Another Setup Is Taking Shape Before Earnings Season Peaks

Author

Noah Zelvis
July 25, 2025

A cloud titan keeps climbing ahead of earnings, a mid-cap tech name looks deeply undervalued, and two turnaround stories may be ready to break out as investors hunt for overlooked upside.

Here’s what traders are watching today.

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Enterprise Hardware

Intel Cancels Global Chip Projects as It Scraps Fragmented Factory Strategy 

Intel (NASDAQ: INTC) is discontinuing multiple international chip projects as part of a comprehensive operational overhaul.

After years of overbuilt capacity and stalled progress, the company has canceled its planned manufacturing facilities in Germany and Poland and will further delay its $28 billion Ohio chip plant.

These moves mark a shift away from speculative expansion and toward a leaner, milestone-driven model.

Instead of scattering test and assembly operations across dozens of locations, Intel is now consolidating into high-performing hubs.

Test functions in Costa Rica are being relocated to Vietnam and Malaysia, and manufacturing capacity will only expand in lockstep with confirmed volume demand.

The company also announced a 15% reduction in headcount and the elimination of half its management layers, reflecting a deeper push to simplify its structure and reduce internal bloat.

For enterprise buyers and global cloud providers, this signals a more grounded Intel that is shedding years of inefficiency.

By focusing on scalable, centralized infrastructure, the company may become a more reliable partner in high-volume chip contracts, especially as hyperscalers demand consistent timelines and tighter cost controls.

With fewer distractions and a more accountable org chart, Intel is realigning around execution, not ambition.

The company may still face near-term pressure, but its future looks more defensible, grounded in results rather than ribbon-cuttings.

Edtech

Kindle Just Got Brighter: Amazon Debuts $249 Color E-Reader With Kids Edition 

Amazon (NASDAQ: AMZN) is expanding access to color screen reading by introducing a more affordable version of its Kindle Colorsoft.

Priced at $249.99, the new 16GB model reduces the original Signature Edition's price by $30, removing a few premium features, including wireless charging and auto-adjusting brightness.

A Kids version also joins the lineup, aimed at younger readers with a custom cover, two-year guarantee, and built-in learning tools.

For tech buyers, the shift is less about price and more about where Amazon sees digital reading heading.

The Colorsoft line offers high-contrast visuals designed for comics, graphic novels, and educational content areas where black-and-white e-ink devices fall short.

By lowering the entry point, Amazon is betting that broader color adoption could change how families engage with books on screen.

Amazon's ecosystem strategy signals a continued effort to defend its edge in the e-reader category while seeding future demand for its subscription services.

Both versions of the new Kindle come bundled with access to Kindle Unlimited or Amazon Kids+, encouraging users to delve deeper into Amazon's content ecosystem.

The device is a clear step toward broadening Kindle's role in education, entertainment, and color-first digital publishing.

With kids, commuters, and comic fans now in range, Amazon is slowly reinventing what an e-reader can be.

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Cloud Migration

Microsoft’s Legacy SharePoint Servers Are Under Siege From Hackers

Microsoft (NASDAQ: MSFT) is facing a security reckoning as hackers target older, on-premise versions of SharePoint still in use by hundreds of organizations worldwide.

A flawed patch for a known vulnerability left even patched systems vulnerable, leading to breaches across various sectors, including a U.S. agency responsible for nuclear oversight.

The issue centers on outdated SharePoint servers, particularly versions 2013 and earlier, which are no longer fully supported unless customers pay for a special subscription tier.

Microsoft had positioned SharePoint as a secure upgrade from traditional file-sharing tools.

Still, the transition to its cloud-based Microsoft 365 suite has been slow for some organizations, especially those avoiding recurring fees or custom reconfigurations.

For enterprise IT leaders, the takeaway is clear: clinging to legacy SharePoint creates compounding risk.

Even supported versions like SharePoint 2016 and 2019 face a ticking clock, with end-of-support hitting in mid-2026.

Microsoft is urging administrators to restrict public-facing access and apply new emergency patches. However, in the long term, the company is using incidents like these to accelerate cloud migration.

