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

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.

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.

The company delivered a strong start to 2026, with normalized net revenue growth of 17%, adjusted EBITDA growth of 35%, and expanding margins. Management also raised full-year guidance and increased its long-term margin target.

Albemarle owns advantaged lithium capacity and high-margin specialty chemistries essential to EV and AI battery stacks. I see durable cash generation from expansions and disciplined capital allocation—hence Strong Buy

I am rating Seagate Technology (STX) a STRONG BUY because the company is positioned to capture explosive, multi-year capacity demand from AI and hyperscaler growth. This is while trading at a valuation that underestimates its near-term margin and cash-generation upside.

I rate Talen Energy a Strong Buy since it is positioned at the intersection of surging electricity demand from AI/data centers and a constrained supply of reliable, dispatchable power.

The AI boom is increasing semiconductor complexity, not just semiconductor demand. Advanced AI workloads are driving node transitions, rising HBM demand, and more sophisticated packaging architectures, all of which increase process intensity and support stronger demand for Lam’s technology.

I believe SanDisk Corp (SNDK) warrants a STRONG BUY rating primarily due to its pivotal role in the burgeoning AI landscape. The advent of AI technologies is significantly increasing the demand for rapid data processing and storage solutions. SanDisk, a pioneer in flash storage, stands to benefit immensely from these trends.

I am rating JinkoSolar a Strong Buy because it is the undisputed global leader in solar module shipments, trading at a deeply depressed valuation that prices in permanent earnings impairment rather than a cyclical trough followed by a structural recovery.

I rate GE Vernova a Strong Buy since it is directly positioned at the existing AI bottleneck which is power. Data center demand collides with grid limitations, interconnection delays and infrastructure bottlenecks and GE Vernova is directly positioned at the constraint.

I rate Constellation Energy a strong buy because it directly solves the binding constraint of the AI era through its unmatched fleet of nuclear baseload generation, giving it a structural and hard to replicate advantage as electricity demand from data centers accelerates.

I believe one energy infrastructure leader is uniquely positioned to benefit as hyperscalers race to secure reliable electricity for the next wave of AI and data center growth.

Bloom Energy is a strong buy due to its strategic position in the growing clean energy sector and its capability to address electricity demand constraints with its distributed, on-site energy systems that offer reliable, grid-independent power.

I am rating ASE Technology Holding a strong BUY because the company is entering a structural earnings acceleration phase driven by advanced packaging leadership and rising AI-driven semiconductor demand.