Core Viewpoint - SoundHound AI has experienced significant volatility, with a stock increase of 835% in 2024 followed by a decline of 43% in 2025, raising concerns about its sustainability in the AI market [1][2]. Group 1: SoundHound AI - SoundHound AI's voice AI platform is utilized by various industries, including restaurants and automakers [1]. - The company has faced a steep drop in stock price, with a 38% decrease in the last month alone [1]. Group 2: Nvidia - Nvidia is considered immune to the AI bubble, with CEO Jensen Huang highlighting a "virtuous cycle of AI" as more industries adopt the technology [3]. - Nvidia holds a dominant market share of up to 90% in data center chips, with third-quarter fiscal 2026 revenue reaching $57 billion, including $51.2 billion from data center chips [4]. - The company's data center revenue grew by 66% year-over-year, significantly outpacing competitor AMD, which saw a 22% increase [5]. - Nvidia has provided guidance for $65 billion in revenue for the fourth quarter of fiscal 2026, representing a 65% increase from the previous year [5]. Group 3: Alphabet - Alphabet has made significant advancements in AI, integrating it into its products and investing in AI infrastructure [7]. - The company dominates the internet services market, with a 73% market share in the Chrome browser and a 90% market share in its Google search engine [8]. - Alphabet's advertising revenue in the third quarter was $74.18 billion, up 12.6% year-over-year, contributing to over 70% of its total quarterly revenue of $102.3 billion [9]. - The introduction of AI Overviews and the Gemini chatbot has helped Alphabet maintain its search market share against competitors like ChatGPT [10]. - Google Cloud, the third-largest cloud provider, reported a 33.5% increase in revenue to $15.15 billion in the third quarter, indicating its growing importance to Alphabet's business [12][13]. Group 4: Investment Outlook - Both Nvidia and Alphabet are part of the "Magnificent Seven" and have shown strong performance in 2025, with Nvidia up 30% and Alphabet up 58% [14]. - The dominant positions of Nvidia and Alphabet in their respective markets make them less susceptible to long-term disruptions, even in the event of an AI bubble burst [15]. - Nvidia's unmatched GPU technology and Alphabet's AI-enhanced advertising and growing Google Cloud revenue position them as reliable long-term investments in the AI sector [15].

Core Insights - Investors should focus on tech companies with wide moats and adaptability for long-term holdings Group 1: Nvidia - Nvidia started as a chipmaker for the gaming industry and developed the CUDA software platform, which is now integral to AI development [2][3] - The company's GPUs are the foundation of AI infrastructure, making it difficult for developers to leave Nvidia's ecosystem [3][4] - Nvidia has consistently identified new opportunities and adapted, including investments in OpenAI [4] Group 2: Alphabet - Alphabet has evolved its Google search engine to improve results and monetize effectively, adapting to shifts from desktop to mobile [5][6] - The company has established a wide moat through its Chrome browser, Android OS, and search revenue-sharing deals, enhancing its ad network reach [6][7] - Alphabet is diversifying into cloud computing and has made significant investments in future markets like robotaxis and quantum computing [7] Group 3: Amazon - Amazon transformed from an online bookstore to the largest e-commerce player by building a vast logistics network, creating a wide moat [8][9] - The launch of Amazon Web Services (AWS) established it as a leader in cloud computing, with high switching costs for enterprise customers [9][10] - Amazon continuously evolves its operations, utilizing AI and robotics, and expanding into digital advertising [10] Group 4: Apple - Apple's moat is built on customer loyalty and the seamless integration of its devices and services, making it difficult for users to switch [11][12] - The company has successfully transitioned from a computer maker to a leader in mobile devices and high-margin services [12] - Apple has begun designing its own chips, enhancing control over performance and user experience [12] Group 5: Microsoft - Microsoft's moat is derived from the deep integration of its software in business processes, with high switching costs for its Windows OS and Office suite [13][14] - The company has adapted from a boxed-software model to a software-as-a-service (SaaS) model with Microsoft 365 and has become a cloud computing leader with Azure [14][15] - Microsoft has embraced AI, investing in OpenAI and incorporating AI models across its segments, driving significant growth [14][15]