Those managing hybrid IT environments should take note of this. Microsoft’s ability to secure legacy infrastructure is limited, especially when older systems remain exposed to the open internet.

This is not just a Microsoft issue; it’s a challenge for every vendor managing a vast installed base. However, with SharePoint so tightly tied to Microsoft’s identity stack, the exposure risk is significantly increased.

IT teams still running on-prem SharePoint need to reevaluate not just patching cycles but the broader justification for delaying modernization.

Recent Tech Movers

GoDaddy (NYSE: GDDY) has been sliding ahead of earnings, down more than 16 percent YTD and flat after hours at $166.29. But expectations are heating up.

Analysts are forecasting $1.34 in EPS for Q2, a 21.8 percent jump from last year.

The broader 2025 outlook has also improved, with full-year EPS projected to rise 17 percent and 2026 tracking for nearly 28 percent growth.

This is one of those setups that could quickly shift sentiment.

If GoDaddy delivers even a modest beat and nudges guidance higher, the stock could rebound sharply, especially given the 28 percent upside built into the average analyst price target.

Watch for commentary on the momentum of Applications and Commerce. That’s where investors want to see sticky growth.

Nice Ltd. (NASDAQ: NICE) is another overlooked name making the watchlist.

While shares have drifted 4.7 percent lower YTD, the mid-cap SaaS firm is quietly compounding with strong margins and a solid balance sheet.

NICE specializes in automation software, fraud prevention, and cloud customer engagement.

It’s seen consistent revenue growth and rising net margins, now at 16.2 percent, even as interest rates and policy risks weigh on mid-cap tech.

The value story kicks in now.

NICE’s market cap is just over $10 billion, but the company continues to expand profitably across various sectors, including financial crime compliance.

Hedge fund sentiment has ticked higher, and JP Morgan research shows mid-caps with NICE’s profile have outperformed on an EPS growth basis over the past decade.

Add in a 38 percent upside potential, and this is one to watch heading into the back half of 2025.

Adobe (NASDAQ: ADBE) remains stuck in a deep drawdown, now trading 38 percent below its 52-week high despite delivering solid Q2 results.

Revenue growth has cooled, and the market is still awaiting signs that Adobe’s AI tools can translate into real monetization.

That’s the near-term headwind. But the long-term story might be stronger than it looks.

Adobe’s AI-first tools, including Firefly, Acrobat AI, and GenStudio, are already tracking ahead of its $250 million ARR goal for 2025.

The company has just guided fiscal 2025 EPS higher (now $20.70), and revenue estimates have increased to as much as $23.6 billion.

The question is whether Adobe can regain narrative control. If it proves that AI traction is leading to subscriber and margin expansion, the post-earnings discount may not last.

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Don’t Overlook This Tech Stock

Microsoft (NASDAQ: MSFT) is defying gravity again. The stock has just hit an all-time high of $514.64, and now analysts are rushing to raise their targets.

TD Cowen just bumped its price target to $580. Citi followed, moving it to $613. Both firms see the same thing, rising Azure growth, easing cloud constraints, and a front-row seat to the AI cycle.

Earnings next week could be the moment that validates all of this.

The Street is expecting a strong quarter, but internal checks from multiple firms suggest Azure and Copilot performance are running ahead of consensus.

Citi’s analysts believe Q4 and Q1 numbers will exceed expectations, driven by broad-based enterprise demand and embedded AI across Microsoft’s product ecosystem.

What makes this run different is the pace of execution.

Microsoft is one of only two Magnificent Seven stocks with upward-trending earnings revisions, and its earnings are projected to grow at a 14.7 percent annual rate over the next five years.

That’s elite-level compounding for a company already approaching a $4 trillion market capitalization.

The stock may appear expensive at 39 times earnings, but institutions continue to accumulate, and the setup heading into earnings creates a rare blend of momentum and quality.

If Q4 results show the kind of margin expansion and Azure momentum that analysts are modeling, Microsoft could clear $540 quickly and start the march toward $600.

Everything Else

That's our coverage for today; thanks for reading! Reply to this email with feedback or any tech stocks you want me to check out.

Best Regards,
—Noah Zelvis
Tech Stock Insider