Stock Club

This week, we dive into one of the hottest new companies in AI and the market: Cerebras (CBRS).The company only just IPO’d, but it’s already valued at close to $100 billion. Even more astonishing? Cerebras was founded just 11 years ago by five engineers.Its core thesis is radical: the architecture underpinning AI computing is fundamentally flawed.Cerebras argues that GPUs—the chips powering today’s AI boom—were never actually designed for deep learning. They just happened to be dramatically better than CPUs. So instead of improving on existing designs, Cerebras built something entirely different from the ground up: the Wafer Scale Engine (WSE).The result is a system that eliminates many of the bottlenecks caused by connecting multiple chips together while delivering memory bandwidth reportedly 7,000 times greater than traditional GPU setups.But for all the excitement, there are real concerns too.The company initially filed for an IPO in 2024, but the process was delayed after a national security review. It also came under heavy scrutiny after investors discovered it relied heavily on a single UAE-linked customer, G42. Even today, two UAE organizations account for roughly 86% of Cerebras’ revenue—an enormous concentration risk for any business.Still, the growth has been hard to ignore.Cerebras generated roughly $510 million in revenue in 2025, up 76% year-over-year, while swinging from a massive net loss to profitability. The business has also aggressively expanded into cloud AI infrastructure, signing major deals with OpenAI, Amazon Web Services, and customers including Meta (META), Mistral AI, Perplexity AI, and Mayo Clinic. Its OpenAI compute agreement alone is reportedly worth more than $20 billion through 2028.So the big question is simple: is Cerebras worth $100 billion?We then cover Elon Musk’s lawsuit against OpenAI, Sam Altman’s declining reputation, Anthropic’s revenue acceleration, and what it all means for the stock market, with many AI companies eyeing IPOs. 2026 could end up being the biggest year on record for public markets.Psssst…. We don’t think you’ll want to miss this year’s Investicon. Grab your early bird tickets now: https://www.investicon.ie/Prophet, MyWallSt's latest investing service, is focused on delivering market-beating in less than 5 minutes a month.Click here to join now or email [email protected] for a deal.Become a successful investor by checking out all the content MyWallSt has to offer:📩 Email us: [email protected]📚 Learn the fundamentals of investing by downloading our free Learn app: https://bit.ly/3DXPOz7💻 Keep updated on stock market news by visiting our blog: https://mywallst.com/blog/🎧 Tune in to our podcast Stock Club to stay updated on weekly news: https://mywallst.com/stock-investment-podcast/🎉 Follow MyWallSt on social:❌ X: @MyWallStHQ💃 TikTok: @MyWallSt📸 Instagram: @MyWallSt🖥️ Facebook: @MyWallSt👔 LinkedIn: MyWallSt00:00 Intro03:36 Meet Cerebras12:39 Benchmarks Speed Advantage17:32 Financials20:45 Bull Case22:11 Bear Case24:54 Elon Musk and OpenAI32:36 AI IPO wave

The market is on an absolute tear right now, and it’s raising some serious questions. Lucky for you, Mike and Emmet want to upack them all.Despite the crazy macroeconomic conditions, the market keeps performing. The Nasdaq Composite is up roughly 38% in the last year. And when you zoom in on individual stocks, things get even crazier.SanDisk (SNDK) is up 63% in a month, 450% in six months, and an eye-watering 3,800% over the last 12 months. Micron (MU) has jumped 86% in a month and nearly 8x in a year, while Western Digital (WDC) is up around 1,000% over the same period. Even lesser-known names like AXT (AXTI) are suddenly flying, up roughly 700% year-to-date.In fact, the top 10 stocks over the past 12 months have outperformed the top performers in the 12 month run-up to the dot-com bubble – a stat that’s hard to ignore.So… are we in an AI bubble?Skeptics like Michael Burry argue this rally looks even more extreme than 1999. And to be fair, many of the classic bubble ingredients are there: stretched valuations, momentum chasing, and heavy concentration in a single theme.But there’s a strong counterargument too.We’ve just come through a blockbuster