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Hi Tigers~[Happy]

As of Tuesday's close (ET), the $S&P 500(.SPX)$ rose 0.62% to close at 6,944, setting a new record closing high. $Dow Jones(.DJI)$ gained 0.99%, closing above the 49,000 mark for the first time in history at 49,462. $NASDAQ(.IXIC)$ climbed 0.65% to 23,547.

According to statistical analysis of TradingView data, 34 constituents of the S&P 500 with market capitalizations exceeding 101010 billion USD hit all-time highs. Breaking this down by market cap, 24 of these companies are valued above 202020 billion USD. Among them, 12 belong to the Information Technology sector, 8 to the Financials sector, and 4 to the Industrials/Manufacturing sector.

Overview of Market Drivers:

• AI and semiconductor investment continues to broaden into foundational layers: Memory and equipment companies such as Micron, Applied Materials, Lam Research, KLA, and Western Digital hit new highs, indicating the market is pricing in the sustained nature of investments in AI hardware and production capacity.

• Aerospace & Defense maintains structural strength: GE Aerospace, RTX, General Dynamics, and L3Harris reached new highs, reflecting a capital preference for long-cycle assets with high order visibility and stable cash flows.

• Financials and Consumer Services recover in tandem: Morgan Stanley, Charles Schwab, and Nasdaq Inc., alongside hotel, airline, and retail-related companies strengthened, signaling improved market expectations regarding capital market activity and the resilience of consumer demand.

• Defensive assets remain in the mix: Brookfield and Royal Gold hit new highs, showing that while risk appetite is recovering, capital remains cautious regarding macroeconomic and geopolitical uncertainties.

Data Breakdown:

• 18 companies posted year-over-year EPS growth exceeding 30%.: $Western Digital(WDC)$ $Micron Technology(MU)$ $Seagate Technology PLC(STX)$ $Nasdaq(NDAQ)$ $Royal(RGLD)$ $Charles Schwab(SCHW)$ $Morgan Stanley(MS)$ $L3Harris Technologies, Inc.(LHX)$ $Lam Research(LRCX)$ $Nu Holdings Ltd.(NU)$ $Citizens(CFG)$ $Analog Devices(ADI)$ $RTX Corp(RTX)$ $Howmet Aerospace Inc.(HWM)$ $Expedia(EXPE)$ $Heico(HEI)$ $GE Aerospace(GE)$

• 7 companies are rated as "Strong Buy" by analysts. $Delta Air Lines(DAL)$ $Micron Technology(MU)$ $Nasdaq(NDAQ)$ $Royal(RGLD)$ $Citizens(CFG)$ $Howmet Aerospace Inc.(HWM)$ $United Airlines(UAL)$

• 24 companies are rated as "Buy" by analysts. $Cummins(CMI)$ $Credicorp(BAP)$ $Parker Hannifin(PH)$ $United Airlines(UAL)$ $General Dynamics Corp(GD)$ $Moody's(MCO)$ $Brookfield Corp(BN)$ $Ametek Inc(AME)$ $Fox Corporation Class B(FOX)$ $ulta beauty(ULTA)$ $Applied Materials(AMAT)$ $Ross(ROST)$

In this article, we will specifically break down the key drivers behind the record highs of the top 10 companies by market capitalization.

Note from Tiger: Information and data are sourced from public markets. Views are for discussion and reference only and do not constitute investment advice.

The following is a compilation of key drivers behind the record-high stock prices of the top 10 companies, based on publicly available information. This is for discussion purposes only.

1. $Micron Technology(MU)$ – Micron Technology, Inc.

Core Business: A leading global manufacturer of memory chips with a product portfolio covering DRAM, NAND, and HBM. The company is highly benefiting from the growth in demand for AI servers and high-performance computing.

Financial Highlights disclosed for the quarter ending in 2025:

• Q4 Revenue: Approximately 11.311.311.3 billion USD, a year-over-year increase of about 46%.

• Gross Margin: Improved to approximately 41%.

• Key Drivers: Strong sales volume in DRAM and data center memory were the primary driving factors.

Institutional Price Target Expectations for 2026: Analysts' target prices for 2026 vary, but the majority maintain an optimistic outlook:

• J.P. Morgan: Raised target price to approximately 220220220 (Overweight).

