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Investors in the Polkadot (DOT -3.88%) cryptocurrency have been craving game-changing news for a while now. The crypto market is having a great summer overall with fantastic returns on leading names like Bitcoin (BTC -0.57%), Ethereum (ETH -1.18%), and Solana (SOL -0.89%). But nobody told Bitcoin where the party was happening. As of Sept. 12, it gained less than 5% over the last 6 months:

Polkadot Price data by YCharts

Forget the chart for a moment, though. App builders, not price charts, ultimately drive durable value in most cryptocurrencies, and especially the developer-friendly Polkadot. And I have good news: Polkadot is readying two builder-centric platform upgrades that could change the trajectory of this lagging cryptocurrency. Say hello to the JAM scaling upgrade and a ready-to-code DevContainer.

Here’s what changed — and why it could matter for DOT investors.

Header JAM: Faster blocks, flexible projects, and elastic scaling

The chain-spanning connector package known as Polkadot is about to get a massive makeover. The incoming technical changes are so powerful, Polkadot’s backers in the Web3 Foundation call it “Polkadot 3.0.”

I could get all up in the nerdy weeds with the changes, built around the Join Accumulate Machine (JAM) upgrade. Trust me, I’m tempted to go there. But you’re not here for that geekery, so let’s keep it simple: Polkadot is about to get much faster, more flexible, and easier to use.

The global network of computing nodes that validate Polkadot transactions and execute code in its smart contracts is already one of the fastest blockchains on the market. JAM will multiply the computing power of this platform by 10, by some estimates. Polkadot co-founder Gavin Wood calls it “a supercomputer on the blockchain,” with easy and instant access to exactly the number-crunching resources your app needs.

Gone are the unpredictable auctions for computing time, in comes a new project funding system. Parachains are still a thing, and existing Polkadot projects will be fully compatible with the new JAM core. It’s just going to be much easier to get your hands on the right resources at the right time. There’s a price list now; just pay for your computing power and you’re good to go. Easy as Polkadot pie.

Image source: Polkadot.

DevContainer: One-command setup makes it easy to get involved

The new DevContainer feature may not feel as important, but anything that attracts more developers to the Polkadot platform should also be good for the tightly integrated cryptocurrency in the long run.

The Polkadot Smart Contracts DevContainer does exactly that, at least in theory. Getting started as a Polkadot developer has never been easier. Traditional setups of a new development system can be a slow and frustrating process. Now, the manual setup and configuration is replaced by one command and lots of automation.

I can’t promise that this system will be popular with new or existing Polkadot app builders, but it sounds pretty good to my (non-developer) ears. Instant setup and then you’re dealing with the power-packed JAM system — where do I sign up?

Why this matters for DOT holders (and what to watch)

The DevContainer package is already available and JAM should take over as the main Polkadot engine before the end of 2025. These helpful upgrades coincide with rising interest in Web3 apps, giving more control to app users and less of it to massive social network corporations.

Polkadot’s chart has actually been lagging behind other cryptocurrencies for years:

Polkadot Price data by YCharts

And it’s kind of funny. Using Polkadot in an app project, you can connect to many other cryptocurrencies and move data, monetary assets, or code from one blockchain to another. If Web3 is the blockchain-based foundation of the next internet epoch, then Polkadot is the digital glue that holds it together.

Will people actually use it?

JAM replaces clunky auctions with pay-as-you-go capacity, and the DevContainer gets builders going in minutes. If people show up, it could turn into a real block party for DOT holders as usage drives demand.

I think it’s time to connect the DOTs between better tech and investor value. Polkadot has been struggling in the shadows for too long, letting the likes of Ethereum and Solana have all the headline-inspiring fun. That could change when JAM rolls out.

I don’t expect a sudden spike in DOT prices, but a lucrative rise over time as developers and app users (i.e., pretty much everybody) adopt this technology in real-world smartphone apps and cloud platforms.

Last Wednesday, Delta Air Lines (DAL -0.83%) delivered a strong June-quarter update and reiterated its 2025 outlook, helping steady sentiment after a choppy year for airlines. The Atlanta-based carrier, one of the largest global network airlines, highlighted resilient premium demand, steady co-brand card economics, and progress on costs — all while acknowledging ongoing softness in economy seats.

The mix between main cabin and premium cabins has become a key storyline for Delta. Premium revenue and loyalty economics are doing more heavy lifting, while management trims weaker main cabin flying and leans into higher-margin products. With this backdrop, are shares a buy? More specifically, with guidance intact and premium resilience evident, do shares offer an attractive risk-reward today?

Image source: Getty Images.

Recent results underline resilience

If there’s a meaningful slowdown in travel, Delta isn’t seeing it. The company’s second quarter produced record revenue and double-digit margins, giving management enough confidence to reiterate its full-year guidance. In the quarter, operating revenue was roughly $16.6 billion, operating margin was 13%, and earnings per share landed at $2.10 on the company’s non-GAAP basis. Management guided the September quarter to flat to up low-single-digit revenue growth year over year and a 9% to 11% operating margin, and reaffirmed full-year targets for earnings per share of $5.25 to $6.25 and free cash flow of $3 billion to $4 billion.

Beyond the headline numbers, the mix story stood out. Management said in the company’s second-quarter earnings call that “main cabin margins remain soft,” while reiterating that diversified revenue streams — credit card remuneration, loyalty, and premium cabins — now represent a large slice of the business. That matches comments on the call that softness is “largely contained to main cabin,” with premium products and the Delta-American Express partnership offsetting the pressure.

Asked whether the premium outperformance would persist, Delta president Glen Hauenstein said, “there’s nothing in any of the forward bookings that would have us indicate that there is a diminishing demand for premium cabins or services,” adding that Delta continues to evaluate aircraft layouts to “put more and more premium” seats on board. In addressing main cabin weakness, Hauenstein explained that the company is removing the “weakest trips,” often off-peak departures midweek or very early or late, to consolidate demand and improve unit revenues.

What it means for the stock

After this update, Delta provided an upbeat near-term revenue outlook and reaffirmed profit guidance, pointing to steady demand and industry capacity adjustments. Management now expects third-quarter revenue to be up about 2% to 4% year over year, and it provided earnings guidance of $1.25 to $1.75 per share.

Overall, this guidance signals that premium demand and loyalty revenue are cushioning the main cabin softness. And that industry supply is tightening where it’s least painful — the lower end of the market.

Valuation helps the case for the stock. With shares recently around $60 to $61, and a 2025 earnings target of $5.25 to $6.25 per share, Delta trades at roughly 10 to 11 times this year’s expected earnings — reasonable for a carrier producing double-digit margins and multibillion-dollar free cash flow. The company also raised its quarterly dividend by 25% earlier this year; at recent prices, the annualized dividend yield at about 1.2%, a modest payout that still signals confidence in cash generation.

There are risks. Main cabin softness could linger longer than expected, especially if consumer budgets tighten or international shoulder-season strength fades. Jet fuel and labor remain key cost variables, and any mistimed capacity reductions could pressure unit economics. But management is already trimming off-peak flying, expanding premium seating, and leaning on high-quality loyalty economics — strategies that can protect margins while demand normalizes.

Stepping back reveals that the picture is balanced but constructive, and ultimately good enough to make the stock a buy. Solid June-quarter profitability, guidance reaffirmation, resilient premium demand, and capacity discipline all support the view that Delta’s earnings power is intact. At a valuation that is not stretched, the shares look like a reasonable way to participate if premium strength and industry supply rationalization continue to play out. For investors comfortable with the usual airline cyclicality, Delta’s mix of premium momentum, loyalty cash flows, and cost focus makes the stock a credible buy candidate today.

Many retired Americans rely heavily on Social Security checks for their income, but often, those payments don’t stretch far enough to cover all of their expenses. According to government data, in 2025, the average Social Security benefit is just $1,976 per month.

If that doesn’t sound like much, that’s because it isn’t. A recent study projected that by 2040, 32.6 million U.S. households with retirement-age individuals could have an average cash shortfall of more than $7,000 annually. That gap between retirement income and retirees’ needs is a big reason why many Americans will need to do more to build their own portfolios of investments, rather than trying to rely on Social Security benefits alone.

If you’re on the hunt for stocks that could help you build wealth over the long haul that you can eventually tap in retirement, there are a few compelling reasons to make Nvidia (NVDA 0.43%) one of your picks.

Image source: Getty Images.

