Let's Talk Money! with Joseph Hogue, CFA

This ETF is recommended for 'Growth Optimist' investors whose portfolios are heavily concentrated in US tech and growth stocks. VXUS offers crucial geographic diversification by investing in over 8,000 global stocks outside the US, spanning various sectors like healthcare, materials, industrials, and consumer goods. It is presented as a value play, trading at a 22% discount to US stocks, and provides currency diversification, which can protect against a weakening US dollar. The fund previously outperformed US stocks with a 32% return.

The Invesco S&P 500 Equal Weight ETF is suggested for investors who might mistakenly believe their VOO (S&P 500) heavy portfolio is diversified, but it's actually concentrated in a few mega-cap tech stocks. RSP addresses this by equally weighting all 500 companies in the S&P 500, reducing concentration risk and providing greater exposure to smaller and mid-sized companies and value stocks. This approach historically performs better when interest rates are high or when market rotations occur out of growth names. RSP has recently shown stronger performance compared to the market-cap weighted VOO.

The Vanguard Total Bond Market ETF is recommended for 'All-Stock' investors to diversify across asset classes and mitigate volatility risk. BND holds over 11,000 bonds, including US Treasuries and corporate bonds, which are driven by interest rates and credit rather than stock market earnings, thus providing a different risk profile. Bonds tend to hold up better during recessions and can even produce positive returns when interest rates fall, as demonstrated during the pandemic crash where BND saw a positive return. It also provides a 4% dividend yield, offering a source of income and cash to buy into stocks during market downturns.

The State Street Real Estate Select Sector SPDR ETF offers 'All-Stock' investors a way to diversify beyond traditional stocks into real estate assets. This fund invests in properties like data centers, cell towers, and warehouses, generating real income from rents. While its price may track the stock market, real estate helps smooth out overall portfolio risk, rebounds quickly, and provides significant cash flow through a 3.3% dividend yield. It offers stability and income that pure stock portfolios often lack, particularly during market downturns.

Amphenol (APH) is presented as a strong buy due to its leadership in interconnect solutions, strong revenue growth (31% expected), and robust operating margins (24%) which have improved by nearly 5% over the past five years. The host emphasizes the company's competitive advantages and strong market position across diverse sectors like automotive, aerospace, defense, and industrial, suggesting a positive long-term outlook beyond one-year price targets.

Nvidia (NVDA) is presented as the dominant AI stock, having surged 1300% over the last five years and 41% in the past year. Its leadership in GPU and accelerator design, coupled with its proprietary CUDA software stack and dominant semiconductor technology, provides a strong competitive advantage and recurring revenue. The company is expected to deliver 57% revenue growth this year, with an exceptional 59% operating margin, which is the highest in its industry and has grown by 26% over the last five years. Analyst price targets reflect strong bullish sentiment, with an average of $260.06 (37% upside) and a high of $352 (85% upside), suggesting significant continued growth.

Broadcom (AVGO) is identified as a top pick in the AI data center infrastructure theme due to its comprehensive provision of components like accelerators, chips, TPUs, networking, and storage devices, enabling effective cross-selling for higher margins. The company is projected to achieve 50% revenue growth this year with a robust 40% operating margin, having increased its profitability by 24% over the last five years. Analyst price targets are highly optimistic, with an average of $457.75 (33.40% upside) and a high of $525 (53% upside), indicating strong confidence in its continued performance within the rapidly growing AI market.

Advanced Micro Devices (AMD) is viewed as a highly promising stock, positioned as a strong competitor to Nvidia in the chip market. The company is guided by its CEO towards a significant increase in operating margins to 30% over the next few years, a substantial improvement from its current 8.8%. With an impressive 60% revenue growth expected next year, surpassing even Nvidia's projections, AMD demonstrates a clear path to enhanced profitability. Analyst price targets suggest considerable upside, averaging $289.13 (34.19% upside) and reaching a high of $377 (74.87% upside), with the host confident that even a 20% operating margin will propel the stock much higher.

