When a stock dominates headlines and dinner conversations, the easy money is usually gone. That doesn’t make it a bad business. It just means the market has already done the rewarding.

I suspect that may be where Advanced Micro Devices (Nasdaq: AMD) sits today. The company is no longer the challenger it once was. It’s a fixture of the modern tech landscape.

Its chips power servers, PCs, gaming consoles, and now some of the most demanding AI workloads in the world. And investors know this. That’s why the stock price reflects it.

As you can see, after spending much of last year building a base, AMD didn’t grind higher. It surged. Shares leapt from below $80 in April to well above $250 in a short window before volatility set in.

Now, it’s easy to look at AMD and see a “chipmaker.” But that can be reductive.

The company designs high-performance semiconductors across data centers, consumer devices, gaming, and other computation-heavy ecosystems. Nowadays, that means the company sits at the intersection of cloud computing and artificial intelligence.

That’s a powerful place to be – as the market acknowledges. But it’s also a crowded one.

The latest quarter shows that the business is firing on all cylinders. Revenue rose 36% year over year to $9.2 billion, driven by strength in data centers, AI accelerators, and client CPUs. Operating income expanded. Free cash flow hit a record $1.5 billion.

The balance sheet is solid: over $7 billion in cash and about $3.2 billion in debt. AMD has room to invest without stretching itself.

This is a solid business producing great cash flow.

But the question isn’t whether AMD is a great company. (It is.) The real question is whether you’re being offered value at today’s price.

That, of course, is where our handy-dandy Value Meter comes in.

AMD’s enterprise value-to-net asset value ratio sits at 5.83. The broader universe averages 3.82. This tells us investors are paying a premium for AMD’s assets and its future. That premium may prove justified – but it leaves little room for error.

On efficiency, AMD’s free cash flow-to-net asset value ratio is 1.15%, only slightly above the 1.12% average. That’s fine. It’s not exceptional.

Where AMD does stand out is consistency. Over the past three years, it’s grown its quarterly free cash flow 54.5% of the time, well ahead of peers. Execution has been steady. The momentum is real.

In short, AMD has strong growth and solid cash generation… but a valuation that already assumes both will continue.

The stock’s recent run reinforces the point. Much of the upside came quickly, driven by shifting expectations, not neglected value. Early buyers were paid. New buyers are paying attention – and paying up.

For long-term holders, patience still makes sense. The business is strong, and the strategy is intact.

For new capital, discipline matters. The margin of safety is thin, and thin margins tend to show up after sharp rallies, not before them.

The Value Meter rates AMD as “Appropriately Valued.”

What stock would you like me to run through The Value Meter next? Post the ticker symbol(s) in the comments section below.

The post AMD Is a Great Story… but Is It a “Buy”? appeared first on Wealthy Retirement.

In the article below, Alex reveals why these Next Magnificent Seven tech stocks are crushing the market… beating the original Mag 7 by 304% and the S&P 500 by 450% so far this year.

Alex and Chief Income Strategist Marc Lichtenfeld also just unveiled a brand-new list of “Micro Mag 7” stocks – tiny companies poised to soar as America builds out its AI future.

Click here before Monday to watch the replay of their special Micro Mag 7 Summit.

– James Ogletree, Senior Managing Editor

Forty years ago, I took my first job on Wall Street, working as a stockbroker at an international investment firm.

Some of our stock recommendations worked out well. And some of them didn’t work out at all.

That is always the case, no matter where you get your investment advice.

However, I’ve never forgotten a conversation I had with one of my early clients.

I had recommended a tech stock that quickly tripled in value, although he took a pass on it when I originally recommended it.

In hindsight, he sincerely believed that it was my fault.

“Alex, when you find something this good, you really have to emphasize the upside potential. If I had understood that, I would have taken a big position.”

Some will hear this and say it’s just sour grapes. (Another “coulda-woulda-shoulda.”)

But I took his message to heart.

Whenever I thoroughly research a company and have great conviction in its potential, I try to make that clear when I recommend it.

I do that – in part – because our hundreds of thousands of Members of The Oxford Club are a smart bunch.

They understand that no one truly knows what the economy will do… or what inflation will be… or whether interest rates will rise or fall.

No one has a crystal ball. And I waste no time pretending that I do.