Why Nvidia could continue to be a good long-term investment

Nvidia has become a common go-to investment among both tech enthusiasts and average investors over the past few years, as the company is benefiting from a steep increase in spending on artificial intelligence infrastructure. Nvidia’s graphics processing units (GPUs) dominate the artificial intelligence (AI) data center market — it sells an estimated 70% to 95% of all AI chips for infrastructure.

In Q2, the company’s data center revenue jumped 56% year over year to $41 billion, and its non-GAAP earnings per share jumped 54% to $1.05. Eventually, Nvidia’s customers could slow their spending on its hardware — particularly if AI doesn’t deliver the results those companies are hoping for — but that day hasn’t come yet. Nvidia CFO Colette Kress estimates that tech companies will invest up to $4 trillion into AI data centers over the next five years.

And it’s not just AI data centers that could fuel Nvidia’s future growth. The company’s tech is already being used in autonomous vehicles, and advances in the robotics industry could create another expanding new market for it in the coming years. Some estimates forecast that the global autonomous vehicle market will grow to more than $2 trillion over the next five years, and Nvidia CEO Jensen Huang said recently that robotics (including autonomous vehicles) and AI represent a “multitrillion-dollar growth opportunity” for his company.

Though Nvidia stock has already soared by more than 1,100% over the past three years, the combination of its dominance in AI data center processors and its emerging opportunities in robotics and autonomous vehicles suggests it will remain a good long-term investment.

More growth could be ahead for Nvidia, but keep this in mind

While no single stock should make up the majority of your portfolio, investing in Nvidia could give future retirees a way to benefit from the massive transition toward AI systems that’s currently underway. While the chipmaker doesn’t currently pay a meaningful dividend, investors can eventually sell their holdings in retirement to supplement their incomes.

Planning for retirement can be challenging, and as you approach retirement age, it’s generally a good idea to reduce your exposure to stocks and other higher-risk investments. While Nvidia’s share price may continue to climb in the years ahead, it’s important to remember that it’s still a tech company, and tech stocks often go through periods of unusual volatility.

This shouldn’t be too much of a concern if you’ve got a long way to go before retirement, but remember that as you age, you’ll want to shift the balance of the allocations in your well-diversified portfolio toward less risky holdings.

Philippe Laffont was known for successfully investing in technology stocks before he founded Coatue Management, a technology-focused hedge fund, in 1999. Since then, he has grown the fund’s size to more $35 billion in assets under management.

Laffont has his finger on the pulse of the artificial intelligence (AI) revolution. His contrarian investment in Super Micro Computer, a company that manufactures high-end servers for data centers, turned some heads earlier this year.

Image source: Getty Images.

Coatue bought into Supermicro at a controversial moment, but it seems Laffont had a change of heart. At the end of June, there were zero shares of the custom server builder in its portfolio.

While Coatue was disposing of Supermicro with its left hand, it was buying up shares of Intuitive Surgical (ISRG -1.34%) with its right. The hedge fund snapped up 39,512 shares of the robot-assisted surgery pioneer in the second quarter.

Intuitive Surgical stock has tumbled this year, but Laffont has reasons to expect a rebound. Here’s a look at what they are to see whether this stock could be a good fit for your portfolio.

An unbeatable advantage

When the market closed on Sept. 12, 2025, shares of Intuitive Surgical were up 19,390% since its initial public offering (IPO) 25 years ago. A few years before its IPO, the Food and Drug Administration made the company’s da Vinci robotic surgical system the first one with clearance to assist with minimally invasive abdominal surgeries.

Medtronic, Johnson & Johnson, and Stryker market surgical robots, but they entered the market after Intuitive Surgical. The pioneer is still the largest member of its industry. At the end of 2024, there were 11,040 Intuitive Surgical systems installed in hospitals worldwide.

Intuitive’s massive installed base of machines isn’t sitting idle either. Surgical teams trained to use da Vinci systems performed 2.7 million procedures last year. Plus, Ion, its more recently launched lung tumor biopsy machine, performed 95,000 procedures last year.

To date, competing systems generally address procedures that don’t already employ da Vinci systems, such as knee replacements and spinal surgeries. Hospital systems can spend more than $1 million installing a da Vinci system and then an even larger sum supporting and training the professionals who will use it. That’s a huge advantage over newer surgical systems that competitors probably won’t be able to overcome.

Placing systems and training surgeons to use them generates revenue for Intuitive, but these aren’t the main sources. Around 84% of total revenue last year came from recurring sources such as instruments and accessories that must be replaced before each procedure.

Why Intuitive Surgical stock is down

Intuitive Surgical has been a terrific stock for its long-term shareholders, but it’s been a stinker this year. It’s down about 26% from a peak it set in February.

Fear that tariffs will pressure profit margins has been a weight on Intuitive Surgical’s stock price. When reporting second-quarter results in July, management reduced its adjusted gross profit margin expectation to a range between 66% and 67%. That would be a minor decline from the 69.1% gross margin reported last year, but this temporary setback is hardly a reason to avoid the stock.

Earlier this year, Medtronic submitted an application to the Food and Drug Administration to perform urology procedures with its Hugo RAS system. Roughly one-fifth of all procedures performed with da Vinci machines last year were in the urology category.

Investors concerned that the Hugo system will pull market share from da Vinci should know that its launch overseas hasn’t been very successful. It’s been authorized for sale in the European Union since 2021, but Medtronic still doesn’t tell investors how much revenue Hugo’s generating in its quarterly reports.

Time to buy?

In the U.S., hospitals considering a new surgical system for urologic surgeries could have a new option from Medtronic by the end of the year. Luckily for Intuitive Surgical, the da Vinci 5 system, which launched in March 2024, already makes Medtronic’s Hugo system seem outdated.

Despite tariff pressure, investors can expect significant growth from Intuitive Surgical. Management is forecasting overall procedure growth of 15.5% to 17.0% this year. High switching costs for hospitals could lead to procedure growth that continues rising for another decade or two.

With a stock price that’s been trading at 55.3 times forward earnings expectations, investors are already expecting profit growth at a double-digit percentage for years to come. Intuitive Surgical stock could fall hard if Medtronic or another competitor begins pressuring sales growth in the years ahead.

Given Hugo’s performance in the E.U., threats from well-heeled competitors appear toothless. Adding some shares to a diverse portfolio now could be the right move for investors with a high risk tolerance.

Vail Resorts (MTN -2.58%) runs a global network of destination and local ski areas, anchored by the Epic Pass. Its assets are iconic and irreplaceable, making it a stock worth keeping on any investor’s watchlist. After all, its competitive advantage is arguably insurmountable, as it’s incredibly difficult to get regulatory approval for new ski resorts. Despite these reasons to love the company, the stock is struggling.

After a tough stretch for the shares, the company’s dividend yield now sits at around 6%, likely drawing fresh interest from many income-focused investors. The yield alone, however, does not answer whether the stock is a buy. The better lens is business momentum, cash generation, and today’s valuation.

Image source: Getty Images.

Recent performance and cash generation

In Vail’s third quarter of fiscal 2025, Vail reported resort net revenue roughly flat year over year and earnings before interest, taxes, depreciation, and amortization (EBITDA) at just 1% lower, reflecting the ballast of pre-sold pass revenue despite a decline in skier visits. Management noted that destination passholder visitation improved late in the season, while uncommitted lift-ticket demand trailed expectations.

The company also updated fiscal-year resort reported EBITDA guidance to a range of $831 million to $851 million (quite substantial in the context of the company’s market capitalization of $5.3 billion), pointing to continued cost discipline and the benefit of its two-year resource efficiency plan.

Early pass trends heading into the 2025/2026 season were mixed but stable through late May: units down about 1% and sales dollars up roughly 2%, aided by pricing. Importantly for dividend investors, Vail’s trailing-nine-month cash from operations was about $726 million, providing ample flexibility to fund capex, repurchases, and dividends even in a year with choppy in-season visitation. Net debt stood near $2.23 billion at quarter-end, consistent with the balance-sheet posture Vail has maintained through cycles.

The investment case at a 6% yield

Vail’s quarterly dividend payments pencil out to roughly $8.88 per share annually, or something on the order of $330 million a year at the current share count. Management has been explicit: Today’s dividend level is underpinned by strong cash generation, but any future increases will depend on “a material increase in future cash flows,” the company said in its most recent earnings release. In other words, investors should not expect automatic hikes until the business has clearly stepped up its earnings and cash flow run rate.

