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

Sterling is strategically positioned in rapidly expanding sectors particularly data centers, semiconductors, and e‑commerce infrastructure driving outsized revenue growth and long-term demand visibility.

ExxonMobil achieved stronger core results in the first quarter of 2026, despite disruptions in the Middle East, demonstrating the business's resilience in challenging conditions. As reported in the 1Q 2026 Earnings Release, earnings were $4.2 Bn, or $8.8 Bn when excluding identified items and estimated timing effects.

I rate a Microchip Technology a Buy because it is a durable embedded semiconductor compounder with long product lifecycles and high switching costs that provide stability through cycles.

I am rating Silicon motion a strong buy because the company is undergoing a structural shift toward AI centric enterprise controllers and boot drive solutions, driving higher growth, higher ASPs, and more durable margins.

For most of the last two years, the AI trade has revolved around the same handful of names. Nvidia became the face of the movement, while investors piled into semiconductors, hyperscalers, and anything directly tied to AI chips. But this week, Cisco reminded the market that the AI buildout is much bigger than GPUs alone. It also requires networking infrastructure, data flow, connectivity, and the physical systems that allow AI to function at scale.

A semiconductor company quietly transforming into an AI infrastructure and connectivity growth story.

On valuation, Valero still looks attractive. Its FWD Non-GAAP EV/EBITDA of 6.16x and FWD P/E of 9.33x are below Marathon Petroleum and Phillips 66, while its FWD PEG of 0.19x looks much better than HF Sinclair. In other words, the stock is not priced like a premium stock even though it has many of those qualities.

The S&P 500 finished the week up roughly 1.2%, while the Nasdaq gained around 1.8% as technology and growth names continued to lead. The broader market still showed signs of selectivity underneath the surface, but the overall tone was clearly constructive.

I am rating Diodes Incorporated a Strong Buy because the company is entering a margin led earnings inflection driven by a durable mix shift toward higher value automotive, computing, and industrial markets.

Despite recent successes, Chevron remains appealing compared to Exxon Mobil and ConocoPhillips when considering valuation alongside portfolio quality, dividend reliability, and disciplined cash returns.

I rate Western Digital Corporation a Strong Buy because it is benefiting from a sharp acceleration in data creation tied to AI and cloud, which is driving sustained demand for high-capacity infrastructure.

I am rating Penguin Solutions a Strong Buy because the company is at a structural inflection point monetizing AI inference infrastructure where memory performance is the primary bottleneck.

On Friday, Apple helped lead Wall Street higher after delivering stronger-than-expected quarterly results, while other companies such as Estée Lauder, Sandisk, and Colgate-Palmolive also supported the market with better reports.

Delaware-based Henriot Capital announces a new long-term equity strategy combining quantitative research and fundamental analysis to identify high-quality companies across global public markets.

Movado Group: A Cash‑Rich Brand Platform at a Discounted Valuation

Valuation is no longer distressed, but it still looks reasonable relative to peers when set against Aura's growth profile, cash generation, and unusually low FWD PEG

I am rating Astec Industies a BUY because the company has entered a structural margin‑expansion phase that is supported by backlog visibility, aftermarket mix shift, and operating leverage rather than cyclical recovery alone.

I rate Poet Technologies Inc (POET) a strong buy as it is positioned at the intersection of AI infrastructure and silicon photonics, addressing a critical data center bottleneck as electrical interconnects struggle to scale with next generation AI workloads.

Markets ended the week in a good mood, but not in a fully relaxed one. The S&P 500 and Nasdaq both closed at fresh records, helped by another burst of strength in technology and a market that was willing to lean into earnings wins.

I rate Astera Labs a Strong Buy due to its leadership in next gen AI data center connectivity and first mover advantages in PCIe, CXL and fabric scale interconnect solutions.