Key Points

• Solana runs on a proof-of-stake network that is one of the fastest in the crypto world.

• The network is already processing thousands of transactions per second.

• The technical strength of the network has made it a home run for investors.

• 10 stocks we like better than Solana ›

Only launched about 5.5 years ago, Solana (CRYPTO: SOL) is now the sixth-largest cryptocurrency in the world with a market cap of over $96 billion as of July 30.

Many investors see immense potential in Solana's network. It's one of the few cryptocurrencies to operate on a proof-of-stake (PoS) mechanism to govern the network. After realizing how energy-intensive the traditional crypto-mining, proof-of-work (PoW) system had become on Bitcoin, the world's largest cryptocurrency, several crypto networks transitioned to PoS.

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Instead of using high computing power to solve a puzzle like with PoW, PoS has investors stake their tokens to the network, and then assigns them at random to validate transactions and mint new tokens. The more tokens one stakes, the higher the chance they have of being selected and also earning rewards. Even more unique, Solana's network also has a proof-of-history mechanism that essentially creates a sequential record of transactions, enabling even faster transactions on the network.

As a result, Solana's network can process thousands of transactions per second (TPS), but it has the theoretical potential to process up to 65,000 TPS, if not more. This gives Solana and its network immense potential to disrupt the global payments system.

Investors have done well

While volatile like most cryptocurrencies, Solana has been a huge winner for investors that bought the token five years ago. The technical strength of its network has made Solana one of the few altcoins that investors see a strong use case for.

Roughly five years ago, Solana traded for just $1.73. Today, it trades for over $179. That's a gain of roughly 10,264%. So, if you invested $1,000 in Solana five years ago, you now have $103,636! That's simply incredible. Investors aren't likely to find too many investments like that in their lifetime.

Should you invest $1,000 in Solana right now?

Before you buy stock in Solana, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Solana wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Bram Berkowitz has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Solana. The Motley Fool has a disclosure policy.

Key Points

• If quantum computing takes off in the next decade, IonQ could be a big winner.

• SoundHound is a company that has shown its ability to adapt, and it could become a big winner in agentic AI.

• Palantir has the potential to become one of the largest AI companies in the world.

• 10 stocks we like better than IonQ ›

If you're looking to invest in potential millionaire-making tech stocks, you're sometimes going to have to swing for the fences. The three stocks below are bold bets on companies chasing massive markets with long runways. You're not buying these stocks looking for modest returns; you're buying them because you see a shot at something transformational.

That said, these are high-risk, high-potential-reward stocks. None of their valuations are cheap, and most are still just starting to scratch the surface of their potential. But if the technologies deliver and management teams execute, the upside could be enormous.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

IonQ

Quantum computing company IonQ (NYSE: IONQ) isn't just an academic lab with a bunch of theoretical physics testing hypotheses, like the characters on the TV show "The Big Bang Theory." It's building real quantum computers that are already being tested in commercial, government, and academic settings. IonQ is working to build fault-tolerant systems that can operate at scale, which is the holy grail in quantum computing. Without that reliability, this emerging technology won't move beyond the lab.

The company has made solid early progress. It's working with AstraZeneca, Amazon, and Nvidia on early use cases, and it has a strong balance sheet with around $700 million in cash and investments and zero debt. That gives it time and room to invest without constantly going to the market for funding.

IonQ also opened a 65,000 square foot facility in Washington to manufacture systems in-house. That's another sign that this isn't just a science project anymore and that the company is gearing up to deliver working machines.

The company has also been acquiring smaller quantum computing players to help bolster its capabilities. That's a smart move in a burgeoning field where technical talent and intellectual property are key.

There's still a long road ahead, but if quantum computing takes off in the next decade, IonQ is positioned to be one of the companies that could be a huge winner.

SoundHound AI

While SoundHound AI (NASDAQ: SOUN) is still a relatively young company, it has consistently been able to adapt in an ever-evolving tech landscape. That's something great tech companies do.

A leader in "speech-to-meaning" and "deep meaning understanding" technology, the company acquired Amelia last year to add its advanced conversational intelligence to its platform. It's now taking this combined technology and applying it to create voice-first artificial intelligence (AI) agents that can go out and complete tasks without the need for human intervention.

By merging its voice technology with Amelia's enterprise software, SoundHound now has a complete voice automation platform. SoundHound has been strong in the automobile and restaurant industries, while Amelia brought with it expertise in the medical and financial verticals, which have their own nuances and specific industry jargon. It's also used Amelia's technology as part of the foundation for its AI agent ambitions. With the recent rollout of its Amelia 7.0 platform, it's now moved beyond being simply an AI voice company to being a voice-first agentic AI company.

This is still a small company with something to prove, but the product roadmap and customer traction suggest it's heading in the right direction. And as I said at the beginning, it has been quick to adapt. The company actually started out as a platform for discovering music, where it would then direct customers to online music stores. It's come a long way since those early days, and the future looks bright.

Palantir

Palantir Technologies (NASDAQ: PLTR) is the largest company on this list and the one with the clearest momentum. Originally formed to help fight terrorism after 9/11, the data gathering and analytics company has been a key government vendor for years. However, it has successfully expanded into the commercial sector, where its AI platform (AIP) has become a central tool for helping organizations implement AI in the real world.

Most businesses don't lack data -- they lack the tools to do anything meaningful with it. Palantir helps organizations gather data from a wide variety of sources and then structure it into an ontology that links the data to their real-world counterparts. The ontology provides clean, structured data that helps AI models operate more effectively. Customers can then apply whatever AI models they want with this ontology to identify real-world problems and then go out and solve them.

