Hlib Chabaniuk

U.S. premarket stocks rise on analyst upgrades, earnings and AI trading

U.S. premarket stocks rise on analyst upgrades, earnings and AI trading
Premarket stocks surge on news

Several U.S.-listed stocks are posting notable gains before the opening bell as investors react to analyst calls, corporate results and fresh positioning in artificial intelligence names. Early movers include cybersecurity, electric vehicle, memory chip and beauty companies, alongside merger-related activity in the networking hardware space.

Highlights

  • CrowdStrike rises 3.4% premarket after Deutsche Bank upgrades to buy, citing AI-driven cybersecurity growth, with Palo Alto Networks adding 2% in sympathy.
  • Rivian gains 3.8% after UBS upgrades to buy, citing valuation post-selloff and expected production ramp of the R2 midsize SUV.
  • Estée Lauder jumps 3.5% after adjusted Q1 earnings of 72 cents per share and $3.72 billion revenue beat estimates, lifting full-year outlook.

Premarket drivers across sectors

As reported by CNBC, CrowdStrike is up 3.4% in premarket trading after Deutsche Bank upgrades the cybersecurity company to buy from hold. Analyst Brad Zelnick says the market is still not fully appreciating how AI will expand the cybersecurity market, while Palo Alto Networks adds 2% in related trading.

Rivian climbs 3.8% after UBS upgrades the electric vehicle maker to buy. Analyst Joseph Spak says the stock's recent sell-off creates a buying opportunity ahead of an expected inflection in the ramp of Rivian's R2 midsize SUV.

Memory-related stocks also move higher as traders appear to rotate back into AI-linked names following Friday's steep sell-off. Micron, SanDisk and Western Digital each rise about 2% before the bell.

Earnings and deal activity lift sentiment

Estée Lauder gains 3.5% after reporting fiscal first-quarter results that top analyst expectations. The beauty company posts adjusted earnings of 72 cents per share on revenue of $3.72 billion, ahead of FactSet consensus estimates for 51 cents per share and $3.65 billion in revenue, and it also raises its full-year earnings outlook.

Marvell Technology advances 3%, while Lumentum rises 2% before being halted, after Marvell agrees to acquire Lumentum in an all-stock transaction valuing Lumentum at $115 billion. The companies expect the deal to close in the first half of 2028.

In our earlier article on the surge in cybersecurity funding, we noted that investor appetite stayed strong as larger late-stage rounds pushed total Q3 funding to $6.8 billion even though the number of deals fell. We also highlighted how AI-focused and identity-security startups attracted much of the capital, alongside continued consolidation through sizeable M&A—signs of a supportive backdrop as AI-related risk keeps shaping cybersecurity spending.

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