Believe it or not, June is here, and with it the summer trading season. That means lower trading volumes, potential for volatility, and opportunities for savvy traders. The market rally is broadening, but remains centered on tech. The stocks with the highest potential for movement and catalysts in play are smaller-cap tech, though there are still some big moves coming in mega-, large-, and mid-cap stocks as well. The unifying theme is AI; the only question is where in the ecosystem to invest and what the company-specific catalysts may be.
Aeluma: On Track for Commercialization—Deals Are in the Works
Aeluma (NASDAQ: ALMU) is an emerging tech play that is critical to AI, as its photonic and compound semiconductor technologies are game-changers for data centers. The photonic aspect is crucial for connectivity and networking, enabling high-speed, ultra-wideband, low-latency data transmission. Likewise, the company's manufacturing process enables faster, more efficient compound semiconductor fabrication. The combination promises to unleash AI capacity and power, alleviating bottlenecks throughout the system.
A critical catalyst in June is the expectation of contracts. Aeluma is making small sales, but has yet to secure a major original equipment manufacturer contract. Talks are in progress and expected to yield results soon, if not in June, then in the upcoming month.
At the time, the company will likely provide an update on government contracts and projects, as well as on supply chain and capacity progress. Five analysts rate Aeluma as a Moderate Buy with a $25 price target. Technicals suggest more than 100% upside is possible, provided the expected bullish catalyst emerges.
AirJoule Technologies: Commercialization in Play
AirJoule (NASDAQ: AIRJ) is another emerging tech with implications well beyond AI. The company harvests water directly from ambient air using waste heat—a process that simultaneously dehumidifies and cools. For data centers, this creates a compelling dual benefit: it reduces cooling load while producing the pure water those cooling systems need on-site. The result is lower operating costs, greater energy efficiency, and longer hardware life.
Catalysts for AirJoule in June include updates on partnerships and initial deployments, as well as news on when its commercial-scale product will be available. As it stands, the full rollout is expected for late Q4 this year. Five analysts rate this stock as a Moderate Buy and see it advancing by approximately 90% at the consensus.
Amprius Technologies: Ramping Capacity and Accelerating Growth
Amprius Technologies' (NYSE: AMPX) June catalysts include updates on its capacity, ecosystem, and order backlog. The Q1 report revealed strength and set an expectation for acceleration in the current quarter. Analysts forecast a 90% revenue gain and expect growth to persist at a hyper pace for at least the next 10 quarters.
The Q1 strength was expected, leading to a sell-the-news event compounded by the exchange. AMPX recently issued 2.7 million shares but retired more than 7 million warrants, creating a near-term headwind and leverage for a subsequent rally. MarketBeat data reveal that institutions bought the dip, short interest is down from its peak, and analysts sentiment is firming, pointing to above $20. AMPX’s net earnings release is due in early August.
Zscaler: Irrational Sell-Off Opens Door to Opportunity
Zscaler’s (NASDAQ: ZS) May price plunge was alarming. However, the cause was increased spend, which is tied to demand and AI. Not only is AI driving the need for cybersecurity, but it is improving it, and Zscaler is doubling down. The company is a mission-critical component of the AI ecosystem, enabling easy-to-use, scalable, cloud-native security well-suited to AI. The Zero-trust architecture means only qualified agents can access enterprise resources. The takeaway for investors is that Zscaler's results were solid and the AI flywheel is spinning.
Evidence from Zscaler and other AI-focused companies shows that AI spending drives greater demand for AI. ZS’s price will recover, and the rebound may not take long to gain traction. Analysts are lowering targets, but this market has overreacted, falling well below the low end of those targets, with potential for 65% upside at the consensus. The primary catalyst will be news about the sales team transition: good news will strengthen the outlook and put the scale back into Zscaler’s stock price.
Everspin Technologies: Persistent Memory for a Growing Market
Everspin Technologies (NASDAQ: MRAM) is a critical player for AI, not for its impact on data centers, but rather for its impact on AI applications. The MRAM memory technology provides numerous benefits for niche markets, including consumer wearables, aerospace, and defense, all of which benefit from AI infrastructure and the internet of things (IoT). Advantages include the speed of RAM and the persistence of Flash, combined with radiation and temperature resistance and lower power consumption. While MRAM requires more power to write, it requires no power to persist, making it essential in some use cases.
What the market gets wrong about Everspin is thinking it's another HBM or data center play, when rather, it's a play on long-term AI applications and physical AI. While revenue has been stagnant for years and has been slow to improve, the AI upcycle has only just begun. The likely outcome is that MRAM technology becomes more widely used over time. Near-term catalysts include a rebuttal to a short report and updates on government contracts.
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