Core Insights - The AI market is experiencing rapid growth, driven by the popularity of generative AI platforms like ChatGPT, leading to increased investments in AI infrastructure by companies [1][2] - Nvidia, Equinix, and Digital Realty are positioned to benefit significantly from this AI boom, with Nvidia being the leading AI chipmaker and the data center REITs providing essential infrastructure [4][11] Nvidia - Nvidia's discrete GPUs are optimized for parallel processing, making them more suitable for AI applications compared to traditional CPUs [5] - The company has shifted its revenue focus from gaming GPUs to high-end data center GPUs, which now constitute the majority of its revenue [5] - Nvidia holds over 90% of the discrete GPU market, benefiting from a first-mover advantage and a proprietary programming platform (CUDA) that locks in customers [8] - Analysts project Nvidia's revenue and earnings per share (EPS) to grow at a CAGR of 47% and 45% respectively from fiscal 2025 to fiscal 2028 [9] Data Center REITs - Equinix and Digital Realty are two of the largest data center REITs, with Equinix operating over 270 data centers and Digital Realty managing more than 300 [11] - Both companies are required to distribute at least 90% of their taxable income as dividends, making them attractive for income-oriented investors [10] - Equinix focuses on smaller units to serve a wider range of industries, while Digital Realty typically leases larger spaces to major enterprises [13] - Both companies provide interconnection services, with Equinix offering denser connections compared to Digital Realty [14] - Despite challenges in 2022 and 2023 due to rising interest rates, both stocks are expected to become compelling investments as interest rates decline and the AI market expands [16] - Equinix is valued at 21 times its projected adjusted funds from operations (AFFO) per share for 2025, with a forward yield of 2.4%, while Digital Realty trades at the same multiple with a forward yield of 3.1% [17]

Core Viewpoint - Ferrari's stock is currently at a lower price point than it has been in many years, presenting a potential buying opportunity for investors [1] Group 1: Stock Performance - The stock has experienced a double-digit sell-off, indicating a significant decline in its market value [1] - The stock prices referenced were from the afternoon of January 22, 2026, highlighting the timing of the analysis [1] Group 2: Investment Recommendation - Contributors from Motley Fool advocate for Ferrari as a strong buy, suggesting confidence in the company's future performance despite recent stock price declines [1]

Group 1: Stock Performance in 2025 - The market saw strong gains in 2025, with seven out of ten recommended stocks outperforming the S&P 500, and six of these stocks increasing by over 25% [1][2] - The top-performing stocks included Taiwan Semiconductor Manufacturing (TSMC), ASML, Meta Platforms, Alphabet, Amazon, CrowdStrike, dLocal, PayPal, MercadoLibre, and Nvidia [2][3] Group 2: Future Outlook for Selected Stocks - Nvidia, TSMC, and dLocal are expected to repeat their 2025 performance and achieve at least a 25% increase in 2026 due to their roles in the AI sector [5][6] - Nvidia specializes in GPUs, which are essential for generative AI workloads, while TSMC manufactures the logic chips for these devices, both benefiting from significant AI spending [6] Group 3: Valuation and Investment Considerations - CrowdStrike, ASML, and Alphabet are still considered good investments, but they may not replicate the 25% or greater rise seen in 2025 due to their current valuations [9][11] - ASML and Alphabet have forward earnings multiples of 43 and 29, respectively, which may limit further gains [9] - CrowdStrike is valued at 25 times sales, which is typical for a software company, but high valuations could pose challenges in 2026 [11]

Core Insights - Endeavour Silver is a Canadian-based precious metals producer with operations in Mexico and Chile, focusing on silver and gold mining [6][9] - Azarias Capital Management sold 536,928 shares of Endeavour Silver, valued at approximately $4.55 million, reducing its stake to 2.59% of its 13F reportable assets under management (AUM) [2][3] - The company's shares have increased by 281% over the past year, significantly outperforming the S&P 500's 14% gain during the same period [3][7] Company Overview - As of January 22, Endeavour Silver's stock price was $13.60, with a market capitalization of $4.00 billion [4] - The company reported a trailing twelve months (TTM) revenue of $337.14 million and a net income loss of $94.29 million [4] Future Outlook - Endeavour Silver anticipates a significant increase in production as it ramps up operations at its Terronera mine and integrates Kolpa, projecting silver equivalent output of 14.6 to 15.6 million ounces in 2026 [10] - The company expects consolidated cash costs to be between $12 to $13 per ounce and all-in sustaining costs between $27 to $28 per ounce, positioning itself for growth in a supportive silver price environment [10]