earnings season, with the median earnings surprise hitting 6% – the best since 2022. AI demand isn’t just hype; companies are struggling to keep up. Hyperscalers like Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL) are pouring hundreds of billions into infrastructure, signaling that this could be a real productivity revolution.Still, that level of spending raises some eyebrows.And while AI stocks dominate headlines, there’s another side to this market.Plenty of high-quality businesses are being left behind, with money rotating aggressively into AI. Stocks like McDonald's (MCD), Home Depot (HD), Mercado Libre (MELI), Lululemon (LULU), and Accenture (ACN) are sitting near 52-week lows – along with a host of medical leaders like Abbott Laboratories (ABT), Medtronic (MDT), and Intuitive Surgical (ISRG). These are durable, proven businesses – but right now, if you’re not AI, you’re being ignored. So five years from now, would you rather own today’s high-flying AI names or these overlooked compounders trading at a discount?And finally, we dive into one of the wildest stories in the market right now: GameStop (GME) reportedly exploring a deal to acquire eBay (EBAY). GameStop is worth about $12 billion and to pull off the deal it could end up needing as much as $65 billion. Meaning, it would likely need to issue a massive amount of new shares and take on tens of billions in debt, raising serious questions about dilution and feasibility.We wrap with Follow Prophet.Prophet, MyWallSt's latest investing service, is focused on delivering market-beating in less than 5 minutes a month.Click here to join now or email [email protected] for a deal.Psssst…. We don’t think you’ll want to miss this year’s Investicon. Grab your early bird tickets now: https://www.investicon.ie/Become a successful investor by checking out all the content MyWallSt has to offer:📩 Email us: [email protected]📚 Learn the fundamentals of investing by downloading our free Learn app: https://bit.ly/3DXPOz7💻 Keep updated on stock market news by visiting our blog: https://mywallst.com/blog/🎧 Tune in to our podcast Stock Club to stay updated on weekly news: https://mywallst.com/stock-investment-podcast/🎉 Follow MyWallSt on social:❌ X: @MyWallStHQ💃 TikTok: @MyWallSt📸 Instagram: @MyWallSt🖥️ Facebook: @MyWallSt👔 LinkedIn: MyWallSt00:00 Intro02:22 Nasdaq Surge Bubble Talk05:18 Semiconductor Mania Stats16:21 C3 AI as Bubble Counterpoint21:43 Undervalued Stocks and Market Rotation24:38 GameStop Bids for eBay35:47 Following Prophet

The typical definition of Value Investing: Buying an asset for less than it’s truly worth. But according to this week’s guest Jose Najarro, the concept is widely misunderstood.Too often, value investing is associated with older, slower companies, think utilities, and traditional metrics like low price-to-earnings or price-to-book ratios. But those alone don’t define value. Every valuation comes with a set of implicit assumptions, and the real skill lies in unpacking them and deciding whether they’re realistic.In fact, some of Jose’s best-performing investments would never have been labeled “value plays” by conventional standards. Instead, he describes his philosophy as a modern take on value investing. His book, Wall Street’s Blind Spots, explores this idea in depth.Most importantly: you can’t judge a business purely by its cash flows – you have to look at what it does with them. Companies that reinvest cash poorly, such as buying back stock at inflated prices, can destroy value. On the other hand, businesses that consistently generate high returns on invested capital deserve a premium.Jose points to companies that can achieve around 20% returns on invested capital (ROIC) as the gold standard. Apple is a classic example: the success of the iPod funded the development of the iPhone, the iPhone funded the launch of wearables, and enormous long-term returns were achieved. Amazon is another, continually reinvesting into new ventures and compounding value over time.This framework raises important questions in today’s AI race. For instance, Google is expected to spend around $200 billion in capital expenditures this year. To justify that, it would need to generate roughly $220 billion in profit to