Fortunately, the stock’s valuation is reasonable. In other words, Wall Street clearly isn’t expecting much. The stock trades at just 6.3 times the midpoint of management’s forecast for full-year resort reported EBITDA, a fair price for a capital-intensive, seasonal operator with substantial net debt.

Importantly, the company also returns cash to shareholders indirectly through stock buybacks. The board also expanded the buyback authorization in June, giving Vail the option to retire shares when it sees value. These dynamics — healthy cash generation and a disciplined capital return framework — support the case that investors are being paid to wait for steadier demand. In addition, if execution goes as well as management hopes, there are levers to improve margins through a companywide efficiency plan.

The risks, however, are significant. Weather is the obvious variable, but the latest quarter also underscored sensitivity to lower lift-ticket visitation from non-pass guests, even as passholders remained resilient. Additionally, macro volatility can defer pass purchase decisions, a labor-intensive operating model adds cost pressure, and Vail is executing leadership changes with Founder-Chair Rob Katz back as CEO. None of these is new to the story, yet they argue for patience and a meaningful margin of safety when estimating the stock’s intrinsic value before buying shares.

Put together, a near-6% dividend backed by robust operating cash flow and a pragmatic capital allocation stance makes the shares a solid option for income-oriented investors who can tolerate seasonal swings. But the dividend is not a growth engine on autopilot. For investors comfortable with weather and demand variability — and who value a large, pass-anchored ski network — today’s price looks reasonable. But those seeking faster dividend growth may want to watch pass sales and early season trends, waiting for signs of an inflection, before buying the stock.

GitLab (GTLB 1.21%) quickly gained attention after its 2021 initial public offering (IPO) as one of the only pure-play DevSecOps companies, offering a single cloud-native platform for coding, security, and deployment. The stock then fell sharply during the 2022-2023 technology sell-off, witnessing a drawdown of about 80% from the peak.

Recently, GitLab’s stock has begun to recover, driven by the rising adoption of its artificial intelligence (AI)-powered DevSecOps platform. Yet shares still trade at about 63% below their all-time high, highlighting a cautious investor sentiment.

Image source: Getty Images.

Despite this, GitLab’s push in AI, security, regulated industries,  and public sector can dramatically push up share prices in the coming months. Here’s why.

AI-native strategy

GitLab has positioned itself as an AI-native DevSecOps company, embedding AI across the entire software lifecycle. The company’s AI-powered suite, GitLab Duo (integrated into its DevSecOps platform), is seeing rapid traction. Weekly usage of GitLab Duo has risen sixfold so far in 2025, although the starting customer base was small. Approximately 25% of this usage can be attributed to new customers, who got access to Duo features after they subscribed to either the GitLab Premium or Ultimate tiers.

Recently, GitLab launched Duo Agent Platform, now in public beta, to mainly target large enterprises. This lets engineers work with AI agents to build, test, secure, and deploy software — automating many tasks in parallel to boost productivity and shorten delivery times. Gitlab has noted that many coding assistants can produce code, but it is not always high quality and secure. Gitlab, however, has added privacy, security, and compliance guardrails to maintain standards for enterprise software development.

GitLab has also partnered with Amazon, Anthropic, OpenAI, Alphabet, and Cursor to enable their agents to operate inside its Duo Agent Platform and DevSecOps workflows. This gives customers flexibility to choose AI tools while remaining within GitLab’s secure ecosystem.

Besides developing a high-quality offering, the company is also focused on monetizing it effectively. With Duo Agent Platform, GitLab plans to change its pricing from purely seat-based subscriptions to a hybrid seat-plus-usage-based model. The company is planning for the general availability of Duo Agent Platform by the end of 2025, although it is a very ambitious target. While AI agent activity is expected to generate incremental revenues, the near-term impact may be limited.

Robust financial performance

GitLab’s recent financial performance has been healthy. The company’s revenues rose 29% year over year to $236 million, while non-GAAP operating margin was 17% in the second quarter of fiscal 2026 (ending July 31). Adjusted free cash flow hit $46 million, a dramatic improvement from $10.8 million in the same quarter of the prior year.

GitLab boasts a solid balance sheet with $1.2 billion in cash at the end of the second quarter, giving it the flexibility to fund innovation in AI capabilities, platform enhancements, and go-to-market strategy.

However, Gitlab’s fiscal 2026 revenue guidance seems to have disappointed investors. Management expects fiscal 2026 revenues between $936 million and $942 million despite surpassing consensus revenue targets in the second quarter. The company attributed this conservative stance to the ongoing changes in its go-to-market strategy and tightening budgets in the small and medium business (SMB) segment.

Other growth catalysts

GitLab’s main edge lies in its unified platform where every step of the software development process is tracked and monitored. This full life-cycle context helps improve the accuracy and reliability of the AI recommendations and tools on the platform. Additionally, being the only independent DevSecOps company that works across all clouds and AI vendors, Gitlab gives enterprises and government clients flexibility to choose vendors and tools most fitted for their use cases, thereby avoiding vendor lock-in.

Increasing shift of clients toward GitLab Ultimate, its highest-value tier, is also becoming a key driver for the company. This has been driven by customers wanting robust security capabilities with code development. Ultimate contributed 53% of annual recurring revenues (ARR) at the end of the second quarter, while 8 of the 10 largest deals in the second quarter also included Ultimate.

GitLab is also seeing strong adoption of GitLab Dedicated, its single-tenant software-as-a-service (SaaS) version of its enterprise DevSecOps platform. ARR grew 92% year over year to $50 million, with strong demand from financial services and the public sector. FedRAMP authorization for “GitLab Dedicated for Government” has also opened U.S. federal contracts, making regulated and sovereign workloads a major growth frontier.

All these initiatives are playing a crucial role in securing new high-value clients. The number of clients contributing ARR over $100,000 grew 25% year over year to 1,344 at the end of the second quarter. The company is also proving successful in cross-selling and upselling to existing clients, as evidenced by its dollar-based net retention rate of 121%.

Reasonable valuation

Despite these strengths, GitLab is trading at 9.4 times sales, lower than its three-year average price-to-sales (P/S) ratio of 13.7x.

With growing AI opportunities, an expanding client base, and strong financials, GitLab looks inexpensive relative to its potential. Investors willing to tolerate near-term volatility should consider picking a small stake in this stock now.

Quantum computing is a major emerging technology that could be commercially viable by 2030. With that timeframe not all that far away, investors are starting to take quantum computing stocks more seriously. Several stocks in this industry have the potential to make investors a fortune if they can grow from startups to dominant tech companies, but there’s no guarantee they can achieve that. Several established players are pursuing quantum computing. While these don’t have nearly the upside as their smaller counterparts, they are much safer bets.

I believe taking a balanced approach to the quantum computing arms race is a smart investment move, and these four stocks represent a great way to capitalize on this massive trend while also leveraging current market conditions.

Image source: Getty Images.

The startups: IonQ and D-Wave Quantum

Investing in quantum computing startups is an attractive option. Often, these companies are worth about $10 billion or less, but could grow to become far greater if their technology stack becomes the go-to option in the quantum computing realm, much like Nvidia‘s (NVDA 0.43%) GPUs have in the artificial intelligence (AI) realm. However, it’s possible that their technology doesn’t work out, and the stocks go to $0. This is likely to happen to many competitors in the quantum computing race, as several techniques are likely to yield unsatisfactory results compared to other technologies.

Two of my favorite pure-play quantum computing companies are IonQ (IONQ 18.36%) and D-Wave Quantum (QBTS 7.66%). Both companies are taking two separate approaches to quantum computing, which helps spread out risk.

IonQ employs a trapped-ion approach, which represents the most accurate quantum computing technology currently available and can also be implemented at room temperature, making it significantly more cost-effective. However, this comes at the cost of processing speed, which is slower compared to other options.

D-Wave Quantum utilizes quantum annealing, making it particularly well-suited for optimization problems, such as mapping logistics networks. Quantum annealing has a more limited use case than general-purpose quantum computers, such as those developed by IonQ. Still, it could be a viable technology that yields real results in areas that can benefit from quantum computing.

Success isn’t guaranteed with either of these investments, which is why balancing their risk with surefire bets is a smart idea.

Big tech players: Alphabet and Nvidia

It would be a mistake for investors to move on too quickly from the AI investing trend. There are still truckloads of money being spent on AI computing capabilities, and that isn’t slated to slow down anytime soon. This benefits Nvidia more than any other company, but Nvidia is also getting involved in the quantum computing industry.

