Welcome equity investors—today’s edition unlocks Orion equity research on six large-cap US AI stocks: $ADBE ( ▼ 2.87% ), $ORCL ( ▼ 1.35% ), $AMD ( ▼ 7.73% ), $NOW ( ▼ 3.19% ), $PANW ( ▼ 3.08% ) and $CDNS ( ▼ 6.22% ).

Scores: Fundamental 8 | Analyst Sentiment 8 | Valuation 7 | Catalyst 7 | Technical 6 | Total: 36

Direction: Neutral

Adobe presents a compelling long-term investment opportunity driven by its robust subscription model and aggressive, successful integration of generative AI, which management views as its 'biggest opportunity in decades'. The company consistently delivers strong financial results, exceeding revenue and EPS targets, and maintains exceptionally high profitability and cash flow. Analyst sentiment is overwhelmingly bullish, with significant upside projected in price targets, suggesting the market may be under-appreciating its AI-driven growth. However, for the medium term (1-3 months), a Neutral stance is prudent due to the significant legal overhang from the FTC lawsuit, which introduces considerable uncertainty and potential volatility. Technically, the stock is in a consolidation phase, and while bearish momentum is waning, a clear breakout signal is absent. Furthermore, the broader market is showing signs of being overbought, increasing the risk of a general market pullback. Investors should monitor developments in the FTC case and await a clearer technical signal or a more favorable macro environment before taking a strong directional position. Long-term investors may consider accumulating on any significant dips, leveraging the company's strong fundamentals and AI leadership.

Read the full report in the attachment, and discover more free reports on our website.

Scores: Fundamental 7 | Analyst Sentiment 8 | Valuation 4 | Catalyst 9 | Technical 7 | Total: 35

Direction: Long

Based on a comprehensive analysis, Oracle presents a compelling long-term investment opportunity, driven by its transformative pivot into a leading AI and cloud infrastructure provider. The company boasts an unprecedented $455 billion RPO backlog and aggressive multi-year cloud revenue projections, positioning it as a central player in the global AI build-out. While current valuation multiples are stretched and relative valuation scores are low, this premium is largely justified by the 'hyper-growth thesis' and the strong forward EPS CAGR. Analyst sentiment is overwhelmingly bullish, with significant upside projected. Key catalysts, including major AI partnerships (OpenAI, U.S. Government 'Stargate' projects) and the unique Oracle AI database, provide strong tailwinds. Technically, $ORCL ( ▼ 1.35% ) is in a robust bullish trend, trading above key moving averages, suggesting continued upside despite short-term overextension signals and a potentially overbought broader market. While risks such as profitability challenges in AI infrastructure, high CapEx, and a recent security breach warrant careful monitoring, the overwhelming long-term growth narrative and strategic positioning in AI make Oracle a high-conviction long opportunity. Investors should be prepared for potential short-term volatility or consolidation, which could offer attractive entry points, but the medium-term outlook remains strongly positive.

Read the full report in the attachment, and discover more free reports on our website.

Scores: Fundamental 7 | Analyst Sentiment 8 | Valuation 3 | Catalyst 9 | Technical 6 | Total: 33

Direction: Neutral

$AMD ( ▼ 7.73% ) presents a compelling long-term growth story, primarily driven by its strategic positioning in the burgeoning AI market, validated by the transformative OpenAI partnership and a robust multi-generational GPU roadmap. Management's high confidence and strong forecast EPS growth (41% 3-year CAGR) underpin this bullish outlook. However, the stock is currently trading at a significant premium, with valuation metrics indicating it is overvalued relative to peers, and the current price exceeds average analyst targets. Technically, $AMD ( ▼ 7.73% ) is severely overbought, suggesting a high probability of a near-term pullback or consolidation, a sentiment echoed by the broader market's overextended conditions. While the long-term trajectory remains positive, a tactical approach for the coming weeks involves maintaining a neutral stance, patiently awaiting a healthy correction to establish a more favorable entry point, thereby mitigating the immediate risks associated with overbought conditions and stretched valuation.