Ubiquiti (UI), a communication equipment provider specializing in wireless networking, routers, switches, and IoT connectivity, has seen a 91% increase in its stock price over the last year. It is considered a crucial "bottleneck" for AI data center server infrastructure. The company is expected to achieve 47% revenue growth and a 33% operating margin, effectively converting a third of its revenue into profits. However, the host notes that its valuation may be getting extended following its significant surge, and analysts show a mixed outlook with some downside potential, leading to a cautious stance despite strong fundamentals.

Arista Networks (ANET) is highlighted for its critical role in AI data center networking solutions, demonstrating strong competitive advantages through its low-latency, programmability, and EOS software. The company has seen a 19% increase in its stock over the past year. While its projected revenue growth is 27%, its operating profitability is an impressive 43%—the highest in its industry—and has improved by 10% over the last five years. Analyst outlook is highly positive, with an average price target of $172.88 (20.31% upside) and even the lowest target of $158 representing a 10.65% upside, reinforcing its strong bullish outlook.

TE Connectivity (TEL) is recommended as a strong stock within the electrical connectors and components industry, having seen a 50% increase in share price over the past year. It boasts strong competitive advantages, with an expected 26% revenue growth and 18% operating margins, which have improved by 4% over the last five years. While its growth and margins are slightly lower than Amphenol, its valuation is considered more attractive at half the price-to-sales ratio. Analysts show confidence, with an average price target of $278.50 (21% upside) and even the lowest target of $244 offering a 6.5% upside.

Western Digital (WDC) has experienced a significant boom, with shares up over 400% in the last year, driven by memory shortages and the AI data center buildout. The company is projected to achieve 79% revenue growth and 25% operating profitability, having increased its profitability by 25% over the past five years. Despite strong market demand and the company's ability to raise prices, analyst targets show some disagreement, with one bearish analyst setting a low target of $170, representing a significant downside. The host suggests waiting for a better buying opportunity.

Super Micro Computer (SMCI) is highlighted as a pure-play AI server maker with expansion into data center concierge services, which could significantly boost future margins. Despite a 21% decline and high volatility in its stock over the past year, the company boasts an impressive 87% expected revenue growth for the full year, following a 123% increase in the most recent quarter. The host emphasizes that its current operating profitability of 4.4% is due to aggressive pricing and increased R&D/marketing to capture market share, with the potential to raise prices and increase profitability significantly in the future. Despite a notably low price target from Goldman Sachs, which the host dismisses as potentially retaliatory, the stock is considered deeply undervalued at a 0.77 price-to-sales ratio, suggesting it could double in price.

Okta Inc (OKTA) is highlighted as a favored stock in the cybersecurity space, specifically in cloud identity and access management, holding the second-highest market share after Microsoft. The company is praised for its strong competitive advantages, particularly in customizable designs. While the cybersecurity segment isn't the highest growth, Okta is expected to achieve 22% revenue growth, and its operating profitability, though currently low at 3.9% due to high R&D spending, has increased by 33% over the last five years. Analyst price targets show significant upside, with an average of $115.29 (30% upside) and a high of $145 (64% upside), despite a low target of $75. The host suggests an options strategy of selling covered calls to reduce risk and generate income, further enhancing the appeal of this stock.

Alphabet's Google showcased strong financial performance by beating earnings and revenue expectations in the last quarter. The company announced significant plans to double its capital expenditure on AI infrastructure, projecting spending between $175-185 billion in 2026, up from $91-93 billion in 2025. This aggressive investment in AI models and data centers is seen as a major catalyst for future growth and a buying opportunity despite any recent market volatility.

Meta Platforms experienced a significant jump in share price following stronger-than-expected revenue forecasts and robust fourth-quarter earnings. The company plans to substantially increase its capital expenditures for artificial intelligence, targeting $115-135 billion for 2026, which is double the amount spent in 2025. This massive investment into AI infrastructure, including Meta Superintelligence Labs, is viewed as a strong indicator for future growth and a buying opportunity.

