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AI Stocks Rebound: Market Sees Tech Resurgence
19 Oct
Summary
- Datadog stock rose 3.6% following an upgrade to Outperform.
- Intel shares gained nearly 4% after JPMorgan's upgrade.
- Red Cat Holdings climbed 6.6% on acquisition offer.
U.S. stock futures showed upward momentum on Monday, signaling a potential rebound for artificial intelligence-linked stocks following a significant selloff last week. Technology shares, in particular, were poised for a stronger opening. Datadog experienced a notable rise of 3.6% in premarket trading after Bernstein SocGen Group upgraded its rating to Outperform and increased the price target, indicating renewed confidence in the company's growth prospects.
Intel also saw a substantial gain of nearly 4% in premarket trading. This surge followed JPMorgan's upgrade to Neutral from Underweight, citing a more balanced risk-reward profile and management's solid start on a multi-year turnaround plan. Continued support from AI-related demand was highlighted as a potential positive for the chipmaker.
Red Cat Holdings climbed 6.6% after announcing a voluntary all-cash tender offer to acquire all outstanding shares of Austrian engine manufacturer Steyr Motors AG for €39 per share. This acquisition is expected to bolster Red Cat's uncrewed surface vessel division with Steyr Motors' expertise in marine propulsion systems.
Other notable movers included Nebius Group, which rose 3.6% as it sought to recover from a recent sharp decline, supported by reiterated Buy ratings from Truist analysts. Silgan Holdings advanced 5.5% on news of its planned acquisition of Trivium Packaging in a $3.4 billion transaction, aimed at creating a combined metal packaging business.