While Nvidia isn’t developing its own quantum processing unit, it is developing the technology that enables quantum computers to be integrated into traditional computing systems, such as those it manufactures. This hybrid computing approach is likely to become the primary use case of quantum computing. With Nvidia bridging the gap, it is poised to capitalize on this industry while also excelling in AI.

Another big player in the quantum computing space is Alphabet (GOOG 0.27%) (GOOGL 0.22%). Alphabet kicked off a major quantum computing investment rush in December 2024 when it announced that its Willow quantum computing chip completed a calculation that would have taken a traditional computer 10 septillion years (10 to the 25th power) to complete. This was a major breakthrough for Alphabet, but it’s still a long way away from developing a commercially viable quantum computing system.

However, if it can be the first cloud computing provider to offer a viable quantum computing system, it stands to make a ton of money from various quantum computing workloads that will appear over the next decade.

In the meantime, Alphabet has a dominant base business and is starting to emerge as the leading AI company. This combination will make Alphabet a fantastic investment over the next few years.

This combination of four quantum computing investments is a great way to capitalize on the trend. It allows investors to balance the risk of pure-play quantum computing investments that may not survive with established big tech players that are benefiting from current market trends and also have quantum computing investments.

Whatever one thinks of GoPro (GPRO 3.25%) stock, one has to acknowledge its theoretical ability to turn small investors into millionaires.

Its market cap is only $265 million, making it barely a small-cap stock. If one invested $5,000 at today’s levels, it would need to grow by 200-fold to become $1 million. A 200-fold gain in the stock price would send its market cap to $53 billion, a level well into large-cap territory but hardly unusual for a tech growth stock.

However, not all stocks reach their peak at the same level, and achieving that level would take the stock far above its record highs. Knowing that, is the business positioned to mint millionaires? Let’s take a closer look.

Image source: Getty Images.

Understanding GoPro’s business

GoPro sells action cameras, along with offering the corresponding apps and video editing software.

This has given the company a competitive niche. While smartphone users have built-in cameras, they are typically not waterproof or able to withstand extreme conditions. They may also not offer the stabilization or wide-angle capabilities found on GoPro cameras.

Such abilities gave GoPro a significant competitive advantage when the company went public in 2014. Nonetheless, brands such as Sony, Garmin, and many others began to compete in this business over time, chipping away at GoPro’s competitive edge.

The stock had steadily declined for years, but it has found a possible catalyst in artificial intelligence (AI). In late July, it began allowing users to loan out content for AI training purposes, enabling users to monetize content. Under the terms of this voluntary program, users can make their content available and receive 50% of the revenue GoPro expects to generate from their content.

The strategy has generated significant buzz, with customers volunteering more than 125,000 hours of footage. As a result, the stock has more than doubled over the last two months.

Still, investors should keep in mind that GoPro’s competitors could offer the same type of AI initiative. CSIMarket estimated GoPro’s market share at 65% in 2024. However, other surveys show its peers are making competitive gains, sparking concern for investors.

GoPro’s financials

GoPro’s deteriorating finances blunt its ability to respond to competition. In the first half of 2025, revenue of $287 million declined by 16%. The company has responded by cutting its operating expenses. Consequently, in the first two quarters of 2025, it reported a loss of $63 million, an improvement from the $387 million loss in 2024.

Moreover, investors should expect the declines and losses to continue as management forecasts a non-GAAP (adjusted) loss per share, putting its $59 million in liquidity in focus. To that end, it secured a $50 million loan in August. Nonetheless, the company still must find a way to cover losses and fund research and development to improve its products and invest in this AI modeling venture.

Indeed, with the ongoing losses, it does not have a P/E ratio, though the price-to-sales (P/S) ratio of 0.35 may draw some investor interest.

Unfortunately, the financial troubles are likely why its P/S ratio is so low. Hence, even as its AI initiative attracts interest, the financial struggles could hamper the company’s ability to succeed, much less mint millionaires.

Will GoPro stock help you become a millionaire?

Given the company’s condition, GoPro stock is unlikely to turn small investors into millionaires.

Indeed, GoPro’s size makes for an intriguing entry point for investors seeking outsize returns. Nonetheless, the business will almost certainly have to generate massive growth to accomplish such a goal.

Admittedly, it could turn its revenue picture around over time. If users can generate revenue from content, it could revive interest in GoPro cameras. Still, with the likelihood that Sony, Garmin, and others may try the same approach, it is unclear to what degree this initiative will succeed.

While GoPro’s business and stock could improve significantly, investors should not expect million-dollar returns without making massive investments in GoPro stock.

“Elon has reached peak Tesla (TSLA 7.21%) sales, and he knows it,” said Karl Brauer, executive analyst at iSeeCars, according to Automotive News. “I predict minimal investment in his current product, except in the area of self-driving tech.”

Peak Tesla? You know what they say: When it rains, it pours, and investors have been in the middle of a thunderstorm all year. Tesla has hit a number of speed bumps, including backlash facing Elon Musk and his political tour, declining sales and profits, the end of the $7,500 federal tax credit and disappearing zero-emission credit sales, mounting lawsuits, increased competition from advanced and affordable Chinese vehicles — you name it, it probably went against Tesla’s favor.

So, is it finally time to give up on Tesla?

Not so fast

There’s no question Tesla is in a transition period of sorts, evolving from the electric vehicle (EV) maker investors knew and loved into a robotaxi operator offering ride-hailing services at low prices — and potentially a robotics and artificial intelligence (AI) company to boot.

Right now, Tesla’s focus has zeroed in on a couple of different developments. First, the Cybercab is set for production in 2026, and Musk has previously said it will serve the robotaxi fleet and go on sale with a sub-$30,000 price tag at retail. It’s a dedicated two-door autonomous vehicle that allegedly won’t have human controls, such as steering wheel or foot pedals, per the company at its 2024 unveiling.

Tesla’s Cybercab. Image source: Tesla.

That said, Tesla has made a habit of overpromising and underdelivering, which has set up a healthy amount of skepticism. “I have to think that autonomy is further away than a lot of people expect,” said Sam Fiorani, vice president of global forecasting at AutoForecast Solutions, according to Automotive News. “By 2030, you’re still going to have a steering wheel and a driver. Even in Teslas.”

Tesla’s primary goal with the Cybercab is simply to create a robotaxi with the lowest cost per mile of operation — a simple idea that will be easier said than done. Through efficiency, slower acceleration, and lower top speed, among other factors, Tesla hopes to achieve a target cost of under $0.30 per mile of operation.

What else is in store?

Aside from the Cybercab, Tesla still has other developments to focus on in the near term. These developments include a plan to address affordability by launching a stripped-down Model Y crossover during the fourth quarter, which could help offset the expiration of the $7,500 federal EV tax credit.

It’s not quite a new Tesla model with a sticker price around $25,000, as has been promised in the past, but shifting plans to modify current models for affordability rather than create a new nameplate was likely the right move — Tesla needs to be more competitive on price, and quickly.

Tesla is also planning a second-generation Roadster, which was first promised to be in production as long ago as 2020, but is now expected within the next couple of years. Last, and perhaps least, Tesla is opening a factory next year dedicated to its often-forgotten Semi tractor trailer.

What it all means

While investors might have raised an eyebrow at that staggering announcement Tesla dropped on the market about a new compensation agreement for Elon Musk, potentially worth up to $1 trillion, the truth is that Tesla needs the best version of Elon Musk over the next decade. Tesla faces slowing sales in key markets, consumer backlash in the U.S. and Europe, and intense competition in China that has swallowed foreign automakers whole amid a brutal price war.

Tesla has its work cut out for it, no doubt. But if Musk can refocus his priorities on Tesla, even if it costs the company in compensation, it could position the EV maker to evolve more over the next decade than anyone imagined possible — think robotaxi services, robotics, and AI.

We could be watching the beginning of a slow-motion train wreck, or the beginning of one of the best investments in our lifetime. Because the latter is still possible, it’s not yet time to give up on Tesla.

Fear over President Donald Trump’s new tariffs has subsided, at least in the stock market. April lows have disappeared into a thriving bull market, and the S&P 500 is up more than 11% year to date.

Things could change next week when the Federal Reserve meets and considers an interest rate cut. If it does end up reducing interest rates, which it has indicated that it will, the market is likely to greet the news positively. If for some reason it doesn’t, or if it offers any kind of negative assessment of the economy, it could sink the markets again.