achieve a 20% return – an outcome Jose views as far from certain. He draws parallels between today’s AI infrastructure buildout and telecom investments during the dot-com bubble: companies like AT&T and Verizon survived, but their stocks stagnated as they were trapped in endless cycles of reinvestment to maintain customers. The big payoff never came while companies that used that infrastructure flourished.His final takeway: investing, especially value investing, is a game of patience. Avoid the temptation of FOMO and focus on long-term fundamentals.Prophet, MyWallSt's latest investing service, is focused on delivering market-beating in less than 5 minutes a month.Click here to join now or email [email protected] for a deal.Psssst…. We don’t think you’ll want to miss this year’s Investicon. Grab your early bird tickets now: https://www.investicon.ie/Become a successful investor by checking out all the content MyWallSt has to offer:📩 Email us: [email protected]📚 Learn the fundamentals of investing by downloading our free Learn app: https://bit.ly/3DXPOz7💻 Keep updated on stock market news by visiting our blog: https://mywallst.com/blog/🎧 Tune in to our podcast Stock Club to stay updated on weekly news: https://mywallst.com/stock-investment-podcast/🎉 Follow MyWallSt on social:❌ X: @MyWallStHQ💃 TikTok: @MyWallSt📸 Instagram: @MyWallSt🖥️ Facebook: @MyWallSt👔 LinkedIn: MyWallSt00:00 Intro04:25 Defining Value Investing08:11 Modern Value Investing19:40 AI Bubble Risk23:06 Value Investing Even as Growth Stocks Rally28:59 The Rise of the Retail Investor35:16 Best Valuation Metric42:00 Common Valuation Mistakes

With all the talk of IPOs and upstarts, it’s a great time to remember that legacy players can still pack a punch. This week, we look at two companies that have been on public markets for decades and have been all over the headlines lately: Intel(NASDAQ: INTC) and Berkshire Hathaway (NYSE: BRK.B).Intel has been on the Stock Club radar for about nine months, when it was first pitched by Clem Chambers. Since then, it’s up more than 270%, driven by many of the factors he predicted like outsized chip demand, a push to deconsolidate manufacturing capacity, and increased government investment. It’s a pretty monumental occasion, considering this is the first time Intel has reached an all-time high since the dot-com bubble.In its most recent quarter, Intel reported revenue of $13.6 billion, well above estimates of $12.4 billion, while also delivering a significant expansion in gross margins and raising its revenue forecast. Definitely a stock worth a look if you can get past the valuation.Berkshire is in the news for a completely different reason: its new CEO, Greg Abel. While Abel assumed the role in January, this will be his first annual meeting – arguably Berkshire’s most beloved tradition.Compared to Warren Buffett, Abel is expected to take a more hands-on approach, often touring facilities across the company’s many subsidiaries and favoring direct involvement in operations.So far in his tenure, he’s accomplished four notable things:First, on his first day as CEO, he closed Berkshire’s $9.7 billion acquisition of OxyChem, Occidental’s chemical subsidiary.Second, on March 4th, Berkshire resumed share buybacks for the first time since May 2024, repurchasing about $226 million of stock. Clearly, Abel sees Berkshire itself as a buy and wouldn’t deploy that kind of capital otherwise.Third, he personally invested his entire $15.3 million after-tax salary into Berkshire Class B shares.Finally, he invested $1.8 billion into Tokio Marine, taking Berkshire’s total Japanese equity exposure above $46 billion.We’ll certainly be tuning in to the annual meeting on May 2nd.We wrap by telling you which one we’d invest $10K in.Prophet, MyWallSt's latest investing service, is focused on delivering market-beating in less than 5 minutes a month.Click here to join now or email [email protected] for a deal.Psssst…. We don’t think you’ll want to miss this year’s Investicon. Grab your early bird tickets now: https://www.investicon.ie/Become a successful investor by checking out all the content MyWallSt has to offer:📩 Email us: [email protected]📚 Learn the fundamentals of investing by downloading our free Learn app: https://bit.ly/3DXPOz7💻 Keep updated on stock market news by visiting our blog: https://mywallst.com/blog/🎧 Tune in to our podcast Stock Club to stay updated on weekly news: https://mywallst.com/stock-investment-podcast/🎉 Follow MyWallSt on social:❌ X: @MyWallStHQ💃 TikTok: @MyWallSt📸 Instagram: @MyWallSt🖥️ Facebook: @MyWallSt👔 LinkedIn: MyWallSt00:00 Intro01:53 Two Legacy Picks03:29 Intel Turnaround Setup05:05 CHIPS Act Boost08:14 Q1 Earnings Surge15:00 Buy Sell Or Regret17:45 Berkshire AGM Story20:05 Succession To Greg Abel and32:48 Operator Versus Investor40:34 Warren Buffet’s Japan Trade Playbook42:03 10k Pick

