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

I am rating SK hynix a Strong Buy because it is the leading beneficiary of the AI memory boom, with dominant positioning in HBM, server DRAM and enterprise SSDs that are becoming increasingly critical to AI infrastructure deployments.

In my previous article, I argued that Intel (NASDAQ: INTC) was one of the most misunderstood names in semiconductors and assigned the stock a Strong Buy rating. After seeing Intel's Q2 2026 results, I remain firmly in that camp. In fact, if anything, the latest quarter strengthens my conviction that the market is still underestimating both the pace of Intel's recovery and the scale of opportunity ahead.

Microsoft's growth is increasingly supported by three interconnected engines: Azure and AI infrastructure, enterprise adoption of Copilot and AI agents, and an ecosystem that allows the company to monetize AI across cloud computing, productivity software, development tools, databases, security, and business applications.

I rate KLA Corporation a Strong Buy due to its crucial role in semiconductor manufacturing and its benefit from the growing AI infrastructure. As chip complexity grows, demand for KLA's solutions increases, making it essential to top semiconductor manufacturers.

I am rating Cerebras a STRONG BUY because the market is undervaluing its leadership in ultra-fast AI inference, despite growing evidence that its technology is becoming critical infrastructure for real time AI applications. The company's commercial traction validates its competitive advantage.

I am rating Ichor Holdings Limited a Strong Buy because I believe its niche gas delivery and flow-control systems sit squarely in the AI-driven semiconductor capex cycle. It is backed by a growing backlog and improving margin structure that the market underestimates.

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.