Best AI Stocks to Buy Now
Plus: Stocks with big fair value changes, what’s next for bonds, and governance risks for SpaceX IPO buyers
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Smart InvestorTom Lauricella, chief markets editor 
In this issue:
You know things are getting hot in tech land when a company founded 40 years ago and best-known for its personal computers sees its stock surge 40% in a single day because of AI demand. For the week, the overall market gained 1.5%, with the tech sector up 4.5%. While it’s been a remarkable bounce for stocks since the start of the Iran war, it’s been tougher sledding in the bond market, where yields have been rising. Leslie Norton checked in with a pair of top bond fund managers about how they are playing this trend, what it means for investors, and what they think about all that data center debt that has been flooding the corporate bond market. Back in the stock market, the last few names are reporting their first-quarter earnings. This past week, we had our quarterly screen of stocks with the biggest fair value estimate changes from Morningstar analysts. Not too surprisingly, many of the largest raises came for tech stocks. We’ve got the stocks with the 10 biggest valuation increases here. On the flip side, we have the five stocks with the largest valuation cuts, which include a major airline. This coming week is expected to bring the start of the SpaceX IPO roadshow, as the company and its hordes of investment bankers pitch what will likely be the largest IPO in history. While it seems like there will be overwhelming demand for SpaceX, this past week, we looked at the long list of governance questions surrounding the company and the IPO, and what they could mean for shareholders. We also looked at how the company plans to handle stock sales by pre-IPO holders, and what investors can learn about the economics of AI infrastructure from a deleted section of its IPO filing. And of course, SpaceX is just the first of a series of mega-IPOs that are expected this year. We caught up with the latest in the valuation race between Anthropic and OpenAI. Lastly, we have an update of our screen for the best AI stocks to buy now. These are names within the Morningstar Global Next Generation Artificial Intelligence Index that Morningstar analysts think are undervalued. Even with the rally of the past two months, some of the biggest names in the tech world are trading at what they think are attractive prices. Check out the list here. As always, be sure to visit our Markets page for our latest coverage and live stock market updates, along with our full weekly calendar of key upcoming data and events. 
The ‘anything-but-AI’ sentiment in the market is leaving many of these stocks looking attractive. Tori Brovet
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Markets and the Economy 
Dell and Snowflake are the top performers, while Zscaler and Boston Scientific did the worst. Jillian Moore
Baird’s Mary Ellen Stanek and Warren Pierson discuss how they’re playing the rise in the bond yields, the outlook, and what’s they’re avoiding. Leslie Norton
Corporate governance experts say the SpaceX IPO filing reveals a mix of weak investor protections and multiple conflicts of interest. Leslie Norton, Tom Lauricella
SpaceX could recoup its AI infrastructure capex in under a month. Franco Granda
With huge demand expected at the IPO, SpaceX is hoping to smooth out the stock’s future. Michael Bodley
Tech companies Intel, Ciena, and Seagate saw the largest fair value hikes. Bella Albrecht
American Airlines and Trade Desk are among the stocks with the deepest reductions. Bella Albrecht
The May Employment Situation Report is slated for release, and Macy’s and Lululemon will report earnings. Jillian Moore
Recent Earnings The Tools You Need to Invest Like an Analyst
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