Yeah. These Stocks Are About To Make Investors Rich.

Reasoning: Alex holds Broadcom as a key player in custom AI chip development for major tech companies like Google, Meta, OpenAI, and Anthropic, positioning it as a direct competitor to Nvidia. Broadcom's AI chip revenue surged 221% year-over-year to $16.7 billion last quarter, with projections of $115 billion in AI chip revenue next fiscal year and $230 billion the year after that. This diversified exposure allows Alex to benefit regardless of whether the market shifts towards GPUs or custom chips.

Reasoning: Alex views high-bandwidth memory as a major bottleneck in AI development, with Micron being the only US-based major producer. Micron has secured contracts reserving most of its high-bandwidth memory through 2027 and expects the memory shortage to worsen in 2027-2028, leading AI companies to sign multi-year contracts and prepay. The company has $32 billion in customer commitments, mostly cash deposits, and despite being worth over a trillion dollars, it trades at just six times forward earnings, with revenues almost five times higher year-over-year last quarter.

Reasoning: Alex continues to dollar-cost average into Meta, viewing it as a global growth machine despite its substantial capex spending ($130-145 billion this year) on AI infrastructure. He justifies this by Meta's vast user base of 3.6 billion daily active users, which translates into significant returns: ad impressions are up 14%, average price per ad is up 12%, and revenues are up 28% year-over-year. The successful launch of its personal AI agent, Muse, which hit number one on the app store, further reinforces his bullish stance.

Reasoning: Alex considers Nvidia the top stock on his list and the heart of the AI revolution, driven by its leading GPU chips and the unmatchable CUDA software ecosystem. Despite rapid growth, Nvidia trades at a forward P/E of about 19x, which is the lowest among the Magnificent 7, even though its revenue growth has been accelerating (106% last quarter). Alex believes its hardware and software are too entrenched to be easily disrupted by other GPU makers.

Reasoning: Palantir has been on Alex's list for three years, and he views it as one of the only profitable pure-play AI software companies on the market. Its revenue grew 93% year-over-year, with full-year guidance implying 82% growth and 55% net margins. Alex expects this growth to continue, projecting an 11x expansion of the global AI market over the next nine years, positioning Palantir to capture a significant share with its AI software platforms.

Reasoning: Alex highlights TSMC as the critical foundry that manufactures about 90% of the world's most advanced chips, including those for Nvidia, AMD, Apple, Google, and Microsoft. Its unparalleled manufacturing capabilities allow it to set prices, with revenues up 51% year-over-year and anticipated price increases of up to 10% next year. Alex states that TSMC is essential because there's simply nowhere else for chip designers to go for advanced production, ensuring it profits from every side of the chip war.

Reasoning: As a longtime Google shareholder, Alex values its extensive AI compute power, owning proprietary Tensor Processing Units (TPUs) and an estimated quarter of the world's total AI compute. Google's full-stack strategy, from chips to cloud services and models, provides a strong competitive advantage. Despite raising its capex budget to $200 billion and going free cash flow negative last quarter, Alex views this aggressive investment as necessary to win the AI race, even renting TPUs to rivals like Anthropic.

Reasoning: Alex emphasizes Vertiv's critical role in providing power and cooling solutions for the increasingly demanding AI data centers. A single NVIDIA rack requires significantly more power (120 kW today, 200 kW for Vera Rubin racks) and direct-to-chip liquid cooling, which Vertiv supplies. The company raised its sales forecast to $14 billion this year and is acquiring Utility Innovation to offer comprehensive microgrid solutions, extending its market from power source to chip for gigawatt-scale AI factories.

Reasoning: Alex has been actively buying CrowdStrike stock, identifying cybersecurity as a non-optional cost of doing business in the AI era, especially with the emergence of AI-enabled cyber threats (e.g., OpenAI hacking HuggingFace). He praises its Falcon Cloud platform, including its proprietary threat graph that processes over a trillion security events daily. CrowdStrike reported record new recurring revenues, up 51% year-over-year, and Alex expects the cloud security market to triple in the next six years, with CrowdStrike well-positioned for significant growth.

Reasoning: Alex moved his money into Vanguard's Information Technology ETF (VGT) because it focuses on over 300 US tech companies, specifically targeting hardware, semiconductors, system software, and applications, while avoiding non-AI-themed or loss-making companies found in broader indexes like NASDAQ 100. VGT has outperformed both QQQ and SPY, making it the foundation of his AI-era investment strategy.

Reasoning: Alex owns Iron Mountain because it possesses the most secured power capacity (over 5 gigawatts across US, Canada, Spain, Australia) for its size, which it is dedicating to AI data centers. It has secured major contracts, including a 5-year, $3.4 billion cloud contract with Nvidia, who also took a warrant to buy 30 million IRM shares at $70 per share (implying 100% upside from its current $35 stock price). Microsoft also signed a 5-year, $9.7 billion deal, prepaying 20%. Despite execution risks associated with building out data centers, Alex sees its massive secured power as a unique advantage. Alex moved Iron Mountain to the bottom of his list due to execution risk and its reliance on old Bitcoin mining hardware.