Core Insights - The article discusses the performance and outlook of the "Magnificent Seven" companies, highlighting a strong growth stock and a pricey industry leader that investors should be cautious about in 2026 [1][3]. Group 1: Magnificent Seven Overview - The "Magnificent Seven" includes Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta Platforms, and Tesla, which have significantly outperformed the S&P 500 over the past decade [2]. - Over the last 10 years, the S&P 500 has increased by 236%, while Meta Platforms has risen by 522%, and Nvidia and Tesla have seen extraordinary gains of 22,820% and 2,640%, respectively [2]. - These companies possess sustainable competitive advantages, such as Alphabet's 90% control of global internet search and Nvidia's dominance in AI-accelerated data centers [2]. Group 2: Meta Platforms as a Buy - Meta Platforms is identified as the stock to buy in 2026, with a strong user base of 3.54 billion daily users across its apps, making it a leading choice for advertisers [5][6]. - The company has a robust cash position, ending September with nearly $44.5 billion in cash and equivalents, allowing for investment in growth initiatives without immediate monetization [9]. - Meta's valuation is attractive at 22 times forward-year earnings per share, with potential sales growth of up to 20% in 2026 [10]. Group 3: Tesla as a Stock to Avoid - Tesla is highlighted as a stock to avoid in 2026, despite its significant market cap of nearly $1.5 trillion and profitability over the past five years [11][12]. - The company's vehicle operating margin has been declining, and it has had to reduce prices due to increasing competition and weaker global demand for EVs [13]. - A large portion of Tesla's profits comes from unsustainable sources, such as regulatory credits and interest income, rather than core EV sales [15]. - The company's high valuation at nearly 200 times EPS, with expected sales declines of 3% in 2025, raises concerns for investors [17].

Torsten Asmus/iStock via Getty Images By John Baldi & Michael Clarfeld, CFA AI Boom Requires Active Management, Discipline Market Overview 2025 marked the third consecutive year of this AI-driven cycle. The market-cap-weighted S&P 500 Index (SP500) rose 17.9% in the year, while the equal-weighted S&P 500 Index (SP500) gained just 11.4%. The Magnificent Seven, this market’s nucleus, rose 24.9% in 2025. Since ChatGPT launched three years ago, the cap-weighted S&P 500 has delivered nearly twice the gains ...

Core Insights - The Nasdaq Composite briefly entered bear market territory last year but quickly transitioned into a bull market driven by excitement around artificial intelligence [2] - Historically, the Nasdaq has experienced six bull markets since 1990, averaging five years in duration with an annual return of 31%, suggesting potential upside for investors by 2026 [3] Company Insights: Meta Platforms - Meta Platforms has a 29% upside potential based on Wall Street's median target price and owns three of the four most popular social media networks, providing deep consumer insights for ad targeting [5][9] - The company is heavily investing in AI product development, utilizing custom chips to reduce reliance on Nvidia GPUs and employing proprietary machine learning models to enhance user experience and ad performance [6] - Meta's conversational assistant has over 1 billion monthly active users, offering additional data for content recommendations and ad targeting, with integration into smart glasses presenting future opportunities [7] - In Q3, Meta reported a 26% revenue increase to $51 billion and a 20% rise in GAAP net income to $7.25 per diluted share, although the stock fell due to plans for increased AI spending in 2026 [8] Company Insights: Datadog - Datadog is recognized as a leader in observability software, essential for AI applications, with a median target price on Wall Street indicating a 62% upside potential [9]

Core Insights - The primary wealth destroyer in 2025 was not external factors like tariffs or AI disruption, but rather the speed of trading and decision-making in response to news [1][2] Group 1: Market Volatility and Speed - The 2020s have experienced 440 trading days with daily movements of 1% or more, compared to a typical decade average of 507 days, indicating an unprecedented level of volatility [1] - Investors felt pressured to react quickly to news, leading to a "fastest finger" mentality that resulted in exhaustion and sub-standard returns [2][3] Group 2: The DeepSeek AI Model Impact - The introduction of China's DeepSeek AI model in January 2025 led to a significant drop in Nvidia's stock, which fell by 17% in a single day as investors rushed to sell [4] - Subsequent analysis revealed that the initial cost estimate for DeepSeek was misleading, and major tech companies continued to invest heavily in data centers, benefiting Nvidia, which reported revenue and profit gains of over 65% and 57% year-on-year [5][6] Group 3: The TACO Trade Phenomenon - The TACO trade, based on the pattern of market reactions to President Trump's tariff announcements, became crowded as many investors attempted to capitalize on it, ultimately leading to poor outcomes [8][9] - Historical data shows that missing just the 10 best days in the stock market over 30 years could result in returns being less than half compared to staying fully invested [10] Group 4: Interest Rate Reactions - Traders reacted hastily to interest rate signals, leading to incorrect predictions about the number and timing of rate cuts, which did not align with actual market performance [11][12] - Despite these misjudgments, the S&P 500 rose over 23% in 2024, demonstrating that staying invested can yield positive results even when predictions are wrong [12][13] Group 5: The Case for Patience - The overarching lesson from 2025 is that the market rewarded patience and punished haste, as panic sellers locked in losses while patient investors captured recoveries [17][18] - The discipline to move slower than the market can provide a significant edge, emphasizing the importance of judgment over urgency [19]

Key Points Nvidia's dominance in the computing world is coming into question. Tech giant Alphabet might start selling a product to rival Nvidia's. Its custom TPUs could replace Nvidia's GPUs in some applications. 10 stocks we like better than Alphabet › Nvidia is the world's largest company at about a $4.6 trillion market cap. It has risen to these lofty heights thanks to huge data centers focused on artificial intelligence (AI). Nvidia is projected to have another incredible year in 2026, so knoc ...