• KeyBanc: Target price approximately $215; Stifel target price approximately $195.

• Wolfe Research, Mizuho, Deutsche Bank, and others maintained target prices in the $175–$182 range.

Source: Tiger Trade

2. $GE Aerospace(GE)$ – GE Aerospace

Core Business: GE Aerospace is one of the world's largest suppliers of jet engines and aftermarket services, serving commercial airlines and defense sectors. Its operations include engine manufacturing, maintenance, and spare parts services.

2025 Financial Performance & Latest Developments:

• Q3 2025 Revenue: Approximately 11.311.311.3 billion USD, up about 26% YoY; Adjusted EPS was approximately $1.66, up about 44% YoY.

• Commercial Engine Services and engine deliveries were the primary growth drivers.

• The company raised its full-year 2025 guidance (Revenue and EPS).

• Market Focus: Continued growth in the order backlog and strong cash flow from maintenance services.

Institutional Price Target Expectations for 2026: Institutional analysts have varying estimates for GE Aerospace's 2026 target price:

• UBS: Raised target price to $366, maintaining a Buy rating.

• Citi: Also reported raising the target price to approximately $309.

• Analyst Average: Target prices range from $311–$345; the highest estimate reaches approximately $386.

Institutions generally project a steady upside, favoring the recovery in air travel and the cash flow certainty provided by long-term maintenance contracts.

Source: Tiger Trade

3. $Morgan Stanley(MS)$ – Morgan Stanley

Core Business: A top-tier global financial services institution specializing in investment banking, wealth and asset management, sales and trading, and capital markets. In 2025, investment banking and trading revenues saw significant growth, while wealth management assets continued to expand.

Latest Performance in 2025:

• Q3 2025 Revenue: Approximately $17.98 B; EPS $2.80. This beat market expectations, with revenue growing ~18.5% YoY.

Investment Highlights & Drivers:

• Investment Banking, Wealth Management, and Trading divisions collectively drove performance; analysts view AI adoption and capital market activity as key drivers for earnings growth.

Institutional Price Target Expectations for 2026:

• Jefferies: Raised target price to $212 and maintained a Buy rating.

• Consensus: Analysts broadly expect EPS growth for MS over the 2025–2026 period, with the 2026 market consensus for EPS around $10.42。

Source: Tiger Trade

4. $Lam Research(LRCX)$ – Lam Research Corporation

Core Business: A leading global supplier of semiconductor wafer fabrication equipment (front-end), focusing on etching, deposition, and advanced manufacturing equipment.

2025 Latest Performance & Industry Dynamics:

• Q3 2025 Revenue: Approximately $5.3B, representing quarter-over-quarter growth and hitting a record high; Gross Margin reached 50.6% (a significant increase compared to previous quarters).

• Management Commentary: Management noted that AI-driven advanced chip manufacturing and NAND memory upgrade orders are crucial drivers for revenue growth in 2025.

Institutional Price Target Expectations for 2026:

• UBS: Raised LRCX target price from $155 to $165, maintaining a Buy rating, and projects 2026 EPS around $5.25–5.50

• Needham: Raised target price from $150 to $160 (based on strong sales in China and better-than-expected quarterly results).

• Overall 2026 Target Price Range (Institutional Consensus Varies): Approximately $155 – $180+, with the majority of mainstream institutions maintaining the $160–$170 range.

Source: Tiger Trade

5. $RTX Corp(RTX)$ – RTX Corporation

Core Business: A global defense and aerospace giant, RTX’s operations span military and commercial aircraft engines, as well as related maintenance and support services.

2025 Latest Performance:

• In Q3 2025, management raised the full-year adjusted EPS guidance to $6.10–$6.20, reflecting stable earnings growth.

Investment Highlights & Drivers:

• A substantial backlog of orders, combined with revenue from commercial aviation engines and defense maintenance contracts, provides steady cash flow. Growth is supported by the ongoing recovery in air travel and defense spending.

2026 Analyst Target Price Expectations:

• Analyst consensus ranges approximately $180–$200, with high-end forecasts reaching around $215.

• Most analysts assign a Moderate Buy / Buy rating, citing growth visibility and stability in a geopolitically-driven environment.

