Happy Wednesday! One of Warren Buffett’s final stock picks before stepping down at Berkshire Hathaway is suddenly surging to record highs and has Wall Street’s full attention. With Berkshire’s next filing just around the corner, click here to see which stock is rallying, and what Buffett’s team may do next.

The AI-fueled chip and memory frenzy hit a brutal speed bump Tuesday after a stunning headline out of South Korea sparked a sharp selloff across the sector. Read on to find out what triggered the sudden reversal — and whether the pullback is a buying opportunity or a warning sign.

Plus, if you’re looking for a small-cap AI stock that’s surged more than 700% over the past year, check out today’s sponsor.

In Today's Edition

• MARKET RECAP

• MARKET HEATMAP

• FIVE ZINGERS

• SPECIAL OFFER

Buffett's Final Berkshire Stock Pick Hit All-Time Highs

Warren Buffett may have stepped away from the CEO role at Berkshire Hathaway, but one of his final portfolio moves included one last hidden gem that is now making waves across Wall Street.

Click here to see which stock, why it’s rallying, and why Wall Street believes the rally is far from over.

XMax’s AI Expansion Gets Wall Street’s Attention

XMax Inc. (NASDAQ: XWIN) has done in two months what some companies take years to do: build an AI unit that’s making money. Amid a challenging furniture market, XMax expanded into AI and its pivot already seems to be paying off.

The company inked a deal that will bring in $4.8 million in revenue and is in talks with three more customers. Revenue in its AI unit could hit $30 million in the next 6 to 12 months.

That’s partly why Equity Research called XMax “one of the most compelling small-cap AI platform stories in the current public market,” and initiated coverage with a buy rating. The research firm also likes its investment in SpaceX and its $1 billion shelf registration. To learn more, click here.

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Yesterday: U.S. indexes closed mixed Tuesday, with the S&P 500 and Nasdaq slipping from record highs as hotter-than-expected inflation data and rising Treasury yields weighed on investor sentiment. April CPI rose 3.8% year-over-year, topping forecasts (3.7%) as higher energy costs pushed inflation pressures higher, while core CPI also came in above expectations. Chip stocks took a breather after their recent surge, with shares of Micron, AMD, Intel and SanDisk all tumbling. Lastly, oil continued their surge, topping $100 again as hope fades for a U.S-Iran peace deal. In addition, Treasury yields climbed, with the 30-year yield moving back above the closely watched 5% threshold.

On Our Radar: All eyes will be on the Producer Price Index (PPI), as well as speeches from fed members (Collins, Logan). On the earnings front, all eyes will be on Cisco (CSCO), which will report after the market close today.

Despite the mixed markets, shares of Zebra Technologies (ZBRA), Humana (HUM), and Insmed (INSM) were flying high, while Qualcomm (QCOM), Intel (INTC), Sandisk (SNDK) and Strategy (MSTR) were among the day’s top laggards. But those weren’t the only companies making big moves. Here’s a look at some of the biggest winners and losers on Tuesday.

Check out our interactive heatmap. Filter by market cap, or click on any box to explore specific sectors or assets in more detail.

Ark Moves: Cathie Wood and Ark Invest made some significant trades involving AMD, Tempus AI, Circle, and Rocket Lab. Discover which stocks she’s been buying and selling.

$15 Trillion Opportunity: One analyst believes Tesla’s current valuation barely reflects its biggest future opportunity. The surprising part? Investors may already own that upside without realizing it.

Outer Space: This CFO says a SpaceX IPO could completely reshape the space stock landscape — and not every company will survive. See which space plays are the real deal and how to win big from the shake up.

Capitol Trades: A recent congressional stock purchase is sparking debate for more than just the investment itself. The bigger concern may be the lawmaker’s role in legislation tied to the company’s business. Here’s all the details and what’s she’s been buying.

Stock Of The Day: After a blistering rally, Qualcomm may finally be running out of steam. See what levels traders are watching and where shares are likely headed next.

QBTS Just Reported. Matt Maley Has A Live Trade Riding On It.

He bought calls ahead of today's earnings and added TQQQ downside the same week after the chip sector hit its most stretched reading since the dot-com peak. Tonight at 6 PM ET, he walks through both trades and what comes next.

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