Core Viewpoint - Nebius is positioned for significant growth in the AI data center market, with expectations of substantial revenue increases by 2026 [1][3]. Company Overview - Nebius, previously the parent company of Yandex, has transitioned to focus on AI data center operations after divesting its Russian assets in 2024 [3]. - The company specializes in providing training clusters of GPUs, primarily sourced from Nvidia, to meet high demand in the AI sector [4]. Growth Projections - Nebius plans to contract for 2.5 gigawatts of power by 2026, up from an initial plan of 1 gigawatt, reflecting increased demand for its services [4]. - The company anticipates an annualized revenue run rate of $7 billion to $9 billion by the end of 2026, a significant increase from $551 million as of Q3 [6][9]. Financial Metrics - Nebius currently has a market capitalization of approximately $24 billion and is trading at a price-to-sales ratio of 60 times sales, which is considered high [6][7]. - On a forward price-to-sales basis, the ratio drops to 6.6, indicating potential value as the company grows [7]. - If Nebius achieves its revenue projections and maintains a 35% operating margin, it could generate around $2.8 billion in operating profits, leading to nearly $2 billion in annual profits after accounting for taxes and expenses [9][10]. Investment Outlook - Despite current unprofitability due to heavy investment in growth, Nebius is viewed as a strong long-term investment opportunity, with potential for significant returns for shareholders by 2026 [11].

Core Viewpoint - NuScale Power is positioned to capitalize on the growing demand for reliable energy sources to support the increasing power needs of AI and data centers, leveraging its advanced small modular reactor (SMR) technology [3][4]. Company Overview - NuScale Power is an advanced nuclear company focused on developing small modular reactor (SMR) power plants for various sectors, including governments, utilities, and data centers [4]. - The company is currently the only player in the SMR market with a reactor design approved by the U.S. Nuclear Regulatory Commission (NRC), providing it with a significant first-mover advantage [7]. Market Performance - NuScale's stock has seen a 37% increase in the current year, influenced by positive sentiment in the nuclear sector following a $2.7 billion award to uranium enrichment companies by the Trump administration [8]. - The current stock price is approximately $19.47, with a market capitalization of $5.5 billion and a trading volume of 35 million [5][6]. Product Features - SMR plants are designed to be smaller and factory-built, which can potentially reduce upfront costs and assembly time compared to traditional large nuclear plants [6]. - A single NuScale plant can be configured to include four, six, or twelve modules, allowing for flexibility in matching power generation capacity to customer needs [6]. Financial Metrics - NuScale's stock trades at about 50 times its sales, indicating a high valuation despite the absence of revenue from operational SMR power plants [8].

Core Insights - Axon Enterprise's stock experienced a 4% decline in 2025 after more than doubling in 2024, yet the company maintains strong long-term growth prospects [1] Company Overview - Axon specializes in technology-driven public safety products, including innovative devices and a growing cloud-based platform that integrates hardware and software [2] - The company is widely recognized for its Taser product, having sold over 1 million units, with a goal to reduce police-related deaths by 50% by 2033 [2] Financial Performance - In the third quarter, Axon reported a 31% year-over-year increase in sales, although it faced a small operating loss and a net loss of $2 million due to growth-related expenses [3] - Despite the recent losses, Axon has reported positive net income in years prior to the third quarter [3] Revenue Model - Axon's business model includes long-term contracts and recurring revenue, creating a high barrier to entry for competitors [4] - Annual recurring revenue rose by 41% year-over-year in the third quarter, reaching $1.3 billion, with future contracted bookings totaling $11.4 billion [4] Valuation Metrics - Axon stock has a forward one-year P/E ratio of 61 and a price-to-free-cash-flow ratio of 329, indicating a premium valuation typical for high-growth stocks [6] - The premium valuation is supported by the company's strong performance and long-term opportunities, despite the stock's poor performance in the previous year [6] Investment Considerations - While Axon does not appear to be a bargain at its current price, it may be suitable for long-term investors who could consider a dollar-cost-averaging strategy for better entry points [7]

Core Insights - Nebius Group's stock experienced a decline of 11% in December, primarily influenced by Oracle's disappointing earnings report, which raised concerns about the neocloud sector's momentum [2][3][5] - Following Oracle's report, Nebius saw a significant drop of 19% within a week, reflecting broader market reactions to the AI infrastructure sector's challenges [6][7] - Despite the downturn, Nebius rebounded after positive earnings from Micron, indicating ongoing investor confidence in the AI market [8] Company Performance - Nebius has been volatile throughout the year, with its business model involving GPU purchases and rentals posing inherent risks due to chip depreciation and debt from expansion efforts [5] - The company is currently unprofitable but is experiencing rapid growth, which is critical for its future stock performance [5][10] Market Outlook - As of early January 2026, Nebius's stock has increased by 15%, buoyed by positive sentiment from Nvidia's CEO and various upgrades for key AI stocks [9] - Analysts have identified Nebius as a top pick for 2026, with a price target of $211, suggesting potential for the stock to double [9] - Continued strong growth will be essential for Nebius to maintain upward momentum, while it is likely to be influenced by overall investor sentiment in the AI sector [10]