Group 1: Microsoft - Microsoft remains a leading player in various tech markets, including cloud computing, software, gaming, and AI, positioning itself as a company that is "too big to fail" in the tech sector [1] - The company has increased its dividend for 23 consecutive years, making it a reliable investment for Gen Z investors [7] Group 2: Broadcom - Broadcom has established itself as a strong dividend stock, raising its dividend for 15 consecutive years with an average annual increase of 14% over the past five years [2] - The company is recognized for its semiconductor products and has expanded into infrastructure software, playing a significant role in AI by enabling efficient communication in data centers [3] Group 3: Salesforce - Salesforce, a pioneer in customer relationship management software, is evolving into a digital ecosystem that can benefit from AI to enhance user experience [8] - The company has recently begun paying dividends, with a current payout that takes only 15% of its estimated 2025 earnings, indicating potential for future growth [9] Group 4: Alphabet - Alphabet is known for its Google search engine and YouTube platform, but it also has a strong cloud segment and is involved in emerging technologies like AI and quantum computing [10] - The company has recently avoided a forced breakup in its antitrust case, positioning it for a promising future, although it is new to the dividend scene [11] Group 5: Meta Platforms - Meta Platforms generates significant cash profits from its advertising business, leveraging its vast user base across various apps [12] - The company has recently initiated a dividend, with a current payout ratio of less than 8% of its estimated 2025 earnings, suggesting a long runway for future dividend growth [13]

Core Viewpoint - Alphabet Inc. (GOOGL) is expected to experience a significant decline in advertising revenue in 2020 due to financial stress on companies, raising concerns about the stock's recovery potential after a substantial first-quarter decline [1][11]. Advertising Revenue Impact - Travel industry ad spending is projected to decrease by $3 billion in Q2 2020, with Google search engine being the most affected, as this segment represented 10% of Google's ad revenue and $10.7 billion of total revenue in 2019 [2][3]. - The hospitality sector is also anticipated to cut ad spending, with many small- and medium-sized restaurants facing bankruptcy due to the pandemic, further impacting Alphabet's revenue [3]. Stock Performance and Trends - Alphabet's stock has shown a long-term uptrend since its IPO in 2004, but the recent downturn in ad revenue could signal the end of this trend, with significant support near $1,000 being tested multiple times [4][6]. - The stock reached an all-time high above $1,500 in February 2020 but has since faced challenges, indicating potential topping out after a decade-long bull run [5][6]. Technical Indicators - The monthly stochastic oscillator has entered a sell cycle, suggesting relative weakness for GOOGL into Q3 2020, while the on-balance volume (OBV) indicator has shown a decline, indicating a potential reversal [7][9]. - Current price action is facing major resistance at the alignment of the 50- and 200-day EMAs, with a high-volume breakout needed to attract interest, but a reversal is more likely, exposing the stock to test March lows [10].

Core Viewpoint - The article highlights four growth stocks that have shown significant historical performance and potential for future growth, suggesting they may be suitable for long-term investment portfolios. Group 1: Nvidia - Nvidia has achieved an average annual growth rate of 56.1% over the past 15 years, turning $1,000 into over $790,000 [2] - The company has averaged annual gains of 116.5% over the past three years [2] - Nvidia's data center business has surged from $3 billion to $115 billion in annual revenue in five years, indicating strong growth potential [3] Group 2: Alphabet - Alphabet, the parent company of Google, is a leader in AI and cloud computing, with a diverse range of products including Google Search and YouTube [4][5] - The company initiated a dividend payout in 2024, recently increasing it by 5% [5] - Alphabet's forward P/E ratio is 20, below its five-year average of 22, suggesting an attractive valuation [6] Group 3: Waste Management - Waste Management has averaged annual gains of 14.4% over the past 15 years, with over 17% gains in the last five and ten years [7] - The company is considered recession-resistant, as demand for waste collection remains stable during economic downturns [8] - The stock has a forward P/E of 30, slightly above its five-year average of 27, and offers a growing dividend yield of 1.4% [9][10] Group 4: Vanguard Information Technology ETF - The Vanguard Information Technology ETF has averaged annual gains of 18.4% over the past five years, with 21.5% and 19.6% over the past decade and 15 years, respectively [12][13] - The ETF includes over 300 tech stocks, with top holdings in major companies like Nvidia and Microsoft [12]