But that’s life in the markets. There are always going to be periods of uncertainty and volatility as well as dips, corrections, and crashes. But the overall arc has always been upward, and investing today is a vote of confidence in the future.

If you’re looking for excellent stocks that can withstand the oscillations of the market over time, I recommend MercadoLibre (MELI 0.10%), Dutch Bros (BROS -2.66%), and Apple (AAPL 1.82%).

Image source: Getty Images.

1. MercadoLibre: E-commerce and fintech

MercadoLibre is a no-brainer for investors looking for long-term growth. It continues to demonstrate incredible performance, but there’s so much further to go.

Although its main business is e-commerce, which is still a phenomenal growth driver, it has expanded to become a complete financial app. The dual focus gives it massive long-term opportunities.

Despite having been in business almost as long as Amazon, it still reports high growth in e-commerce. Its region is underpenetrated, and it’s generating a shift from offline retail to online retail.

Total revenue increased 53% year over year (currency neutral) in the second quarter, and gross merchandise volume of goods sold through its e-commerce marketplace increased 37%. New active customers, the foundation of the consumer shift to e-commerce, increased 35% over last year. Management is upgrading the value proposition to make it worthwhile for new shoppers to try MercadoLibre, and the service recently lowered its threshold for free shipping in Brazil from 79 Brazilian reals to 19. It’s also incorporating more artificial intelligence, and that’s leading to higher engagement, as is infinite scroll, which displays more information on a screen.

MercadoLibre’s fintech platform has even greater potential in underbanked communities. It offers a large assortment of financial services through its digital wallet, MercadoPago, and growth in monthly active users has been at 30% or higher for the past seven quarters.

Another feature I like a lot about this company is its varied markets. It operates in 18 Latin American markets, and they’re not all the same. Last year, it was experiencing pressure in Argentina, historically its largest market, but that was offset by success in Brazil and Mexico, its other two largest markets. That kind of hedge gives MercadoLibre stability even as some of its markets look risky.

2. Dutch Bros: Growing its brand in coffee

Dutch Bros is almost as old as Starbucks, but it’s been a small chain concentrated in Oregon. Although it’s been expanding slowly for years, it made a clever move when the pandemic shifted coffee shop consumption behaviors to ride the tide and take its drive-thru coffee concept national.

The original pilot, bringing the chain south through California, was extremely successful. The company took it up a notch with some very smart decisions to bring in new management and try new store formats as it keeps moving east, and it’s been a roaring success.

When you hear coffee, you might be envisioning steaming hot cups. But Dutch Bros’ core beverages are cold drinks and energy drinks. It offers customized beverages featuring all kinds of flavors and shots, and it has carved out a significant and growing niche in this space. Customers love it, and the future looks wide open.

The results speak for themselves. Revenue increased 28% year over year in the second quarter, driven by a 6.1% increase in same-store sales. Contribution margin, which measures store profitability, improved from 30.8% to 31.1%, and adjusted net income rose from $31.2 million to $45.5 million.

The investing thesis is made even more compelling by the expansion opportunities. Management recently raised its long-term goal from 4,000 stores to 7,000, a sevenfold increase from today’s store count.

3. Apple: Don’t give up on it

Finally, Apple might seem like a contrarian call today, but its recently stagnating price means that there’s time to buy before it starts to soar again.

The naysayers might point to slowing growth and too much dependence on the iPhone. But Apple doesn’t need a lot of products to generate engagement and high sales. It has developed an incomparable ecosystem of products that work together, plus loyal fans who love its quality and stay in that ecosystem, buying new upgrades and complementary products.

One recent concern has been that it’s not staying competitive in artificial intelligence (AI). It has released a slew of Apple Intelligence services, but it doesn’t seem to have found a breakout AI model like many of its most direct competitors. But I think it’s highly likely that it will come through.

Apple strives to be different, and better, and its AI will reflect that. One recent development just launched for its AirPods Pro earbuds is the ability to translate conversations on the spot. This is the kind of innovation that will make Apple Intelligence stand out.

Apple stock is down 6% this year, trailing the market, and now is a great time for the forward-thinking investor to take a position.

When I visited the Silicon Valley headquarters of Oracle (ORCL -5.05%) 25 years ago as a young technology reporter, I was dumbstruck.

The stunning campus of glistening emerald towers surrounding a placid lake looked positively otherworldly to me, something akin to the Emerald City of Oz that summoned Dorothy and her ragtag gang in The Wizard of Oz. “This place looks like the future,” I kept thinking.

The enterprise software firm has since relocated to Texas, but its future is now.

Many of the big tech names of the 1990s have faded from view — acquired, outmoded, or outcompeted.

Not Oracle. The stock is up 79% year to date and rose about 39% on Sept. 10.

What happened?

On Sept. 9 after the market closed, the software giant announced its results for the fiscal first quarter, ended Aug. 31, and they were as awe-inspiring as that original emerald campus.

Now, however, instead of back-office systems, the company’s fortunes are surging on the cloud.

A burgeoning backlog

But it wasn’t the revenue or earnings results that sent the stock skyward. In fact, quarterly revenue of $14.9 billion was up 12% from a year ago but still slightly below Wall Street’s expectations of $15 billion. And earnings per share of $1.47, up 6% from last year, came in a penny below expectations.

All that mattered little. It’s the backlog of business that stunned the market and sent the share price soaring.

Oracle said it expects revenue from its cloud infrastructure unit to surge 77% this year, to $18 billion. It also posted a huge surge in bookings in the latest quarter and signed four multibillion-dollar contracts with three different customers in the quarter.

The company’s remaining performance obligations — expected future revenue from signed contracts that has not yet been collected — surged during the quarter to $455 billion, a jump of 359%.

If that’s not the future, I’m not sure what is.

Multibillion-dollar customers

“Clearly, it was an excellent quarter and demand for Oracle Cloud infrastructure continues to build,” CEO Safra Katz said on the Sept. 9 earnings call. “I expect we will sign additional multibillion-dollar customers.”

CEOs often speak in hyperbole on earnings calls. But in this case Katz’s language seemed subdued, if anything. Multicloud-based revenue from Microsoft, Alphabet, and Amazon soared more than 1,500% in the quarter.

Oracle Chairman and Silicon Valley legend Larry Ellison said the company expects to deliver another 37 data centers to these three tech giants over the next few years, taking the total to 71.

Image source: Getty Images.

Pure gold

By the way, due to Oracle’s incredible run-up, Ellison’s fortune soared $90 billion to more than $380 billion, putting him right behind the world’s richest person, Elon Musk.

To incentivize his sales force, Ellison once paid bonuses in gold coins. He wanted to reward ruthlessness and drive competitors out of business.

It worked, as several early competitors — Sybase and Informix are a couple of them — stagnated or were swallowed up by other companies.

Ellison no longer pays bonuses in gold. But Oracle is certainly a golden stock for its shareholders.

There are 10 companies with a market cap over $1 trillion right now, and all of these except one are involved in artificial intelligence (AI). This technology will drive a substantial amount of economic growth in the 21st century, providing investors the chance to earn substantial gains from the right stocks.

Some companies that are well positioned to play a key role in shaping the economy with AI are still valued at less than $1 trillion. Although their share prices could be volatile in the near term, the following two companies could be worth a lot more down the road they are today.

Image source: Getty Images.

1. Palantir Technologies

More than 800 companies have chosen Palantir Technologies (PLTR 4.14%) to transform their business operations with AI. Businesses can upload data on Palantir’s platforms, and it basically shows them how to be more efficient, grow their revenue, and become more profitable. It is working magic for businesses and the U.S. military, which trusts Palantir to keep top-secret information secure about the U.S. and its allies. Despite its already high market cap of $400 billion, Palantir’s unique value proposition and stellar profitability has all the makings of a $1 trillion business.

Palantir is not just slapping a large language model on a company’s data to make it easy to search information. It pulls together data from different sources within a company, which creates a framework for understanding how the company operates. Palantir is essentially building a digital copy of a company’s operations that can detect problems and solve those problems instantly.

Palantir’s financials suggest there is no replacement for the value it provides. It reported accelerating revenue growth over the last year. In the second quarter, revenue grew 48% year over year, compared to 27% in the year-ago quarter.

Moreover, its net income margin was stellar at 33% in Q2, with an adjusted free cash flow margin of 57%. It’s not common for a small software company in the early stages of growth to be reporting margins like Microsoft.

