Fears of an AI bubble are likely here to stay. But a strong spending landscape means many semiconductor stocks can still thrive, according to J.P. ...

Investor Michael Burry has doubled down on his claims regarding GPU depreciation at leading hyperscalers and AI companies, citing recent remarks by Microsoft Corp. (NASDAQ:MSFT) CEO Satya Nadella, who highlighted the complex economics of large-scale data center investments. Burry Regrets Not Being More Vocal In 2008On Monday, in a post on X, Burry, who rose to prominence for shorting the housing market ahead of the 2008 financial crisis, said that he regrets not warning others more effectively about the ris ...

Welcome to the Big Money Show. I'm Degan McDow along with my co-host Taylor Riggs, Brian Breberg, Jackie D'Angelus, and with us for this hour, Mr. . Sunshine, Rosecliffe, founder and managing partner Mike Murphy.And I actually mean that. I don't mean that in an Eddie Haskell sort of way. Investors are hoping for a Santa Claus rally to cap off what has been a big year, but keeping their eyes set firmly on 2026.Analysts from America's largest investment banks, banks galore, seeing at least an 11% gain on the ...

Key Takeaways Jefferies has some ideas about where tech investors should look after a tough stretch for the sector. Tech stocks took a hit last week, with cloud computing giant Oracle (ORCL) and chipmaker Broadcom (AVGO) at the forefront after quarterly earnings that failed to impress investors amid growing skepticism around the AI trade. But Jefferies analysts told clients amid Thursday's selloff that they still see gains for some standouts in the sector, which they identified for their "peer-leading growt ...

The semiconductor company has an eye-popping valuation.Shares of Broadcom (AVGO 5.36%) have been soaring this year as the semiconductor company scored major AI chip wins, but investor sentiment shifted hard last week. Broadcom stock dropped by more than 11% on Friday in reaction to the company's report for the fourth quarter of fiscal 2025.Broadcom's results and guidance were stellar. Revenue surged 28% year over year, adjusted EPS increased 37%, and the company forecasted strong sequential growth in the fi ...

Today, our next guest says the AI boom of course is real and rather than calling it a bubble, it's more important to know when it's going to end. Joining us here at Post9 is Matt Whitiler, head of latestage growth at Wellington Management. His firm manages more than $1 trillion of assets.And thanks for coming in. It's good to talk to you. >> Thanks for having me.>> Um, what when you think about debt uh fueling this cycle as opposed to maybe a prior cycle, is it does it make it much different. >> I don't kno ...

While Nvidia (NVDA) stock is still outperforming the S&P 500 Index ($SPX) this year, it has lost over 17% from its recent highs. NVDA has been the flagbearer of the artificial intelligence (AI) trade and delivered stellar returns in 2023 and 2024, which helped it become the first-ever company to command a $5 trillion market cap. However, we have seen a realignment of sorts among AI stocks over the last three months. For instance, Apple (AAPL) and Alphabet (GOOG) (GOOGL), which were perceived to be AI lag ...

Joining us now, Rashir Charmer, Rockefeller International chairman, and he's the founder of Breakout Capital. All right, Rashier, you want to go through them one through four quickly if you have time. Tell me whether we're in fact in a bubble.>> Yeah, David, as you know, there's a bit of a bubble and bubble talk these days, uh, which is that everyone's talking about a bubble, but there is no standard definition of a bubble. So what I've tried to do in my FT oped this morning uh is to lay out the a framework ...

