GEO Group, which derives over 40% of its revenue from contracts with ICE, rose early Monday as the market wakes up to the fact that the giant GOP budget bill President Trump signed into law July 4 showers federal dollars on the growing network of detention centers at the heart of Trump’s deportation push. CoreCivic, which gets roughly 30% of its sales from running ICE holding centers, is also up big.
Shares of Advanced Micro Devices are soaring after HSBC analyst Frank Lee strapped his price target for the chip designer to a rocket ship, hiking it to $310 from $185. The new price target ties that of Arete Research’s Brett Simpson for the highest on Wall Street, per data from Bloomberg.
The recently announced deal with OpenAI, which was followed by news that AMD will deploy 50,000 AI chips in Oracle’s data centers, catalyzed a massive wave of Wall Street love for AMD.
But that’s just nowhere near enough compared to what the stock deserves, per Lee, who sees AMD’s MI450 series of AI chips as being sufficiently competitive to Nvidia’s offerings. Through 2030, he sees the revenue opportunity of the OpenAI deal to be $80 billion.
“We believe the Street has underestimated the AI GPU revenue with our estimates 50% and 45% above consensus for 2026e and 2027e, respectively,” he wrote. “We believe there could be further upside driven by pricing premium as well as additional AI GPU volume.”
The “circularity” issue keeps swirling.
Momentum stocks rallied on Wednesday, with fuel-cell-based power provider Bloom Energy and other stocks popular among retail traders notching record highs.
The iShares MSCI USA Momentum Factor ETF was handily outperforming plain vanilla indexes in early trading. And Goldman Sachs’ basket of High Beta Momentum Shares, which includes Bloom Energy, was up nearly 4% shortly before 11 a.m. ET.
Other momentum favorites romped in early trading: space launch and aspiring satellite services company Rocket Lab touched a record high, along with Oklo, an AI-aligned aspirational provider of fission nuclear reactors. (Oklo is not only losing money, but it isn’t expected to report any sales until 2028, according to FactSet.)
Bloom, for one, is up more than 1,000% over the past 12 months. Chatter on the stock has picked up recently on r/WallStreetBets, as has call options activity.
Wall Street analysts covering the shares are along for the ride. UBS raised its price target to $115 from $110 and kept a “buy” rating on the stock on Tuesday. BMO raised its target to $97 from $33, while keeping its rating at “market perform” (basically a “hold”).
The company reports earnings on October 28 after the bell.
Neocloud company CoreWeave is surging after it announced a partnership with Poolside to provide more than 40,000 Nvidia GPUs to bolster the development of Poolside’s AI models while also serving as the anchor tenant and operational partner for its data center in Texas dubbed “Project Horizon,” where CoreWeave will deliver cloud services.
There were no financial terms provided in the press release. CoreWeave gets a customer and access to a lot of data center capacity; Poolside gets a lot of computing power and someone to run this data center.
“To compete at the frontier you need to be vertically integrated from dirt to intelligence,” said Eiso Kant, cofounder and co-CEO of Paris-based Poolside. “This partnership with CoreWeave ensures immediate access to next-generation silicon, enabling us to train multi-trillion parameter models with large scale reinforcement learning.”