Amazon's shares experienced a decline despite beating both earnings and revenue expectations, primarily due to the announcement of a nearly 60% increase in AI-related capital spending to $200 billion in 2026. The analyst views this market reaction as irrational, emphasizing that such significant investment in AI data centers, coupled with strong growth in Amazon Web Services (AWS), presents a clear buying opportunity as these expenditures are crucial for driving future AI capabilities and revenue.

NVIDIA is considered a direct beneficiary of the immense capital expenditure planned by hyperscalers for AI infrastructure, totaling over $700 billion. The stock's recent sell-off, despite these positive spending outlooks, is seen as irrational. The analyst believes that as this significant funding flows into AI infrastructure, NVIDIA, a key provider of GPUs and other data center components, will inevitably see its stock price head higher.

AMD, a direct competitor to NVIDIA, is positioned to benefit significantly from the substantial capital spending on AI infrastructure by major tech companies. The stock experienced a notable dip during a recent market sell-off, which the analyst views as illogical given the impending large-scale investments in data centers and AI. The expectation is that AMD's shares will climb as the allocated funds translate into increased demand for its critical components in the AI supply chain.

Arista Networks, a key player in networking infrastructure for AI data centers, is expected to be a major recipient of the projected $700+ billion in AI capital spending. Despite a recent market sell-off, the company is set to report strong earnings with projected 23% sales growth and 76 cents EPS. The analyst highlights Arista Networks' critical role in the AI data center 'bottleneck' as a primary driver for future growth, implying a positive outlook as these investments materialize.

Broadcom is highlighted as one of the best-positioned companies in the AI data center build-out due to its comprehensive portfolio, including accelerators, networking equipment, software, and chips (TPUs), essential for AI infrastructure. The recent sell-off, despite massive industry spending plans for AI, is deemed irrational. The analyst expects Broadcom to significantly benefit from the over $700 billion allocated for AI infrastructure, driving its stock price higher.

Robinhood Markets saw a significant price drop from its October peak but recently rebounded. The company is expanding into prediction markets and cryptocurrency, with analysts expecting 32% revenue growth to $4.5 billion this year. Despite its expansion and relative valuation being below past highs, the analyst notes it's not 'particularly cheap yet' based on a 16.5x price-to-sales ratio, suggesting a cautious, neutral outlook pending further developments.

Coinbase Global has experienced a substantial 'crypto winter' sell-off, with its stock dropping over 50% from its peak. However, it recently showed a strong rebound. The company is projected to have 10% revenue growth this year and 13% next year, with an EPS of $7.7. Trading at a price-to-sales ratio of 6.1x and a P/E of 21x, the analyst views Coinbase as a 'relatively cheap stock' and an 'attractive play' for investors who believe in the long-term growth of the cryptocurrency theme.

McDonald's is set to report earnings, having shown resilience with moderate stock gains over the past week and year, attributed to its stable cash flows as a consumer staple. However, management has missed earnings expectations in three of the last four quarters. While the company is not considered 'particularly cheap' or 'expensive' with a projected 8.75x price-to-sales ratio, its stable cash flow offers a safer investment in a volatile market, leading to a neutral stance.

Astera Labs is identified as a 'darling' in the networking infrastructure space, crucial for AI data centers. The company has shown strong market performance, rising 62% over the last year and rebounding 12% on the week. Despite facing competition, Astera Labs is positioned for significant growth, with analysts expecting 76% revenue growth this quarter and 108% for the full year, alongside a robust EPS of $1.78. The analyst highlights its growth prospects and critical role, indicating a strong bullish outlook despite its high valuation.