AIP has been a hit with commercial customers. In Q1, its U.S. commercial revenue grew 71%, and commercial deal value more than doubled. Best of all, most of these deals are in their early stages, and Palantir has a big opportunity not just to add more customers, but to grow significantly within its existing customer base.

The stock's valuation is steep, no question. However, given the breadth of use cases across industries for which AIP can be used, the company has the potential to become one of the largest AI companies in the world in the future.

Should you invest $1,000 in IonQ right now?

Before you buy stock in IonQ, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Nvidia, and Palantir Technologies. The Motley Fool recommends AstraZeneca Plc. The Motley Fool has a disclosure policy.

Key Points

• EPR Properties pays a monthly dividend yielding over 6%.

• Vici Properties' payout yields more than 5%.

• The REITs expect to continue increasing their dividend payments.

• 10 stocks we like better than EPR Properties ›

Investing in high-yield dividend stocks is a great way to generate passive income. For example, investing $1,000 in the following companies could yield nearly $60 of annual dividend income:

Dividend Stock Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »	Amount Invested	Recent Yield	Annual Dividend Income
EPR Properties (NYSE: EPR)	$500	6.42%	$32.10
Vici Properties (NYSE: VICI)	$500	5.29%	$26.45
Total	$1,000	5.85%	$58.55

Data sources: Google Finance and author's calculations. Dividend yields are as of July 31.

Here's a closer look at these high-quality, high-yielding dividend stocks.

EPR Properties

EPR Properties is a real estate investment trust (REIT) focused on experiential real estate. The company owns a diversified portfolio of movie theaters, eat-and-play venues, health and fitness properties, attractions, and other entertainment spaces.

It leases these properties back to operating tenants, primarily under long-term, triple net leases (NNNs). Those leases provide it with very stable cash flow because tenants cover all property operating costs (including routine maintenance, real estate taxes, and building insurance).

The REIT expects its stable portfolio to generate $5 to $5.16 per share of funds from operations (FFO) as adjusted this year. That easily covers its monthly dividend payment of $0.295 per share, or $3.54 annually. It also provides a cushion and surplus cash to invest in more experiential properties.

EPR Properties invested $86.3 million into new properties in the first half of this year. Recent investments included acquiring land for $1.2 million and providing $5.9 million in mortgage financing secured by improvements at a health and wellness property in Georgia. It also acquired land for a new eat-and-play property development in Virginia for $1.6 million, which has an expected total cost of $19 million and an anticipated completion in 2026.

The company plans to invest $200 million to $300 million in new properties this year. This includes $106 million for experiential development and redevelopment projects it plans to fund over the next 18 months.

These investments should grow EPR's FFO and dividend. The REIT raised its payout by 3.5% earlier this year.

Vici Properties

Fellow REIT Vici Properties also invests in experiential real estate. However, its primary focus is on market-leading gaming, hospitality, wellness, entertainment, and leisure destinations. For example, it owns several iconic casinos along the Las Vegas Strip, including Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas.

The REIT also leases its properties under long-term NNN contracts with operating tenants. These leases currently have a weighted average remaining term of over 40 years. A growing subset of its leases -- 42% this year, rising to 90% by 2035 -- link rents to inflation. Its strategy of investing in large properties with long-term, inflation-linked leases provides it with stable and rising rental income.

Vici Properties currently pays out $0.4325 per share each quarter in dividends, for a total of $1.73 annually. It produces plenty of cash to cover that payment level -- $2.35 to $2.37 per share of adjusted FFO is expected this year. The REIT uses the cash it retains to invest in additional experiential properties.

The company has secured two notable new investments this year. It has agreed to provide a loan of up to $510 million to fund the development of the North Fork Mono Casino & Resort in California. Additionally, Vici has committed to investing $450 million into a mezzanine loan related to the development of One Beverly Hills, a landmark luxury mixed-use development in California.

Vici's new investments help drive growth in both its FFO per share and its dividend. The REIT has raised its payment for seven straight years (each year since its formation). It has grown the payout at a 7.4% compound annual rate during that period, outpacing the 2.3% average of other REITs focused on properties secured by NNNs.

Excellent ways to generate passive dividend income

EPR Properties and Vici Properties own diversified and growing portfolios of experiential real estate. Those properties provide them with rising streams of rental income to pay dividends and invest in additional properties. That makes them great ways to turn $1,000 into a growing stream of passive dividend income this August.

Should you invest $1,000 in EPR Properties right now?

Before you buy stock in EPR Properties, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and EPR Properties wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Matt DiLallo has positions in EPR Properties and Vici Properties. The Motley Fool has positions in and recommends EPR Properties. The Motley Fool recommends Vici Properties. The Motley Fool has a disclosure policy.

Key Points

• The Metals Company is developing tech to harvest metal-rich nodules from the ocean floor.

• The company has no revenue and is still awaiting regulatory approval to begin mining.

• A recent U.S. permit application could offer The Metals Company an alternative path forward.

• 10 stocks we like better than TMC The Metals Company ›

Imagine diving into the Pacific Ocean's depths, not to see coral reefs or look for sunken pirate treasure, but to gather metal-dense rocks containing materials that can power the electric vehicle (EV) revolution.

That, in a nutshell, is the bold vision of The Metals Company (NASDAQ: TMC), a Vancouver-based company aiming to vacuum polymetallic nodules from the seafloor. With a stock that had soared 430% in 2025 as of market close July 31, TMC has caught the eyes of investors betting on a future of green energy. But with no revenue, mounting losses, and a sea of risks, is this materials stock worth diving into? Let's explore.

