term growth opportunities support a case for higher prices, and the rebound may come more quickly than the initial price plunge suggests.
Before SpaceX goes public, watch this tiny supplier closely (Ad)
When the railroads launched in the 1860s, Andrew Carnegie didn't profit by riding the trains - he got rich owning the steel rails they ran on. The same dynamic may be playing out today around the anticipated $1.75 trillion SpaceX IPO.
Analyst Michael Robinson has identified a tiny, under-the-radar supplier - just 1/60th the size of SpaceX - that he believes sits at the center of Elon Musk's broader AI infrastructure buildout. Once SpaceX goes public this June, Robinson argues Wall Street will inevitably spotlight this overlooked vendor.
Watch Robinson's presentation and see the details before the IPO window closesThe stock was down 30% by midday, a steep decline. However, Zscaler’s price had already risen roughly 60% in the weeks leading up to the release, leaving it vulnerable to a correction. The question now is what comes next, and price patterns suggest a rebound is the most likely outcome. The market has shown solid support in the $120 to $140 range, making the selloff an opportunity to buy.
Sell-Side Activity Provides Floor for ZS Stock
Buyers include sell-side participants. While analysts are lowering price targets, the market may be overreacting by pushing the stock below the lower end of those targets and into deep-value territory. Institutions have also been buying. Analysts are reaffirming their ratings, signaling a Moderate Buy with a bullish bias, and still see a solid double-digit rebound at consensus. The worst-case scenario is that sentiment remains a drag on upside until later in the year or early 2027, while the best case is that catalysts emerge as soon as the fiscal Q4 release and the 2027 guidance update.
Institutional activity is also notable. Institutions own more than 85% of the stock and have been buying in 2026. They sold in Q3 2025, returned to accumulation in Q4, and then extended that trend into early Q2 2026. The likely outcome is that institutions continue buying at the lower price point, helping to support shares near their 2026 lows. The risk is that they begin selling, but the growth outlook gives little reason to expect that. Zscaler has become a mission-critical part of enterprise cloud security, expanding its services, deepening penetration, and moving into new verticals.
Growth Impresses, But Cash Flow Gives the Market Pause
Zscaler posted a solid fiscal Q3 as revenue grew nearly 25.5% to more than $850 million. The record result topped MarketBeat’s reported consensus by nearly 200 basis points, driven by client wins and deeper penetration. Annual recurring revenue grew 25% overall, 21% organically, and 14% from net new contracts. Margin results were also strong, with adjusted net income up 30% and adjusted earnings per share (EPS) of $1.08, which was 700 bps better than forecast. However, there was a small problem for the market: cash flow fell year over year (YOY) because of increased spending, and capital expenditures are expected to remain elevated in the coming quarters.
Even so, the guidance is encouraging. While Q4 revenue guidance came in with a midpoint below consensus, it still calls for 22% growth and strong margins. Adjusted EPS is forecast above consensus, and strength is expected in full-year results as well. Guidance for fiscal 2026 revenue growth was raised to 24.56%, with adjusted EPS of $4.10 compared with the $4.02 consensus.
Navigating Zscaler Risks and Catalysts in 2026
Zscaler’s primary catalyst this year and next will be a recovery in free cash flow margin. Accelerated investments in memory, compute, and storage are pressuring free cash flow and giving investors reason for concern. The opportunity is for steady recovery and eventual improvement as those investments translate into growth, scale, and stronger earnings leverage. The question is how soon margin recovery will begin, and that may not happen until later in 2027.
Execution and turnover are among the risks. The company lost key members of its sales team and will need time to recover, creating uncertainty around future growth. Meanwhile, the stock’s high valuation leaves little room for missteps, including the underwhelming integration of Red Canary. Red Canary was expected to be a growth pillar and has so far failed to accelerate growth. It is intended to help turn Zscaler into a comprehensive, next-generation AI-driven security operations center.
What the market may be misunderstanding about Zscaler is that although capital expenditure is a near-term issue, it is also part of the long-term solution. Zscaler’s platform is becoming more indispensable to users by the quarter, with the Red Canary acquisition positioning it as a go-to player in a highly profitable industry. As margin recovery arrives, Zscaler’s cloud-native cybersecurity business should be even more entrenched, with more clients and more services driving long-term cash flow and shareholder value.
Rocket Lab Is Down 24% From Its 52-Week High—Pullback or Problem?
Authored by Ryan Hasson. Article Posted: 6/4/2026.
Key Points
- Rocket Lab's 24% pullback from its 52-week high appears to reflect normal consolidation rather than any deterioration in business fundamentals.
- Q1 2026 revenue rose 63.5% year over year to a record $200.3 million, and the backlog reached a record $2.2 billion, up 20.2% quarter over quarter.