24/7 Wall St. Quick Read Nvidia (NVDA) grew from a $17B market cap in 2016 to $4.5T today. The stock has gained over 23,600% in that period. Nvidia reported $57B in revenue for Q3 fiscal 2026 alone. That exceeds the company’s entire 2016 annual revenue by 10 times. A $10,000 investment in Nvidia in January 2016 would be worth over $2.37M today. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. Nvidia ...

Core Insights - Companies often execute stock splits as a sign of strong performance and optimism for continued growth, which can attract investor interest [1] Group 1: Amazon - Amazon has executed four stock splits, with the latest being a 20-for-1 split in June 2022, resulting in a 170% increase in share price since then [4] - Amazon Web Services (AWS) is a leading global cloud provider, benefiting from the AI boom, with significant investments in custom AI chips to maintain market leadership [5] - The advertising segment is growing faster than e-commerce, with high margins and effective advertising opportunities leveraging first-party customer data [6] - In Q3, Amazon reported net sales of $180.2 billion (up 13% year over year) and operating income of $17.4 billion, with AWS growth at 20% [9] Group 2: Netflix - Netflix has performed multiple stock splits, with the most recent being a 10-for-1 split in November 2025 [10] - The company is expanding into high-growth areas like ad-supported tiers, gaming, and live sports, aiming for profitable expansion rather than just subscriber growth [11] - In Q3 2025, Netflix's revenue reached $11.5 billion (up 17% year over year) with an operating margin of 28% and free cash flow of $2.7 billion [12] Group 3: Nvidia - Nvidia has executed six stock splits, with the latest being a 10-for-1 split in June 2024, leading to a 55% increase in share price since then [17] - The company reported record revenue of $57 billion (up 62% year over year) in Q3 2026, driven by data center and GPU sales [18] - Nvidia holds an estimated 80% to 90% market share in the data center AI chip market, with a strong competitive advantage through its CUDA software platform [20][21] - Demand for Nvidia's next-generation chips remains high, with a backlog of $500 billion in orders, and the company is expanding into new markets like robotics and autonomous vehicles [23]

Core Insights - The S&P 500 has gained 16% this year, but there are still attractive stock buying opportunities, particularly in Nvidia, Amazon, and Broadcom [1] Nvidia - Nvidia is a leader in the AI sector, providing GPUs that power most AI workloads, despite concerns about a potential AI bubble and competition [3][4] - The company reported $57 billion in revenue for Q3, indicating strong demand for its products, with CEO stating they are "sold out" of cloud GPUs [5] - Nvidia's stock has decreased nearly 20% from its peak, while analysts project a 48% revenue growth for the next year, making it a compelling buy [5] Amazon - Amazon's stock performance has been flat this year, but recent developments suggest a positive outlook for 2026 [6] - Amazon Web Services (AWS) achieved a 20% revenue growth in Q3, marking its best performance in years, indicating a resurgence in cloud computing [6] - The advertising service segment is also experiencing a reacceleration in growth, which is expected to drive Amazon's stock recovery in 2026 [7] Broadcom - Broadcom's custom AI accelerator chips are gaining traction among hyperscalers, contributing to the overall growth in the AI hardware market [6]

Group 1: Stanley Druckenmiller's Investment Moves - Stanley Druckenmiller sold his entire stake in Broadcom and bought shares of MercadoLibre in the third quarter [1][2] - Broadcom has a strong presence in networking chips and application-specific integrated circuits (ASICs), holding over 80% market share in Ethernet switching and routing chips [4][5] - MercadoLibre operates the largest commerce and fintech ecosystem in Latin America, accounting for 28% of online retail sales in the region in 2024, with projections to reach 30% by 2026 [10] Group 2: Broadcom's Financial Performance - Broadcom reported a 28% increase in revenue to $18 billion in the fourth quarter of fiscal 2025, driven by strong demand for AI semiconductors [6] - Non-GAAP net income increased 37% to $1.95 per diluted share [6] - Wall Street expects Broadcom's adjusted earnings to grow 42% annually over the next two years, with a median target price of $461 per share, implying a 35% upside from its current price of $342 [9] Group 3: MercadoLibre's Financial Performance - MercadoLibre's revenue increased 39% to $7.4 billion in the third quarter, with commerce and fintech segments growing by 33% and 49% respectively [13] - The company has seen a 29% increase in unique buyers in Brazil and a 42% increase in items sold, indicating strong growth [15] - Wall Street expects MercadoLibre's earnings to increase at 32% annually over the next three years, with a median target price of $2,842 per share, implying a 42% upside from its current price of $1,998 [16]

Hey, Kelly. So, this is a win-win for both Amazon and OpenAI. Now, for Amazon, it is about redemption.Anthropic had been its marquee AI partner, running its cloud models on Amazon's in-house AI chips. But lately, the startup has been signing new compute deals with Microsoft and Google, and that's been a reputational hit for Amazon and especially for its trrenium chips, which still are viewed, which are still not viewed as best-in-class on performance. Now, as for what OpenAI gets out of this, it's all about ...