Core Viewpoint - The iShares Core MSCI EAFE ETF is a low-cost investment option that focuses on international stocks, providing diversification and potential growth opportunities outside the U.S. market [1][2]. Investment Focus - The ETF invests in companies based in developed countries in Europe, Asia, and Australia, specifically excluding the U.S. and Canada, making it suitable for investors looking to globalize their portfolios [4]. - Japanese stocks constitute 25% of the fund's holdings, followed by the United Kingdom at 14%, with no Chinese-based companies included, which may appeal to investors concerned about tariff risks [5]. Performance Metrics - The iShares ETF outperformed the S&P 500 last year, achieving gains of over 27% compared to the S&P 500's 16% increase, although it has underperformed over the past five years with returns of 31% versus 83% for the S&P 500 [6]. - As of January 19, the ETF was up around 4%, outperforming the S&P 500's gains of just over 1% [10]. Portfolio Composition - The ETF's portfolio includes top growth stocks such as ASML Holding, AstraZeneca, and SAP, with financial, industrial, and healthcare sectors making up more than half of the portfolio [7]. - The largest holding, ASML, represents only 2% of the overall portfolio, providing a more diversified investment compared to ETFs that track the S&P 500 [8]. Financial Aspects - The ETF offers a high dividend yield of 3.6%, significantly higher than the S&P 500's yield of 1.1%, and has a low expense ratio of 0.07%, ensuring minimal impact from fees on overall returns [9]. - The fund's current price is $92.81, with a 52-week range of $66.95 to $93.03, indicating strong performance potential [9]. Future Outlook - The iShares Core MSCI EAFE ETF is positioned to continue its strong performance into 2026, appealing to investors looking to reduce exposure to U.S. stocks and seek growth in international markets [10][11].

Core Viewpoint - Applied Digital is experiencing significant growth and has strong long-term prospects, making it an attractive option for growth investors [1] Company Overview - Applied Digital has seen its stock price increase nearly 300% over the past year, although it has experienced volatility recently [1][2] - The company operates in the data center industry, which is rapidly growing due to the increasing demand for artificial intelligence (AI) workloads [5] Financial Performance - In its fiscal second quarter, Applied Digital reported a net loss of $19 million, which is an improvement compared to the previous year [2] - The company has a market capitalization of $9.7 billion and is currently trading at $34.74 [6] Growth Potential - The demand for AI-specific workloads in data centers is projected to increase by 3.5 times from 2025 to 2030, indicating robust future demand for Applied Digital's services [5][7] - Applied Digital has already leased out 600 megawatts (MW) of data center capacity and anticipates potential lease revenue of $16 billion over the next 15 years [8][9] Construction and Capacity Expansion - The company has invested over $1 billion in its first 100 MW data center and plans to spend more than $6 billion on the construction of the 600 MW capacity [9][10] - Applied Digital aims to increase its overall data center capacity to 5 gigawatts (GW) in the next five years and has secured land or agreements for 4.3 GW of capacity [11] Market Dynamics - The stock is currently trading at a high valuation of 33 times sales, but this is justified by its growth trajectory [12] - According to Goldman Sachs, data center demand is expected to exceed supply by 10 GW on average over the next three years, positioning Applied Digital favorably for future contracts [14] Revenue Generation - The company expects to generate $25 million in lease revenue per MW from the 600 MW of capacity already leased, while construction costs range from $11 million to $13 million per MW [15] - Applied Digital's business model allows it to benefit from both the construction and operation of data centers, enhancing its revenue potential [7][10]

