Stock Markets May 22, 2026 01:58 PM

Stocks to Watch: Quantum Surge, Arm Rally and Mixed Tech Results Drive Weekly Gains

U.S. indices rally as geopolitical signs and earnings optimism lift markets; quantum names and Arm lead sector moves while Intuit slips

By Maya Rios RGTI QBTS IBM GFS INFQ

U.S. equity benchmarks moved higher on Friday and looked set to close a strong week after developments in the Middle East and upbeat earnings sentiment pushed broad-based gains. Quantum-computing stocks jumped following reports of large federal grants, Arm rallied on bullish commentary tied to Nvidia's prospects for Arm-based CPUs, and a cluster of technology names saw significant intraday and weekly moves. Meanwhile, Intuit fell sharply after disappointing results and a workforce reduction, and Dell advanced ahead of quarterly results amid rising expectations for AI-driven server demand.

Stocks to Watch: Quantum Surge, Arm Rally and Mixed Tech Results Drive Weekly Gains
RGTI QBTS IBM GFS INFQ

Key Points

  • Quantum computing stocks rallied after reports of $2 billion in federal grants to nine companies, with Rigetti and D-Wave among the biggest winners.
  • Arm soared after Nvidia disclosed $20 billion in visibility for Arm-based Vera CPU revenues this year and referenced a $200 billion total addressable market; Jefferies upgraded outlook for Arm royalties and AGI CPU revenue projections.
  • Earnings and guidance drove dispersion across tech stocks: Dell climbed ahead of quarterly results amid stronger AI server signals, Intuit fell after disappointing results and job cuts, and Spotify rose following an investor day that outlined mid-teens revenue growth and margins above 20%.

U.S. stock indices traded higher on Friday, positioning markets to end the week with solid gains after investors reacted to signs of progress in the Middle East conflict and a wave of earnings optimism that supported buying across multiple sectors.

Below are the notable market moves and themes that defined the week.


Quantum computing names rally after reported federal support

Companies in the quantum computing space posted large gains this week following reports that the Trump administration would allocate $2 billion in grants to nine companies operating in the sector. Among the largest movers, Rigetti Computing and D-Wave Quantum rose 42.2% and 39.8%, respectively. Other related names also saw notable advances, with IBM up 17.2%, GlobalFoundries climbing 20.85% and Infleqtion gaining 27.4%.

The sector has experienced pronounced volatility, but the reported government backing appears to have revived investor interest and prompted traders to rotate into quantum-related equities.


Arm Holdings jumps after Nvidia-related upside emerges

Arm Holdings was among the week's most prominent performers, surging by more than 42% as bullish commentary from Nvidia and other market participants strengthened the investment case for Arm's CPU architecture.

On an earnings call, Nvidia said it has visibility for $20 billion in revenues this year from standalone Arm-based Vera CPUs, a figure the company presented as opening a larger $200 billion total addressable market. Jefferies analyst Janardan Menon reiterated a Buy rating with a $290 price target and wrote that Nvidia's numbers point to a stronger royalty outlook for Arm and suggest broader interest in Arm-based processors across data centers. Menon also commented that Arm's guidance for AGI CPU revenue - rising from $1 billion in fiscal 2028 to $15 billion in fiscal 2031 - is "likely to prove conservative."


Dell climbs on anticipation of earnings and AI server demand

Dell Technologies rose more than 22% over the week, including a 16.4% advance through trading on Friday, as investors positioned ahead of the company's quarterly earnings report due next week.

Evercore ISI analyst Amit Daryanani added Dell to the firm's Tactical Outperform list this week, reaffirming an Outperform rating and a $270 price target. Daryanani pointed to "continued AI infrastructure momentum and improving enterprise AI demand signals," and suggested Dell could lift its full-year guidance of $140 billion in sales and $12.90 in earnings per share if AI server demand remains stronger than expected.


Intuit falls sharply after earnings miss, job cuts announced

Intuit was a significant decliner, tumbling more than 17% during the week after reporting disappointing results and unveiling plans to reduce its workforce.

Jefferies analyst Brent Thill criticized the depth of the sell-off as excessive given the company's updated guidance, arguing the market reaction was "harsh on 1 pt lower FY26 guide for tax." Thill noted that the TurboTax shortfall represents roughly one quarter of Intuit's overall business and highlighted that the firm's other segments - including small and medium business and Credit Karma - beat expectations. He also pointed out that Intuit's tax segment had outperformed estimates in four of the previous seven fiscal years.


Spotify posts strong reaction after investor day

Spotify rose more than 19% over the past week following an investor day that outlined a plan to reach mid-teens top-line growth and operating margins above 20% over time. Raymond James analyst Andrew Marok raised his price target to $615 from $555 and kept an Outperform rating, emphasizing Spotify's new AI remix partnership with Universal Music Group as a meaningful strategic development.

Deutsche Bank's Benjamin Black described Spotify as "the structural winner in audio," saying the Universal Music Group deal "effectively removes a key bear narrative" related to the company's rights framework for AI-driven music.


The week's price action reflected concentrated interest in technology themes - including quantum computing and AI infrastructure - alongside divergent earnings outcomes that created both winners and losers among software and hardware names. Market participants will head into next week's corporate calendar with attention on company-level guidance and broader demand signals, particularly for AI-related server products.

Risks

  • Volatility within the quantum computing sector - the article notes the sector has been volatile despite renewed investor interest, which could lead to rapid reversals for related equities.
  • Earnings disappointments and guidance downgrades - exemplified by Intuit's earnings miss and workforce cuts, which contributed to a steep share-price decline and highlight the sensitivity of software names to near-term results.
  • Execution and demand uncertainty for AI infrastructure - Dell's potential to raise full-year guidance depends on continued strength in AI server demand, an outcome that is not guaranteed.

More from Stock Markets

Toronto market ends at fresh record as healthcare, financials and materials lead gains Jun 4, 2026 After-Hours Movers: Lululemon Dips on Guidance as Software and Data Names Show Mixed Reactions Jun 4, 2026 Lululemon Lowers Fiscal 2026 Revenue and EPS Guidance as U.S. Demand Softens Jun 4, 2026 Anthropic Places Engineers Inside NSA to Support Mythos AI for Offensive Cyber Tasks Jun 4, 2026 Trump Directs $700M Toward Coal Industry, Lifting Peabody Shares Jun 4, 2026