Super Micro Computer (SMCI) delivered an explosive earnings report with 120% revenue growth and an upgraded full-year sales forecast to $40 billion, exceeding expectations. The company, which holds a significant 22-33% market share in AI servers, saw its stock surge 13% post-earnings before falling with the broader market sell-off and then rebounding. Despite its inherent volatility and past price swings, the analyst believes SMCI's strong fundamentals and growing market share in critical AI infrastructure components give it permission to head higher, proving bears wrong and signaling a buying opportunity.

Meta Platforms, with its vast social reach across Facebook, WhatsApp, and Instagram (over 4 billion users), is poised for an inflection point driven by AI in the advertising industry. Mark Zuckerberg's plan to leverage AI for ad creatives aims to automate and enhance advertising, potentially revolutionizing the trillion-dollar ad market. The company exhibits strong and improving operating profitability, with a 43% LTM operating margin and an impressive 21% expected revenue growth this year, outperforming rivals like Alphabet.

NextEra Energy is a leading clean energy utility and the world's largest renewable power generator, positioned across traditional power and renewables. The company has seen an 18% return over the last year despite policy changes, benefiting from immense scale, low-cost production, and long-term contracts. Its operating margin of 29.9% is expanding and is significantly higher than peers, coupled with a projected 14.9% revenue growth, driven by investments in electric and gas transmission, and meeting electricity demand from AI and data centers.

Arista Networks is a favored stock within the AI supply chain, specializing in networking solutions (equipment and software) crucial for moving data in data centers. The company benefits from supply constraints in networking equipment, driving a substantial 27% revenue growth. Its EOS platform provides a competitive advantage with high-speed switching for AI cloud centers, evidenced by its high and expanding operating margins (42.9% LTM), outperforming industry peers.

AppLovin' Corp is a top-performing ad-tech company whose core Axon platform helps developers monetize users effectively. The platform consistently delivers superior advertiser CPA and publisher CPMs, demonstrating a strong competitive advantage through its scale and unmatched customer base. The company boasts an impressive and growing operating margin of nearly 60% LTM, up from 19.6% pre-pandemic, and projects a robust 22% revenue growth this year, effectively converting a large portion of its revenue into operating profits.

Netflix is a dominant leader in streaming, benefiting from a significant competitive advantage in international content production, which allows it to create blockbusters like 'Squid Games' at a fraction of the cost compared to U.S. producers. Despite recent stock performance, the company's international shows are highly addictive, driving increasing operating profitability (29.1% LTM, up from 12% in 2019) and a solid 13% expected revenue growth this year.

Deckers Outdoor, despite recent challenges like tariffs, has maintained and improved its profitability through strong brand management (UGG, HOKA) and efficient supply chain operations. The company's ability to raise prices and effectively manage costs demonstrates its competitive advantage and strong management. Deckers has increased its operating margin from 16% pre-pandemic to 23% LTM, indicating continued efficiency improvements and potential for higher future returns.

Coca-Cola is a globally recognized brand with a $315 billion market cap, showing consistent growth. The company has strategically refocused on its core beverage business, diversifying into various categories like water, tea, juice, and sports drinks. This strategy, combined with strong customer loyalty and an efficient bottling and distribution network, provides a competitive advantage that contributes to its high 30% LTM operating margin, significantly outperforming competitors like PepsiCo in beverage-focused profitability.

MPLX LP, a midstream energy partnership, benefits from stable, fee-based cash flow through its ownership of crucial energy infrastructure like pipelines and storage facilities. This business model, based on long-term contracts, reduces risk compared to commodity producers. The company provides a high dividend yield of 7.8% and is actively expanding its operations. MPLX has demonstrated improving profitability, with its operating margin increasing from 26% in 2019 to 45.3% LTM, while maintaining steady revenue growth.

Eli Lilly is on track to become the first trillion-dollar healthcare company, primarily driven by the success of its weight-loss drugs, Zepbound and Mounjaro, which have significantly captured the anti-obesity and type 2 diabetes markets. The company boasts a robust metabolic disease pipeline and substantial cash flow (over $16 billion annually), enabling continued development and acquisitions. Eli Lilly exhibits strong and improving operating profitability, with a 38% LTM operating margin and an impressive 41% annual revenue growth, particularly with new pill forms of obesity drugs expected to further drive revenue.

