S&P 500 Breakouts: Stocks Near 52-Week Highs

The benchmark US index hit a new record high on Thursday as markets moved away from Iran and turned their focus towards growth after a positive readout from the Trump-Xi meeting.

Ten S&P 500 Stocks by Proximity to 52-Week High Daily Gain

1. Ford (F), +6.7%
2. Nvidia (NVDA) +4.4%
3. Cisco (CSCO) +13%
4. Hewlett Packard (HPE) +6.4%
5. Broadcom (AVGO) +5.5%
6. Applied Materials (AMAT) +1%
7. Enbridge (ENB) +1.9%
8. ON Semiconductor (ON) +2.3%
9. Palo Alto Networks (PANW) +2.6%
10. Starbucks (SBUX) 0.4%

Trump-Xi Power New S&P 500 Record

After taking a cautious response to the first part of US President Donald Trump's trip to visit China's President Xi Jinping this week, markets powered higher on Thursday, with the S&P 500 crossing over 7,500 for a new record. While the geopolitical aspect dominated headlines as investors hoped that the détente would ease trade, the big gainers were concentrated in the tech sector, with Cisco earnings boosting investor optimism about continued AI demand. This was emphasised by AI chipmaker Cerebra's IPO, which surged 68% in its first day of trading on Thursday. However, some analysts remain concerned about the market's lack of breadth, as high-flying tech stocks have led the way higher. Brokers expect tech to be the force driving stocks higher this year, with Goldman Sachs pointing to generally even volatility levels amid multiple record highs as a sign that stocks have further gains to come.

A quick look at stocks with potential to break out as they hover around their 52-week highs shows a preponderance of tech-related names, with Nvidia the most prominent. However, there is a growing base of other firms with growth potential, and if the market broadens out, they could catch the updraft. Some analysts warn that the lack of breadth could signal the market might tip over, while bullish traders suggest it implies more upside for non-tech stocks. Here are some names that have had notable milestones lately:

Ford: New Meme Stock?

The carmaker has seen its stock price surge in the last couple of days, but the focus is not on its main product. There has been a lot of buzz that it could become a major player in the energy space after announcing Ford Energy earlier in the week. After pivoting away from EVs due to meagre sales, the energy transition, including storage mechanisms, is a hot topic and could invite further investor enthusiasm as data centres stretch grid capacity.

Starbucks Margins Boost Stock

The coffee producers' gains this week are just the culmination of a trend that has left the stock up over 26% since the start of the year amid its ongoing strategy shift. The company might offer a solid alternative amid the volatility and uncertainty around the tech sector. TD Cowen recently raised its price target, arguing that the turnaround has plenty of runway. The revitalised management's focus on improving margins has paid off so far, and the company upgraded its profit forecasts for the current fiscal year. Cowen argues that it could see margin improvements into 2028.

AI Supports Applied Materials Earnings

Along with most other AI infrastructure companies that reported earnings this quarter, Applied Materials said it saw strong demand continuing when it updated investors on Thursday. The company said it expected its semiconductor equipment businesses to grow 30% this year after its fiscal Q2 earnings beat on both the top and bottom lines. Executives touted its plans to increase production and rationalise inventory to meet solid demand.