These margins are being driven by high prices that Palantir charges customers. For example, it recently secured a $10 billion contract with the U.S. Army for the next decade. Organizations are willing to pay up for Palantir’s software because the savings realized are that big. Palantir is saving enterprises millions, even hundreds of millions in costs in some cases, providing an attractive return on investment that is driving the company’s growth.

Palantir stock is expensive, trading at high multiples of sales and earnings. But this is a unique software company with a huge opportunity ahead. CEO Alex Karp is aiming to grow revenue by 10x over time, which would bring annual revenue to more than $40 billion from this year’s analyst estimate of $4.1 billion. Based on its current margins, that could equate to $20 billion in annual free cash flow over the long term. Applying a high-growth multiple of 50 to that would put the stock’s market cap at $1 trillion.

2. Advanced Micro Devices

For AI to keep advancing and transform how people work and communicate, it needs more powerful chips. Nvidia has been the biggest winner so far, but investors shouldn’t overlook Advanced Micro Devices (AMD 1.91%). It is the second-leading supplier of graphics processing units (GPUs), and it could be well positioned to meet growing demand in edge computing and AI inferencing that could send the stock from its current $250 billion market cap to $1 trillion.

As AI proliferates across the economy, people will be able to use powerful AI applications and processing on their devices, which makes edge computing a large opportunity for AMD. The company offers a range of high-performance and energy-efficient chips that are aimed at running AI devices and PCs, positioning it to benefit from a booming market estimated to be worth $327 billion by 2033, according to Grand View Research.

Investors were disappointed by the company’s Q2 data center growth of 14% year over year, but management expects stronger demand once it launches its Instinct MI350 series of GPUs. As it continues to bring new solutions to the data center market, AMD’s data center business should accelerate.

AMD’s chips are clearly addressing needs in the AI market. It announced a partnership with Saudi Arabia’s Humain to build AI infrastructure using AMD’s GPUs and software. Meanwhile, Oracle is building a massive AI compute cluster using multiple AMD chips. AMD says it is also working with governments globally to build sovereign AI infrastructure.

Analysts expect AMD‘s earnings to grow at an annualized rate of 30% over the next several years. Against those prospects, the stock trades at a reasonable forward price-to-earnings multiple of 40. There is enough earnings growth here to potentially triple the stock in five years, putting it easily within striking distance of reaching $1 trillion within the next decade.

American Express (AXP -1.15%) has quietly strung together a run of steady results while the company readies a sizable update to its flagship Platinum card in the U.S. The global payments company, which leans heavily on high-spending cardmembers, fee income, and a closed-loop network, continues to post healthy top-line growth and best-in-class credit performance. Shares have also marched higher in 2025 as investors reward that consistency.

There is no way to know how the stock will react to the Platinum card overhaul in the near term. But the underlying business numbers already point in the right direction, and a well-executed refresh could extend a multiyear trend of rising card fees and engagement. That combination makes the stock look attractive for investors with a longer horizon.

Image source: Getty Images.

Resilient growth backed by premium engagement

Recent results reinforce the strength of the business. In the second quarter of 2025, revenue rose 9% year over year to a record $17.9 billion, and earnings per share were $4.08. On an adjusted basis that excludes last year’s gain from the sale of Accertify, earnings per share increased 17% year over year.

Management also highlighted record cardmember spending and reaffirmed full-year 2025 guidance for revenue growth of 8% to 10% and earnings between $15.00 and $15.50 per share.

“We saw record Card Member spending in the quarter, demand for our premium products was strong, and our credit performance remained best in class,” said Chairman and CEO Stephen Squeri in the company’s earnings release. He also pointed to the upcoming Platinum refresh this fall as a driver to “sustain our leadership in the premium space, drawing on our competitive strengths.”

Under the hood, the company’s revenue mix continues to shift toward high-margin revenue. Net card fees — a key proxy for the strength of premium value propositions — climbed 20% year over year to about $2.48 billion in the quarter. That stream has compounded at roughly 17% annually since 2019, supported by strong acquisition, elevated renewals, and ongoing product updates.

Meanwhile, discount revenue (the fee American Express earns from merchants when a cardmember uses an Amex card to make a purchase) increased 6% and net interest income rose 12% as revolving balances grew, underscoring American Express’s broad-based growth drivers.

Importantly, credit metrics remain solid as well: Cardmember loan net write-offs held near 2% to 2.4% across recent quarters, and past-due rates stayed low, supporting the company’s confidence in its full-year outlook.

Why the Platinum refresh enhances the bull case

American Express all but confirmed this week on social media that the new U.S. consumer and business Platinum cards will debut this week, on Sep. 18.

The company’s playbook for card refreshes is well-rehearsed from previous refreshes: Add or tune benefits, boost the value for the cardmember, and attract new customers or upgrades from lower-fee products. Historically, this has translated into higher engagement and steadily rising fee revenue — exactly the trend visible in recent quarters. A fresh Platinum lineup may accelerate that trajectory by giving existing members reasons to stay and new prospects reasons to join while reinforcing the brand’s travel and lifestyle positioning.

Even before management has data on the overhauled card’s performance, the company is upbeat. Guidance implies another year of healthy growth, and the franchise has room to keep compounding via several levers: premium customer acquisition (including younger cohorts), resilient spend among affluent consumers, continued build-out of travel experiences and dining (including Centurion Lounges and restaurant initiatives), and disciplined risk management.

On valuation, shares at around $325 trade at roughly 21 times the midpoint of 2025 earnings guidance. That’s a reasonable price-to-earnings ratio for a payments and premium lifestyle platform with double-digit card-fee growth, record spend, and a long runway to add value to membership.

Of course, there are some risks to bear in mind. A slower macro backdrop could temper spending growth, and a poorly received value and pricing change for the U.S. consumer and business Platinum card could spur churn. But taken together — reaffirmed guidance, strong fee momentum, stable credit, and a clear catalyst in the Platinum rollout — the return profile looks compelling.

There is no guarantee that the stock will react positively on launch day. Over a multiyear horizon, though, this looks like a great entry point for investors seeking a high-quality compounding business at a reasonable price.

Move over, Superman! The only thing more powerful than a locomotive at the moment is the U.S. stock market, which, seemingly faster than a speeding bullet, has rallied to new heights.

When the closing bell tolled on Sept. 11, the benchmark S&P 500 (^GSPC -0.05%), iconic Dow Jones Industrial Average (^DJI -0.59%), and growth stock-dependent Nasdaq Composite (^IXIC 0.44%) all catapulted to record closing highs. Everything from the evolution of artificial intelligence (AI) — a potentially $15.7 trillion global addressable opportunity by 2030, according to PwC — to the growing prospect of a Federal Reserve rate cut in September has fueled optimism and risk-taking.

But the tricky thing about Wall Street is that when things seem too good to be true, they usually are.

President Trump delivering remarks. Image source: Official White House Photo by Shealah Craighead, courtesy of the National Archives.

While a lot of attention is currently being paid to President Donald Trump’s tariff and trade policy and how it might adversely impact the U.S. economy by influencing the prevailing rate of inflation, there’s a far more sinister concern waiting in the wings, based on what history tells us.

Donald Trump’s tariff and trade policy is in the spotlight

Although the S&P 500, Dow Jones, and Nasdaq Composite have soared year to date, things looked a lot different in early April. Following the close of trading on April 2, President Trump unveiled his widely touted trade policy, which included a 10% global base tariff, as well as the implementation of higher “reciprocal tariffs” on dozens of countries deemed to have adverse trade imbalances with America. The stock market plunged in the subsequent days, with the S&P 500 tallying its fifth-steepest two-day decline since 1950.

To be fair, what Trump unveiled on April 2 and the current tariff policies in place today look markedly different. A number of countries/regions have hashed out trade deals with America, and the president has delayed the implementation date of reciprocal tariffs for select countries.

Additionally, there’s no guarantee Trump’s tariffs will legally remain in place. In November, the Supreme Court will consider the validity of the president’s tariffs following an appeal from the Trump administration after lower courts ruled most of his tariffs were illegal.

Despite these uncertainties, worry about Donald Trump’s tariff and trade policy, specifically pertaining to its effect on inflation, is heightened.

The domestic rate of inflation has moved decisively higher as the president’s tariffs take effect. US Inflation Rate data by YCharts.

In the three months since Trump’s tariffs began having a discernable impact on the U.S. economy, the inflation rate, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), jumped from 2.35% to 2.92%. It’s quite the jump, and it’s certainly raising eyebrows amid a weakening job market.