Company Overview - FirstService is a leading provider of property management and essential property services across North America, managing a diverse portfolio of residential and commercial assets [6] - The company operates through two segments: FirstService Residential, which focuses on recurring property management contracts and ancillary services, and FirstService Brands, which includes franchise and company-owned service locations [8] - As of January 20, the market capitalization of FirstService is $7.36 billion, with a revenue of $5.48 billion and a net income of $138.55 million for the trailing twelve months [4] Recent Transactions - On January 20, Jacobson & Schmitt Advisors disclosed the purchase of 49,829 additional shares of FirstService, increasing its total position to 144,994 shares, valued at approximately $8.11 million [2] - This transaction reflects an increase in the fund's position value in FirstService by $4.42 million, influenced by trading activity and share price changes [2] Financial Performance - The latest quarterly results indicate a 4% year-over-year revenue increase to $1.45 billion, with adjusted EBITDA rising to $164.8 million, up 3% [10] - Adjusted EPS for the quarter was reported at $1.76, reflecting an 8% increase, driven by steady execution despite challenges [10] - The Residential division showed strong performance with an 8% revenue growth and margin expansion due to new contract wins and labor efficiency gains [10] Investment Appeal - The increase in Jacobson & Schmitt's stake in FirstService highlights the company's stability and recurring, needs-based demand, which is appealing to long-term investors [9] - Despite shares lagging over the past year, the fundamentals of the company remain solid, with reduced debt levels and strong cash flow [11]

Core Viewpoint - Alphabet is well-positioned for 2026, but this does not guarantee solid returns for investors as expectations have reset higher following a strong performance in 2025 [1][2] Group 1: AI and User Experience - AI has been successfully integrated into Alphabet's services, enhancing user experience, but the challenge lies in converting this engagement into revenue [4] - Generative AI changes user interactions, leading to faster answers and reduced clicks, which may decrease traditional ad inventory and alter commercial intent [5] - There is a potential scenario where user engagement remains stable, but revenue per user stagnates, leading to slower economic expansion than investors expect [6][7] Group 2: Google Cloud Performance - Google Cloud has made significant progress, particularly in enterprise AI workloads, but profitability has not kept pace with revenue growth [9][10] - Despite healthy revenue growth driven by AI demand, margins may not scale meaningfully due to intense competition and high infrastructure costs [11] - If Cloud remains capital-intensive without significant margin improvement, it could lead to lower shareholder payoffs, although it would not indicate a collapse [12] Group 3: Capital Expenditure and Cash Flow - Alphabet's aggressive investment in AI infrastructure is strategically sound, but it carries risks related to capital intensity and delayed returns [13] - Heavy capital expenditure could suppress free cash flow growth longer than expected, leading to a shift in market sentiment if returns do not materialize [14][15] - The concern is not about balance-sheet stress, as free cash flow was $74 billion in Q3 2025, but rather about changing perceptions that could compress valuation multiples [15] Group 4: Overall Risks and Investor Implications - The combined risks of AI monetization, cloud margin expansion, and capital expenditure could limit upside potential for Alphabet, even if operational performance remains strong [16] - Alphabet is expected to perform well operationally, but shareholder returns may fall short of expectations due to higher performance benchmarks [17] - The primary risk for investors is not disruption but the potential failure to convert operational improvements into faster earnings and free cash flow growth [18]

Palantir is scheduled to report fourth-quarter earnings on Feb. 2.After the markets close on Feb. 2, investors will get a look at how the artificial intelligence (AI) narrative is holding up as data analytics specialist Palantir Technologies (PLTR +0.34%) reports earnings for the fourth quarter and full year 2025.Let's explore what investors should expect for Palantir as earnings season approaches and assess if now is a good time to load up on the stock. What should investors expect when Palantir reports ea ...

Core Insights - The generative AI market is experiencing significant growth, with projections indicating a rise from $71.4 billion in 2025 to $890.6 billion by 2032, reflecting a compound annual growth rate of 43.4% [3] Group 1: Generative AI Overview - Generative AI differs from traditional AI as it creates content rather than merely analyzing it, with applications like ChatGPT demonstrating rapid user adoption [2] - The generative AI market is currently in a "hypergrowth" phase, presenting substantial investment opportunities [3] Group 2: Investment Opportunities - Investing in generative AI can be effectively achieved through thematic exchange-traded funds (ETFs) that provide diversified exposure to the sector [4] - The VanEck Semiconductor ETF focuses on companies involved in semiconductor production, with top holdings including Nvidia, Taiwan Semiconductor, and Broadcom, which are crucial for generative AI [6][7] - The State Street SPDR S&P Semiconductor ETF offers a broader array of semiconductor stocks and is designed to provide equal exposure to both small- and large-cap stocks [10][12] - The iShares Semiconductor ETF targets U.S. companies in the semiconductor sector and has a market-cap weighted structure, with top holdings including Nvidia and Micron [14][15]