Mitchell Martan
Investment Researcher for The Long Investor, Economics/Finance Background
A market pullback is a chance to put capital into the AI technological revolution, a crash being the fastest way for young investors with capital to build wealth. AI is here to stay and will not destroy every company; disruption creates opportunity across the board. The pullback across Bloom Energy, Lemonade, Nvidia, AppLovin, Reddit, Alphabet and Microsoft is welcome. x.comÂ
Alphabet's businesses beyond search are why it will lead the real AI boom. Google Cloud, DeepMind and Waymo broaden its reach, and its $900 million SpaceX investment is now worth $85 billion. Fear emerging as the shares fall is an opportunity; a decline toward the buy zone is welcome, even as Q3 capex has taken a large hit out of free cash flow. x.com x.com x.com x.comÂ
AI spending could become defensive, with hyperscalers spending more to protect existing earnings rather than grow them. That risk complicates the long-term AI opportunity in Alphabet, Amazon, Meta and Microsoft; the current selloff is indiscriminate, and fighting it is hard despite differences among the companies. x.com x.comÂ
AppLovin's parabolic expectations face competition, regulatory scrutiny and doubts about sustainable growth. Despite becoming one of the market's biggest AI winners, those risks are making investors reconsider how much to pay. x.comÂ
Low forward earnings multiples make this thirteen-stock selection a long-term investor's dream. Per VJN.ai, Reddit trades near 14x, AppLovin 13x and American Express 16.5x; Oracle is at 15x, Vistra 14.5x, Nvidia, Uber and Netflix 17x, Qualcomm 18x, Meta, Broadcom and Taiwan Semiconductor 19x, and Alphabet about 20x. x.com x.com x.com x.com x.com x.com x.com x.com x.com x.com x.com x.com x.comÂ
Diversified cash flows in the billions make the AI-buildout basket more appealing than standalone model companies. Many members look reasonably priced and have longer records of delivering returns; Anthropic and OpenAI look much more like gambles at current valuations, though either could appeal at the right price. A possible equal-weight portfolio to revisit in five years includes Amazon, Alphabet, Microsoft, Meta, Oracle and SpaceX. x.com x.comÂ
Bloom Energy's demand may not become revenue when customers struggle to secure financing. Capital is difficult to raise in this climate; a reading of management's AI discussion also points to permitting, local opposition and customer credit as obstacles despite robust demand. Even after good earnings, the shares did not look very bullish. x.com x.comÂ
Growing businesses amid steep share declines make eight stocks generational buying opportunities. Nvidia guides toward over 70% growth in 2027 at 17.8x forward earnings, its cheapest valuation in a decade. Broadcom's AI chip revenue rose 221%; Amazon's backlog rose 154.4%; Oracle has $664B of backlog, half expected to convert within three years. Uber trips rose 18.3%, IREN AI cloud revenue rose 109.6%, Nokia AI and cloud sales rose 105%, and AppLovin exceeds 1B daily active users. x.comÂ
These 12 stocks offer exposure to AI, automation, health care, consumer growth and nuclear demand. AMD makes AI chips; Oracle builds AI cloud; Vertex has multiple drug opportunities. Arista supplies data-center switches, KLA inspection tools and Cadence chip-design tools. Palantir sells AI platforms; Symbotic automates warehouses; Alphabet spans search, cloud and AI. Celsius has US consumer momentum, AppLovin runs high-margin mobile ads, and Cameco mines uranium and co-owns Westinghouse. x.com … Show more
Financing risk makes AI-linked growth stocks unattractive to add here. Much of the money reaching suppliers such as Nvidia and Micron is financed, so harder funding would limit spending on chips, compute and memory. The buildout is not over, but stock prices could remain suppressed until it slows. A significant drawdown would make adding appealing; for many high-beta names with weak fundamentals and balance sheets, the highs look to be in. x.comÂ
AI, retail, healthcare and crypto exposure could make these 12 monster buys now. IREN builds AI cloud; Walmart grows ads and e-commerce; Netflix adds streaming ads; IonQ builds quantum computers and buys networking firms; Hims & Hers sells care direct; Coinbase earns from custody and stablecoins; Nvidia's CUDA locks in developers; Oscar targets self-insured customers; CoreWeave rents GPUs; Lumentum supplies AI optics; Block spans payments; Strategy holds bitcoin. x.com x.com x.com x.com x.com … Show more