TransDigm Group (TDG) is a smaller, yet highly specialized aerospace company that designs and supplies complex, often sole-source, aerospace components and systems. This unique position grants TDG a significant competitive advantage, leading to high and improving operating profitability. The company has a 47% LTM operating margin, up from 37% in 2019, and is experiencing strong double-digit revenue growth of 12%.

Southern Copper Corp (SCCO) is a major, low-cost producer of copper and other industrial metals with extensive mining operations in Peru and Mexico, providing a competitive advantage in cost efficiency. The company is benefiting from rising industrial metal prices, driven by dollar debasement. While its current operating margin (50.3% LTM) is respectable, its strong 14% revenue growth is noteworthy, indicating robust demand for its products.

Eli Lilly has achieved remarkable growth, with its stock soaring nearly 500% over the last five years, largely driven by its strong competitive advantages in metabolic disease and diabetes, particularly with its weight loss drugs like Zepbound and Mounjaro. These products have positioned the company to potentially become the first trillion-dollar healthcare stock. With over $16 billion in operating cash flow and a continuously funded R&D pipeline, Eli Lilly is poised for sustained innovation and pipeline acquisitions. Analysts forecast surging revenue (up 41% this year and 20% next) and a projected 150% increase in earnings over a two-year period. While not a 'cheap stock' at a calculated forward P/E of around 33x, its exceptional growth trajectory makes it a compelling long-term investment.

Medtronic is positioned as a strong player in the MedTech market, leading in cardiovascular, neuroscience, and medical surgical segments. The company offers a consistent dividend and acts as a defensive asset during market downturns. With a robust product pipeline, including significant revenue expected from ablation solutions and other new launches, it's anticipated to surpass modest growth forecasts. The spin-off of its diabetes unit is a key catalyst for margin expansion and EPS accretion. Trading below historical P/E levels, and backed by positive analyst targets, Medtronic offers consistent year-over-year upside.

The State Street Health Care Select Sector SPDR ETF (XLV) offers a broad and defensive investment strategy for the entire healthcare sector. Historically, healthcare stocks tend to outperform during recessions due to their stable cash flows, making XLV a reliable safety play against economic weakness. The ETF holds the largest 60 companies in the healthcare sector, providing diversified exposure without the need for individual stock picking. Recent rotation into healthcare stocks suggests that this sector is gaining favor and is expected to perform strongly if economic weakness persists, offering both stability and growth potential.

AbbVie is highlighted as a pharmaceutical powerhouse with a durable competitive advantage and a robust pipeline, particularly in immunology, oncology, and neuroscience. The company is strategically shifting focus from legacy blockbusters like Humira to higher-growth products such as Skyrizi and Rinvoq, which are projected to generate over $31 billion in sales by 2027, bolstered by Rinvoq's extended exclusivity to 2037. Despite potential short-term political pressures in the pharma sector, AbbVie is expected to achieve significant earnings growth (36% into next year), presenting an attractive long-term investment opportunity at a calculated trailing P/E of approximately 21.7x, which is considered 'fairly cheap' for a drug stock. Analyst price targets also indicate substantial upside.

The iShares Biotechnology ETF (IBB) is recommended as a strategic way to invest in the high-growth biotechnology sector while mitigating the inherent risks of individual biotech stocks. Direct investment in individual companies is deemed 'nearly impossible' without deep industry expertise, as single FDA decisions or pipeline news can cause significant volatility. IBB provides diversified exposure to over 250 biotech and pharmaceutical companies, from industry giants to smaller innovators, offering access to the fastest-growing area of healthcare through a single, less volatile investment vehicle.

