The alpha Brief: Insights on Quant Investing and the alpha Brief Portfolio (aBP)

I am rating Fabrinet a Buy because I believe its precision optical-packaging moat and customer intimacy position it to capture disproportionate share of the AI / hyperscaler optics buildout. This is backed by a deep backlog and attractive operating leverage [Market Cap $18.40Bn; P/E 37.19x).

Growth will be driven by the continued recovery in commercial aerospace, increasing demand for lightweight automotive materials, resilient packaging demand, and long-term sustainability trends that favor recyclable aluminum. Management also raised its full-year 2026 guidance following a strong first quarter.

Nexa is entering a favorable period of earnings growth supported by stronger metal prices, improving operational performance, record production at its Aripuanã mine, and long-term projects that will extend mine life and increase cash flow. Management also expects free cash flow to strengthen throughout the remainder of 2026 as first-quarter seasonal working capital effects reverse.

I am rating SOFI a BUY because I believe that ten consecutive profitable quarters, 41% revenue growth, and a PEG ratio of 0.81 collectively describe a business that the market is materially underpricing relative to both its growth rate and its actual financial delivery.

I am rating BBIO a BUY because it offers a rare combination of proven commercial traction . That is, Attruby growing 392% y/y and three additional drugs approaching FDA approval inside the next twelve months. All at a price that reflects only the drug that already exists.

I am rating Ciena Corporation (NYSE: CIEN) a Strong Buy because I see durable demand from hyperscalers and the AI-driven capacity cycle, a sticky services/backlog mix and a valuation gap versus peers that the market hasn’t priced yet.

I am rating Kratos a BUY because its specific programs are named in a confirmed $156 Bn government spending bill. This makes a contact level confirmation and not a macro defense bet.

I maintain a Strong Buy on Micron Technology due to accelerating AI memory demand. Micron's 3Q FY 2026 results indicate extreme and sustained supply tightness in the industry. High-bandwidth memory (HBM), advanced DRAM, and data center NAND are supply constrained, with demand far exceeding production capacity and visibility extending years ahead.

I am rating TSMC a STRONG BUY because it is the indispensable manufacturing backbone of the global AI ecosystem, with unmatched leadership in advanced semiconductor production and sustained demand for leading-edge technologies.

I rate Marvell Technology a Strong Buy because the company has established itself as one of the most important enablers of AI infrastructure. Its leadership across high-speed networking, custom AI silicon, optical interconnect, and data-center connectivity positions it to benefit from the rapid expansion of hyperscale AI deployments.

I believe Himax is a high‑leverage play on AI-driven vision and AR microdisplays. Conservative modeling of incremental CIS and microdisplay revenue implies materially higher EBITDA over 12–24 months, warranting a STRONG BUY.

I rate Lattice Semiconductor a Strong Buy because the company has established itself as the leading provider of low-power field-programmable gate arrays (FPGAs) for AI edge computing, communications, and industrial applications. Strong design-win momentum, expanding AI adoption, and a growing software ecosystem position the company for sustained long-term growth.

I am rating Arm Holdings PLC a Strong Buy because I believe its IP-first royalty model sits at the center of the AI compute stack. This gives durable margins, high operating leverage, and massive addressable upside as AI workloads proliferate.

I am rating Applovin Corporation a Buy because I believe its ad-monetization stack, growing app portfolio and AI-driven user acquisition tools can reaccelerate revenue and margin.

I am rating On Semi a STRONG BUY because it is transforming into a Physical AI platform, expanding its TAM and moving up the value chain. This transition supports higher margins and stronger long-term earnings growth.

I rate Navitas Semiconductor a Strong Buy because the company has successfully repositioned itself from a consumer-focused semiconductor business to a high-power semiconductor company serving AI data centers, energy infrastructure, performance computing, and industrial electrification. I believe this transformation is still underappreciated by the market.

Growth will be driven by Starlink subscriber expansion, higher-value enterprise, aviation, maritime and government contracts, continued launch leadership through Falcon 9, and the commercial rollout of Starship. These businesses reinforce one another, creating a powerful ecosystem that few competitors can replicate.

Palantir builds the operating system for AI driven decision making, anchored by sticky government contracts and accelerating commercial adoption. I see the platform turning high growth into durable profits, andthat’s why I rate PLTR a Strong Buy.

I rate Tower Semiconductor a Strong Buy due to its role in the AI and high-performance analog supply chain, a healthy backlog, and shares trading at a significant discount.

Alphabet combines unmatched search intent data, YouTube reach, and a growing Cloud AI stack to convert generative AI into durable revenue. I rate GOOG a STRONG BUY because conservative AI monetization assumptions still point to significant upside.