I talk about the positives and negatives in the market, the headwinds… and the tailwinds.

But with a few exceptions – on those rare occasions when investors are seized by abject pessimism or unbridled optimism – my market approach is consistent: “short-term neutral and long-term bullish.”

Why? Any investor worth his salt knows that we can always get a bolt out of the blue in the short term. (Consider 9/11 or COVID-19.)

But take a look at any long-term chart of the market. You’ll see that the line goes up, and to the right.

That’s why we’re long-term bullish.

Over time, successful companies increase their sales and profits. And their share prices rise to reflect that.

That’s why investing in an S&P 500 fund has been rewarding for patient investors.

It’s been so rewarding, in fact, that the only reason to invest in individual stocks is if you sincerely believe you can do substantially better.

That’s not easy. But the facts show that The Oxford Club has done this for more than two decades now.

Last year, for example, we invited new Members to join us by offering them a new portfolio called “The Next Magnificent Seven.”

At the time, the tech stocks in the original Magnificent Seven – Apple, Amazon, Alphabet, Meta Platforms, Microsoft, Nvidia, and Tesla – had become wildly popular.

So popular, in fact, that I called this “the most crowded trade on the planet.”

Traders and investors everywhere felt they had to own these seven stocks.

Why? Because those were precisely the ones they wish they’d owned earlier.

I said last year – and I’ll repeat it now – that those are dominant companies that should prosper for years to come.

But it is not just unlikely that they will do as well in the future as they have in the past.

It is completely impossible. Trust me: That will not happen in your lifetime or mine.

How can I be so confident? Well, let’s use reason – rather than emotion – to view the potential here. As I write…

• Apple is up over 80,000% since 2004
• Alphabet (formerly Google) is up over 12,000% since 2004
• Amazon is up 8,000% since 2004
• Meta Platforms (formerly Facebook) is up over 1,800% since 2012
• Microsoft is up over 2,900% since 2004
• Tesla is up over 38,000% since 2010
• Nvidia is up over 103,000% since 2004.

Spectacular returns… all of them.

So who’s to say this can’t possibly happen to these stocks all over again? Me, for one.

Nvidia has a market cap of approximately $4.4 trillion. It is a fast-growing company that makes the super-powerful chips that the burgeoning AI industry depends on. It’s a great firm.

However, it’s worth noting that there has never in the history of the world been a company worth $5 trillion, although I have no doubt that one day several will exceed that number.

Let’s set aside the 80,000% that Apple and 103,000% Nvidia have returned over the past two decades.

What are the chances of either stock rising even 10-fold from here to a market cap of $40 trillion?

Bear in mind, the entire U.S. economy last year was less than $30 trillion.

For a single company’s shares to be worth 133% of the nation’s total annual output would be not just “quite a feat.”

It would be impossible.

Yet there are many smaller companies that could rise 10-fold or more. And no doubt many of them will.

Some, in fact, will even match or exceed the past returns of The Magnificent Seven.

Given this reality, I told Oxford Club Members – and prospective Members – that they would be far better off investing in “The Next Mag Seven” rather than the current seven.

The same way Wayne Gretzky insisted that he became the NHL’s all-time leading scorer not by chasing after the puck but rather by skating “to where the puck is going to be.”

How has this strategy worked out? You can be the judge.

All told, so far this year they’ve beaten the original Mag 7 by 304% and the S&P 500 by 450%.

But now, there’s an entirely new presentation that I hosted with Marc Lichtenfeld to inform Members on seven tiny stocks that we believe could soar.

It’s called the Micro Mag 7 Summit, and you can tune in right here.

The post Can the Magnificent Seven Continue to Dominate the Market? appeared first on Wealthy Retirement.

In March, we’re heading to Las Vegas for four extraordinary days of insights, networking, and strategy. Chief Income Strategist Marc Lichtenfeld and our team of experts will reveal how to position yourself for the $13 trillion digital transformation – an investing opportunity that could shape your wealth for the next decade or more.

Early-bird registration is open now… but seats are limited! Don’t miss your chance to join us for this landmark event.

Click here to learn more and claim your spot now!

– James Ogletree, Senior Managing Editor

Each year, hundreds of Members join us for what has become The Oxford Club’s most anticipated tradition: the Investment U Conference.

