Grid Dynamics and Turning Point Brands have been highlighted as Zacks Bull and Bear of the Day

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Grid Dynamics and Turning Point Brands have been highlighted as Zacks Bull and Bear of the Day Zacks Equity Research Fri, September 4, 2026 at 9:35 AM EDT 9 min read TPB SKHY NVDA For Immediate Release Chicago, IL – September 4, 2026 – Zacks Equity Research shares Grid Dynamics GDYN as the Bull of the Day and Turning Point Brands TPB as the Bear of the Day. In addition, Zacks Equity Research provides analysis on SK Hynix SKHY, NVIDIA NVDA and Micron Technology MU . Sometimes Wall Street gets so obsessed with the companies building the AI infrastructure that it forgets about the companies actually helping enterprises use the stuff. That brings us to today's Bull of the Day, Grid Dynamics . Zacks Rank #1 (Strong Buy) Grid Dynamics is an AI and digital transformation company working with large enterprises to modernize applications, move workloads to the cloud and, increasingly, put artificial intelligence into production. This isn't just another company throwing "AI" into the investor presentation and hoping you buy the stock. The numbers are starting to back up the story. Grid Dynamics delivered second-quarter revenue of $108.2 million, up 7% year over year and slightly above the high end of management's previous guidance. Even better, AI-related revenue reached a record 30.7% of total revenue and grew more than 50% year over year for the second consecutive quarter. That's the part that gets my attention. Enterprises spent the first couple years of the generative AI boom experimenting. Everybody had a pilot. Everybody had a chatbot. Everybody had a PowerPoint presentation about how AI was going to revolutionize their business. Now comes the hard part, actually making it work. Grid Dynamics sits right in the middle of that transition. Management says customers are moving AI workloads from pilots into production, with its GAIN platforms gaining broader enterprise adoption. The company is targeting areas including agentic commerce, AI-driven software development and physical AI applications involving robotics. That puts GDYN in an interesting spot. It doesn't have to win the large-language-model arms race. It doesn't have to build a $50 billion data center. It gets paid helping big companies figure out how to integrate all this technology into their existing businesses. Forecasts are conservative, which we think could make this an under-the-radar pick this year. Current year revenue growth forecasts are only at 6.27% to $437.65 million. Next year's number is forecast to tick up another 7.6% to $470.91 million. Translated over to the EPS side of things, current year Zacks Consensus Estimate calls for 5% growth to 42 cents, with next year swelling another 14% to 48 cents. Sometimes a company can be growing sales, have an interesting product portfolio, and still end up on the wrong side of the Zacks Rank. That's because our rank is based on what analysts are doing with their estimates compared to other stocks out there in the universe. If recent estimate revisions have been to the downside, it raises a red flag for us. Sometimes, it can be a harbinger of what's to come. Other times, it's just a cautionary tale that bulls should actually be made aware of. That's exactly what we've got with today's Bear of the Day, Turning Point Brands . Turning Point Brands is the company behind brands including Zig-Zag and Stoker's, along with a growing presence in the modern oral nicotine category. Revenue growth has actually been pretty impressive. The problem isn't necessarily what's happening on the top line. The problem is what's happening to earnings estimates. And around here, you know that's what pays the bills. Turning Point Brands currently carries a Zacks Rank #5 (Strong Sell), and it doesn't take much digging to figure out why. Over the last 60 days, the Zacks Consensus Estimate for 2026 earnings has dropped from $1.97 per share to $1.75 per share. The 2027 estimate has also been cut, falling from $2.75 to $2.51 per share. That's the opposite of what you want to see. Remember, the Zacks Rank isn't sitting around trying to decide whether this is a great company five years from now. It's looking for changes in analyst earnings expectations that can influence shares over the next several months. Still, even with next year's Zacks Consensus Estimate coming down to $2.51, it represents growth of 43% year-over-year. If you smooth that out along with this year's 55% contraction it is less attractive but it's still better than the alternative. The Tobacco industry is in the Bottom 12% of our Zacks Industry Rank. South Korean memory-chip giant SK Hynix made a highly impressive Wall Street debut in July. It is South Korea's second-largest company and one of the world's largest semiconductor vendors. SK Hynix is experiencing exploding demand from AI data centers. The company continues to gain from soaring demand for high-bandwidth memory and advanced storage chips, both of which are essential components of AI infrastructure. The rapid expansion of AI data centers has created a global shortage of memory products, boosting demand across sectors ranging from cloud computing to consumer electronics. As a major supplier of AI memory chips to NVIDIA , SK Hynix is well positioned to capitalize on the AI boom. Building on its relationship with NVIDIA, the company is expanding manufacturing capacity to address increasing demand generated by the continuing global AI investment cycle. Earlier this year, SK Hynix also entered into a long-term AI memory partnership with NVIDIA. As a follow-up measure to solidify their previous long-term technical partnership, this agreement allows NVIDIA to secure a stable supply of next-generation AI memory, while enabling SK Hynix to expand the foundation for growth. SKHY holds a strong position in the high-bandwidth memory ("HBM") market. This leaves it favorably placed as agentic AI drives greater memory requirements. Its early leadership in HBM provides a meaningful competitive advantage. Meanwhile, the rapid expansion of AI data centers has created a worldwide memory chip shortage, lifting demand across industries, from cloud computing to consumer electronics. The company could also gain from supportive policies in South Korea. Last month, SK Hynix held a groundbreaking ceremony for its Indiana fab, thereby taking the first step toward securing a local AI memory production base in the United States. The Indiana fab is SK Hynix's first AI memory production hub in the United States. Built on a site of approximately 133 acres, the fab will house an HBM production line and the Advanced Packaging R&D Testbed in West Lafayette, IN. SK Hynix plans to supply next-generation HBM that has undergone on-site packaging and testing to its U.S. customers starting in the second half of 2029. Micron Technology is also a major player in the HBM market. The company is benefiting from one of the biggest changes in the semiconductor industry — the rapid AI growth. AI servers need far more memory and bandwidth than traditional systems, driving demand for HBM, advanced DRAM and data center solid-state drives. Micron's latest HBM solutions offer higher capacity, stronger performance and better power efficiency, making them well suited for AI accelerators. Demand has been particularly strong for HBM products. Micron has already sold out its HBM production for calendar year 2026, while a significant portion of the 2027 capacity has been reserved through long-term customer agreements. Shares of SKHY have gained in the high single digits (% wise) ever since its U.S. debut. Consequently, SKHY's shares outperformed the Zacks Electronics-Semiconductors industry over the same time frame. See how the Zacks Consensus Estimate for the company's earnings per share has been revised over the past 90 days. The Wall Street average price target for SKHY calls for an upside of roughly 54% from current levels. SKHY currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Free: Instant Access to Zacks' Market-Crushing Strategies Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached. Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Turning Point Brands, Inc. (TPB) : Free Stock Analysis Report Grid Dynamics Holdings, Inc. (GDYN) : Free Stock Analysis Report SK Hynix, Inc. - Sponsored ADR (SKHY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com).

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