Core Viewpoint - Palantir Technologies is recognized for its success in the AI software sector, but it is predicted that Alphabet and Nvidia will surpass Palantir's market cap by the end of 2026 [2][3]. Company Summaries Palantir Technologies - Current market cap is approximately $423 billion, with a forward price-to-earnings (P/E) ratio of 178.6, indicating a high valuation [6][12]. - Achieved a Rule of 40 score of 114%, showcasing strong performance metrics [7]. - Projected quarter-over-quarter sales growth of 12.7% at the high end of its guidance range [10]. Alphabet - Market cap is around $4 trillion, with a forward P/E ratio of 28.2, making it relatively cheaper compared to Palantir [8][12]. - Google Cloud is a significant growth area, integrating generative AI across its products, and is the fastest-growing among major cloud service platforms [7][9]. - Major customers are opting for Google's Tensor Processing Units (TPUs) for AI applications, indicating strong competitive positioning [9]. Nvidia - Market cap is approximately $4.5 trillion, with a forward P/E ratio of 24.5, which is also more attractive than Palantir's valuation [11][12]. - Dominates the AI chip market and has growth opportunities in self-driving cars, digital twins, and robotics [10]. - Expected sales growth of 14% sequentially in Q4 2025, outpacing Palantir's projected growth [10].

Key Points Nvidia's stock is inexpensive despite its strong performance over the past few years. TSMC looks poised to continue to reap the benefits of the AI infrastructure buildout. Currently in the bargain bin, Salesforce has the foundation to be a leader in agentic AI. 10 stocks we like better than Nvidia › While artificial intelligence (AI) stocks have led the market higher the past few years, that doesn't mean there still aren't bargain buys to be found. If you have $5,000 to invest right n ...

The AI investment realm is full of great opportunities in 2026.With artificial intelligence (AI) usage skyrocketing, this sector of the market is a great place to look for stocks that could double in under a year. Many AI companies are generating explosive growth, and these are the ones to take a look at.Three, in particular, have a chance to double in value in 2026: Nebius (NBIS +1.13%), Applied Digital (APLD +8.05%), and SoundHound AI (SOUN 0.36%). All three are growing at a rapid pace and could provide i ...

Core Viewpoint - Third Point hedge fund is investing in three distinct categories within the AI sector, focusing on hardware, facilitators, and applications, with a significant portion of its portfolio allocated to five key AI stocks [1][2][3]. Group 1: Hardware - The hardware category includes Nvidia and Taiwan Semiconductor, with Nvidia being a leader in graphics processing units (GPUs) essential for AI applications since 2023 [4][5]. - Nvidia relies on Taiwan Semiconductor for manufacturing its chips, highlighting the interdependence between these two companies [5]. Group 2: Facilitators - Amazon and Microsoft are categorized as facilitators, providing cloud computing services that allow businesses to access AI capabilities without needing to build their own data centers [10]. - Amazon Web Services (AWS) and Microsoft Azure are the largest cloud platforms, benefiting from increased demand driven by AI workflows [10][12]. - The demand for AI computing capacity is expected to rise, making investments in Amazon and Microsoft strategically sound [12]. Group 3: Applications - The application segment is currently less emphasized in Third Point's portfolio, as hardware and facilitators have proven to be more profitable investments in the AI space [13]. - Meta Platforms is working on integrating generative AI into its services, which could lead to significant profit opportunities in the future [14]. - Maintaining some exposure to application-focused companies like Meta is advisable, as future developments in AI applications could yield substantial returns [15].

Group 1: Nvidia - Nvidia is the world's largest company by market cap, driven by high demand for its AI computing products, particularly GPUs, which are sold out [3][4] - The company projects global data-center capital expenditures will reach $3 trillion to $4 trillion by 2030, significantly up from $600 billion in 2025, positioning Nvidia as a primary beneficiary [5] - Shares are trading at 25 times projected fiscal 2027 earnings, with Wall Street analysts projecting 50% growth in fiscal 2027, indicating strong buy potential due to extreme product demand and market opportunity [6] Group 2: Amazon - Amazon's stock rose only 5% in 2025, underperforming the S&P 500, which rose over 16%, despite strong business performance [6][9] - The company operates in two segments: commerce and cloud computing, with the latter showing significant growth, particularly Amazon Web Services (AWS), which posted a 20% growth [8][9] - Continued strong growth in both segments is expected to position Amazon's stock favorably in 2026 [9] Group 3: Meta Platforms - Meta Platforms, the parent company of Facebook and Instagram, reported a 26% revenue increase in the third quarter, driven by a strong ad market and AI tool implementation [10] - The market reacted negatively to news of increased data center capex for 2026, leading to a stock sell-off, despite the company's strong fundamentals [11][13] - Meta is heavily investing in AI integration across its platforms, presenting a potential buying opportunity as it could lead to significant stock appreciation if new products succeed [13][14]