Now in its 28th year, this gathering isn’t just another financial event… it’s where strategies are unveiled that have helped shape the wealth of our Members for decades.

And I’m delighted to invite you to join us March 22-25, 2026, at the award-winning Four Seasons Hotel Las Vegas – where we’ll explore the next great wealth-building opportunity: the $13 trillion digital transformation.

And let me tell you… you do not want to miss it.

Why? Because what’s happening in the markets right now isn’t just another cycle. It’s the start of a decade-long digital boom – one that experts predict could surge from $1.4 trillion in 2025 to more than $13 trillion by 2035.

That’s not just growth… That’s transformation.

Artificial intelligence is no longer science fiction – it’s diagnosing diseases, coding software, and trading stocks. Robotics are reshaping warehouses, operating rooms, and even kitchens. And blockchain? It’s spawning entirely new industries as we speak.

I don’t say this lightly: The moves investors make in the next few years could shape their wealth for the rest of their lives.

And that’s exactly what our Investment U Conference is designed for – helping you spot these seismic shifts early… and positioning your portfolio to capture the biggest gains.

Over four unforgettable days in Las Vegas, you’ll hear from nearly two dozen of the world’s top financial minds as they reveal…

• Which technologies are set to lead the $13 trillion digital transformation.
• Which sectors may soar… and which could vanish.
• The smartest strategies to grow and protect your wealth as disruption accelerates.

And of course, this isn’t just about sitting in a ballroom with a notebook.

It’s about joining hundreds of like-minded Members who share your passion for wealth building… enjoying world-class food and entertainment in one of America’s most exciting cities… and leaving with an investing game plan designed to help you make the next decade your most profitable yet.

But here’s the thing…

Because this is our flagship event, space fills up quickly – and early-bird pricing ends October 15.

So if you’re thinking about joining us, I encourage you to act now and secure your seat before prices rise.

I can’t wait to welcome you personally in Las Vegas.

Good investing,

Rachel

P.S. If history has taught us anything, it’s that the biggest fortunes go to those who move before the crowd. Don’t wait. Secure your early-bird seat today and join us for an unforgettable event in Vegas.

Reserve Your Spot at Investment U 2026

The post A Decade-Long Digital Boom appeared first on Wealthy Retirement.

Yet most of it misses the essential point for investors.

Let me explain…

On the negative side, AI will eliminate millions of blue-collar jobs that involve routine physical tasks and white-collar jobs such as analyzing data, drafting documents, or handling customer service calls.

Privacy and security challenges loom large. That’s because AI doesn’t just enhance cybersecurity efforts. It also empowers hackers, cyber criminals, and other bad actors.

And deep fakes will make it much harder for people to know if the information or instructions they receive are accurate – or even legitimate.

On the positive side, AI will transform healthcare with more accurate diagnoses, faster drug discovery, and personalized treatment regimens tailored to the patient’s personal genome.

In transportation, it creates self-driving cars and trucks, smarter traffic controls, and coordination of urban infrastructure to lower carbon emissions, reduce accidents and save lives.

In education, it will provide personalized instruction, adapt materials to each student’s pace and learning style, and shrink learning gaps.

There are many more positives, of course, as well as many more negatives.

AI – like most transformative technologies – is not inherently good or bad.

It is a set of risks… and opportunities.

Yet little of the discussion centers on the most transformative aspect of AI: How it will dramatically enhance corporate productivity and efficiency at non-tech companies.

AI will boost economic growth, increase corporate sales, and make public companies far more profitable.

That’s great news for shareholders.

And investors have bid up The Magnificent Seven – and other megacap tech leaders – to record highs.

Since these stocks make up more than a third of the S&P 500, the market has hit record highs too.

But as an investor, the important thing to understand is the world-changing ramifications…

This is not just about the companies creating and improving AI.

It’s about the many hundreds of public companies whose business fortunes will improve dramatically as a result.

For example, during the dot-com boom 26 years ago, investors could foresee the dramatic impact of the internet.

As a result, they bid the leading internet companies on the Nasdaq to levels that were ultimately unsustainable.

The result? From its March 2000 peak to its October 2002 trough, the Nasdaq lost three-quarters of its value.

