Core Insights - The artificial intelligence (AI) sector is experiencing significant growth, with AI-focused stocks performing well in recent years [1][2] - A majority of Americans (62%) express confidence in AI's long-term earnings potential, indicating optimism for future investments in this industry [2] - Investing in AI ETFs can provide a simpler and diversified approach to gaining exposure in the volatile AI sector [3] AI ETFs Overview - **iShares Future AI and Tech ETF**: This ETF includes 49 stocks involved in AI technology, offering targeted exposure but with increased risk due to its limited diversification. It has achieved a total return of approximately 30% over the past year, outperforming the S&P 500's 18% [4][6] - **Invesco Semiconductors ETF**: Focused on semiconductor companies, this ETF contains 30 stocks and has seen a total return of around 38% in the last year. Since its inception in 2005, it has delivered a remarkable 1,660% in total returns [7][8] - **Vanguard Information Technology ETF**: This ETF provides broader exposure to the tech sector with 322 stocks, including major AI players like Nvidia and AMD. It has earned just under 22% over the past year, slightly above the S&P 500's performance [9][11] Investment Considerations - The AI sector presents lucrative investment opportunities, and ETFs can help investors navigate the complexities of individual stock selection while managing risk [12] - Each ETF offers different levels of exposure and risk, making it essential for investors to align their choices with their financial goals and risk tolerance [12]

Group 1: Taiwan Semiconductor - Taiwan Semiconductor is a key provider of high-end chips essential for the AI infrastructure buildout, with a strong investment thesis based on increasing global demand for advanced chips [3][5] - The company is the world's largest third-party foundry operator, benefiting from the significant capital expenditures by AI hyperscalers, which are expected to accelerate in 2026 [5][6] - Every new data center construction contributes to Taiwan Semiconductor's revenue, making it a strong investment opportunity as data center buildouts are projected to increase [6] Group 2: Amazon - Amazon's cloud computing unit, Amazon Web Services (AWS), is a major client of Taiwan Semiconductor, and AWS is crucial for Amazon's overall profitability, contributing 66% of its total operating profits [6][8] - AWS experienced a revenue growth of 20% in Q3, marking its fastest growth rate in several years, indicating a positive outlook for Amazon's stock in 2026 [8] Group 3: Alphabet - Alphabet's shares rose approximately 65% in 2025, but a similar performance is not expected in 2026 due to its current valuation being in line with peers at 30 times forward earnings [9][11] - The company reported a 16% year-over-year revenue increase and a 35% rise in diluted earnings per share (EPS) in Q3, showcasing strong business growth [11] - Alphabet has established itself as a leader in AI with its large language model, Gemini, which may provide a competitive edge by allowing lower pricing to dominate the market [13][14]

Core Viewpoint - Amazon's stock performance presents a potential investment opportunity despite recent fluctuations in its price [1][3]. Group 1: Stock Performance - Amazon shares reached an all-time high in November 2025, with an average annual gain of 24% over the past 25 years and 40% over the last three years [1]. - The stock was only up about 5% in 2025, indicating a recent pause in its growth trajectory [3]. - The current stock price is $226.50, with a market capitalization of $2.4 trillion [4]. Group 2: Valuation Metrics - Amazon's forward-looking price-to-earnings (P/E) ratio is 28, significantly below its five-year average of 44, suggesting the stock may be undervalued [5]. - The price-to-sales ratio stands at 3.6, slightly above its five-year average of 3, indicating a potential overvaluation [5]. - Overall, Amazon's shares appear reasonably valued based on current metrics [5]. Group 3: Future Growth Potential - The company is expected to grow significantly in the future, driven by its dominance in online retail and leadership in cloud computing through Amazon Web Services (AWS) [6]. - The advertising division is also experiencing rapid growth, contributing to the company's overall expansion [6]. - Amazon benefits from competitive advantages such as network effects and economies of scale, positioning it well for future growth [6].

Core Viewpoint - American Express is demonstrating strong dividend growth alongside aggressive share buybacks, raising questions about its long-term investment value after a significant stock price increase [1][3]. Dividend Growth - The company has increased its dividend by 17% in March, reflecting robust business strength, with a current yield of 0.9% [5][6]. - American Express's annual dividend payments represent only 21% of the expected earnings per share for 2025, allowing for continued investment and potential future dividend increases [6][12]. Financial Performance - In the third quarter, American Express reported a revenue increase of 11% year-over-year to $18.4 billion and a net income rise of 16% to $2.9 billion, with earnings-per-share growth at 19% [7][8]. - The company has seen strong momentum, particularly in demand for its U.S. Platinum products, with account acquisitions doubling compared to pre-refresh levels [8]. Share Repurchases - In the first nine months of 2025, American Express returned $6.1 billion to shareholders, with $4.4 billion from share repurchases and $1.7 billion from dividends [9]. - The company has a history of aggressive share repurchases, returning $7.9 billion to shareholders in 2024, with $5.9 billion from buybacks [10]. Valuation and Market Position - The stock currently trades at a price-to-earnings ratio of about 25, up from 21 a year ago, reflecting its premium valuation in the financial sector [11]. - Despite the higher valuation, the company's strong earnings momentum and low payout ratio suggest that robust dividend growth is likely to continue [12].