Core Viewpoint - SoundHound AI's stock experienced a significant decline of 39.4% in December 2025, primarily influenced by market sentiment rather than the company's actual performance [1]. Company Performance - SoundHound AI reported a 68% year-over-year revenue growth in its Q3 2025 earnings, indicating a strong growth trajectory despite the stock's poor performance in December [5]. - The company has a market capitalization of $4.7 billion and operates with $269 million in debt-free cash reserves [2][4]. Market Sentiment - The overall market shifted away from unprofitable growth stocks in mid-December, impacting SoundHound AI, which is categorized as a higher-risk investment due to its recent revenue generation from long-term contracts [4]. - The trading volume for SoundHound AI decreased by 48% over three months, suggesting a transition from a meme stock to a more stable growth stock narrative [6]. Strategic Partnerships - SoundHound AI formed a significant partnership with Booking Holdings' subsidiary OpenTable, integrating its restaurant booking systems and adding over 60,000 restaurant locations to its platform [2]. Competitive Landscape - The company faces competition from larger rivals like Microsoft and Apple, which could threaten its market position if it fails to deliver high-quality AI systems [7]. - The management team, including CEO Keyvan Mohajer, has strong industry connections, such as receiving business advice from Nvidia's CEO Jensen Huang [7]. Investment Outlook - There is a belief that SoundHound AI presents a viable investment opportunity, especially for those looking to enter early in the AI tools market [8].

Core Insights - Nvidia has emerged as the leading beneficiary of significant investments in artificial intelligence (AI) infrastructure, primarily due to its dominance in providing data center graphics processing units (GPUs) essential for training AI models [1] Performance Metrics - Nvidia's stock has experienced a remarkable increase of 1,320% over the past five years, transforming a $2,000 investment into over $28,000, while the S&P 500 only achieved a total return of 100% during the same period [3] - The current market capitalization of Nvidia stands at $4.5 trillion, with shares trading at $188.94 [4] - Nvidia's stock has a gross margin of 70.05% and a dividend yield of 0.02% [5] Financial Growth - From Q3 2021 to Q3 fiscal 2026, Nvidia's revenue surged by 1,106%, driven by high demand for its GPUs [6] - Analysts project a 211% increase in Nvidia's revenue from fiscal 2025 to fiscal 2028 [6] - The company has maintained an impressive average quarterly operating margin of 44% over the past five years [6] - Nvidia currently trades at a forward price-to-earnings ratio of 24.7, indicating potential for further investment consideration [6]

Core Insights - Intel's stock has increased by 15.5% year-to-date in 2026, following an over 80% gain in the previous year, indicating strong market momentum [1] - The surge in stock price is largely attributed to the excitement surrounding the new Intel Core Ultra Series 3 processors, which are built on the Intel 18A semiconductor foundry in the U.S. [1][2] Product and Technology - The Core Ultra Series 3 processors represent Intel's first AI personal computing platform utilizing the new U.S.-based Intel 18A process technology, which could significantly enhance Intel's market position in AI [2] - Intel claims that the Ultra Series 3 processors offer a competitive edge, delivering "up to 1.9x higher large language model (LLM) performance" and improved power efficiency [3] Market Demand and Sales - Pre-orders for the Core Ultra Series 3 processors began on January 6, 2026, with global availability set for January 27, 2026, although customer demand insights may take time to materialize [4] - Intel's fiscal third-quarter revenue rose by 3% to $13.7 billion, with CEO Lip-Bu Tan highlighting that AI is driving demand for compute across various product lines [8] Financial Performance - Intel reported earnings per share of 90 cents in the most recent quarter, a significant improvement from a loss of $3.88 in the same quarter last year, indicating a potential turnaround in profitability [10] - The company has a market capitalization exceeding $200 billion, despite ongoing challenges in achieving consistent profitability [9] Future Outlook - Intel's management anticipates that demand for its products will continue to outpace supply into 2026, suggesting a positive growth trajectory if the company maintains its current performance [10] - However, there are concerns that the stock may already reflect an anticipated turnaround, raising questions about future price appreciation given the uncertainties in the semiconductor industry [11]

One of the nation’s largest wholesale mortgage lenders reported significant insider selling amid a year of declining share prices.On Friday, UWM Holdings Corporation (UWMC +2.66%) President and CEO Mat Ishbia reported via an SEC Form 4 filing the indirect sale of nearly 1.9 million shares in multiple open-market transactions totaling $8.37 million, with all shares disposed of through an entity called SFS Corp as part of a broader derivative conversion and liquidation strategy.Transaction SummaryMetricValueS ...

The drone stock pulled back after a guidance cut.Shares of AeroVironment (AVAV +0.46%) were among the losers last month as the drone-maker posted a disappointing second-quarter earnings report and cut its guidance for the full year.Later in the month, the stock recouped some of those losses on favorable analyst commentary and as the Federal Communications Commission (FCC) announced a ban on some foreign drones, favoring domestic companies like AeroVironment.By the end of the month, the stock was down 13% ac ...

Are AI chips becoming obsolete as newer generations come out?In today's video, I discuss recent updates affecting Nvidia (NVDA +0.91%), Amazon (AMZN +0.26%), and other AI stocks. To learn more, check out the short video, consider subscribing, and click the special offer link below. *Stock prices used were the after-market prices of Jan. 6, 2026. The video was published on Jan. 6, 2026. ...