The S&P 500 is currently trading at a P/E of 25.85, which is not considered expensive bubble territory but also not cheap, and is expected to decrease to 24.2 as Q2 earnings are reported.
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GET IN EARLY! These 7 Stocks are About to Explode
Jul 12, 2026
The creator discusses the current issues with AI, specifically the high costs associated with its use, leading to companies overspending their budgets. He highlights examples of companies like Oracle, Microsoft, and Uber experiencing significant AI-related expenses. The creator believes this "growth at any cost" phase is shifting towards a focus on return on investment, and he plans to identify seven stocks positioned to solve these AI cost problems for potentially massive returns.
Linked Mentions
Tickers discussed in this post
Netflix is presented as an underpriced stock with strong fundamentals and significant upside potential, trading at attractive multiples relative to its fair value.
Broadcom (AVGO) is highlighted as a favorite AI stock, with its custom silicon enabling edge AI and its strong revenue growth justifying a premium valuation.
Qualcomm (QCOM) is positioned to benefit from the shift to edge AI with its Snapdragon chips enabling on-device AI processing.
Alibaba (BABA) is recommended as a surprise winner in the open-source AI boom, with its Qwen model driving adoption and cloud services.
Palantir (PLTR) is mentioned as a significant player in the AI revolution, offering broader solutions in security, agents, and deployment, and is expected to rebound into a great investment.
Datadog (DDOG) is highlighted for its AI observability platform, which provides crucial data and analytics for companies to measure and optimize AI agent and prompt usage, making it a valuable investment despite its recent gains.
ServiceNow (NOW) is identified as an undiscovered opportunity that orchestrates AI agents, and despite recent stock price drops due to AI replacement fears, the creator is still buying.
Cloudflare (NET) is presented as a key player in the AI infrastructure, acting as an air traffic controller for AI requests, with shares expected to rise significantly on this theme.
Meta Platforms encouraged employees to use AI extensively, even setting up a leaderboard, which resulted in hundreds of millions of dollars spent on the Claude AI model.