Good day –

A couple of years ago, we started playing with the massive amounts of data that MarketBeat takes in everyday trying to figure out if there was a way to identify short term trading wins.

By analyzing earnings data, news sentiment, analyst recommendations, insider transactions and dozens of other data points, we think we’ve found an algorithm that finds interesting short-term stock ideas.

We call that algorithm the IdeaEngine and its stock ideas are published on MarketBeat All Access every Monday morning. 

We make one IdeaEngine idea available free every Monday as an SMS alert. We’ll be releasing the next IdeaEngine alert on Monday morning, so make sure you are signed up before then.

Get MarketBeat’s Free Weekly IdeaEngine Stock Picks Here

William Bushee
MarketBeat

P.S. The IdeaEngine has had some good stock ideas recently, but it’s just an algorithm. It’s not always right and it should be only part of your research process. Remember that stock investing and trading involves risk and you should always consult with a competent financial professional before making investment decisions. Read our full terms of service here.

---

Exclusive Article from MarketBeat Media

Aeluma’s Market Is Laser-Focused on Fresh Highs—Here’s Why

Author: Thomas Hughes. Posted: 4/20/2026. 

Key Points

• Aeluma’s momentum builds as new government contracts help speed up the time to commercialization.
• Analysts and institutions underpin stock price action in 2026, suggesting new highs can be set.
• April news triggered short-covering, signaling a bottom for this market and limited downside risks.
• Special Report: Elon Musk’s $1 Quadrillion AI IPO

Aeluma’s (NASDAQ: ALMU) market is focused on fresh highs after accelerating its execution strategy and pathway to commercialization. A recent U.S. government contract worth $4 million provided non-dilutive funding to advance its heterogeneous integration platform — a term for one of the most advanced semiconductor packaging approaches available.

The company’s processes combine niche-specific components into a single device, including proprietary compound semiconductor technology, and it is poised to support AI applications.

You’re Being LIED To About The Iran War (Ad)

The mainstream explanation for the Iran airstrikes may not be the full story. Addison Wiggin, Founder of Grey Swan Investment Fraternity, says there’s a deeper motive behind the bombing campaign that most coverage is ignoring.

If you’re making investment decisions based on what you’re hearing in the news, Wiggin argues you could be working with an incomplete picture.Read Addison Wiggin’s full breakdown of the real Iran story

AI is a powerful engine today but is constrained by data bottlenecks across systems. Aeluma’s photonics and laser technologies can help relieve those constraints, as can quantum-related advances. Quantum computers are not poised to replace AI or data centers; instead, quantum dot lasers will enable high-speed optical data transmission that can vastly outperform today’s standards while using less energy. One major advantage of quantum lasers is their speed — fast enough for packet switching in the optical domain without repeated electrical conversions.

Aeluma News Triggers Short-Covering

Aeluma’s mid-April announcement produced a strong market response that was likely supported by short-covering. Short interest was rising ahead of the release: the late March figure was nearly 20% higher than the prior month, increasing in both share count and dollar value.

The likely result is that some short positions began to cover, which helped price action consolidate and reverse. A risk remains that short sellers will reposition at a higher level, given the company’s limited revenue and remaining commercialization hurdles.

The price action following the news was bullish, reflecting a mix of fundamentals and short-covering. Key technicals include firm support near $13 and indicators suggesting further upside. The long upper shadow points to resistance in the $18–$20 range that may cap near-term gains, while an early-April volume spike — trading volume reaching record levels, more than four times the previous high — indicates high-conviction buying and a high probability of short-sellers exiting positions.

The next visible catalyst is the fiscal Q3 2026 earnings report, expected in early May, where revenue is forecast to remain roughly flat at about $1.35 million. Investors will be watching for strategy updates, progress or delays on the path to full commercialization, and compliance with Department of Defense requirements.

Aeluma is not expected to meaningfully ramp revenue until late 2028, though a gradual acceleration is anticipated next year as manufacturing and other technologies begin generating income. Deals such as the recent U.S. government contract are improving the outlook, as analyst trends reflect. MarketBeat tracks only five analysts covering this stock, but coverage has improved over recent quarters. Sentiment is Moderate Buy with an 80% buy-side bias, and upside potential remains ample. The consensus price target has held near $25 since the company’s early-2025 IPO, implying more than 25% upside from mid-April support levels.

Insiders and Institutions Increase Aeluma Volatility in 2026

Insiders have sold ALMU stock in 2026, which is a near-term headwind but not by itself a major red flag. Insiders, including the CEO and a director, still own more than 20% of the company, and institutional buying has offset some of those sales.

Institutions also own more than 20% of the shares and have been accumulating since the IPO. The likely dynamic is continued insider selling to realize gains while institutions keep accumulating. The largest institutional holders include fund managers such as Vanguard and BlackRock, which each hold modest single-digit positions.

The biggest risk for ALMU investors is execution. With revenue and profits still distant, delays would pressure the stock, while positive milestones would drive gains. Other risks include customer concentration (currently driven largely by government research contracts) and dilution. The company will likely need additional capital to reach commercialization and may have to increase its share count over time. Share issuance activity in FY2026 boosted the share count by more than 50%, which has contributed to higher short interest.

Aeluma’s primary corporate partners are Tower Semiconductor (NASDAQ: TSEM) and Sumitomo Chemical (OTCMKTS: SOMMY). Tower is a foundry and fabrication specialist helping with production scale, while Sumitomo Chemical Advanced Technology supports materials and supply chain needs. These relationships position Aeluma for long-term success—the remaining question is how long it will take to reach that point.