Cigna Group has demonstrated a decade of consistent adjusted EPS growth, averaging over 13% annually, and is well-diversified across its specialty, insurance, and pharmacy benefit services. Although the healthcare insurance sector may face political scrutiny in an election year, Cigna's proven ability to translate essential services into stable earnings growth is a key strength. The stock is currently trading at a 'steep discount' with a trailing P/E of around 12.22x, significantly lower than its past trading levels, making it a very cheap stock with strong rebound potential. Analysts project a substantial upside of 23% on average, with some targets as high as 39%, reflecting confidence in its long-term value despite near-term headwinds.

CrowdStrike is a top pick in the pure-play cybersecurity sector, particularly strong in endpoint and agentic security segments which are experiencing rapid growth. The host is buying CRWD due to its competitive advantage and leadership in critical areas of cyber defense.

Zscaler is a pure-play cybersecurity company specializing in cloud and SASE (Secure Access Service Edge) solutions, which are among the fastest-growing segments within the industry. The host is buying Zscaler for its strategic positioning and growth potential in these essential cyber defense areas.

Advanced Micro Devices (AMD) is positioned for strong growth in the AI compute market, with CEO Lisa Su forecasting 35% revenue growth and a path to $20 EPS. However, the company is currently in a high-capital spending phase, leading to lower earnings growth (21%) despite robust revenue growth (26%). The host notes that the stock's current valuation at 12x price-to-sales is expensive compared to historical levels, suggesting a neutral stance and preference to buy only if it dips to about 10x price-to-sales, or around $220 per share.

Fortinet, a cybersecurity leader, has seen its shares decline by nearly 20% over the last year, offering a more attractive valuation. The company is expected to grow sales around the industry average of 12% annually, but it stands out for its superior profitability, maintaining a 28% profit margin while many competitors are posting losses due to heavy growth investments. With expected EPS of $2.69 this year, its price-to-earnings ratio is normalizing, offering a 32% discount from its historical average, making it an attractive long-term growth story.

Palo Alto Networks is identified as a leading pure-play cybersecurity company due to its broad participation and leadership across high-growth segments like cloud security and secure access edge. In an industry with non-negotiable IT spending on security, PANW is well-positioned for strong, continuous growth.

Super Micro Computer (SMCI) is a critical component in the AI data center build-out, expected to achieve 65% revenue growth this year, with management repeatedly confirming robust sales targets. While earnings are projected to be flat this year due to aggressive capital spending to gain market share (now controlling 22% of the high-performance server market), they are anticipated to rebound by 50% next year. The stock currently trades at an attractive 0.5x price-to-sales, significantly below its historical average and a target of 1.0x, making it a compelling investment despite a 20% short interest which could lead to a short squeeze.

AeroVironment is highlighted for its leadership in drone vehicles, successfully transitioning from military contracts to commercial growth opportunities. The company is experiencing robust growth, with shares up over 63% in the past year and revenue projected to increase by 140% this year, positioning it strongly within the expanding robotics market.

Symbiotic is a significant player in the AI-powered warehouse robotics and logistics market, with key partnerships including Walmart and a joint venture with SoftBank aimed at reinventing the trillion-dollar logistics industry. The company is forecasted to maintain strong revenue growth at a 20%+ pace, and while its earnings may be temporarily impacted by R&D spending, they are expected to rebound. Despite a valuation of 12x price-to-sales, the host views it as a long-term disruptor and recommends buying on any dips.

Datadog provides essential unified observability, metrics, security, and user monitoring solutions, becoming mission-critical as companies deploy AI agents. Despite a recent 10% stock decline over the past year, the company is expected to continue delivering over 20% annual revenue growth, making it a compelling buy as AI development expands.

Snowflake's cloud data platform is crucial for enterprises needing to store, share, and analyze vast data sets in the evolving AI era. Although shares have only climbed 8% in the past year, the company is projected to achieve 28% revenue growth this year, indicating significant potential for future stock appreciation.