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What does The Metals Company do?

TMC isn't your typical mining stock. The company's core mission is to harvest polymetallic nodules from a remote stretch of Pacific Ocean known as the Clarion Clipperton Zone (CCZ). These lumpy, fist-sized seafloor stones are loaded with nickel, copper, cobalt, and manganese, all essential ingredients in everything from electric vehicle batteries to solar panels.

On land, these rare earth metals are mined and processed in carbon-heavy ways, which ironically undercut the clean-tech future many are destined to be part of. TMC wants to flip the script. Instead of digging holes in the earth, it wants to scoop metal-rich nodules from the seabed and refine them into battery-grade materials, possibly with a lighter environmental footprint.

The potential for TMC's mining operations is huge. As Henry Sanderson points out in his book Volt Rush: The Winners and Losers in the Race to Go Green, the deep sea holds more nickel, cobalt, and possibly other rare earth metals than all the world's land-based reserves combined. The CCZ alone is believed to contain some 21 billion metric tons of nodules -- enough raw material to not only shake China's grip on battery metals but supercharge the EV revolution for decades, if the materials can be gathered and refined.

A big vision, but zero revenue

But let's not sugarcoat it: TMC is nowhere near harvesting nodules at a commercial scale. The company reported zero revenue in the first quarter of 2025, paired with a net loss of about $20.6 million. That loss widened from $16.1 million in the quarter before. It turns out that building an underwater mining infrastructure from scratch isn't going to be cheap.

Or quick. As of writing, TMC still doesn't have the green light to mine commercially in the CCZ. Although it holds exploration rights across two massive patches there, it doesn't yet have permission to start harvesting the goods. That authority rests with the International Seabed Authority (ISA), a United Nations-backed body that still hasn't finalized the regulatory playbook that companies like TMC need to operate.

But there's a plot twist with the ISA: The U.S. never ratified the treaty that made the agency. While 169 nations and the European Union formally recognize the agency's authority, the U.S. isn't one of them. True, it does acknowledge parts of the treaty as international law, but technically, it's not bound by the ISA's rulebook. This means that if national interest comes into play -- say, securing domestic access to critical minerals -- the U.S. could try to go its own way. That would give companies like TMC a potential fast track to start operating in the CCZ.

This is exactly the door that TMC is trying to walk through. In April 2025, the company filed a permit application under a decades-old U.S. law just days after President Donald Trump signed a U.S. executive order renewing interest in offshore critical minerals. If TMC's application is approved, it could mean mining under American jurisdiction in waters considered off-limits to the rest of the world. It's a long shot, legally speaking, and could breach international norms, but it would be a major breakthrough for a company with no revenue.

A long-term wager with caveats

TMC is what I'd call a moonshot (or, maybe a deep-sea Hail Mary) -- it's a big idea with big risks and potentially big payoffs. If the permits come through and the tech scales, today's price could look like a bargain. After all, a $2.65 billion market cap could look small compared to the multitrillion-dollar demand for battery metals that's expected over the next few decades. If TMC becomes even a minor supplier in that chain, its top-line growth could dwarf what investors are paying today.

But if the ISA blocks its permit, or if U.S. jurisdiction doesn't hold up to legal scrutiny, or if other things turn out in ways not the best for the company, TMC could keep burning cash with no clear path to revenue.

That's a lot of "ifs." Clearly, this isn't a stock for the risk-averse. For aggressive investors with long-term horizons, a small stake might make sense as part of a diversified portfolio. But I would wait for tangible progress, like a confirmed mining license, before scaling up exposure.

Should you invest $1,000 in TMC The Metals Company right now?

Before you buy stock in TMC The Metals Company, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and TMC The Metals Company wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Steven Porrello has positions in TMC The Metals Company. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Points

• Over the last several weeks, Meta has been offering top artificial intelligence (AI) researchers lucrative contracts.

• These people are now part of Meta Superintelligence Labs, a division focused on competing directly with OpenAI and others.

• Jensen Huang appears to be supportive of Meta's hiring strategy, but there's a catch.

• 10 stocks we like better than Meta Platforms ›

Every few decades, the technology world is reshaped by a generational visionary who somehow seems to see the future before it actually unfolds. Right now, the most important technologist might just be Jensen Huang, the CEO of Nvidia (NASDAQ: NVDA).

Huang does not understand artificial intelligence (AI) purely from a technical perspective. The way he speaks about it is more cerebral.

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Beyond Huang, another technological visionary who is worth paying close attention to is Mark Zuckerberg, the CEO of Meta Platforms. Over the last several weeks, Meta has reportedly been on an aggressive hiring campaign, poaching top AI researchers from OpenAI, Alphabet, GitHub, and Apple.

Huang recently addressed Meta's hiring strategy during a discussion at the All-In Summit, hosted by billionaire venture capitalist Chamath Palihapitiya.

While Huang's comments about Meta sounded supportive overall, I think there are some key nuances to point out as Zuckerberg seeks to take on competition in the AI realm.

Let's dig into Huang's comments and assess what could be in the cards for Meta investors.

What did Huang just say about Meta?

In a video clip shared on social media, Huang shares his thoughts around Meta's recent hiring spree and the reported hundred-million-dollar signing bonuses.

Huang said that a team of roughly 150 researchers and appropriate funding could potentially go on to build a rival platform to OpenAI's ChatGPT. To back up his claim, he explained that several existing AI models that compete with ChatGPT were built by a team of similar size to what Zuckerberg is reportedly assembling through the creation of Meta Superintelligence Labs (MSL).