And many internet stocks lost over 90% of their value.

Think about that. The leading internet stocks were worth only a tenth as much a couple years later, even though the internet did indeed “change everything.”

Over the past few decades, every company has had to move a significant portion of its operations online.

Every company had to cut costs by eliminating middlemen.

And every company began selling products and services on its own website and through other e-commerce sites.

If they didn’t – or were slow to adapt – they’re no longer around.

Many of the dot-com names that investors were chasing – like eToys and Pets.com – are gone.

Former tech darlings like Cisco Systems (Nasdaq: CSCO) and Intel (Nasdaq: INTC) have massively underperformed the market.

Heck, Intel is worth less than it was 26 years ago.

Meanwhile, companies that were not obvious internet beneficiaries at the time – Old Dominion Freight Line (Nasdaq: ODFL), Deckers Outdoors (NYSE: DECK) and Visa (NYSE: V) for example – are up tens of thousands of percent.

Don’t get me wrong. Most AI stocks are not as overpriced today as internet stocks were in the first quarter of 2000.

I don’t believe they will crash and burn like the Nasdaq did 25 years ago.

But many of them are likely to underperform in the months and years ahead.

And the likely outperformers? They are not the ones spending countless billions to build and improve these platforms.

They are the ordinary companies that will be the beneficiaries of all that spending.

Banks, manufacturers, retailers, hospitals, homebuilders, energy companies and even utilities will see a huge increase in efficiency, productivity, and profitability.

But – here’s the key point – without spending all that money, much of it will ultimately be written off because the innovations don’t turn out to be best of class.

Instead, these non-tech companies will merely buy – or subscribe to – what they need and reap the benefits.

That means many of tomorrow’s best-performing stocks – from both an offensive and a defensive standpoint – will be not The Magnificent Seven but smaller companies.

We have many of these in our Oxford Club portfolios now, as we position for the eventual rotation out of Big Tech and into Global Value.

Bottom line? The upside is greater. The valuations are better. (Much better.) And the downside risk is far lower.

Given the market events of the past few weeks, this rotation already appears to be underway.

That means the high-growth/low-risk play today is not the tech behemoths that everyone has been chasing for the past two years.

It’s value stocks, both large and small.

The post The Move Out of Big Tech Is Underway appeared first on Wealthy Retirement.

I built a tool – one of many I’ve created over the years – that used volatility to spot quick trades in options, typically holding for no more than a week or two.

That tool worked quite well. In fact, one of my biggest wins was from the very company we’re looking at today. (It gave me a nice 100% option win in less than 24 hours.)

But today, we’re not chasing short-term spikes. We’re looking at the company’s financials.

Samsara (Nasdaq: IOT) helps companies run their physical operations more efficiently. Its software tracks trucks, trailers, equipment, and more, using data and AI to cut waste and improve safety.

Let me give you the facts…

In the first quarter of fiscal 2026, which ended on May 3, Samsara brought in $367 million in revenue, up 31% from the same time last year. The company’s net loss shrank to $22.1 million, a big improvement from $56.3 million a year ago. It also turned in $45.7 million in free cash flow, compared with $18.6 million last year.

Margins are moving the right way, too. Gross margin hit 79%, up from 77%. Adjusted operating margin was 14%, also up year over year. Management now expects full-year revenue of $1.547 billion to $1.555 billion, with adjusted free cash flow margin set to beat last year’s figure by about 1 percentage point.

The business is growing across the board. Samsara now has 2,638 customers spending over $100,000 per year. That’s up 35% from last year. It added 154 new large customers in the last quarter alone. Wins include names like 7-Eleven, Dallas Fort Worth International Airport, and Knife River, a construction firm that was spun off from MDU Resources.

But what do the numbers say?

Samsara’s EV/NAV is 16.61, compared with a universe average of 6.09. That tells us investors are paying a premium – likely for future growth and high retention.

Its FCF/NAV ratio is 0.44%. That may not sound like much, but it beats the universe average of -1.19%. The company’s free cash flow has grown quarter over quarter 63.6% of the time, compared with 46.3% for the typical stock.

Put simply: Samsara is still scaling, but it’s doing so with better cash discipline than most.

Now, the stock isn’t cheap. But it’s also not riding a hype wave. It’s actually down this year.

