Three Stocks in the AI Tempest: A Researcher’s Gambit

Artificial intelligence, that most capricious of market darlings, continues to dance on the strings of investor fervor. The sums flowing into this realm are not mere numbers but rivers of gold, gushing with such vigor that even the most jaded analyst might pause to marvel. Yet, as with all things born of human ambition, there lies a grotesque comedy beneath the glitter-where algorithms duel with bureaucracy, and revenue reports whisper secrets to shareholders like a ghost in the machine. Here, then, are three stocks to consider, not as mere picks but as characters in a farce where the curtain has just risen.

1. Alphabet

Alphabet (GOOG) (GOOGL), that sprawling octopus of innovation, dabbles in everything from self-driving cars to YouTube cat videos. Yet its lifeblood remains the humble ad-those digital totems that blink and beckon across the vast plains of Google Search. The market, ever the nervous courtier, frets that generative AI might one day render this kingdom obsolete, reducing its revenue streams to a trickle. And yet, here we find Alphabet trading at a beggar’s cloak price-19 times forward earnings, a pittance compared to the S&P 500‘s 24. A bargain, perhaps, or a siren’s song?

Let us not be deceived by specters. Google Search still commands 89.6% of the market, its dominion unshaken. In Q2, revenue swelled by 12%, a miraculous resurrection if one ignores the howling prophets of doom. Is this a dying empire, or merely a kingdom in masquerade? The market’s fear is a grotesque exaggeration, and in this theater of folly, Alphabet offers a risk-reward profile as tantalizing as a moth to a flame.

2. Amazon

Amazon (AMZN), that digital titan of boxes and clicks, masks its true nature beneath a cloak of commerce. Yet its soul is not in parcels, but in the cloud-specifically, AWS, that alchemist of data centers, turning raw compute into gold. The AI arms race has made AWS the favored concubine of tech, its servers humming with the fevered dreams of training models. One might imagine the data centers as cathedrals, their servers monks chanting in binary, while executives sip coffee and tally profits.

AWS’s Q2 growth of 17% is no mere statistic-it is a phoenix rising from the ashes of retail mediocrity. With $10 billion in operating profits, it accounts for half of Amazon’s earnings, a triumph of cloud over commerce. The stock’s recent dip, following Q2 results, is a gift wrapped in red tape for the discerning investor. To buy now is to purchase a ticket to a ball where the guests wear server racks as corsets.

3. Taiwan Semiconductor

Taiwan Semiconductor (TSM), that silicon giant, is the unseen hand behind the AI revolution. Its foundries churn out chips like a spider weaving the web of modernity, their wafers etched with the hopes and fears of humanity. Chief among its clients: Nvidia, whose GPUs are the modern-day grimoires of machine learning. One might imagine TSMC’s factories as alchemical labs, where engineers duel with quantum physics to birth circuits that outpace human thought.

Q2 revenue surged 44% in USD, a bacchanal of silicon and silicon. Management’s promise of 45% CAGR in AI-related revenue over five years reads like a fairy tale-until one recalls that fairy tales often end in tragedy. Yet TSMC persists, a colossus straddling the line between innovation and absurdity. At 24 times forward earnings, it trades at par with the S&P 500, a price as reasonable as a poet’s salary. To hold this stock is to wager on the madness of the market, where logic is a quaint relic.

Thus we find ourselves in the grotesque comedy of AI investing, where the line between genius and folly blurs like a server overheating in a data center. The market’s folly is a mirror, and in it, we see our own vanity reflected back. Buy these stocks if you dare-but do so with the caution of a man wading through a swamp of quicksand and hubris. 🤖

2025-08-07 16:24

1. Alphabet

2. Amazon

3. Taiwan Semiconductor

Read More