On the surface, this sounds like Meta just earned a vote of confidence from Nvidia, once referred to as the "godfather of AI." But is that really the case?

I think there might be more than meets the eye to Huang's comments.

What Huang didn't say

As a private company, OpenAI is not required to publish its financials or operating metrics. However, according to reports from CNBC, OpenAI now has 3 million paying enterprise customers and $10 billion in annual recurring revenue (ARR). To put this into perspective, OpenAI's ARR was estimated to be around $5.5 billion last year.

Those numbers show the company has nearly doubled its ARR base in less than a year, underscoring OpenAI's ability to acquire customers and accelerate its growth trends despite intensified competition from other large language models (LLM) from Anthropic, DeepSeek, and Alphabet, for example.

These nuances matter because Meta Superintelligence Labs won't just need to launch something, it will need to prove that it can weather challenges across product execution, customer acquisition, and competing with incumbents with strong first-mover advantages.

Although Huang appears confident that more companies will introduce products that compete directly with OpenAI, I would say that his comments fall short of an explicit endorsement of Meta, per se. Rather, I think he's more simply implying that Meta has been investing strategically in its quest to conquer the AI landscape.

Is Meta stock a buy now?

As the chart below illustrates, Meta experienced sizable expansion in its price-to-earnings ratio (P/E) a couple of years ago. During this period, management implemented significant cost reductions, particularly in the metaverse division. It made a strategic decision to reallocate these savings into AI initiatives.

META PE Ratio data by YCharts.

Given the trends above, I'd say that investors welcomed the shift from the metaverse to AI and began pricing in some of the upside. However, over the last 18 months, Meta's P/E levels have pulled back considerably.

In my eyes, this valuation reset suggests that investors may not fully appreciate the foundation that Zuckerberg and the management team laid a couple of years ago. In other words, the market may have prematurely bought up the stock, only to discount the long-term upside of the AI opportunity now.

With the creation of Meta Superintelligence Labs and a roster of all-star talent ready to build and launch new AI-powered services, Meta could be on the cusp of a massive transformation that remains discounted from a valuation standpoint.

At its current levels, I see Meta stock as a no-brainer buying opportunity at these prices as I think the company's upside from AI is largely discounted right now.

Should you invest $1,000 in Meta Platforms right now?

Before you buy stock in Meta Platforms, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Adam Spatacco has positions in Alphabet, Apple, Meta Platforms, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.

Key Points

• Palantir's Artificial Intelligence Platform is changing the way businesses and governments operate.

• The company is growing quickly but sports an outsized valuation.

• A slowdown in growth could have an impact on the Palantir stock price.

• 10 stocks we like better than Palantir Technologies ›

Perhaps the most interesting stock to buy in the market today is Palantir Technologies (NASDAQ: PLTR). The company, which is using its artificial intelligence (AI) platforms to completely alter how governments and commercial businesses operate, is up roughly 480% in the last year alone. So far in 2025, the stock is up almost 110%.

Along with that remarkable run-up is a story of obscenely high valuation. Investors are betting big on Palantir to the tune of some rarely seen valuations, such as a price-to-earnings ratio (P/E) nearing 700 and a forward P/E of 270.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Palantir has its second-quarter earnings call scheduled on Aug. 4, after the market's closing bell. If it can maintain its growth momentum, its stock will continue to soar. However, a slowdown in growth could be devastating and let the air out of the Palantir balloon.

Here's what investors should be watching for as the company prepares its Q2 report.

Palantir's growth numbers

Palantir is seeing serious growth since it unveiled its Artificial Intelligence Platform (AIP) in the spring of 2023. AIP uses generative AI to allow users to input commands and lengthy prompts into Palantir's powerful network in order to get real-time insights and predict the outcomes of events.

For government users of Palantir's Gotham platform, it's now much easier to command Palantir to tap into satellite networks to determine where opposing military assets are located, predict the results of operations, make recommendations, and offer insights as real-time battlefield situations evolve. Outside of the military aspect, Palantir's platform will be helping to optimize and orchestrate workflows so users can make better decisions throughout the government.

Commercial users of Palantir's Foundry platform can use AIP to help them manage supply chains, optimize operations, crunch healthcare data, and reduce manufacturing costs.

The company is seeing rapid growth in both platforms. While Palantir has long been recognized as a key government contractor, its commercial contracts in the first quarter were up 33% from a year ago, reaching $397 million. Much of that growth came from U.S.-based clients, where revenue jumped 71% from a year ago to reach $255 million. Government revenue was up a whopping 45% on a year-over-year basis to $487 million, with the lion's share ($373 million) coming from U.S. government contracts.

That's leaving Palantir flush with cash. The company ended the first quarter with $370 million in adjusted free cash flow, up from $149 million a year ago, and $5.4 billion in cash and cash equivalents with zero debt.

Key metrics to consider on Aug. 4

While Palantir's growth numbers are impressive, it's hard to say that the company is fairly valued today. Any company with a P/E ratio over 600 has far overextended its fair value -- and that's OK if you believe, as I do, that Palantir is a transformative company with a true value that still hasn't been recognized. But that belief isn't going to protect you if Palantir disappoints investors when it reports its Q2 earnings.

How would that happen? There are a few metrics I'll be looking at.

Customer count: Palantir's commercial customer count grew by 46% in the last year and by 9% on a quarterly basis. It needs to keep that momentum going by signing some big deals. In the first quarter, Palantir inked 139 deals of at least $1 million, and 31 of those were worth more than $10 million.