That can be a good sign: The market isn’t overreacting even as the business keeps improving.

If you want exposure to AI – especially through a company tied to more concrete things like trucks, warehouses, and field work – Samsara is worth a close look. It’s not a screaming bargain, but it’s building something durable.

The Value Meter rates Samsara as “Appropriately Valued.”

What stock would you like me to run through The Value Meter next? Post the ticker symbol(s) in the comments section below.

The post Samsara’s Numbers Are Finally Catching Up to the Hype appeared first on Wealthy Retirement.

“We can’t even imagine how our lives are going to change…”

In a recent interview with our friends at MarketBeat, our very own Chief Income Strategist Marc Lichtenfeld made that bold declaration about quantum computing – an emerging tech field that he believes has a ton of potential.

When you hear those words from someone who had a front-row seat to the dot-com crash and is often skeptical of the fads that pop up and become the “next big thing” seemingly overnight…

It should catch your attention.

While Marc says AI is currently in “the third, maybe fourth inning” from an investment standpoint, he believes the quantum computing game is just getting underway.

In his view, that equates to a “much longer runway” and a better opportunity.

During the interview, Marc shared more about why he’s so bullish on quantum computing – and even listed three of his favorite stocks to capitalize on it.

Here’s just some of what he covered:

• What quantum computing is and how it could transform various industries
• Details on why he believes quantum computing has more upside than AI
• Two household names that are quietly positioning themselves to be leaders in the quantum computing space
• A lesser-known growth play with $1.7 billion in cash and no debt
• Why he loves investing in “pick and shovel” plays regardless of the sector.

To watch the full interview, “3 Quantum Computing Stocks That Could Change Everything,” click here or on the image above!

The post 3 Tech Stocks Making Big Strides appeared first on Wealthy Retirement.

The same opportunity is happening with quantum computing right now.

In fact, there’s a $20 company that supplies the essential material that makes light-speed computers possible.

Chief Income Strategist Marc Lichtenfeld projects the stock could see 1,500% gains and rise to $300 as demand explodes.

Find out how to get the ticker symbol here.

– James Ogletree, Senior Managing Editor

I consider myself fortunate to have had a front-row seat to history.

I lived in San Francisco during the dot-com boom. It was a wild time. My wife and I both worked for dot-com startups. Most people we knew either worked for or had some connection to a dot-com company.

Watching the development of the internet unfold in real time and seeing what was going on behind the scenes was an invaluable lesson about new trends, greed, and hubris – and, perhaps most importantly, what it takes for a business to thrive in a new industry.

I was enough of a student of history to realize that what I was witnessing and participating in, while uncommon, was not unheard of. There have been several times that industries completely changed the way Americans – and then the rest of the world – lived. Those disruptions led to immense creations of wealth.

In 1869, the transcontinental railroad was born. By 1880, $50 million worth of goods were being transported each year. (That’s nearly $1.6 billion in today’s dollars.) Within just a few years, there were 364 railroad companies.

Radio was the 1920 equivalent of the dot-coms. In 1921, there were five radio stations in America. Six years later, there were 681.

Radio stocks were a big factor in the Roaring ’20s stock market, with RCA rising 200X.

Of course, there were other industry booms as well, such as autos in the early part of the 20th century and personal computers at the end of the century.

These were all generational changes that drastically improved billions of lives.

Today, we’re on the cusp of another such change.

In fact, we’re on the cusp of two of them.

Surely, you’re familiar by now with artificial intelligence, or AI. Even if you haven’t used it yourself, you’re aware of its capabilities. We’re all just now starting to perceive how much the world is going to change because of AI.

But there’s another quieter change coming that I suspect will be just as important as AI – if not more important.

Quantum computing.

Quantum computing makes today’s supercomputers look like an old Wang PC from 1984. In just minutes, quantum computers can solve complex problems that take today’s most powerful computers years to solve.

In fact, Google developed a quantum computing chip that needed only five minutes to solve a problem that would take the world’s fastest supercomputers 10 septillion years to solve. (Ten septillion is a 1 followed by 25 zeros.) Think about that in years. Now, think about condensing that to five minutes. It’s absolutely mind-blowing.

You can imagine the potential and what it will mean for the companies at the forefront of this technology (as well as their investors).