Core Viewpoint - The current market is in the advanced stages of a bubble, characterized by overvaluation, overownership, overinvestment, and overleverage, particularly in the tech sector [2][5]. Overvaluation - Historical data indicates that major bubbles typically see prices rise tenfold over a 10 to 15-year period, which aligns with the performance of the US tech sector in recent years [2]. - Current valuations in the tech sector are in the 95th percentile across most metrics, with only the year 2000 showing comparable levels [2]. Overownership - Americans currently hold 52% of their financial wealth in the stock market, surpassing levels seen in 2000, and indicating a significant shift in wealth allocation compared to property [3]. Overinvestment - Tech investment as a share of GDP has reached 6%, which is higher than the levels recorded in 2000, suggesting a substantial increase in capital directed towards technology [4]. Overleverage - While there has been an increase in AI-related debt, households and the private sector are not as leveraged compared to previous cycles, with the government being the primary source of increased leverage [4][5]. Market Performance - Major tech companies like Meta, Amazon, and Microsoft have seen stock price increases of 9%, 2%, and 12% respectively this year, but all underperform the S&P 500 [6]. - The decline in free cash flow growth for these companies is contributing to their current stock performance issues [8]. Global Market Comparison - Despite significant investment in AI, US stock markets have underperformed compared to global markets, marking the widest performance gap since 2009 [8][9]. Interest Rates as a Catalyst - Historically, rising interest rates have been the primary catalyst for ending market bubbles, indicating that any tightening in financial conditions could trigger a market correction [9][10].

Market Overview - Major U.S. stock indices experienced a significant decline on December 12, 2025, primarily driven by sell-offs in technology stocks due to concerns over an AI bubble narrative [1] - Investors reacted negatively to news from Broadcom, which indicated expected margin pressure in its AI business for the first quarter of fiscal 2026, despite exceeding fiscal fourth-quarter earnings estimates [1] Investment Strategy - In the current market environment, equity investors may favor dividend-growth stocks over high price-growth stocks, as companies with a history of raising dividends typically demonstrate strong financial health, providing a defensive hedge against economic uncertainty [2] - Stocks with a strong history of year-over-year dividend growth are suggested to form a healthier portfolio with greater potential for capital appreciation compared to simple dividend-paying stocks or those with high yields [2] Selected Dividend Growth Stocks - Five dividend growth stocks have been identified as potential solid choices for investment: TE Connectivity (TEL), Enersys (ENS), Donaldson (DCI), Lam Research (LRCX), and Leidos Holdings (LDOS) [3][9] - These stocks exhibit positive sales and earnings per share (EPS) growth histories, consistent dividend increases, solid fundamentals, and favorable valuation metrics [9] Characteristics of Dividend Growth Stocks - Stocks with a strong history of dividend growth are typically associated with mature companies that are less vulnerable to market volatility, thus providing a hedge against economic or political uncertainties [4] - These stocks are characterized by superior fundamentals, including sustainable business models, long-term profitability, rising cash flows, good liquidity, strong balance sheets, and value characteristics [5] - Although these stocks may not have the highest yields, they have historically outperformed the broader stock market and other dividend-paying stocks [6] Performance Metrics - Selected stocks must meet specific criteria, including: - 5-Year Historical Dividend Growth Greater Than Zero - 5-Year Historical Sales Growth Greater Than Zero - 5-Year Historical EPS Growth Greater Than Zero - Next 3-5 Year EPS Growth Rate Greater Than Zero [7] - Additional metrics include a Price/Cash Flow ratio less than the industry median and a 52-Week Price Change greater than the S&P 500 [8] Individual Stock Insights - **TE Connectivity (TEL)**: Expected fiscal 2026 revenue growth of 10.2%, long-term earnings growth rate of 12.3%, and an annual dividend yield of 1.23% [10][11] - **Enersys (ENS)**: Projected fiscal 2026 revenue growth of 4%, long-term earnings growth rate of 15%, and an annual dividend yield of 0.71% [11][12] - **Donaldson (DCI)**: Anticipated fiscal 2026 revenue growth of 3.4%, long-term earnings growth rate of 10%, and an annual dividend yield of 1.30% [12] - **Lam Research (LRCX)**: Expected fiscal 2026 revenue growth of 14.1%, long-term earnings growth rate of 20.3%, and an annual dividend yield of 0.65% [13] - **Leidos Holdings (LDOS)**: Projected fiscal 2025 revenue growth of 3.4%, long-term earnings growth rate of 11.6%, and an annual dividend yield of 0.84% [14]