Revenue growth: Palantir needs to keep the money coming in. Remember, commercial work rose 33% on a year-over-year basis in the first quarter, and government work was up 45%. A slowdown would be impactful to the Palantir stock price. For the record, Palantir issued guidance for second-quarter revenue in a range of $934 million and $938 million. The midpoint of that would be a 47% overall increase from a year ago. That's a big number, but I think it's achievable.

Remaining performance obligations (RPO): This is the backlog -- the amount of revenue that Palantir has locked in by contracts it signed with government and commercial clients, but the work hasn't been delivered or paid for yet. Palantir's backlog at the end of the first quarter was $1.9 billion and has been steadily growing over the last two years.

Quarter	Total RPO
Q1 2023	$936 million
Q2 2023	$968 million
Q3 2023	$988 million
Q4 2023	$1.24 billion
Q1 2024	$1.3 billion
Q2 2024	$1.37 billion
Q3 2024	$1.57 billion
Q4 2024	$1.73 billion
Q1 2025	$1.9 billion

Source: Palantir Technologies

Palantir's backlog is accelerating, and the company needs to continue to grow its RPO at a decent clip. Anything below $2.05 billion will be a red flag, and anything above $2.15 billion will be a huge signal that Palantir's growth story is still cooking.

How to invest in Palantir today

I'm an unabashed fan of Palantir, but I'm not going to be adding to my position this week. If you're looking to invest, I suggest a dollar-cost averaging strategy that will protect you from volatility if the stock drops but will still give you some benefits should the stock continue to show power.

Regardless of how Palantir does in its report, I'm holding the stock because I believe that it will continue to deliver -- despite its steep valuation and high expectations from Wall Street.

Should you invest $1,000 in Palantir Technologies right now?

Before you buy stock in Palantir Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Patrick Sanders has positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.

Nvidia (NASDAQ: NVDA) recently became the world's first $4 trillion tech titan -- but the second quarter could be the spark for its next mega move. With quantum computing breakthroughs, artificial intelligence (AI) networking dominance, and a stealth China rebound on the horizon, this earnings report might deliver more than Wall Street expects.

*Stock prices used were the market prices of July 28, 2025. The video was published on Aug. 2, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Amazon's (NASDAQ: AMZN) quarterly financial update included a sequential decline in the operating profit margin of its most lucrative segment.

*Stock prices used were the afternoon prices of July 30, 2025. The video was published on Aug. 1, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Should you invest $1,000 in Amazon right now?

Before you buy stock in Amazon, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Meta Platforms (NASDAQ: META) reported quarterly financial results that were better than what investors were expecting.

*Stock prices used were the afternoon prices of July 30, 2025. The video was published on Aug. 1, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Should you invest $1,000 in Meta Platforms right now?

Before you buy stock in Meta Platforms, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Palantir (NASDAQ: PLTR) has a history of blowout earnings, and BigBear.ai (NYSE: BBAI) is trying to catch up. In this video, I'll unpack why Palantir might dominate the government artificial intelligence race while BigBear bets on its prototype future. Is one a breakout winner? Is the other a trap?

Stock prices used were the market prices of July 24, 2025. The video was published on August 1, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Should you invest $1,000 in Palantir Technologies right now?

Before you buy stock in Palantir Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Microsoft (NASDAQ: MSFT) reported spectacular quarterly financial results that pleased stock market investors.

*Stock prices used were the afternoon prices of July 30, 2025. The video was published on August 1, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Should you invest $1,000 in Microsoft right now?

Before you buy stock in Microsoft, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Microsoft wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Intel's (NASDAQ: INTC) management team provided critical insights long awaited by investors.

*Stock prices used were the afternoon prices of July 30, 2025. The video was published on Aug. 1, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Should you invest $1,000 in Intel right now?

Before you buy stock in Intel, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Key Points

• QuantumScape has figured out how to make electric vehicle batteries better than the current state of the art.

• It's still not actually manufacturing these batteries at scale, and it’s not clear when it might begin doing so.

• This stock’s inability to hold on to its recent gains is a red flag, but the retracement seems exaggerated.

• 10 stocks we like better than QuantumScape ›

The past few weeks have been wild ones for QuantumScape (NYSE: QS) shareholders. After it drifted to a multi-year low in April, something suddenly lit a fire under this electric vehicle (EV) technology stock in late June. Shares were up by more than 200% less than a month later.

That something was a breakthrough in how the company manufactures its high-performance EV battery packs. A key step in the process can now be completed about 25 times faster than before, offering the market some assurance that this pre-commercialization outfit will have the production capacity it needs when it needs it.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Nearly half of that gain has unsurprisingly been unwound in the meantime. Investors jumped in response to the news, but eventually remembered that there's more this start-up needs to accomplish before mass commercialization. On the other hand, this pullback could also prove to be a fantastic second chance to dive in at a decent price.

What's QuantumScape?

First things first. What the heck is QuantumScape?

This company makes lithium-based batteries like the ones the majority of modern electric vehicles require. QuantumScape's batteries are better than the standard lithium-ion battery you'll find powering most EVs these days. Not only are its solid-state lithium battery packs capable of storing more energy, they don't require the usual anode, tackling two of the EV battery business' lingering challenges. This simpler design not only translates into lower manufacturing costs, but also lower overall materials costs on a per-watt basis.

The only problem? QuantumScape's batteries aren't actually being manufactured at commercial scale yet. It's not entirely clear how much it will cost or how difficult it will be to do so, either. The only powerpacks it's made so far are prototypes provided to carmakers that want to tinker with the technology in their own electric vehicles.

