Premarket movers: Intel jumps on JPMorgan upgrade; Datadog rallies

Investing.com - U.S. stock futures rose on Monday as artificial intelligence-linked stocks attempted to recover from last week's sharp selloff, while a busy earnings calendar offered investors a fresh test of market sentiment.

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By 05:46 ET, Dow futures were mostly unchanged, S&P 500 futures had climbed 39 points, or 0.5%, and Nasdaq 100 futures had gained 318 points, or 1.1%, pointing to a stronger start for technology stocks after recent losses.

Datadog rose 3.6% in premarket trading after Bernstein SocGen Group upgraded the cloud monitoring and AI observability company to Outperform from Market Perform and raised its price target to $350 from $237, an increase of nearly 48%.

The upgrade marked a shift in the broker's view after it downgraded the stock last quarter following the downsizing of a roughly $100 million annual recurring revenue contract with its largest "Born in AI" customer, believed to be OpenAI, alongside signs of weakness among traditional customers, which account for around 85% of revenue.

The analyst had also expected growth among "Born in AI" customers to slow to around 50% to 60% in 2027, from 80% to 90% this year. The latest upgrade suggests a more positive assessment of the company's growth prospects despite those earlier concerns.

Intel gained nearly 4% in premarket trading after JPMorgan upgraded the chipmaker to Neutral from Underweight late Friday, citing a more balanced risk-reward profile as the stock approached the firm's $85 price target following a roughly 36% decline from its June peak.

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Analyst Harlan Sur said Intel's turnaround would take years but noted that management had made a solid start and that his confidence in the recovery was increasing. He also pointed to continued support from AI-related demand as a potential tailwind for the business.

Red Cat Holdings climbed 6.6% after announcing a voluntary public all-cash tender offer to acquire all outstanding shares of Austrian engine manufacturer Steyr Motors AG for €39 per share through its wholly owned Vienna-based subsidiary, SMOT Acquisition GmbH.

The offer represents a 28.9% premium to Steyr Motors' October 16 closing price and a 27.3% premium to its 30-day volume-weighted average price. The transaction values the deal at approximately €204.8 million, or around $230 million.

The acquisition would support Red Cat's Blue Ops uncrewed surface vessel division by adding Steyr Motors' expertise in high-performance marine propulsion systems used in mission-critical military and civilian applications.

Nebius Group rose 3.6% in premarket trading as the AI infrastructure company attempted to recover from a sharp selloff that had erased roughly 21% of its market value over the previous week. The stock had closed at $165.47 on October 16 after falling nearly 12% in that session amid broader weakness in AI infrastructure shares.

Sentiment improved after Truist analysts reiterated Buy ratings on both Nebius and CoreWeave, assigning Nebius a $355 price target. The endorsement offered support to the stock as investors reassessed valuations and financing risks across the AI infrastructure sector.

Silgan Holdings advanced 5.5% after announcing plans to acquire Trivium Packaging in a $3.4 billion transaction alongside American Industrial Partners, creating a combined metal packaging business.

The deal will bring together Silgan's Metal Containers segment and its Food and Beverage Flat Cap Closures businesses with Trivium to form Silgan Metal Containers and Closures. The all-cash transaction values Trivium at an enterprise value of approximately $3.4 billion, equivalent to 7.1 times its last-twelve-month adjusted EBITDA, or 4.8 times after accounting for expected synergies of $225 million.

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S&P, Nasdaq futures climb as AI stocks rebound after selloff