The biggest issue with Trump’s tariff policy, as told by four New York Federal Reserve economists who published a study in December 2024 for Liberty Street Economics, is that it does a poor job of separating output and input tariffs.

In their study, Do Import Tariffs Protect U.S. Firms?, the four New York Fed economists examined the impact of Trump’s China tariffs in 2018-2019 on the U.S. economy and businesses. What they found was added pricing pressure on domestic manufacturers caused by the China trade war. Whereas output tariffs are placed on finished products, an input tariff is a duty for a good used to complete the manufacture of a product in the U.S. This type of tariff runs the risk of increasing production costs and reigniting the prevailing rate of inflation.

While some degree of pricing power is a good thing for businesses, the inflationary ramp-up we’ve witnessed over the previous three months is a bit concerning.

Image source: Getty Images.

Wall Street’s ticking time bomb is nearing historic levels

But even though Donald Trump’s tariffs are pretty consistently in the headlines, they’re not Wall Street’s biggest concern. Based on historical precedent, valuation is the ticking time bomb ready to pull the rug out from beneath the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite at any moment.

Truth be told, there isn’t a one-size-fits-all blueprint when it comes to valuing stocks. That you might find a stock to be expensive while another investor believes it to be a bargain is precisely what makes the stock market a market in the first place.

However, there’s one valuation tool that leaves little interpretative wiggle room: the S&P 500’s Shiller price-to-earnings (P/E) ratio, also referred to as the cyclically adjusted P/E (CAPE) ratio.

The most familiar of all valuation tools is the P/E ratio, which divides a company’s share price by its trailing-12-month earnings per share (EPS). While this is a handy valuation measure for mature businesses, it often fails to pass muster during recessions and for high-growth companies. This isn’t a problem for the S&P 500’s Shiller P/E since it’s based on average inflation-adjusted EPS over the prior 10 years. It means shock events have minimal impact on the Shiller P/E ratio.

When back-tested 154 years to January 1871, the Shiller P/E has averaged a multiple of 17.28. As of the closing bell on Sept. 11, it clocked in at 39.58, which is the highest reading during the current bull market and the third-priciest multiple during a continuous bull market in over 150 years. The only two times the CAPE ratio has been higher are when it fractionally topped 40 during the first week of January 2022 and when it peaked at its all-time high of 44.19 in December 1999.

S&P 500 Shiller CAPE Ratio data by YCharts. CAPE Ratio = cyclically adjusted price-to-earnings ratio.

Admittedly, the S&P 500’s Shiller P/E isn’t a timing tool. Just because stocks are historically pricey, it doesn’t mean a game-changing innovation like artificial intelligence can’t keep valuations at nosebleed levels for months, perhaps even a few years. However, history is unmistakably clear in showing that premium valuations eventually end in short-term disaster.

Including the present, there have been six instances since 1871 where the Shiller P/E ratio has topped 30 for at least a two-month period. Following each of the previous five instances, the S&P 500, Dow Jones Industrial Average, and/or Nasdaq Composite tumbled between 20% and 89%. While the 89% is an outlier for the Dow during the Great Depression, plunges of 50% or more are not out of the question, as was witnessed during the bursting of the dot-com bubble in the early 2000s.

If there’s a silver lining for this ticking time bomb, it’s that bear markets are historically short-lived.

In June 2023, Bespoke Investment Group calculated the calendar-day length of every S&P 500 bull and bear market dating back to the start of the Great Depression in September 1929. Bespoke found that the average length of 27 documented S&P 500 bear markets was just 286 calendar days, or less than 10 months. In comparison, the average bull market stuck around for 3.5 times as long, or 1,011 calendar days.

Even though history is quite clear that trouble is brewing on Wall Street, long-term investors remain in the driver’s seat.

British cruise line Ambassador Cruises are so confident of the value of their sailings, and the packed schedule of events and delicious variety of food onboard, they challenged me to have as much fun during a day out in London as I would onboard

What would you do if you had £338 to spend on a day out?

That’s the question Ambassador Cruises asked me, and the one I answered last month. The British cruise line’s people are so confident of the value of their sailings, and the packed schedule of events and delicious variety of food onboard, they challenged me to have as much fun during a day out in London as I would onboard.

Armed with £338 (the price of a night’s bed and board for two on an Ambassador ship), I began plotting a big day out in the English capital for my partner and myself, to put their value claims to the test, and to find out if going away on holiday is all a big waste of time and effort.

My philosophy was simple and borrowed classic present-giving wisdom: we’d plump for things we’d never normally do.

READ MORE: Europe’s ‘best walking destination’ is also one of the cheapest for holidaysREAD MORE: Glamorous 70s train returns to the rails linking two beautiful cities

First up was breakfast in The Delaunay. If you’re looking to treat yourself to one of the best breakfasts of your life, then the Covent Garden-based all-day brasserie is the place to go. The grapefruits come sliced into segments and arranged into a bursting flower shape; the fried eggs are perfectly round; and the company, well-heeled lone men, seemingly from another century, reading broadsheets. £71 well spent on delicious food and a novel experience.

Next, we wandered up to London Zoo in Regent’s Park, where entry costs £38 per adult in peak season; which, on that particularly scorching August Saturday, it certainly was. Presumably, the Dudley Dursley imitators are out in lesser force on most days, as the banging on snake vivarium glass and screaming inches from a hanging sloth was relentless.

Beyond the beautiful gorilla babies Venus and Juno, and the excellently creepy bug house complete with a golden orb spider walk-through, there was little at the zoo I can recommend unless you like feeling a bit sad about nature.

Harbouring mixed feelings, we hopped on a bus to Soho and made for Tamarind Kitchen. The small plates restaurant specialises in seriously fancy curries and silver service. It’s a whole different kettle of fish than the poppadom-stacking, waistband-stretchingly plentiful curry houses you find on most UK high streets. We’re talking more tasting bowls of delicate vegetarian curries and £5 sparkling water than a chicken coop’s worth of tikka and a Tiger beer for £10. The damage: £106.

The highlight of the day was next on the schedule and had us slapping down our cash in a hurry and heading to the South Bank for a performance of Nye at the National Theatre. Booked a week in advance, we’d managed to bag two tickets for £38 each. Every seat in the Olivier section of the theatre is excellent, meaning we had a wonderful view of Michael Sheen as he brought the story of the NHS founder to life.

From the lofty peak, things could only go downhill, and so they did. Our night ended with a rejection metres from the front door of Ronnie Scott’s, where our hour of queuing for the non-ticketed 11 p.m. jazz live show proved in vain. Four Negronis in Bar Termini down the road provided good solace for £44.

So how does all of this compare to a cruise?

The major difference is the one-destination nature of our jaunt. The joy of a cruise is most obvious when you wake in the morning and look outside to see a new city or country there, ready to explore. Another big tick in the cruise column is the value of accommodation.

Had my partner and I swapped our flat for one of London’s cheapest hotel rooms, it would’ve cost us at least £100. More likely, £150. As my colleague Sophie Harris discovered on a recent Ambassador sailing on Ambience from London Tilbury to the Netherlands, the junior suites are “gorgeous” and replete with a large dressing area and a balcony.

“The space was super comfortable and cosy, and the outdoor area was perfect for relaxing, breathing in the fresh sea air and watching the waves. We were also treated to fresh canapés every day, fresh fruit and a stocked mini fridge,” Sophie wrote.

Which brings us on to the consumables. Even with £338 bolstering your wallet, drinks in London do not feel cheap. Or certainly not as cheap as they do when ordered on an all-inclusive cruise package, whatever the total is once all is said and done. Food-wise, Ambience ’s Buckingham Restaurant and its 80s-themed night complete with prawn cocktail, chicken Kiev and baked Alaska won major praise from Sophie.

But it’s hard to imagine that the variety and quality of any cruise kitchen could match that on offer in the UK’s major towns and cities. Similarly, London theatres such as the National, Young Vic and Almeida are much more tempting than anything I’ve watched on a cruise ship.

That said, if you’re a Bucks Fizz or Fleetwood Mac fan, Ambassador’s cover shows will likely win your heart. “The live music and shows onboard Ambience were a highlight of my stay, and due to it being an 80s cruise, the themed evening entertainment was incredible,” Sarah concluded.

At the end of it all, I’d say honours are pretty even. But, if you’ve recently had your fill of cruising or a package break, why not try a “holiday at home”? It’s a great way to unearth new local delights and see a new side of where you live.