Still, the science is quite promising. The solid-state batteries the company has made provide on the order of 15% to 40% more driving range than comparable conventional lithium-ion batteries do.

Perhaps more importantly, they're far more durable. QuantumScape's own testing indicates that its powerpacks are capable of holding 95% of their original charge capacity, even after 1,000 recharges. That's about 300,000 miles worth of driving, alleviating one of would-be EV owners' top cost concerns -- the eventual replacement of their electric vehicle's battery at a price tag of anywhere between $10,000 and $20,000.

A big leap forward

Given all this, the company's story is compelling. The question is: How close is QuantumScape to actually manufacturing an affordable and functional solid-state EV battery at scale? Well, it's at least one step closer to this endzone than it was a little over a month ago.

In late June, QuantumScape announced it had successfully integrated its advanced "Cobra" separator process into the production of its baseline lithium cells. That means the ceramic-based separator between its batteries' solid cathodes and the company's anode alternative can now be layered into place about 25 times faster than the company's previous fabrication process.

That's the whole reason for July's brilliant burst of bullishness. Welcome to the world of story stocks.

Still, it's easy to see why the market suddenly became so excited. This is no small matter. This ceramic material negates the need for a porous polymer separator between the liquid electrolyte and lithium metal material found inside most common lithium-based batteries. Not only is the solid nature of QuantumScape's battery materials more efficient at transferring a charge from one side of the battery to another, there's little loss of this efficiency over time, compared to a fluid material.

Liquid electrolytes are also potentially just more dangerous than their solid-state counterparts, since they're more likely to be ignited and burn out of control than solid-state batteries.

More to the point for investors, being one (admittedly big) step closer to being able produce its batteries at scale is a big win for QuantumScape, and its shareholders. Even if the bulls did end up getting ahead of themselves and have since cooled their jets, that's what catapulted the stock higher in July, reminding investors that story stocks like this one can be quite unpredictable.

Don't waste the in-the-meantime

The overarching question remains: Is QuantumScape stock a buy following its battery breakthrough?

One of the key details glossed over by the noise of the recent run-up is that this $5 billion company is still bleeding money. It spent over $500 million last year, mostly on research and development, topping 2024's and 2023's outlays. And there's not a stitch of revenue yet. That's not an unusual situation for a start-up that's still refining what could be a game-changing technology; you have to spend money to make money. But it's a concern when there's less than $1 billion worth of cash and liquid assets on the balance sheet. Fund-raising could be in the cards.

There's also no assurance that paying customers will actually step up once at-scale production becomes possible. The company's said both should materialize sometime in 2026, but such timelines are difficult to predict when a technological solution is as new as this one is. Either way, meaningful revenue wouldn't likely start to flow until 2027 or even 2028, with profits unlikely for at least a while after that.

Nevertheless, Volkswagen -- the world's second-biggest automaker, and one of its biggest EV manufacturers -- has remained interested and financially supportive for years now when it didn't have to do so. It's QuantumScape's single biggest shareholder, in fact. Given how close QuantumScape is to the finish line now, it would be surprising if Volkswagen didn't see the development of these superior EV batteries all the way through.

The only catch is that the massive automaker probably doesn't care at this point if QuantumScape ever actually turns a profit. It just wants the advanced lithium batteries. That's not the case for individual QS shareholders.

Bottom line? Buy it if you're inclined to take a big risk with a potentially big reward. Just be prepared for plenty of volatility, and the possibility of significant losses. Even for most risk-tolerant investors, the odds of any meaningful long-term upside aren't quite high enough here to justify the amount of risk you'd actually be taking on.

Sure, that could change in the future. Just don't miss out on other opportunities in the meantime while you're waiting to see if this story stock that raises more questions than it answers actually pans out. Don't sweat not getting in on the proverbial ground floor, either. If QuantumScape's tech is going to pay off, that will become clear enough once real revenue starts to flow.

Should you invest $1,000 in QuantumScape right now?

Before you buy stock in QuantumScape, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and QuantumScape wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

James Brumley has no position in any of the stocks mentioned. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.

Key Points

• C3.ai's business has benefited from organizations rushing to adopt AI solutions, such as the U.S. Air Force.

• The company reached record revenue in its fiscal fourth quarter, and forecasts more sales growth ahead.

• C3.ai is not profitable, and a change in CEO is on the horizon.

• 10 stocks we like better than C3.ai ›

Artificial intelligence (AI) stocks have been hot, and many experienced strong growth in 2025 alone. For example, this year, AI luminaries Nvidia and Broadcom saw shares soar more than 30% and 26%, respectively, through July 28.

But one lackluster AI stock has been C3.ai (NYSE: AI). Its shares are down about 25% this year through July 28. Could the price drop signal an opportunity to scoop up shares at a discount? After all, the global AI market is forecast to expand from $244 billion in 2025 to $1 trillion by 2031, providing a tailwind for C3.ai's business.

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The reality is that evaluating whether to purchase its stock requires digging into the company. Let's delve into C3.ai to help assess if it's a sound investment for the long run.

A look at C3.ai's business

C3.ai is an enterprise AI applications business servicing the needs of corporate and government organizations. Its customers include the U.S. Department of Defense, Dow Inc., and ExxonMobil.

The company built a network of partnerships to assist in selling its solutions, which includes Microsoft and energy giant Baker Hughes. These alliances resulted in partners closing 73% of the customer agreements signed in C3.ai's 2025 fiscal year, ended April 30.

C3.ai's business model translated into record revenue of $108.7 million, a 26% year-over-year increase, in its fiscal fourth quarter. For the full year, sales grew 25% year over year to $389.1 million.