- The pending SpaceX IPO, targeting a Nasdaq listing as early as June 12, could serve as a catalyst for space sector stocks, including Rocket Lab.
- Special Report: Elon’s “Hidden” Company
There are pullbacks that signal something is wrong, and then there are pullbacks that simply reflect a stock catching its breath after an extraordinary run. For Rocket Lab (NASDAQ: RKLB), the nearly 24% decline from its 52-week high of $151 to Wednesday's close of $115 looks much more like the latter.
The stock is still up nearly 65% on the year, the business is executing at a record pace, and the broader space sector is approaching what could be one of its most significant catalytic moments in history. But with multiple insider sales reported recently and the consensus analyst price target of $97.19 well below the current price, not all the signals point in the same direction. Here’s a closer look at what the pullback means and whether it represents a risk or an opportunity.
The Fundamental Story Has Not Changed
Before SpaceX goes public, watch this tiny supplier closely (Ad)
When the railroads launched in the 1860s, Andrew Carnegie didn't profit by riding the trains - he got rich owning the steel rails they ran on. The same dynamic may be playing out today around the anticipated $1.75 trillion SpaceX IPO.
Analyst Michael Robinson has identified a tiny, under-the-radar supplier - just 1/60th the size of SpaceX - that he believes sits at the center of Elon Musk's broader AI infrastructure buildout. Once SpaceX goes public this June, Robinson argues Wall Street will inevitably spotlight this overlooked vendor.
Watch Robinson's presentation and see the details before the IPO window closesWhatever the short-term price action suggests, one thing is clear: the underlying business momentum has not deteriorated. Q1 2026 delivered record revenue of $200.3 million, up 63.5% year over year.
The backlog hit a new record of $2.2 billion, up 20.2% quarter over quarter. Q2 guidance of $225 million to $240 million came in 12% above the prior analyst consensus, and the company signed more launches in Q1 alone than in all of 2025.
Beyond the earnings report, the recent news flow has been equally impressive. The $90 million Space Force GEO satellite contract marked Rocket Lab's first-ever prime contractor role for a geostationary orbit mission. The Motiv Space Systems acquisition closed, adding Mars-proven space robotics and precision mechanisms to its vertical integration strategy. And the $3 billion equity distribution agreement, backed by 16 financial institutions, provides the capital runway to fund Neutron's development and future acquisitions without balance-sheet constraints. Neutron itself remains on track for a debut launch in Q4 2026, with five dedicated contracts already signed before it has flown a single mission.
The SpaceX IPO Angle
One of the more interesting dynamics at play right now is the SpaceX IPO timeline. SpaceX (NASDAQ: SPCX) filed its S-1 on May 20, targeting a Nasdaq listing as early as June 12 at a valuation between $1.75 trillion and $2 trillion. That event, if it proceeds on schedule, could serve as a powerful catalyst for a broader re-ignition of space-sector stocks, and for Rocket Lab specifically as the closest publicly traded competitor to SpaceX.
On the flip side, bears might argue that, given the extraordinary run-up in RKLB and other space names, sector-wide profit-taking could emerge ahead of the event as investors reposition for SpaceX. Another bearish case is that the SpaceX IPO could become a sell-the-news event for the sector in the short term, given the intense excitement and participation leading up to the listing.
What the Analysts and Institutions Say
The analyst picture on RKLB requires honest framing. The consensus Moderate Buy rating across 20 analysts reflects genuine long-term conviction in the company's trajectory. But the consensus price target of $97.19 sits almost 21% below the current price, meaning the stock has significantly outrun where most analysts have set their models.
That gap has been a consistent feature of RKLB's 2026 performance, and analyst target revisions have tended to follow the stock higher rather than lead it. Whether a fresh wave of upward revisions follows the Q2 earnings report in August remains to be seen.
On the institutional side, the base of institutional ownership remains supportive, with major inflows over the past 12 months.
It is worth noting, however, that recent insider activity included several share sales by senior executives, a data point investors should keep in mind even if it does not necessarily signal a change in the long-term outlook. Insider selling at elevated prices following a 100%+ year-to-date run is not unusual, but it is worth monitoring alongside the broader technical picture.
Pullback or Problem?
The honest answer is that a 24% pullback from a 52-week high in a stock that ran more than 100% in a matter of weeks on the back of genuine fundamental catalysts is far more consistent with normal digestion than with fundamental deterioration. The business is executing. The backlog is growing. The Neutron program is advancing. And the SpaceX IPO on June 12 could provide the next meaningful sector catalyst, bringing fresh attention and capital back to the name. For long-term investors with conviction in the Rocket Lab thesis, the current setup looks more like an opportunity on a major dip toward key moving averages than a warning.
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