Read the full report in the attachment, and discover more free reports on our website.

Scores: Fundamental 8 | Analyst Sentiment 9 | Valuation 2 | Catalyst 7 | Technical 6 | Total: 32

Direction: Neutral

ServiceNow is a fundamentally strong company with a leading AI platform, demonstrating robust revenue and profit growth, high customer retention, and ambitious strategic initiatives. Management's high confidence and overwhelmingly positive analyst sentiment, coupled with significant price target upside, underscore its long-term potential. However, the stock's valuation is extremely stretched, trading at a substantial premium to its peers and the broader market, which is a major red flag. While technical analysis suggests a potential short-term bounce from oversold conditions, the broader market is overbought and due for a correction, posing a significant risk to high-valuation growth stocks. Therefore, for the medium term (1-3 months), a Neutral investment strategy is recommended. The compelling growth story is currently offset by an unfavorable risk-reward profile due to extreme valuation and potential macro headwinds. Investors should await a more attractive entry point, possibly following a market-wide correction or a period of consolidation, to align valuation more closely with its strong fundamentals.

Read the full report in the attachment, and discover more free reports on our website.

Scores: Fundamental 8 | Analyst Sentiment 9 | Valuation 2 | Catalyst 8 | Technical 4 | Total: 31

Direction: Neutral

Palo Alto Networks presents a compelling long-term growth story, driven by its market leadership in the critical cybersecurity sector, successful platformization strategy, and aggressive expansion into AI security and identity management through strategic acquisitions. The company exhibits robust financial performance, strong free cash flow generation, and high management confidence, supported by overwhelmingly positive analyst sentiment. However, the stock's current valuation is significantly elevated, trading at premium multiples that are not fully justified by its decelerating growth forecasts, and technical indicators signal severely overbought conditions. The broader market also appears overextended, increasing the likelihood of a near-term pullback. Therefore, for the coming week, a neutral stance is recommended, with a focus on capital preservation and avoiding new long positions at current price levels. Any short-term correction or consolidation, driven by profit-taking or a broader market downturn, would present a more attractive entry point for establishing a medium-term long position, capitalizing on PANW's strong fundamentals and strategic positioning in a high-growth industry.

Read the full report in the attachment, and discover more free reports on our website.

Scores: Fundamental 7 | Analyst Sentiment 7 | Valuation 2 | Catalyst 8 | Technical 5 | Total: 29

Direction: Neutral

Cadence Design Systems is a high-quality company with a robust long-term growth trajectory, driven by its leadership in the AI super cycle and continuous innovation in chip design software. Management's confidence, strong Q2 performance, and raised full-year guidance, coupled with strategic partnerships like the one with TSMC for AI-powered tools, underscore its strong fundamental position. However, the stock's valuation is exceptionally high, trading at significant premiums relative to peers and historical averages, which is a consistent concern among analysts and suggests limited near-term upside. Technically, the stock is in a consolidation phase with mixed signals; while the Stochastic Oscillator indicates oversold conditions that could lead to a bounce, the overall technical picture lacks a strong bullish breakout signal. Furthermore, the broader market (SPY) is currently overbought, increasing the risk of a general market pullback. Considering the strong fundamentals are largely priced into an already stretched valuation, and the prevailing macro and technical caution, a Neutral investment strategy is recommended for the medium term (1-3 months). Investors should await a more attractive valuation or a clearer technical catalyst before initiating a long position, as the current risk-reward profile does not favor aggressive entry.

Read the full report in the attachment, and discover more free reports on our website.

Research any US or Hong Kong stock in seconds using Orion AI.

Need FREE access? Reply FREE to this email.

Not interested in US/HK stocks? Reply to this email with any stock exchange of your interest and we will contact you when we launch for that stock exchange.

If you are not interested in receiving our FREE reports, kindly unsubscribe below.