U.S. Stocks to Watch: Wolfspeed, Tesla, Nvidia, XPeng, UnitedHealth, Alphabet, Palo Alto, Toll Brothers, Target, and More

Dow Jones
21 May

Stock futures fell Wednesday and Treasury yields rose, a day after the S&P 500 snapped a six-session winning streak.

These stocks were poised to make moves Wednesday:

Wolfspeed Inc. sank 55% after The Wall Street Journal reported the chip-component maker was getting ready to file for bankruptcy in the next few weeks amid struggles with its debt levels. The Journal, citing sources familiar with the matter, said Wolfspeed was aiming to work out a Chapter 11 plan that has support of a majority of its creditors.

UnitedHealth shares down 4% premarket after HSBC downgraded the company to reduce from hold and cut target price to $270 from $490.

Tesla Motors was up 0.4% after gaining 0.5% on Tuesday after CEO Elon Musk indicated he was committed to the electric-vehicle company. The chief executive told a conference in Qatar that he expects to be CEO in five years, and also said he would step back from political spending. Musk also told CNBC in an interview that Tesla was on track for a June launch of robotaxi service in Austin, Texas, adding though that the rollout would be slow.

XPeng Inc. jumped 7% in premarket trading. Chinese EV maker XPeng reported a strong financial performance for the first quarter of 2025, with total revenues reaching RMB15.81 billion, marking a 141.5% increase year-over-year. The company also saw a significant rise in vehicle deliveries, totaling 94,008 units, a 330.8% increase from the previous year.

NVIDIA declined 1%. CEO Jensen Huang again slammed U.S. curbs on the chip maker's exports to China. Huang said Wednesday at a news conference in Taiwan that U.S. measures designed to stop China from getting its hands on Nvidia's artificial-intelligence chips had been "a failure," according to reports.

Alphabet was up 0.2% in premarket trading. The company's Google unit, at its developers conference Tuesday, issued updates around artificial intelligence and how it plans to solidify its place in search. But many of the AI products announced by Alphabet won't come for a few months. Google's headline announcement was the implementation of artificial intelligence into search in what it is calling "AI Mode." Alphabet CEO Sundar Pichai said it was a "total reimagining of search."

Palo Alto Networks reported fiscal third-quarter adjusted earnings and revenue that topped analysts' estimates and raised fiscal 2025 profit expectations. Shares of the cybersecurity company were down 3.5% in premarket trading, however, after Palo Alto Network's revenue outlook for the fourth quarter missed estimates.

Toll Brothers jumped 6% after the home builder reported second-quarter adjusted earnings of $3.50 a share, topping analysts' estimates of $2.86. Revenue was a better-than-expected $2.74 billion. "Despite a softer demand environment, we generated record second-quarter home sales revenues of $2.71 billion, well above our guidance of $2.47 billion," said Chairman and CEO Douglas C. Yearley Jr. The company said it continues to expect to deliver 11,200 to 11,600 units this year.

Take-Two Interactive Software fell 4% after the videogame maker proposed an offering for $1 billion common shares.

Target slipped 0.2% in premarket trading ahead of the release of the retailer's first-quarter earnings. Analysts expect earnings of $1.61 a share and revenue to fall 1.2% to $24.27 billion.

Lowe's was rising 0.5%. The home-improvement retailer is expected by Wall Street to post adjusted earnings of $2.88 a share in the first quarter on sales of $20.9 billion. Larger rival Home Depot reported earnings on Tuesday that missed analysts' expectations but the company surprised investors when it said prices would stay unchanged despite higher tariffs.

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