Here’s the thing: In every boom, whether it was railroads, radio, or the internet, there was excess, and when the bubble burst, investors got hurt chasing copycat companies that had no real edge.

The ones with lasting power, such as Ford Motor Company, Cisco Systems, Amazon, and others like them, consistently found ways to create value for their customers and shareholders.

There is going to be a lot of money to be made in the AI and quantum computing space over the next few years. But there are also going to be a lot of companies that are simply cashing in on the craze without offering anything unique.

Find the companies that are the early creators of these technologies and that have big leads over new competition. They are likely going to be the big winners that will move the needle in a very big way in your portfolio.

Good investing,

Marc

P.S. The potential of quantum computing technology is absolutely staggering.

Right now, in an enormous facility in the Arizona desert…

One incredible company is doing something that you’ll have to hear to believe…

It’s producing a special material capable of harnessing the raw power of light itself.

This breakthrough material – which I call “TF3” – can grab and direct individual particles of light to unleash computing power beyond anything we’ve ever seen.

Today, I want to show you what this breakthrough could mean for your wealth… if you act fast.

Click here to see how TF3 could power a $2 trillion wealth explosion over the next decade.

The post Quantum Computing: The “Mind-Blowing” Next Phase of the Tech Revolution appeared first on Wealthy Retirement.

I remember when my parents brought home our first computer and I played my first computer game (though I could never get the floppy disk to run right). There wasn’t much else to do with the machine yet, aside from writing and playing Solitaire.

Years passed, and life changed big-time.

We moved from New York City to the Long Island suburbs. I started taking computer classes in middle school, learning the basics of this new technology. And soon I was putting in CDs of the Encyclopedia Britannica, feeling as if I had access to the world’s knowledge at my fingertips.

Little did I know the world was going through a wave of innovation thanks to the internet.

While I was playing “Math Munchers” on CD-ROM – I can still hear that menu screen music – business owners were quietly building websites and empires that would reshape commerce forever.

But here’s the crazy part…

As companies like Amazon and eBay became the household names of the internet boom, one company was the behind-the-scenes giant making money from every single digital move.

That company was Cisco Systems (Nasdaq: CSCO).

Every time you visited a website or sent an email back then, your data traveled through networks built with Cisco gear. The company wasn’t selling books to consumers. It was selling the routers and switches that made it all possible.

It was the perfect “pick and shovel” play during the internet gold rush.

And now it’s at it again with artificial intelligence.

The Same Playbook, Different Era

Cisco just reported great third quarter numbers. Revenue hit $14.1 billion, up 11% year over year. More importantly, the company pulled in over $600 million in AI gear orders from big tech companies in just one quarter.

That brought its AI revenue to over $1 billion for the first three quarters of fiscal 2025, enabling it to beat its target a full quarter early.

The stock has done well, climbing from lows around $36 in 2022 to current levels near $68.

But here’s what really matters for your money: Cisco made $4.1 billion in operating cash flow last quarter. (That’s real money, not accounting tricks.) It also returned $3.1 billion to shareholders through dividends and buybacks, bringing the total to $9.6 billion returned so far this year.

This isn’t some growth-at-any-cost story. It’s a mature company throwing off serious cash while getting ready for the AI boom. It’s even working with Nvidia to make Cisco gear the standard for AI setup.

Think about the potential here if every major AI rollout were to include Cisco equipment by default. The company could immediately return to a dominant position within the tech sector.

What the Numbers Actually Mean

The Value Meter shows some good metrics for Cisco.

The company’s enterprise value-to-net asset value (EV/NAV) ratio sits at 6.15, meaning you’re paying about $6 for every dollar of business assets after covering debts. With our universe average at 12.32, Cisco trades at roughly half the typical premium.

More telling is its free cash flow-to-net asset value (FCF/NAV) percentage of 7.66%. That tells us the company makes over $7 in free cash flow for every $100 in net assets. Compare that with our universe average of -26.98%, and you’re looking at an impressive cash generator.

Cisco’s free cash flow growth consistency tells the real story. It grew free cash flow quarter over quarter 45.5% of the time over the past three years, nearly matching our universe average of 47.58%. This isn’t a company with wild swings – it’s one that’s steadily improving.