Companies in the Semiconductor – General industry are at the forefront of the ongoing technological revolution based on HPC, AI, electrified and automated driving, IoT and so forth. The semiconductors they produce enable the cloud to function and help analyze data into actionable insights that can be used by companies to operate more efficiently.  Therefore, the long-term outlook can only be considered bright. In the immediate future, however, there could be some challenges. While geopolitical instability a ...

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].

Among the Dow Jones Industrial Average's 30 time-tested components, there are two inexpensive industry leaders that can deliver for patient investors, as well as a highflier that may struggle to justify its premium valuation.It was another historic year for Wall Street's premier health barometer, the Dow Jones Industrial Average (^DJI +0.99%). The iconic index rose 13% last year and came within a stone's throw of eclipsing 49,000.In the 129 years since its inception, the Dow Jones has evolved from an indust ...

Core Insights - Investing in growth stocks, particularly those benefiting from artificial intelligence (AI), is highlighted as a promising strategy for building wealth in the new year [1] Group 1: Nvidia - Nvidia has achieved an extraordinary return of 458,000% since its IPO in 1999, with a current stock price trading at 25 times this year's earnings estimate, indicating solid value [2] - The company's data center revenue surged by 66% year over year last quarter, driven by high demand for its graphics processing units (GPUs) and networking components [3] - Despite increasing competition in the AI chip market, Nvidia's older chip generations continue to provide value to customers, allowing them to lower total ownership costs [4] - Nvidia's CUDA programming software enhances chip efficiency, extending their useful life and reducing the likelihood of customers switching to competitors [5] - The company has visibility into $500 billion of cumulative revenue from its current and upcoming chips, with analysts projecting a 50% revenue growth this year to $319 billion [7] - Nvidia is generating $99 billion in annual net profit and is expected to grow revenue at an annualized rate of 31% through the end of the decade, reaching $227 billion [8] Group 2: Palantir Technologies - Palantir Technologies is experiencing accelerating revenue growth for its AI platforms, with a quarterly growth rate of 63% year over year as of the third quarter of 2025 [10] - The company has a gross margin of 80.81% and is well-positioned to meet the growing demand for AI applications on edge devices, such as drones and robots [12][13] - Analysts project Palantir's annual revenue to grow at a rate of 39%, reaching $16.5 billion by 2029, up from $3.9 billion on a trailing 12-month basis [14]

Core Insights - Nvidia and Broadcom are identified as top AI stocks to consider for investment in 2026 and beyond, with a significant majority of investors planning to buy or hold AI stocks [1][2]. Nvidia - Nvidia's market capitalization stands at $4.6 trillion, with a current stock price of $187.47 and a gross margin of 70.05% [3][4]. - The company has experienced remarkable growth, with revenue increasing from $5.9 billion in fiscal Q3 2023 to $57 billion in fiscal Q3 2026 [3][4]. - Nvidia's GPUs are the primary drivers of AI workloads, and its data center networking revenue surged by 162% to $8.2 billion [4]. - The CUDA software platform has been pivotal in establishing Nvidia's dominance, as it has trained a generation of developers to optimize AI applications on its chips [5][6]. Broadcom - Broadcom has a market capitalization of $1.6 trillion, with a current stock price of $343.77 and a gross margin of 64.71% [7][8]. - The company specializes in data center networking and ASIC design, providing essential products for managing data flow in AI clusters [8][9]. - Broadcom is positioned to benefit from the growing demand for custom AI chips, with analysts predicting its AI revenue will increase from $20 billion in fiscal 2025 to over $50 billion in fiscal 2026, and $100 billion in fiscal 2027 [11]. - ASICs, while having high upfront costs and less flexibility than GPUs, are becoming a viable option for data center operators as inference workloads grow [10][12].