AI’s Top Picks Surge Over 12% to Kick Off May: Key Movers and Market Insights

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The first trading session of May saw a powerful rally across US markets, with several of our AI’s top stock picks soaring more than 12%, driven by robust earnings, renewed optimism in the AI sector, and upbeat macroeconomic signals.

Key Highlights:

DexCom (DXCM) topped the S&P 500, rising 16.2% as it surpassed first-quarter revenue projections and unveiled a $750 million stock repurchase program, even as it narrowly missed profit expectations. It also reinforced its robust full-year guidance, driving investor optimism.
Five Below (FIVE) stock surged almost 12% on the heels of far better-than-expected quarterly revenues and a dramatic upward revision in comparable sales growth guidance. The off-price retailer's outperformance is a sign of strong consumer demand despite economic uncertainty.
Microsoft (MSFT) and Meta Platforms (META) ignited the AI trade again, as Microsoft stock surged 10% and Meta up more than 5% following both reporting stronger-than-expected quarterly results. Their ongoing large-scale investment in AI infrastructure continued to lift sentiment across the entire tech space.
Nvidia (NVDA) and Broadcom (AVGO), two leaders in AI chips, also surged-Nvidia 4% and Broadcom 3%-as investors expect continued demand for AI hardware after positive indications from large tech companies.
The S&P 500 and Nasdaq continued their winning streaks, with the S&P 500 heading for its longest string of gains since 2004, wiping out April's losses and indicating renewed investor optimism.

Travel and tourism shares also participated in the rally, with United Airlines, Delta, and Norwegian Cruise Line all advancing as economic and travel expectations picked up.

Source: Investopedia, CNBC, IG International