Now, Cisco faces real challenges. Competition is tough. Economic downturns hurt infrastructure spending. Tariffs create headwinds.

However, there are also multiple tailwinds pushing the company forward, including a 54% spike in security revenue, increased government orders, and heightened demand as a result of the 5G rollout.

When I look at Cisco, here’s what I see: a company with a dominant market position, $15.6 billion in cash, and partnerships that put it at the center of the AI buildout.

It isn’t the flashy AI stock making headlines. It’s the infrastructure play that quietly profits from everyone else’s AI dreams.

For conservative investors wanting AI exposure without the volatility, Cisco offers something rare: a combination of steady dividends, consistent cash flow, and upside in a massive tech shift.

Sometimes the best investments aren’t the companies everyone’s talking about.

They’re the ones building the backbone that makes everything else work.

The Value Meter rates Cisco Systems as “Appropriately Valued.”

What stock would you like me to run through The Value Meter next? Post the ticker symbol(s) in the comments section below.

The post Cisco: The Internet’s Best-Kept Secret Is at It Again appeared first on Wealthy Retirement.

That baby boy had no clue he would one day type away on the internet with his thoughts about money, markets, and – elsewhere than this column – his Maker.

My journey as a writer began early, though not always well.

My first bit of writing was on a VTech children’s laptop at age 6. From the rented upstairs of our Brooklyn home, I aimed to investigate the local crime on our block.

Three shops had been robbed at gunpoint in three weeks’ time. The cops, according to the newsman on TV, didn’t have any leads. But my 6-year-old brain thought I could write down the clues and solve the mystery.

It was a failed attempt. But it sparked my love for writing.

Years passed before I tried again. In middle school, I sought to write a book on space travel, robots, and the meaning of life.

Yes, this was in middle school. No, I knew almost nothing about such deep topics.

But that didn’t stop me. I wrote a preface and two chapters, then never touched the project again. (Cartoons were a bit of a distraction in those days.)

Everything changed in my teen years.

In high school, I found a book in the library that would change my life forever: the first part of Thomas Aquinas’ Summa Theologica.

It was my first time seeing the power of pure logic and argument at work. It grabbed my mind in a way that, to this day, I haven’t forgotten. I was baptized in that moment, in that library, into the life of an intellectual.

From that point forward, I wanted to think deeply, write slowly, and answer all of life’s most pressing questions.

Philosophy became a way of life for me, not just an academic subject. It shaped how I saw and approached the world.

Now, you’re likely thinking, “That’s all well and good… but what’s this have to do with this column?”

The connection is deeper than you might expect.

This column isn’t only a space to pick apart stocks. It’s also meant to reveal the biases we all carry when seeking rewards and avoiding risks.

Just as philosophy taught me to do, The Value Meter strips emotions away and uses a logical approach to a key question: Why?

Why should I buy – or not buy – this stock right now?

Today’s company is a perfect example of why this matters. It’s a very popular company – you’ll know it well. It has an almost magnetic appeal to most investors’ hearts.

But here’s the question we must focus on: Should investors be drawn to it at all?

The company I’m talking about is Apple (Nasdaq: AAPL).

The Most Beloved Company in the World

It’s a popular myth that Apple is a technology company. It’s not. It’s a lifestyle brand that has created something every business dreams of: a passionate following among customers who become evangelists for the brand.

When someone buys their first iPhone, they often end up buying an Apple Watch, AirPods, maybe a MacBook… and before they know it, they’re paying for services throughout Apple’s entire ecosystem. There’s probably an Apple product within arm’s reach of you right now.

Apple’s second quarter results show a company that’s still printing money, even if the pace has slowed. Total revenue came in at $95.4 billion, up 5% from the second quarter of last year. The iPhone alone brought in $46.8 billion, up a modest 2%.

But the real story is Apple’s Services segment, which includes recurring revenue streams like the App Store, iCloud, and subscriptions. It generated $26.6 billion – a 12% increase year over year and an all-time record. That accounted for 27.9% of the company’s total revenue, up from 26.3% in the same quarter last year.

This is the kind of predictable income that makes investors fall in love.

The Stock’s Wild Ride

Apple’s stock tells a story, too.