In light of Allbirds’ (NASDAQ: BIRD) head-scratching transition to an AI compute infrastructure company, Mike and Emmet break down some of the market’s best and worst business pivots.In simple terms, a pivot is when a business decides to stop doing what it’s known for and pursue something else. This can be proactive, like Slack giving up its gaming business to develop its internal communication tool, or reactive, like Netflix opting to move into streaming in response to digital competition.Emmet kicks things off with Nokia (NYSE: NOK). It started as a paper mill in Finland back in 1865. In the early ’90s, it exited its legacy businesses to focus entirely on mobile phones and network equipment, eventually ending up in a cell phone duopoly with Ericsson. However, Nokia is also a key example of how quickly market leadership can be lost when a company fails to anticipate major shifts – in this case, the move to smartphones. Luckily, it pivoted again, going all in on infrastructure and investing heavily in 5G, and it currently has a market cap of more than $50 billion.Saab started out building fighter jets for the Swedish military in the 1930s before expanding into cars after the war. In 1989, GM came in, bought half of the car company, and split it away from the aerospace division. By 2008, it was struggling and eventually went under. However, Saab AB (SAAB-B.ST) is thriving, with record backlog and profitability.Another post-war success story, Hyundai started as a civil engineering company helping Korea rebuild, eventually pivoting to car manufacturing in the 1960s. During the Asian financial crisis, Hyundai made a deliberate decision to move upmarket, investing heavily in design, engineering, and quality. Over time, it transformed from producing low-quality vehicles into a reliable, stylish, and increasingly desirable automaker.Finally, one of the market’s most infamous pivot stories: MicroStrategy (NASDAQ: MSTR). It was initially focused on information systems in the ’90s, rising and collapsing during the dot-com bubble. While its stock never fully recovered, its core business continued generating cash over the next 20 years. In 2020, CEO Michael Saylor decided to go all in on Bitcoin, and the stock is up 15x since. Today, the company holds $61.5 billion in Bitcoin on its balance sheet – about 4% of the current supply – at an average price of $75,527. Unfortunately, if Bitcoin falls below this price, it could trigger a massive sell-off of both MSTR and Bitcoin – not ideal.We wrap with Follow Prophet.Prophet, MyWallSt's latest investing service, is focused on delivering market-beating in less than 5 minutes a month.Click here to join now or email [email protected] for a deal.Psssst…. We don’t think you’ll want to miss this year’s Investicon. Grab your early bird tickets now: https://www.investicon.ie/Become a successful investor by checking out all the content MyWallSt has to offer:📩 Email us: [email protected]📚 Learn the fundamentals of investing by downloading our free Learn app: https://bit.ly/3DXPOz7💻 Keep updated on stock market news by visiting our blog: https://mywallst.com/blog/🎧 Tune in to our podcast Stock Club to stay updated on weekly news: https://mywallst.com/stock-investment-podcast/🎉 Follow MyWallSt on social:❌ X: @MyWallStHQ💃 TikTok: @MyWallSt📸 Instagram: @MyWallSt🖥️ Facebook: @MyWallSt👔 LinkedIn: MyWallSt(adjust these after intro)00:00 Intro02:40 Allbirds Goes AI07:34 What Is a Pivot12:05 Nokia Reinvents Itself18:52 Saab Cars to Defense28:09 Hyundai From Construction to Cars34:03 MicroStrategy Bitcoin Bet43:22 Follow Prophet Picks