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

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.

According to the U.S. Bureau of Labor Statistics, the economy added 57,000 jobs in June, well below market expectations, while the unemployment rate edged down to 4.2%.

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.

I believe the company's SerDes/optics roadmap positions it to capture AI-driven hyperscaler bandwidth demand while trading at conservative forward multiples versus peers.

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.

At first glance, this looked like an energy story. In reality, it became a market-wide story. Lower oil prices improved sentiment across equities because they reduced one of the biggest risks investors had been watching over the past several weeks. If energy prices remain contained, inflation pressures may continue easing, giving central banks greater flexibility over the coming months.

Uber pairs massive transaction scale with new AI-driven efficiencies across rides, Eats and freight. I see sustainable margin expansion and conservative valuation upside — that’s why I’m a Strong Buy.

I am rating Broadcom Inc a Strong Buy because I believe its dominant data-center networking silicon, high-margin infrastructure software [post-VMware] and fiscal discipline position it to capture AI-driven capex from hyperscalers while returning cash to shareholders.

The company’s latest quarter was very strong. Revenue rose 18% to $82.9 Bn, operating income rose 20%, and non-GAAP diluted EPS rose 21%. Microsoft Cloud revenue reached $54.5 Bn, Azure and other cloud services grew 40%, and commercial remaining performance obligation rose 99% to $627 Bn.

Growth is being driven by record activity across listed derivatives, OTC products, securities trading, payments, and global market access, while management continues investing in AI-driven automation and workflow solutions.

Oracle’s latest results highlighted both the enormous demand being created by AI and the enormous investment required to support it. The company delivered strong growth, expanded its cloud infrastructure business, and continued building one of the largest AI-related order backlogs in the industry.

Corning (GLW) is the materials-and-optics backbone of AI infrastructure. I rate it STRONG BUY because expanding fiber demand, optical interconnect wins, and higher-margin specialty glass will drive durable revenue and multiple expansion.

Markets spent much of the past year proving that investors were willing to pay almost any price for AI stocks and artificial intelligence exposure. That phase may not be completely over, but this week suggested the market is entering a more demanding stage.

I rate Celestica (NYSE: CLS) a Strong Buy because the company is becoming one of the most important manufacturing and infrastructure partners in the AI ecosystem, benefiting from accelerating demand for AI servers, networking equipment, and cloud infrastructure.

Growing demand for AI workloads is increasing the need for high-speed optical communication systems, where Lumentum’s lasers, photonics, and networking components play a critical role.

I believe Intel is a STRONG BUY because IDM 2.0 plus AI-driven server refreshes create asymmetric upside from improving margins and contracted foundry revenue. The market is pricing execution risk, not optionality — I see clear paths to re-rating.