Core Viewpoint - The stock market has rebounded, yet there are still attractive investment opportunities in the tech sector, particularly five bargain tech stocks poised for growth. Group 1: Alphabet - Alphabet is trading at a forward P/E ratio below 16.5x based on 2025 estimates, making it the cheapest among megacap tech stocks [2] - The company has a diverse portfolio, including the leading YouTube streaming service and the third-largest cloud computing service, Google Cloud [3] - Concerns about AI's impact on its search business are mitigated by its Gemini model and strong distribution advantages, positioning Alphabet as a potential AI winner [4] Group 2: Salesforce - Salesforce has a forward P/E of around 20.5x and a PEG ratio of 0.5, indicating it is undervalued [6] - The company is focusing on agentic AI through its Agentforce platform, which has already attracted over 4,000 paying customers [7] - A new flexible pricing model for Agentforce aims to enhance customer satisfaction and adoption, potentially leading to significant stock upside [9] Group 3: Alibaba - Alibaba is trading at a forward P/E of just 10 times and has a strong cash position, making it one of the cheapest stocks [10] - The company is a leader in e-commerce and cloud computing in China, with strong AI momentum and partnerships, such as with Apple [10] - Alibaba's Cloud Intelligence segment saw an 18% revenue increase last quarter, with AI-related revenue doubling for seven consecutive quarters [12] Group 4: Advanced Micro Devices (AMD) - AMD has a forward P/E of 23 times and a PEG of 0.2, indicating it is undervalued among chip stocks [13] - The company is a market leader in CPUs for data centers and is focusing on the growing AI inference market, which is less technically demanding than training [14] Group 5: Taiwan Semiconductor Manufacturing (TSMC) - TSMC has a forward P/E of around 19 times and a PEG near 1, indicating attractive valuation [15] - As the leading semiconductor manufacturer, TSMC has strong pricing power and is a key partner for major chip designers [16] - The company is well-positioned to benefit from increasing AI infrastructure spending and has opportunities in autonomous driving technology [17]

Core Insights - Warren Buffett's investment philosophy emphasizes buying wonderful companies at fair prices, which is challenging in the AI sector due to high valuations [1] - Despite the challenges, there are valuable investment opportunities in AI stocks, particularly in companies like Micron Technology, Dell Technologies, and Alphabet [2] Company Summaries Micron Technology - Founded in 1978, Micron specializes in computer memory and storage solutions, recently launching the world's first 1-gamma memory chip, enhancing AI hardware capabilities [4] - The company's high-bandwidth memory chips achieved over $1 billion in sales for the first time in its fiscal second quarter, contributing to total sales of $8.1 billion, a nearly 40% increase from $5.8 billion the previous year [5] - Fiscal second-quarter net income doubled year-over-year to $1.6 billion, with diluted earnings per share rising to $1.41 from $0.71, and the company forecasts third-quarter revenue around $8.8 billion, up from $6.8 billion last year [6] Dell Technologies - Dell provides servers, PCs, and hardware for AI systems, experiencing strong demand for AI-optimized servers, with sales increasing 5% year-over-year to $23.4 billion in its fiscal first quarter [7] - Customer orders for AI hardware exceeded $12.1 billion in Q1, surpassing total shipments for the entire fiscal year 2025, with projected revenue for fiscal 2026 expected to reach at least $101 billion, up from $95.6 billion [8] Alphabet - Alphabet integrates proprietary AI into its products, leading to significant revenue growth, with first-quarter revenue reaching $90.2 billion, up from $80.5 billion the previous year [10] - Google Cloud's first-quarter sales grew to $12.3 billion from $9.6 billion, driven by AI advancements [9] - The company plans to invest $75 billion in capital expenditures this year, up from $52.5 billion in 2024, to further enhance its AI capabilities [12] Investment Valuation - Micron, Dell, and Alphabet are considered "wonderful companies" with strong growth and dividend payments, yet their forward price-to-earnings ratios are significantly lower than those of AI giants like Nvidia and Microsoft, indicating they are undervalued [13][15]

