Key Points
- October brings a fresh group of stock opportunities supported by company-specific catalysts, improving fundamentals and favorable technical setups.
- The five names span AI chips, data-center connectivity, energy, retail and defense, giving investors exposure to several different growth themes.
- Upcoming earnings reports and year-end catalysts could determine whether these stocks extend their recent momentum or break into new ranges.
- Special Report: Your balance can grow while your buying power shrinks.
October is almost here, making it a great time for some scary good buys. These are scary good because of the tailwinds, growth potential, and chart price action, which suggests explosive upside that could be realized before year’s end.
The catalysts for these moves, if they aren't already well underway, will come over the following weeks as the underlying companies report earnings.
Advanced Micro Devices Breaks Out
Advanced Micro Devices' (NASDAQ: AMD) story is unchanged: MI450 is rolling out, demand is expected to be hot due to the Helios architecture, and forward consensus estimates fail to reflect the potential. The narrative, however, is advancing, with the stock price moving to fresh highs and signaling the trend's continuation. In this case, there is a fundamental driver, but this is a purely technical play, as the market is already moving. The critical takeaway is the upside potential: Advanced Micro Devices' breakout suggests the summer consolidation may be the halfway point or lower in a much larger movement.
The base-case forecast is a move matching the March-June rally, about $368, projected from either the low or high end of the consolidation range. This puts AMD shares in the $828 to $925 range within a few months of the breakout, well above most analysts' targets. The bull case, however, which appears to be the more likely scenario, is that AMD shares could advance by the percentage gain from March to June, which is approximately 195%. In this scenario, AMD’s share price could reach $1350 or higher, just above AMD’s highest analyst target, set by analysts at Robert W. Baird over the summer.
Credo Technologies Is Rebounding
Credo Technologies' (NASDAQ: CRDO) summer price pullback was deeper than expected but not a deal-breaker for bulls. The late-September narrative is that the floor was found and a rebound is underway. Active signals include a growing, increasingly large and stronger market, as shown by volume gains and MACD convergence. CRDO shares could retest their current highs or potentially achieve new highs soon.
While Credo faces its share of hurdles, it is established as AI-critical for today, with a pipeline of AI-critical photonics and optics technology for tomorrow. Analyst sentiment trends reflect the summer correction, including some price target reductions, but remain otherwise bullish for the stock. Consensus is stabilizing around the $260-$270 region, aligning with existing highs and potential for over 30% upside. The next quarterly results could outperform, extending the trends in business, sentiment, and stock prices.
Bloom Energy Pops a Can of AI Energy Strength
Bloom Energy (NASDAQ: BE) is a name investors should not ignore.
The once-struggling fuel cell manufacturer is now AI-critical, helping bypass energy infrastructure bottlenecks. Its story is that hyperscalers across the industry have validated the tech, its scalability, and orders are rolling in.
Upcoming results will likely show strength, beat estimates, and lead to higher forecasts. The key detail is that Bloom Energy fuel cells are available today, produce power today, and enable AI today, not years down the road, like most other solutions.
Target Aims at Full Price Recovery
Target (NYSE: TGT) isn’t the pariah it was a few years ago, having turned the corner from missteps to a new growth era. What this company has is resilient consumer habits, a holiday-season tailwind that should accelerate sales, and reclaimed market share. Target is regaining lost consumers, proving its brand power, and may lead the industry in growth through year’s end.
As it stands, analysts forecast only modest, mid-single-digit growth in the back half, but with improved margins and accelerated earnings power. Outperformance, specifically on the bottom line, will help accelerate the stock’s revaluation, which has substantial room to run. Trading at 16x to 17x the current-year outlook, TGT has the potential to double in price in the near- to mid-term and then continue rising over the next few years.
LightPath Technologies Turns a Corner, Provides Strategic Advantages
LightPath Technologies (NASDAQ: LPTH) is a speculation on domestic supply chains, defense, and the strategic advantages of its technology. The company makes high-performance optical lenses and components for infrared and precision applications, now focusing on drones and defense. Key details include the divestiture of its China-based manufacturing operations, an intensified focus on domestic manufacturing, and the nature of its products.
Many LightPath products use proprietary glass that enables lighter products made from non-Chinese materials, making them better for aerospace and drone applications while strengthening compliance with the National Defense Authorization Act. Coincidentally, the stock price is at the bottom of a range, set up for a rebound that could add 50% before hitting the first major resistance target.
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