The company's offerings have proven popular with customers. In May, the U.S. Air Force expanded its contract with C3.ai from $100 million to $450 million to supply predictive analytics that proactively identify aircraft maintenance needs.

In June, Univation Technologies, a Dow subsidiary, adopted C3.ai's predictive maintenance capabilities to deliver to its petrochemical industry customers.

C3.ai's pros and cons

The company's customer wins this year suggest more revenue expansion to come. In fact, C3.ai forecasts fiscal 2026 sales to reach between $447.5 million and $484.5 million, another solid year of growth over fiscal 2025's $389.1 million.

Despite rising sales, C3.ai's business isn't profitable. It ended fiscal 2025 with an operating loss of $324.4 million, deepening from a $318.3 million loss in the prior year. Costs increased from adding employees to support its business growth.

On top of that, a health issue struck CEO Tom Siebel this year, and the company is now searching for a successor. This is unfortunate news, and it contributed to the decline in C3.ai's share price. The stock price drop is understandable, since a leadership change risks disrupting the company's future success.

However, C3.ai is striving to cut costs and strengthen its finances. Management expects to be free-cash-flow (FCF) positive by next year. It ended fiscal 2025 with negative FCF of $44.4 million, which is an improvement over the previous year's $90.4 million in negative FCF.

Its balance sheet shows C3.ai is well capitalized with total assets of $1 billion, $742.7 million of which represent cash, cash equivalents, and short-term investments. Total liabilities were $187.6 million.

Deciding whether to buy C3.ai stock

Although C3.ai isn't profitable, its strategy to prioritize business expansion over immediate profit follows a typical approach adopted by many companies in the technology sector. As long as year-over-year revenue growth remains strong and it continues to improve its financials, such as reaching positive FCF, C3.ai's operating loss isn't a major concern.

The impending departure of its CEO is regrettable, but Siebel intends to continue shepherding the company as executive chairman. This positions C3.ai for a smooth leadership transition.

With plenty of positives in its favor, does this mean now is the time to buy C3.ai's shares? To answer that, here's a look at its stock's price-to-sales (P/S) ratio with a comparison to Microsoft's, given Microsoft sells C3.ai's offerings, and is a prominent AI business in its own right.

Data by YCharts.

The chart reveals C3.ai's valuation has significantly improved, as evidenced by the substantial drop in its P/S multiple from its late 2024 peak. This multiple is now considerably lower than Microsoft's, further highlighting C3.ai's attractive valuation.

This, combined with growing sales, a robust balance sheet, and strengthening free cash flow, makes C3.ai stock a compelling investment opportunity.

Should you invest $1,000 in C3.ai right now?

Before you buy stock in C3.ai, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and C3.ai wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Robert Izquierdo has positions in Broadcom, C3.ai, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends Broadcom and C3.ai and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

SoFi Technologies (NASDAQ: SOFI) announced a $1.5 billion stock sale that caused the stock price to fall.

*Stock prices used were the afternoon prices of July 29, 2025. The video was published on July 31, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Should you invest $1,000 in SoFi Technologies right now?

Before you buy stock in SoFi Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Key Points

• Medtronic is separating out its lower-margin diabetes care segment.

• It's also pouncing on a massive opportunity in robotic-assisted surgery.

• The healthcare leader has a terrific dividend-growth track record.

• 10 stocks we like better than Medtronic ›

Medical device specialist Medtronic (NYSE: MDT) has not been the best of investments over the past five years. The stock has significantly lagged the market over this period, thanks to weak business fundamentals, including slow revenue growth. The healthcare giant now faces additional obstacles, such as the threat of steeper tariffs due to President Donald Trump's aggressive trade policies.

Even amid all that, Medtronic has plenty of redeeming qualities and could still be a solid investment for long-term investors. Here are three reasons why.

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1. Medtronic is spinning off its diabetes care unit

Medtronic recently announced that it will be spinning off its diabetes care unit, which will become a stand-alone, publicly traded company. Although sales of diabetes products have been growing faster than the rest of Medtronic's business, they have also been a drag on margins. During the company's fiscal year 2025, which ended on April 25, diabetes care accounted for 8% of revenue but only 4% of operating profits. Medtronic's other segments are not growing their sales as quickly, but they have more profitable margins.

In an environment where the company may face higher manufacturing costs due to tariffs, management has chosen to focus on higher-margin opportunities. Diabetes care was also the healthcare specialist's only consumer-facing business; the others offer products to healthcare providers. The move could help Medtronic navigate the macroeconomic landscape better if Trump's tariffs remain in place. That's especially the case if the company can find other lucrative revenue growth opportunities.

2. A significant opportunity in robotic-assisted surgery

Medtronic has been developing its robotic-assisted surgery (RAS) system, Hugo, for years. It has been in use in other countries, though it's yet to get the regulatory nod in the United States. The medical device specialist decided to pursue this opportunity because the RAS market is severely underpenetrated. Intuitive Surgical's da Vinci system dominates the field and faces little competition for the range of procedures for which it's approved.

Yet a couple of years ago, Medtronic pointed out that of all the procedures that could be performed robotically, fewer than 5% were. And over the long run, the demand for these kinds of surgeries will increase along with the world's aging population, since seniors are far more likely to face health issues that call for these kinds of interventions. The good news is that Medtronic's Hugo system recently completed clinical trials in the U.S. for urologic procedures. The company has requested clearance from the U.S. Food and Drug Administration for that indication.

