Breakfast News: On Races Ahead After Record Sales

Breakfast News: On Races Ahead After Record Sales

May 12, 2026

Source: Image created by Jester AI.

1. ONON Pops 5% as Premium Push Pays Off

**On Holding **(ONON +4.67%) rose over 5% ahead of the opening bell after results showed record net sales and profitability, driven by a 44.4% revenue growth in the APAC region versus the previous year, as well as lifting its full-year profit outlook.

• “Q1 was an outstanding start to the year and another strong proof point of our premium strategy in action”: Casper Coppetti, founder and co-CEO, emphasized the push to being a premium brand, with the Stock Advisor recommendation by Team Rule Breakers projecting an impressive 64.5% gross profit margin by year end.
• “The business is doing fine”: In late March, TMF chief investment officer Andy Cross explained, “even though they continue to put up some good numbers, they have some of the bigger headwinds from spending and tariffs and margins,” but flagged the business had been “a long-term performer.”

2. OpenAI Caps Microsoft Revenue Share

The Information reports Microsoft (MSFT 0.63%) and OpenAI have agreed to cap revenue-sharing payments at $38 billion as details emerge of the renegotiated contract from last month, allowing OpenAI to have a stronger pitch to take on new investors.

• Revenue-sharing will continue through to 2030: Even though the contract obligates payments for the coming years, the cap makes OpenAI more attractive when considering an IPO later this year, as it puts the company more in control of its finances.
• “It has worked out well because we took the risk”: Microsoft CEO Satya Nadella said he was proud of the early investment in the business, with the initial $13 billion stake estimated to be worth $92 billion.

3. Inference Shift Triggers CPU Boost

Chip processor makers including** Advanced Micro Devices** (AMD 0.67%) and Intel (INTC 0.21%) closed higher yesterday after GlobalFoundries (GFS +4.07%) announced the CPU market is entering a growth “super cycle.”

• CPUs becoming more key as AI workloads shift toward inference: The AI training phase used to have a ratio of 8:1 for GPUs to CPUs. However, as inference and agentic AI becomes more popular, this ratio has dropped to 4:1 and could fall further.
• AMD and Intel expected to be near-term winners: The current chip offerings from certain companies makes them best placed for the workload shift. AMD is beating the S&P 500 by 120% since the January 2024 SA rec from Team Rule Breakers. Qualcomm (QCOM +1.36%) was also noted as a potential long-term winner as it expands into data center CPUs.

4. Selected Stock Advisor Pre-Market Earnings

• JD.com (JD +7.19%) rose by 2.5% in pre-market trading as quarterly net revenue increased by 4.9% versus the same period last year, with CEO Sandy Xu saying “our user base and shopping frequency continued to expand robustly, with annual active customers hitting a new record.”
• Under Armour (UA +1.84%) releases earnings before the opening bell, with a focus on the North America turnaround and potential trade headwinds for the stock, recommended by both Team Rule Breakers and Team Hidden Gems
• Zebra Technologies (ZBRA +2.10%) surged almost 15% in early trade, reporting a 14.3% year-over-year revenue increase to $1.49 billion. The Team Rule Breakers rec also saw a significant boost in profitability, with non-GAAP diluted earnings per share climbing to $4.75 and adjusted EBITDA reaching $347 million.

5. Your Take

When a stock you own has been moving in the opposite direction of the S&P 500 for over a year – you’re down while the market’s up – what do you do? Hold, add, or sell? What goes through your mind when making that call?

Discuss with friends and family, or become a member to hear what your fellow Fools are saying!