---

This Month’s Bonus Article

Why Anthropic’s Custom Chip Plans Could Benefit Broadcom

Reported by Leo Miller. Article Published: 4/17/2026. 

Key Points

• Broadcom and Anthropic are partnering on a massive TPU deal
• Anthropic is also considering developing its own chips, providing an additional opportunity for Broadcom
• However, whether Anthropic will actually develop its own chips is far from confirmed
• Special Report: Elon Musk’s $1 Quadrillion AI IPO

Large language model developer Anthropic is one of the top names in the artificial intelligence (AI) race and is growing incredibly fast. From the end of 2025 to early April, Anthropic says its annual revenue run rate increased more than threefold, from $9 billion to over $30 billion.

To support that growth, the company is partnering with semiconductor giant Broadcom (NASDAQ: AVGO). Anthropic plans to access 3.5 gigawatts of Tensor Processing Unit (TPU)-based AI compute through Broadcom over the coming years — the same class of chips Broadcom has co-developed with Google parent Alphabet (NASDAQ: GOOGL).

You’re Being LIED To About The Iran War (Ad)

The mainstream explanation for the Iran airstrikes may not be the full story. Addison Wiggin, Founder of Grey Swan Investment Fraternity, says there’s a deeper motive behind the bombing campaign that most coverage is ignoring.

If you’re making investment decisions based on what you’re hearing in the news, Wiggin argues you could be working with an incomplete picture.Read Addison Wiggin’s full breakdown of the real Iran story

However, reports have emerged that Anthropic is exploring development of its “own” AI chips. For investors, it’s important to understand what that may actually mean — and why Anthropic pursuing in-house chips could, paradoxically, be another big win for Broadcom.

AI Chip Development: Why Anthropic’s Exploration Could Include Broadcom

As first reported by Reuters, Anthropic is “exploring the possibility of designing its own chip,” according to three unnamed sources. The report emphasizes these discussions are at an early stage: Anthropic has not yet assembled a dedicated team and could ultimately opt to buy chips from other suppliers rather than design its own.

If Anthropic does pursue a custom chip, it could still have meaningful implications for Broadcom. Hearing that Anthropic might build “its own” chips may initially worry investors who assume full independence from firms like Broadcom. But history and industry practice suggest a different outcome.

When companies say they plan to develop their own chips, they often mean they will design them in partnership with semiconductor specialists such as Broadcom. The TPU is commonly described as Google’s “own” chip, yet Google has partnered with Broadcom on TPU development for roughly a decade. Meta Platforms (NASDAQ: META) works with Broadcom on its Meta Training and Inference Accelerator, and Amazon.com (NASDAQ: AMZN) partners with Marvell Technology (NASDAQ: MRVL) on its Trainium chips.

Those relationships show a clear trend: even the largest, best-capitalized companies tap semiconductor experts to design bespoke hardware. Despite Anthropic’s rapid growth, it is unlikely to have resources exceeding those of the broader “Magnificent Seven.” Given that, Anthropic partnering with a semiconductor stalwart is a more probable path than a wholly independent effort. If Anthropic does partner with Broadcom on custom chips, the upside for Broadcom could be substantial.

Expanding Beyond TPUs? Why Broadcom Could Benefit

Anthropic currently purchases TPUs, but a joint effort to develop custom chips alongside Broadcom would be attractive to the chipmaker. Customized development requires more engineering and integration work, which typically commands higher margins than a standard procurement arrangement.

Margins might also improve if Google is not part of the partnership. If the TPU agreement includes revenue-sharing between Broadcom and Google, a direct Broadcom–Anthropic deal would remove that dynamic and allow more value to flow to Broadcom. The exact financial terms of the TPU arrangement are not public, however, so the potential benefit is difficult to quantify.

Co-developed chip programs are usually multi-year commitments. While Broadcom already has a multi-year TPU deal with Anthropic, a fully custom solution would likely deepen the relationship and lock in longer-term revenue from one of the fastest-growing AI companies — a clear advantage for Broadcom.

That said, Broadcom is not guaranteed to win any such work. Anthropic also has a strong relationship with Amazon: Amazon has invested $8 billion in Anthropic, and Anthropic uses Amazon’s Trainium chips. That opens the possibility that Marvell, Amazon’s custom-chip partner, could be selected to develop Anthropic’s chip.

Anthropic’s Potential Custom Chip: All Smoke, No Fire at This Point

It’s important to stress that Anthropic’s custom chip may never materialize. Still, if a custom design does move forward, Broadcom and Marvell — among other chip designers — stand to gain. Competition for any deal would extend beyond those two companies, since many firms can provide custom semiconductor expertise.

That said, Broadcom and Marvell currently have the strongest links to Anthropic. Broadcom’s ties are direct, through announced partnerships, while Marvell’s connection stems from Anthropic’s relationship with Amazon. Those existing relationships make both companies natural contenders should Anthropic decide to pursue custom silicon.

Thank you for subscribing to MarketBeat!

We empower investors to make better trading decisions by delivering up-to-the-minute financial information and best-in-class investment analysis.

This email message is a paid sponsorship sent on behalf of MarketBeat Alerts, a third-party advertiser of MarketBeat. Why did I get this email?. 

If you have questions or concerns about your newsletter, please don’t hesitate to email MarketBeat’s South Dakota based support team at contact@marketbeat.com.

If you would like to unsubscribe or change which emails you receive, you can manage your mailing preferences or unsubscribe from these emails.

© 2006-2026 MarketBeat Media, LLC. 
345 North Reid Place #620, Sioux Falls, South Dakota 57103. U.S.A..

Today’s Featured Link: There may still be room in these reports(Click to Opt-In)