Investors will watch the AI suppliers closely on Friday. On Thursday, Ciena (CIEN) gained 7.1%. Seagate Technology (STX) also jumped by the same percentage.
Tech investors are still accumulating networking firms that provide high-speed interconnects for AI data centers. Investors may also watch Arista (ANET), which provides Ethernet switching and scale-out solutions. Coherent (COHR) and Lumentum (LITE) are also attractive picks.
In the energy sector, Baker Hughes (BKR) is forming a V-shaped rebound. However, BKR stock trades at a premium compared to its peers.
Markets are fearful that Fair Isaac (FICO) faces immense competition from the AI chatbots. The stock trades near a 52-week low yet is still richly valued. The credit scoring service provider sold $1 billion in debt, which pays a generous 6.25% interest rate. The bonds are due in 2034.
In the gold sector, Newmont (NEM) lost nearly 7% yesterday. Rate cut hopes evaporated on Wednesday after the Federal Reserve offered no hint of changes in 2026. Precious metals dropped, sending Agnico Eagle Mines (AEM), Barrick Mining (B), and Gold Fields (GFI) as well. Silver prices also fell by 8.8% to below $71 per ounce.
Investors might bet that copper prices will rebound, which would lift Freeport-McMoRan (FCX) higher. Should iron ore prices strengthen, Cleveland-Cliffs (CLF) would stop falling. CLF stock closed at $8.18 at an inexpensive valuation. Its EV/sales multiple is 65% below the sector median of 1.97 times.