Source: Tiger Trade

6. $Applied Materials(AMAT)$ – Applied Materials, Inc.

Core Business: A leading global semiconductor equipment manufacturer, Applied Materials provides deposition, etching, and inspection systems, benefiting from both advanced and mature process investments.

Investment Highlights & Drivers:

• Growth in DRAM, advanced logic, and overall WFE markets drives demand for its equipment.

• Analysts generally expect that long-cycle capital expenditures will support long-term revenue growth for AMAT.

2026 Analyst Target Price Expectations:

• Analyst ratings and target prices vary, though the consensus leans toward Buy:

  • TD Cowen: ~$315;

  • Citi: ~$250;

  • UBS, B. Riley, BofA and other major firms: ~$250–$350.

Source: Tiger Trade

7. $Charles Schwab(SCHW)$ – Charles Schwab Corporation

Core Business: A leading U.S. retail brokerage, wealth management, and financial services platform, with continuously growing assets under management.

2025 Latest Disclosures & Growth Momentum:

• Q3 2025 revenue and EPS increased significantly (for instance, Barron’s reported roughly a 70% YoY increase in Q3 EPS). Client assets and net new assets remained on an upward trajectory.

Investment Highlights & Drivers:

• EPS and revenue are expected to continue growing in 2026. Analysts highlight the stability of cash flows provided by Schwab’s retail brokerage and wealth management services.

2026 Analyst Target Price Expectations:

• The average consensus target price is around $112, with the highest individual analyst target approaching $148 and the lowest around $91.

Source: Tiger Trade

8. $KLA-Tencor(KLAC)$ – KLA Corporation

Core Business: A global leader in semiconductor inspection and metrology equipment, KLA provides critical yield and defect detection systems for advanced wafer manufacturing. Its systems are widely applied across logic, memory, and advanced packaging processes.

2025 Year-End Financial Highlights:

• Demand for advanced process inspection continues to strengthen.

• High gross margins and stable cash flow characteristics remain prominent.

• Demonstrates irreplaceable positioning at key process nodes.

Investment Highlights & Drivers:

• KLA’s technological leadership and strong market share make its inspection equipment indispensable in advanced manufacturing. Future growth is driven by increasingly complex chip process nodes and faster production cycles.

2026 Analyst Target Price Expectations:

• Target prices generally range from $1,250 to $1,500, reflecting the market’s recognition of KLA’s ultra-high margins and strategic positioning.

Source: Tiger Trade

9. $Analog Devices(ADI)$ – Analog Devices, Inc.

Core Business: A leading supplier of high-performance analog and mixed-signal chips, serving industrial, automotive, and communication sectors.

2025 Year-End Financial Highlights:

• Full-year revenue approximately $11.0B, up around 17% YoY.

• Strong adjusted gross margins; operating cash flow roughly $4.8B, free cash flow about $4.3B (≈39% of revenue).

• Q4 2025 revenue $3.08B, EPS $2.26, both exceeding analyst expectations. Management forecasts Q1 2026 revenue of $3.1B ± $100M, maintaining healthy profitability.

2026 Analyst Target Price Expectations:

• Analyst coverage favors Buy/Strong Buy ratings.

• Average 12-month target price is roughly $280–$290 (range: $240–$320).

Source: Tiger Trade

10. $Brookfield Corp(BN)$ – Brookfield Corporation

Core Business: A global alternative asset management company, with a focus on infrastructure, energy, real estate, and private equity investments.

2025 Year-End Financial Highlights:

• Distributable earnings continue to grow.

• Assets under management (AUM) steadily expand.

• High proportion of long-term contracts and inflation-linked assets.

2026 Analyst Target Price Expectations:

• Based on analyst consensus, the 12-month average target price is approximately $68.6, with most analysts rating BN as Buy.

• Target price range spans roughly C$49–C$81, reflecting differing institutional views on growth potential.

• Analysts generally recognize BN’s long-term compounding model; target prices reflect a premium for stable cash flows.

Source: Tiger Trade

Call to Action

We invite you to explore these companies further and consider their potential impact on your investment portfolio or business strategy.

Join the conversation and share your insights on these market leaders. What do you think will be the next big trend driving their growth? Let us know in the comments below.

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