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 rate Argan Inc a Strong Buy because I believe its EPC franchise sits at the center of the accelerating U.S. power infrastructure buildout driven by AI data centers, electrification, manufacturing reshoring, and aging generation replacement. This positioning provides exceptional backlog visibility, strong cash generation, and exposure to one of the most attractive long-term infrastructure themes in the market.

I am rating Oracle Corporation a Strong Buy because I believe its cloud infrastructure, software subscription mix, and rising GenAI demand create durable high-margin annuities with significant upside as enterprises re-platform to OCI and Oracle Apps. This thesis rests on accelerating cloud bookings and attractive forward multiples.

I am rating Vistance Networks Inc a Strong Buy because I believe the company is sitting at the intersection of growing fiber/Wi‑Fi demand and the AI-driven edge upgrade cycle, with a lean balance sheet and backlog that should re-rate multiples.

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.

The company's long-term growth is supported by three key drivers: continued expansion in Asia, a growing contribution from its capital-light Wealth & Asset Management business, and AI initiatives that are improving operational efficiency, customer engagement, and underwriting productivity across the organization.

I am rating Wayfair Inc a Strong Buy because I believe AI-driven personalization, better fulfillment economics and a recovering post-pandemic catalog position will accelerate profitable growth while the market still prices in low expectations.

The company's long-term growth will be supported by three primary drivers: continued fiber infrastructure deployment across the United States, expanding exposure to hyperscale data center construction, and disciplined operational execution that is translating into higher margins and stronger cash generation. Management also continues investing in workforce development and strategic acquisitions to strengthen Dycom's competitive position.

I am rating Powell Industries a STRONG BUY because the market continues to value the company like a cyclical industrial business despite record backlog, durable gross margins, and significant exposure to long term electrification and data center infrastructure spending. I believe that these fundamentals support a higher quality earnings profile than investors currently recognize.

I rate Par Pacific Holdings, Inc. (NYSE: PARR) a Buy because I believe the market is undervaluing a high-quality downstream energy company with a unique combination of refining, logistics, retail, and renewable fuels assets. Unlike many independent refiners, Par Pacific has built an integrated platform that generates cash flow across multiple business segments while benefiting from geographically advantaged markets in Hawaii, the Pacific Northwest, and the Rockies.

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 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).

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 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.