Group 1: Nvidia - Nvidia holds over 90% market share in the data center GPU market, crucial for AI model training [3] - The company generated $115 billion in sales from its data center division over the past 12 months, contributing significantly to its total revenue of $130.5 billion [4] - Data center buildouts are projected to grow from $400 billion in 2024 to $1 trillion by 2028, indicating substantial future growth potential for Nvidia [5][6] Group 2: Taiwan Semiconductor - Taiwan Semiconductor (TSMC) manufactures chips for major tech companies, establishing itself as a key partner due to its continuous innovation [8] - TSMC anticipates AI-related revenue growth at a 45% compound annual growth rate (CAGR) over the next five years, with overall revenue expected to grow at nearly 20% CAGR [9] - TSMC plans to invest $100 billion in U.S. chip production facilities to mitigate tariff risks, as most of its fabrication facilities are outside the U.S. [10][11] Group 3: Alphabet - Alphabet is currently trading at a low valuation of 17 times forward earnings, making it one of the cheaper stocks in the market [12] - Concerns regarding Alphabet stem from its reliance on advertising, potential competition from generative AI, and legal issues related to monopoly practices [14][15] - Despite these challenges, Alphabet is integrating AI into its services and is expected to recover advertising revenue post-downturn, suggesting that current pessimism may be excessive [16]

After trying and failing to acquire Wiz last year, Alphabet (GOOGL -0.65%) (GOOG -0.72%) has reached a deal to buy the fast-growing cybersecurity company. It is paying a steep price of $32 billion, up from the the $23 billion it offered last year. It will also pay Wiz employees $1 billion in retention bonuses. Wiz backed out of the deal last year over antitrust concerns, but expects a more favorable environment under the Trump administration.In my view, this deal looks like a game changer for Alphabet. Let' ...

Market Overview - The Nasdaq index is currently in correction territory, down at least 10% from its all-time high, which is a common occurrence in the stock market, typically happening about once per year [1] - The recent market decline has erased gains made since September of the previous year, effectively resetting the market clock by approximately six months [2] Investment Opportunities - Despite the market correction, there are significant buying opportunities available, particularly in companies heavily invested in artificial intelligence (AI) [2] - The three companies identified as strong investment candidates in the AI sector are Nvidia (NVDA), Taiwan Semiconductor Manufacturing Company (TSM), and Alphabet (GOOG) [3][5] Company Analysis Nvidia (NVDA) - Nvidia specializes in graphics processing units (GPUs) essential for training AI models and powering inference, currently dominating the market [6] - Analysts project Nvidia's revenue to rise by 56% in FY 2026, ending January 2026, driven by substantial capital expenditures from major clients [6][7] Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC produces chips that support various AI workloads and is a key supplier for Nvidia, among other clients [8] - TSMC's management anticipates AI-related revenue growth at a compound annual rate of 45% over the next five years, with overall company revenue expected to grow nearly 20% [8] Alphabet (GOOG) - Alphabet's primary revenue source is its advertising platforms, but it is also a significant player in the AI sector, integrating AI into its ad tools and enhancing its cloud computing services [9] - Google Cloud, a division of Alphabet, experienced a 30% revenue increase in Q4, making it one of the fastest-growing segments within the company [10] Valuation and Market Position - Following the recent sell-off, Nvidia, TSMC, and Alphabet are trading at lower valuations compared to their prices in September, with both Alphabet and TSMC trading under 19 times forward earnings [11] - Nvidia's valuation is slightly higher than the two indexes, which is justified by its rapid growth trajectory [11] Conclusion - The current market conditions present an opportunity for investment in Nvidia, TSMC, and Alphabet, as their lower sale prices enhance the likelihood of outperforming the market in the long term [12]