Shares climbed steadily through 2024, reaching peaks above $250 by early 2025. But then something interesting happened: Despite solid financial results, the stock gave back much of those gains.

That climb above $250 looks almost parabolic in hindsight – the kind of move that often signals investor euphoria rather than rational valuation.

The market seems to be grappling with the same question we’re asking: At what price does even the world’s best company become too expensive?

To answer that, we need to strip away the emotional attachment and focus on the cold, hard facts.

So let’s see what The Value Meter reveals about this most beloved of companies.

The Value Meter Verdict

When we apply our three-metric framework to Apple, something fascinating emerges.

Yes, Apple trades at a premium. The company’s enterprise value-to-net asset value ratio sits at 44.35, well above the peer average of 12.31. At first glance, this screams “expensive.”

But here’s where the beauty of cash flow analysis shines through. Apple’s average free cash flow-to-net asset value ratio comes in at 37.87% over the past four quarters. Compare that with the peer average of just 8.33%, and suddenly that premium starts to make sense.

Apple isn’t just expensive – it’s expensive for a reason. The company generates cash over four times more efficiently than its peers. When you’re paying a premium for a money-printing machine that actually prints more money than anyone else, the math changes entirely.

The consistency factor seals the deal. Apple has delivered positive free cash flow in each of the past four quarters. No hiccups, no surprises, just steady cash generation quarter after quarter.

Even at these elevated valuations, the company’s cash generation prowess suggests there’s still value to be found. For investors who are willing to pay a premium for quality and consistency, Apple offers exactly that.

The Value Meter rates Apple as “Slightly Undervalued.”

What stock would you like me to run through The Value Meter next? Post the ticker symbol(s) in the comments section below.

The post The World’s Greatest Company Looks Expensive… but Is It? appeared first on Wealthy Retirement.

Fast-forward to today, and – as you’ll see in a moment – the picture looks quite different.

Applied Digital builds and operates next-generation data centers designed for high-performance computing and AI applications. The company also provides cloud services for AI and machine learning workloads. Think of it as the digital infrastructure backbone that powers today’s AI revolution.

But lately, that revolution seems to have stalled for Applied Digital shareholders. After touching highs above $13 earlier this year, the stock has tumbled back to around $10 as reality has set in about some of the company’s financial challenges.

Applied Digital’s latest quarterly results tell a mixed story. Revenue jumped 22% year over year to $52.9 million in the fiscal third quarter, which sounds impressive until you dig deeper and see that the company posted a net loss of $36.1 million.

Even more concerning is what’s happening with cash flow. Applied Digital has now burned through cash in each of the past four quarters, with no sign of improvement. This cash burn becomes especially worrying when you consider the company’s ambitious expansion plans.

On the positive side, management has been busy securing financing. They closed a $375 million deal with Sumitomo Mitsui Banking Corporation and announced a potential $5 billion investment agreement with Macquarie Asset Management. These partnerships provide much-needed capital but also highlight just how much money the company needs to fund its growth.

Applied Digital is also making strategic moves, including plans to sell its Cloud Services Business to focus on data centers. This could help streamline operations, but it also means giving up a revenue stream that grew 220% year over year.

So… what does The Value Meter say about all this?

Applied Digital’s enterprise value-to-net asset value ratio sits at 7.77, which is actually 37% below the average of 12.37 for similar companies. That might make the stock look cheap at first glance.

But here’s the catch: The company’s free cash flow has averaged -64.05% of its net assets over the past four quarters. While that’s slightly better than the -69.87% average for companies with similar cash flow struggles, it’s still a massive red flag.

In simple terms, Applied Digital has burned through nearly two-thirds of its asset value every quarter over the past 12 months. Even with all that new financing, this level of cash burn is unsustainable.

Applied Digital’s bet on AI infrastructure could still pay off if demand continues to surge and the company can successfully scale its operations. But today’s valuation appears to be pricing in perfect execution at a time when the company is struggling with basic profitability.

Until Applied Digital can prove it can generate consistent cash flow, the current price seems too risky for most investors.

The Value Meter rates Applied Digital as “Extremely Overvalued.”

What stock would you like me to run through The Value Meter next? Post the ticker symbol(s) in the comments section below.

The post Has This AI Stock’s Luck Finally Run Out? appeared first on Wealthy Retirement.