10 Hot Stocks to Watch — Wednesday, August 5, 2026

Palantir rocketed 29% today after crushing Q2 earnings and raising guidance for the tenth consecutive quarter, crushing short-seller narratives that AI adoption would cannibalize legacy software. The options market is screaming bullish: a 4.14 call-to-put ratio with 75,000+ contracts stacked at the $165 and $170 strikes through August 2026 signals conviction above current levels. Watch the $165 level as the next pivot; sustained volume there could trigger a run toward $170.

Arm Holdings rocketed 17% Tuesday after revealing 100%+ year-over-year data center royalty growth, reigniting appetite for the semiconductor play following July's 34% selloff. Options traders are betting big on further upside, with call-to-put ratio of 37.71 and heavy volume in out-of-the-money contracts spanning $300–$400 strikes through August 2026. The $340 call (Aug 7) saw 6,226 contracts trade with zero open interest, signaling fresh bullish positioning ahead of potential earnings revisions.

Intel rallied sharply today, climbing 10.84% to $100.86 as investors digested Q2 guidance updates and fresh AI-focused partnerships announced at its Future of Memory conference in Santa Clara. The options market is flashing aggressive bullish conviction: call-to-put ratio sits at 8.04, with heavy demand concentrated in $110 calls expiring August 7th (51,241 contracts) and in-the-money contracts showing sustained volume. Improving EMIB yields and a rumored Google TPU partnership add technical credibility to the move. Watch $110 as the near-term resistance level.

Super Micro Computer jumped 10.65% Tuesday alongside peers Dell and HPE as AI server demand rekindled risk appetite, though analysts question sustainability without a clean catalyst. Options traders are positioned aggressively long, with call volume hitting 8.34x puts—particularly heavy betting on $30–$35 strikes through August 2026. The stock remains halved year-to-date and faces near-term earnings headwinds, making the rally feel more momentum-driven than fundamental. Watch the $35 level; a close above it could signal conviction; a reversal below $30 would expose the options crowd to quick losses.

SoundHound AI tumbled 8.65% to $5.70 today, extending losses from its 52-week high of $22.17, even as the company announced expansion of Emily, its AI agent for MUSC Health. Options traders are betting on recovery, with a 3.37 call-to-put ratio and heavy positioning in $6.50–$8.00 calls expiring August 2026—suggesting conviction around $7.93 analyst targets. Watch the $5.83 support level; a break below risks triggering further institutional outflows.

Lam Research jumped 7.85% today, extending momentum after analysts argued the stock's recent 16% monthly pullback was overdone given record revenues and robust AI equipment demand. Options traders are heavily positioning for further upside, with call volume reaching 2,081 contracts at the $400 strike expiring August 28—well above current levels. A $1.18T cloud infrastructure forecast from BofA keeps chip-equipment makers like LRCX in focus as data-center buildouts accelerate. Watch the $350–$360 resistance band this week; a close above $360 could trigger renewed call buying.

AST SpaceMobile surged 7.7% to $63.52 as investors positioned ahead of the BlueBird 11–13 satellite launch and August earnings, with the options market flashing aggressive bullish conviction. Heavy call buying—dominated by $75, $80, and $82 August 2026 contracts—signals traders are betting on execution catalysts, though a Scotiabank downgrade to Sector Perform with a $50.8 target injects near-term caution. Watch $70 as technical support; a break above $75 targets fresh positioning into the launch window.

Caterpillar jumped 5.6% to $876.54 following a historic Q2 with 73% adjusted EPS growth and $20.5B in revenue, capitalizing on surging data center infrastructure demand across all business segments. Options markets show mixed conviction: heavy call volume at $900–$950 strikes suggests upside optimism, but a substantial $670 put position (1,983 contracts) signals hedging ahead of the August 7 expiry, indicating traders are pricing in potential near-term pullback risk. At 30x forward earnings and near 52-week highs, CAT faces valuation headwinds despite the cyclical tailwind from AI capex.

Robinhood jumped 3.51% to $93.51 after securing regulatory approval to offer cryptocurrency services in the United Kingdom and posting robust second-quarter financials. The move caps a volatile month for the high-beta fintech play, which plunged 14% in July amid broader market weakness. Options traders are heavily long, with a 4.30 call-to-put ratio and 11,517 calls traded on the $100 strike expiring August 7th, signaling conviction above the $95 level.

Boeing rallied 3.46% to $218.82 on Monday's long-delayed 737 MAX 7 certification, seven years past its original timeline. The approval frees engineering capacity for higher-margin defense programs while airlines remain desperate for capacity, supporting near-term revenue visibility. Options markets show mixed conviction: heavy call flow at $240 and $250 (2026 expiries) suggests conviction above current levels, but substantial put positioning at $195 indicates hedges against downside risk. Watch the $225 technical resistance this week.