U.S. Treasury yields climbed past 5.2% as the national debt crossed $40 trillion, while Brent crude futures approached $94 per barrel amid escalating Middle East tensions. The backdrop of higher volatility and rising borrowing costs set the stage for a week of outsized gains in AI-identified equities, with several companies posting sharp increases following earnings reports.
Marvell Technology led the advance, surging 33.9% in August alone and 13.0% over the past week, after its shares were flagged with 48.4% upside potential by InvestingPro Fair Value models. The company also secured a supply agreement with Alphabet to provide custom AI chips and Tensor Processing Unit hardware, with Google receiving warrants for up to $12.2 billion in Marvell stock.
Haemonetics Corporation posted a 26.5% gain in August and a 98.4% return since being picked by AI models, driven by a multi-year supply deal with CSL Plasma. The company reported first-quarter revenue of $339.4 million and adjusted EPS of $1.14, while raising its full-year growth outlook to 5%-8% on strong demand for its VASCADE vascular closure devices.
Energy sector stocks also featured prominently. Kosmos Energy reported a second-quarter net profit of $184.8 million, with oil and gas revenue jumping 55% year-over-year to $607.3 million. Total net production rose 12% to 71,400 barrels of oil equivalent per day, supported by the Greater Tortue Ahmeyim LNG project and new Jubilee wells in Ghana. Operating costs fell 26% to $25.61 per barrel of oil equivalent, generating $88.9 million in free cash flow.
SM Energy delivered a 215% year-over-year revenue increase to $2.50 billion in the second quarter, with adjusted EPS of $2.19 beating estimates of $1.96. The company redeemed $417 million in notes early and repurchased $96.1 million in shares. Chord Energy reported $923.5 million in EBITDA and $414.1 million in free cash flow, with oil production reaching 165.4 thousand barrels per day and plans to return at least 75% of free cash flow to shareholders starting in the third quarter.
Elsewhere, Peabody Energy rose 26.4% in August, while Yubico AB gained 47.5% as AI models highlighted its strong performance since being selected. Electronics Mart India and Hanall Biopharma also posted August gains of 46.8% and 44.2%, respectively.
The broader market environment remained challenging, with weak retail earnings from Walmart underscoring consumer strain. The AI-driven stock-picking service, which evaluates equities using over 15 years of financial data across more than 150 quantitative models, has delivered a 194% return since its November 2023 launch, outperforming the S&P 500 by 113.5%.