Insulet, maker of the Omnipod insulin delivery system, has seen its stock decline due to concerns about weight loss drugs. However, the host argues that the global insulin delivery market is robustly growing at 15% annually, even with the rise of GLP-1s, noting that weight loss drugs are often lifelong and temporary cessation leads to weight regain. The company consistently beats earnings expectations, with strong projected revenue and EPS growth for the current quarter and full year. Analyst price targets indicate significant upside, with an upcoming earnings report acting as a potential catalyst for the stock.

Toast Inc., a disruptor in the restaurant technology industry, is considered to be in significant value territory despite recent stock declines due to weaker consumer spending. The company is a clear market leader, holding a 13% share of all US restaurants with its comprehensive suite of solutions for ordering, payments, and back-office operations. The broader US restaurant industry is a trillion-dollar market with substantial growth potential as technology adoption increases. Toast is projected to deliver strong revenue growth of over 20% and even higher earnings growth by leveraging its operational efficiencies. Analyst price targets suggest substantial upside, with the upcoming earnings report on February 12th expected to serve as a catalyst.

Tyler Technologies has experienced a significant stock drop over the past year, largely due to cuts in state and local government budgets, which are its primary customer base. Despite this, the company is recognized as a leader in providing software and tech solutions for the public sector, characterized by highly 'sticky' recurring revenue streams. The host emphasizes that government entities rarely switch tech vendors, ensuring a stable customer base that will lead to continued growth when budgets eventually improve. Tyler has doubled its free cash flow and continues to show strong recurring revenue growth. Analyst price targets indicate substantial upside potential, with even the most bearish analysts projecting a positive return, making it an attractive long-term investment as budgets are expected to rebound.

Indie Semiconductor, a high-risk, high-return 'penny stock,' provides automotive semiconductors for advanced driver-assist and automation. Despite a flat performance over the past year due to a weak auto market, Indie is actively deepening its technological offerings through numerous patents and strategic acquisitions, positioning itself for significant market share gains when the sector rebounds. While recent earnings have shown losses and missed estimates, the company maintains a robust cash position of $175 million, providing it with ample runway to navigate market headwinds and invest in future growth without needing to raise additional capital. Analysts foresee substantial upside potential, ranging from 15% to 85%, based on its long-term fundamentals.

Coinbase Global, the dominant cryptocurrency platform in the US, experienced a significant surge in shares post-election last year but has since seen a pullback due to the broader crypto crash. Despite a projected revenue decline this year, analysts anticipate double-digit revenue growth in the following year, indicating a strong long-term outlook for the company. With hundreds of billions in quarterly trading volume and over half a trillion dollars in assets on its platform, Coinbase maintains a leading position. Analyst price targets suggest substantial upside potential, with the stock exhibiting volatility but a clear upward trend over the longer term, especially with continued interest in making the U.S. a crypto hub.

Circle Internet Group, a key player in the stablecoin market, initially saw its shares soar post-IPO but has since corrected below its IPO price. The host now views this as a strong value opportunity, given the company's fundamental strengths. Circle is establishing itself as the de facto stablecoin, with massive transaction volumes and a significant share of the total stablecoin market, which itself is growing at approximately 400% annually. The company's stablecoins facilitate various use cases, including cross-border payments and asset tokenization, supported by partners like BlackRock. While the current year might show losses, robust revenue and earnings growth are expected for next year, and its price-to-book valuation has become much more attractive. Analysts project very high upside potential, making it the highest potential upside pick on the list.

Super Micro Computer (SMCI), a leading provider of high-performance AI servers, is poised for significant upside following positive news from tech giants like Meta Platforms and Microsoft regarding their AI data center spending. SMCI currently holds a 22% share of the AI server market and aims for one-third by fiscal 2026. Despite a disappointing last quarter due to delayed orders, these orders are now translating into an anticipated 82% revenue growth for the current quarter and 65% for the full year. While current year earnings are flat, a 50% EPS growth is projected for next year, transforming SMCI into a value stock. The host believes that even with a recent bearish report from Goldman Sachs, which he suggests might be politically motivated, the stock has substantial upside potential.