Core Insights - Warren Buffett's long-standing role in capital allocation at Berkshire Hathaway is transitioning to Greg Abel, who will be scrutinized for his decisions in the coming decade [1][2][4] - Berkshire Hathaway has over $350 billion in cash and equivalents, making capital allocation decisions critical for shareholder outcomes [5][6] Group 1: Leadership Transition - Greg Abel is set to take over capital allocation responsibilities, a key aspect of Berkshire's strategy, as Buffett steps back from the CEO role [2][5] - Buffett has expressed confidence in Abel's capabilities, stating he would prefer Abel to manage his investments over other top advisors [8] Group 2: Capital Allocation Strategy - Berkshire's decentralized structure allows its operating companies to manage themselves, with excess capital funneled back to Omaha for reinvestment [4][5] - The upcoming capital allocation decisions will be pivotal, with potential for significant impacts on shareholder value [5][9] Group 3: Future Actions to Watch - Investors should monitor Abel's first major capital move, as it will provide insights into his allocation strategy [9] - Share repurchases are another key indicator; a resumption in 2025 could signal that Abel views the stock as undervalued [10][11] - The company is expected to maintain a disciplined approach, with significant moves likely only when attractive opportunities arise [11]

Core Insights - Tesla reported a decline in vehicle deliveries for Q4 2025, with 418,227 vehicles delivered, a 15.6% decrease from 495,570 in Q4 2024, and a total of 1.64 million deliveries for 2025, down 8.6% from 1.79 million in 2024 [4][6] - The company's production also fell, with 434,358 vehicles produced in Q4, down from 459,445 a year earlier and 447,450 in Q3 [4][5] - Despite the disappointing delivery numbers, Tesla's energy storage deployments reached a record 14.2 GWh in Q4, up from 12.5 GWh in Q3, and total deployments for the year were 46.7 GWh, an increase from 31.4 GWh in 2024 [7] Delivery and Production Analysis - The drop in deliveries was attributed to weaker overall demand for autos and the expiration of the U.S. clean-vehicle tax credit, which incentivized buyers to purchase in Q3 [6] - Tesla's delivery trends have been inconsistent, with Q2 deliveries down 13.5% year over year, followed by a 7.4% increase in Q3, and then a decline in Q4 [5] Market Context - Tesla's market capitalization is nearly $1.5 trillion, with a price-to-earnings ratio exceeding 300, indicating that investors are looking for significant future growth catalysts [8] - Potential catalysts include advancements in self-driving technology and the rollout of Tesla's Robotaxi service, which could enhance demand for vehicles [9][10] - Investors are keenly awaiting Tesla's full quarterly update on January 28 to assess the impact of these catalysts on future sales and production [11]

Today, Jan. 2, 2026, defense-driven rebranding, new funding, and fresh autonomous orders are redefining this niche wireless player.NASDAQ : ONDSOndasToday's Change( 12.55 %) $ 1.23Current Price$ 10.98Key Data PointsMarket Cap$3.7BDay's Range$ 9.91 - $ 10.9852wk Range$ 0.57 - $ 11.70Volume2.9MAvg Vol84MGross Margin10.18 %Ondas (ONDS +12.55%), a provider of private wireless, drone, and automated data solutions, closed Friday at $11.02, up 12.91% for the session. Trading volume reached 134.2 million shares, co ...

Core Viewpoint - Micron Technology is experiencing a significant surge in stock price due to increased demand for AI-driven memory solutions, with Bernstein raising its price target for the company [1][6]. Company Performance - Micron's stock closed at $315.42, reflecting a 10.52% increase in a single trading session, with trading volume reaching 41.9 million shares, which is 62% above the three-month average [2][3]. - The company has shown remarkable growth of 22,231% since its IPO in 1984 [3]. Market Dynamics - The rise in Micron's stock is attributed to analyst upgrades based on the anticipated demand for high-bandwidth memory, which is crucial for AI applications [3][6]. - Industry peers such as Seagate Technology and Western Digital also saw stock increases, indicating a broader market reaction to AI data-center expansions and global memory supply shortages [5]. Future Outlook - Micron's leadership indicated that the total addressable market for High Bandwidth Memory (HBM) is projected to reach $100 billion by 2028, two years earlier than previously estimated [7]. - Bernstein forecasts continued growth in DRAM demand, suggesting a positive outlook for Micron's future performance [7].

Today, Jan. 2, 2026, investors weigh falling vehicle deliveries against record energy storage growth and rising bets on autonomy.Tesla (TSLA 2.62%)closed Friday at $438.07, down 2.6%. Tesla IPO'd in 2010 and has grown 27,452% since going public. Trading volume reached 84.6 million shares, coming in roughly 2.4% above its three-month average of 82.5 million shares.Friday’s action followed fresh Q4 delivery data and ongoing debate over Tesla's pivot toward autonomy and energy, and investors are watching how q ...

Group 1: Amazon - Amazon has underperformed in 2025, with a year-to-date increase of only 5.5% compared to the S&P 500's 17.3% gain [4] - Amazon Web Services (AWS) is now generating more than double the operating income compared to the rest of the business combined, indicating a shift in the company's revenue model [5] - Despite pressures on consumer spending and competition in cloud computing, Amazon's earnings are growing at a solid pace, with a forward earnings multiple of 32.8, comparable to Apple's 33.2, while growing faster [6] Group 2: Netflix - Netflix's stock has decreased by 29% in the last six months, but it has still seen significant price increases since the start of 2023, with a forward price-to-earnings ratio of 37 [7][10] - The company is facing uncertainty due to its acquisition of Warner Bros. Discovery, which has raised concerns among investors about future earnings growth [8][11] - Despite rising operating expenses, Netflix maintains a strong balance sheet and is expected to leverage Warner Bros. Discovery's assets to enhance its subscription offerings and in-house production capabilities [12] Group 3: Visa - Visa is positioned as a leading payment processor in the U.S. and is benefiting from the ongoing shift towards digital transactions, with a market cap of $671 billion [15][16] - The company's fee structure allows it to generate revenue from every transaction, making it resilient even during economic downturns [17] - With a forward earnings multiple of 27.7, Visa is considered a reasonable investment for an industry leader, despite not being the cheapest option available [18]