The big question now, of course, is whether we’re looking at another year of gains, or if we’ve reached peak AI euphoria. Because let’s face it, everything is a bubble until it pops. I’m not saying it will pop, just that I’ve already started mentally preparing my resignation speech.
Nvidia, of course, has already done rather well out of all this. A truly impressive performance, and one that’s left a good many people feeling rather clever. But the AI story is far from over, and there are other players poised to benefit. Two in particular, if you’re inclined to be optimistic, look particularly interesting. They’re not necessarily household names – yet – but they’re worth a closer look, especially if you’re hoping to outperform the S&P 500 in the coming years.
In a twist worthy of a grand Russian novel, Neynar has secured the reins of Farcaster, sealing his fate as the new sovereign of the protocol, its main app, and Clanker, as per today’s melodramatic announcement from Farcaster’s co-founders, Dan Romero and Varun Srinivasan.
Let us examine this spectacle, for it offers a diverting lesson in the vagaries of commerce and the boundless capacity of mankind to both innovate and, occasionally, to err.
I’ve been watching these AI companies, and it feels a bit like watching a toddler attempt a complex construction project. Lots of enthusiasm, a few impressive blocks stacked, and then, inevitably, a spectacular collapse. Meanwhile, over there, in the beige corner of the market, UPS and Verizon are just…delivering things and making phone calls. It’s almost insulting how stable they are.
Come February the tenth, they’ll be holdin’ a confab to talk over the latest reckonin’ for the fourth quarter. A bit of a showin’ of hands, if you will, to see which way the wind’s blowin’ for the year ahead. The question, then, is this: should a body go and buy a piece of CVS Health before they spill the beans, or is it wiser to sit tight and watch the cards fall?
Everyone agrees Costco’s a solid business. That’s boring. The real question isn’t if it’s good, it’s if it’s still worth the hype. Investors are basically saying, “Impress us. We’ve seen the free samples, now show us the long-term plan.” Here’s what they’re quietly obsessing over – and what I, as someone who actively seeks out companies everyone else is overpaying for, am paying attention to.
To discern the true vessels, those capable of weathering the storms and reaching a lasting prosperity, one must look beyond the surface. Seek out those companies with a unique bearing, a first-mover’s grace, and a valuation rooted in something more substantial than mere hope. Three such contenders present themselves: Nebius, Symbotic, and Strategy. Each, in its way, a seed holding the promise of an extraordinary ascent.
The impetus for this cheerful advance appears to be a confluence of factors, a sort of financial happy accident. The recent unpleasantness regarding Greenland and NATO, which had sent investors into a bit of a flutter yesterday, seems to have calmed down, and that’s always a good thing. But the real spark, as near as one can tell, came from the observations of Mr. Demis Hassabis, the bright spark behind Google DeepMind, at the Davos World Economic Forum. A clever fellow, that Hassabis, and clearly one who knows his way around the digital landscape.
It is within this climate of expectation that one finds oneself compelled to examine Celestica (CLS +0.07%). The company has, it is true, enjoyed a most remarkable year, its stock having ascended by a considerable margin. One observes, however, that popularity is not invariably synonymous with prudence, and a healthy skepticism is rarely misplaced. The question, therefore, is not merely whether Celestica may prosper, but whether its current valuation adequately reflects the inherent uncertainties of this rapidly evolving landscape.