VIDEO: Wall Street Gets Bullish on 3 Holdings

In today’s Portfolio video, Chris Verace breaks down Tuesday’s Wall Street action for the Portfolio’s holdings in Marvell (MRVL), Apple (AAPL) and Micron (MU). Why are these Wall Street analysts taking either their price targets or their ratings higher?

While we agree with the rationale, let’s be mindful of what the surge in these stock prices could be setting up given upcoming company events. Chris also discusses a sleeper hit for the Portfolio, and why, even though we view it as a long-term holding, some prudent Portfolio action may be called for one one name.

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At the time of publication, TheStreet Pro Portfolio was long MRVL, AAPL and MU.

Transcript

Hey everyone, Chris Verace here, and it is Tuesday, May 6th, the start of an abbreviated trading week. Compressed as I like to call it, but as we’ve become accustomed to, the reality is they tend to be very busy, pretty much trying to cram in five days into four. We do have that yet again this time around. Before we get started talking about some of the things coming later in the week, I do want to talk about some things that are happening this morning.

Regarding the portfolio, I hope that you read our starter comments, the eight things impacting the market. I kind of walked through a variety of things there, touching on the latest when it comes to the US and Iran, but a number of other things as well. So please be sure to check that, not just today, but every day, because we do cover, like I said, quite a bit of ground. What else did we see today beyond those things? Well, HSBC upgraded Marvell to buy from hold and took its target from wow.

From eighty-five to three hundred. You really have to wonder where the heck have these people been when it comes to the shares of Marvell. So why this action today? Couple reasons. One, yes, the custom AI business with Microsoft, Amazon, and others, something that has really propelled the stock, you know, over the last, you know, not just several weeks, really the last few months, year to date even. but

They also made another point, and it’s the demand for optical, interconnect, or simply networking, is being underestimated by the market. Now, if you remember, our thesis on Marvell really hinged on two things. One, yes, AI and data center demand, which includes the custom AI chip business. But the second was that rising AI adoption and expanding usage.

Would simply accelerate the amount of data that’s being consumed, created, pushing through the network, pressuring network capacity, fostering, that’s right, fostering capital spending to address that bottleneck. Now, are we seeing that? Boy, are we ever? We could see a variety of confirming signals from our own Arista networks to Cisco to others. but

I would say that while the outlook for Marvell is extremely bright, we have seen just what we would say another surge in Marvell shares this morning following that price target increase, but it also comes on top of the move that we’ve seen in recent weeks. And I’ve talked about this last week with you. I’m gonna remind it you again, especially because of the move we’re seeing today. I do think that there is room for all this.

I hate to say it, but a rational exuberance that we’re seeing with Marvell shares to result in some guidance disappointment, no matter what Marvell serves up later this week. Now, what are we going to do in the portfolio? You know, we have you know taken you know a decent number of Marvell chips off the table. No pun, sorry, no pun there. but what we’ve said is we would play with you know the house’s money, so to speak. And

With that in mind, if we do see Marvell shares melt up further, it may be prudent to take just a couple more chips off the table before Marvell delivers its quarterly results and guidance after Wednesday’s market close. Let’s see what happens today. Let’s see what happens tomorrow ahead of that report. Second thing I want to talk about is Apple. They also caught a sizable price target increase, this time out of B of A.

B of A took their Apple target to 380 from 330. Why? Well, B of A sees Apple benefiting from its upcoming Siri redesign. Now, we have talked about that over the last few weeks with you, and I flagged it again in our opening comments this morning. And here’s the thing: do we think that Apple, having partnered with Google Gemini, would be a good match to deliver an overhauled, revamped AI-enabled Siri? We do. We absolutely do. But

We’ve also seen Apple underwhelm at these events, and I’m referring to WWDC events in the past, and that is where Apple is going to take the wraps off this AI-enabled Siri this year, WWDC 2026 on June 8th. So again, we have seen Apple underdeliver at these events in the past. So our plan is not to get ahead of ourselves, but to revisit our Apple price target after the June 8th keynote.

By then we will have seen not only what the redesign is for iOS, Mac OS, see some of the functionality we have, but we’re gonna have a better understanding of how and when Apple is going to release this into the wild. The key for us is if Apple can deliver what we’ll call a delightful, compelling user experience, this has the potential to really foster a big upgrade cycle for iPhone in particular.

Remember, some 80-85% of iPhones out there in the wild today are not capable of running Apple Intelligence. Let’s pivot to talk about Micron, one of the EPS all-star residents that we have, and it has been a great performer for us. But today, UBS took its price target to 1,625, up from wow, 535, almost a tripling.

And UBS also reiterated its buy rating on Micron. And yeah, we are very pleased to have Micron as part of the EPS All-Stars basket. But that price target is a new Wall Street high. And the thinking out of the firm behind it is that, you know, memory shortage, obviously, and pricing. UBS sees more long-term agreements being locked in near these peak prices. That’s leading to higher EPS expectations for this year and next year, and that is fueling the upsized micron price target. Now, when we think about memory, we are gonna get a lot more on that front when we dig into quarterly results this week from HP and Dell. HP and Dell, they’re gonna report Wednesday and Thursday night. In addition to what they say about memory demand, they’re also to give us an updated look on AI shipments.

particularly for servers, but also another fresh look at CPU demand. So a lot of insight coming later in the week on that. Now, before we cap today’s video, just a quick word. Yes, the market is moving higher, but we have to remain, you know, disciplined investors. So while much attention has been focused on AI, inflation, Iran, consumer spending, oil, and the like, I don’t know if you’ve noticed, but I certainly did.

Our shares of the First Trust NASDAQ Cybersecurity ETF have quietly gone from around $61 in mid-April to almost $84 as I’m sharing these words with you today. That’s a 38% move in a relatively short period of time in an ETF. And yes, it has landed that ETF with a hefty RSI reading above 81. So
Don’t be surprised if we take some prudent action with this holding. And yeah, we still think that cybersecurity should be a part of every portfolio, but we also have to remember why we buy stocks and what to do when things like this happen. We’re going to have a lot more coming your way today, including a fresh set of office hours after the market close. I hope to see you there. Thanks for watching.