It should be the first of many. The Hugo system could eventually become a crucial part of Medtronic's growth strategy and help improve its financial results over the long term, given the significant white space available in the industry.

3. A soon-to-be Dividend King

Despite Medtronic's recent challenges, the company has continued to pay and raise its dividends. In fact, the company has raised dividends for 48 consecutive years. Most businesses don't survive nearly five decades, let alone pay dividends for that long. Medtronic's ability to do so speaks volumes about its underlying business. It's a well-established leader in its niche of the healthcare market, with significant footprint in the industry and a long and successful history of navigating this deeply regulated sector.

All of those factors make Medtronic an excellent pick for income-seeking investors. It should continue rewarding shareholders with payout increases for a long time -- and in two years, it should become a Dividend King.

Medtronic may not be one of the most exciting artificial intelligence (AI) leaders capturing Wall Street's attention, although the company is implementing AI across its business in ways that could pay off in the long run. Regardless, its recent moves in shedding its diabetes care segment and seeking clearance for its Hugo system, along with its consistent dividend streak, make Medtronic a reliable company to invest in for the long haul.

Should you invest $1,000 in Medtronic right now?

Before you buy stock in Medtronic, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Medtronic wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Prosper Junior Bakiny has positions in Intuitive Surgical. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool recommends Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.

Novo Nordisk (NYSE: NVO) is struggling with competition from both compounders and larger rivals.

*Stock prices used were the afternoon prices of July 29, 2025. The video was published on July 31, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Should you invest $1,000 in Novo Nordisk right now?

Before you buy stock in Novo Nordisk, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Novo Nordisk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Intel (NASDAQ: INTC) reported quarterly financial results that reveal critical insights about its turnaround efforts.

*Stock prices used were the afternoon prices of July 29, 2025. The video was published on July 31, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Should you invest $1,000 in Intel right now?

Before you buy stock in Intel, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

SoFi Technologies (NASDAQ: SOFI) reported better-than-expected financial results for its recently completed quarter.

*Stock prices used were the afternoon prices of July 29, 2025. The video was published on July 31, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Should you invest $1,000 in SoFi Technologies right now?

Before you buy stock in SoFi Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Key Points

• Nvidia has split its stock six times, most recently 10-for-1 in June 2024.

• The current stock price is well below previous split-launching highs.

• Long-term value for Nvidia investors comes from its leadership in AI, not stock splits.

• 10 stocks we like better than Nvidia ›

Semiconductor designer Nvidia (NASDAQ: NVDA) has split its stock six times so far, including a splashy 10-for-1 split in June 2024. The shares are climbing to new highs again with a market cap of $4.34 trillion.

Will Nvidia announce another split before the end of 2025? Let's have a look.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Nvidia's business is booming

First and foremost, a stock split wouldn't make sense if the company were in financial trouble. That's a pretty academic concern here, though. As the leading supplier of high-performance artificial intelligence (AI) accelerators, Nvidia is enjoying a golden age.

Its trailing revenue has soared 354% higher over the last two years to $148.5 billion. Nvidia converted $72.1 billion of those beefy sales into free cash flow over the last year. That's up from $5.1 billion two years ago.

And many experts expect its booming business to stay strong for years. Rivals such as Advanced Micro Devices (NASDAQ: AMD) and Cerebras have developed competitive AI chips, but Nvidia's solutions quickly emerged as an industry standard.

Surging data center construction around the world suggests that the market leader will see plenty of AI chip orders in the coming years. Ergo, Nvidia is doing quite all right, and some would argue that the stock is undervalued today.

Why Nvidia's next split isn't around the corner

A technical issue makes it clear that Nvidia won't execute the next stock split in 2025. These moves need approval, usually by a passing vote at the company's annual meeting of shareholders. That ship sailed on June 25.

Management could call a special meeting just to consider a stock split proposal, but honestly, it's not that big of a deal. Hold that thought -- I'll explain what I mean in a minute.

All right, but would it make any sense to lower the share price with another split someday soon? The stock is trading at nearly $180, having gained 46% since last year's big split.

But the stock soared all the way to $1,200 per share before Nvidia reorganized its stock offering in 2024. Before that, it cost a split-adjusted $740 around the time of the 4-for-1 split in July 2021.

A 46% gain is impressive, especially when starting from a market-cap launchpad worth $3 trillion. But it's a long way to go from $180 to $1,200, or even to the lower $740 range.

Judging by Nvidia's earlier split announcements, I'd be surprised to see another stock split in the next year or two. That's true even if the stock price keeps rising 46% per year.

NVDA data by YCharts.

Stock splits in 2025: More hype than wealth-building substance

As noted earlier, stock splits aren't a big deal. They used to be, when stocks had to be traded in round lots of 100 shares. But that requirement was scrapped in 2007, and most brokerages allow trading of fractional shares nowadays. The concept of hugely expensive round lots is nearly as outdated as stock quotes in fractions of a dollar (not seen since 2001), and the real-world value of stock splits disappeared when these changes were made.

Splits are still great headline fodder in 2025, and you can see them as the board of directors issuing a vote of confidence for future price gains. But the split itself neither boosts nor hurts the stock price or total market value. You're just cutting Nvidia's $4.34 trillion of shareholder value into a different number of equal shares: 10 shares worth $176 each is exactly the same as 40 shares priced at $44.

So don't worry too much about Nvidia's stock-splitting plans. It's not likely to happen soon, and it's not a game-changing event if it takes this accounting step. Just keep an eye on the evolving AI boom to make sure the chipmaker hangs on to its dominant market share.

That's where the real shareholder value comes from, after all.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Anders Bylund has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.