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

I am rating Coherent Corp a Strong Buy because I believe its laser and photonics franchise sits at the center of AI-driven semicapex and datacenter optical upgrades. This gives it durable pricing power, a growing backlog and attractive secular margins.

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.

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 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.

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.

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.

First and foremost I believe AMD is a STRONG BUY because it sits at the intersection of two durable secular trends: cloud CPU displacement and the AI accelerator build-out.

I am rating Amkor Technology (AMKR) a Strong Buy because I see durable AI-driven packaging demand, a heavy backlog, expanding advanced-node services and a valuation that discounts near-term cyclical noise while offering upside as demand normalizes and AI content ramps.