In April, Navitas Semiconductor‘s (NVTS 1.48%) stock sank to an all-time low of $1.52 per share. That marked a 92% drop from its all-time high of $20.16 in November 2021. The chipmaker’s stock plummeted as it broadly missed its own long-term forecasts.

Before Navitas went public by merging with a special purpose acquisition company (SPAC) in October 2021, it claimed its revenue would surge from $12 million in 2020 to $308 million in 2024. But in 2024, the company only generated $83 million in revenue.

Image source: Getty Images.

Yet Navitas’ stock now trades at about $6. It soared over the past five months as it secured a new data center deal with Nvidia, but are those gains sustainable? Let’s review what Navitas does, why the Nvidia deal lit a fire under its stock, and if it’s worth buying.

What does Navitas produce?

Navitas produces gallium nitride (GaN) and silicon carbide (SiC) power chips, which are faster, more power-efficient, and more resistant to higher temperatures and voltages than traditional silicon chip devices. That makes them well-suited for electric vehicle (EV) chargers, data center power supplies, solar inverters, industrial motor drives, and mobile chargers. Unlike Wolfspeed, which is grappling with soaring costs as it manufactures its own SiC and GaN chips at its first-party foundries, Navitas is a fabless chipmaker that outsources its production to third-party foundries.

Navitas generates most of its revenue from its GaNFast Power ICs, which bundle together switching, sensing, control, and security features on a single chip. But in 2022, it significantly increased its exposure to the SiC market with its acquisition of GeneSiC, which develops SiC chips for the EV and data center markets.

Navitas’ top customers include PC makers like Dell and Lenovo, smartphone leaders like Samsung and Xiaomi, and Chinese EV makers like BYD and Changan. This May, Nvidia partnered with Navitas to develop more power-efficient delivery systems for its next-gen artificial intelligence data centers.

Why is Navitas’ growth cooling off?

Navitas’ sales surged in 2022 and 2023 as the GaN and SiC markets heated up, but that growth spurt ended in 2024 as it dissolved a partnership with a key distributor. Its revenue continued to decline in the first half of 2025 as its mobile and consumer markets faced seasonal headwinds and its EV, solar, and industrial customers reined in their orders to resize their inventories. Its sales in China, which accounted for 60% of its top line in 2024, are also exposed to unpredictable tariffs.

Data source: Navitas Semiconductor. YOY = Year-over-year.

Navitas’ deal with Nvidia also won’t boost its near-term revenues. It expects to ship the first samples for that collaboration in the fourth quarter of 2025, the final selections to be made in 2026, and the actual mass production of those selected chips to start in 2027.

What’s next for Navitas?

For 2025, analysts expect Navitas’ revenue to decline 42% to $48.6 million as its net loss widens to $116.4 million. For 2026, they expect its revenue to rise 9% to $53.1 million as it narrows its net loss to $78 million. That recovery should be driven by milder macro headwinds for the EV, solar, and industrial markets. But in 2027, they expect its revenue to surge 79% to $95 million as it starts mass-producing its first chips for Nvidia, while its net loss could narrow to $68 million.

However, that forecast could be too bullish because it hasn’t even shipped its first power chip samples to Nvidia. If those chips face delays or production issues, it will struggle to meet Wall Street’s rosy expectations for 2027 and beyond. But too much optimism has also been baked into its current valuations. With a market cap of $1.2 billion, Navitas is valued at 24 times this year’s sales. That price-to-sales ratio was inflated by its headline-grabbing partnership with Nvidia, but it can’t be justified by its near-term growth.

Therefore, Navitas’ stock could be cut in half and still be expensive relative to its peers. It had a great run over the past four months, but I doubt it can maintain that momentum in this wobbly market. If you don’t already own Navitas’ stock, you should probably wait for some clearer updates regarding its future roadmap before buying.

If you’ve been paying attention to the tech world for the past couple of years, you’ve likely noticed how unavoidable artificial intelligence (AI) is. Even if you haven’t been tuned into tech news, chances are good that you’ve come across AI in some form or fashion.

This AI hype has made many tech stocks go-tos for investors looking to capitalize on the new technology, but there have been very few stocks that Wall Street has obsessed over quite like Palantir Technologies (PLTR 4.14%). The stock is up over 120% year to date through Sept. 10, and up over 378% in the past 12 months.

Image source: Getty Images.

Why the obsession with Palantir?

The reason why Wall Street has become obsessed with Palantir is that the company has demonstrated that it’s not a one-trick pony.

For a while, Palantir was viewed as a niche data software company that served government agencies like the U.S. Department of Defense and CIA. However, the growth of its U.S. commercial business — thanks to its Artificial Intelligence Platform (AIP) — has shown that the company can scale in the private sector and compete in the mainstream enterprise AI space.

In the second quarter, Palantir’s U.S. commercial business increased its revenue 93% year over year to $306 million. Although it didn’t earn more than Palantir’s U.S. government revenue ($426 million), it was easily its fastest-growing segment.

Should you also be obsessed with Palantir?

Palantir showing additional revenue streams is encouraging, but if you’re not currently an investor, you should proceed with caution before going all in on the stock because of its extremely high valuation. Palantir is currently trading at close to 267 times its forward earnings, which is one of the highest in history on the stock market, regardless of the company.

This doesn’t make Palantir a bad investment, but such a high valuation means that investors have priced a lot of growth into the stock, and anything short of meeting these lofty expectations could result in a sharp pullback.

Why is the healthcare industry a great place to find investments right now?

There are tree major reasons. First, spending on healthcare in the U.S. is growing rapidly. The industry already accounts for more than 17% of the economy and is expected to expand by 5.8% a year on average through 2033, when it should account for more than a fifth of the economy.

Second, the healthcare industry is widely considered to be recession-proof, or at least highly recession-resistant. Historically, the sector has fared well during recessions, as people need healthcare and find ways to pay for it even when the economy is contracting.

And the third reason is demographics. U.S. society is graying. The number of Americans 65 or older is projected to rise from 62 million in 2024 to 84 million within three decades, and the number of centenarians — those 100 or older — is expected to quadruple over that time frame. It’s no secret that people generally require more healthcare as they age.

A health giant

So, what’s a good way for an investor to take advantage of these trends and participate in that industry’s relentless expansion? There are many ways, including investing in drug manufacturers, medical device makers, health insurers, and care providers, among other health-related companies.

One health company has operations that span many of those sectors. In fact, you might have visited one of its locations in the past month. It has around 9,600 stores across all 50 states plus the District of Columbia and Puerto Rico, and 85% of Americans live within 10 miles of one.

I’m talking about CVS Health (CVS 0.43%). CVS is much more than a pharmacy chain. It provides healthcare services like lab tests, health screenings, vaccinations, and treatments for minor injuries at its in-store clinics. It employs more than 40,000 physicians, pharmacists, nurses, and nurse practitioners to enable those services.

It also owns health insurer Aetna, which it acquired in 2018. Covering 36 million people, it’s the fifth-largest health insurer in the nation.

Oh, and the pharmacy part: CVS Health has a 27% share of pharmacy prescriptions nationwide.

Image source: Getty Images.

Strong results

Right now, CVS is firing on all cylinders. The company released its second-quarter results on July 31, and both earnings and revenue beat Wall Street’s estimates. The company also increased its guidance for full-year earnings per share from a range of $6.00 to $6.20 to a range of $6.30 to $6.40. The report sent the stock sharply higher, and it climbed 18% in August.

Analysts now expect full-year earnings growth of 15% in 2025 and another 13% in 2026.

Yet the stock remains cheap, trading at just 10 times forward earnings estimates, which is lower than many of its healthcare industry peers.

CVS is also expanding. It’s now swallowing up many former locations of competitor Rite Aid, which filed for bankruptcy protection in May,  and even better, acquiring Rite Aid’s prescription files.

CVS has a market cap of about $90 billion, and the stock is up 65% year to date as of market close Sept. 10. Looking back further paints a different picture. The stock is down roughly 30% over the past three years.  But the company has been rewarding investors. Last year, the company repurchased about 40 million shares of stock and paid $3.3 billion in dividends.

Now on sale

So, CVS is doing well, and shares are on sale. They dipped a bit recently when CVS executives declined to give guidance about upcoming government ratings that will impact how much money the company gets from Medicare Advantage plans.

But that’s not worrisome. CVS says it never gives guidance between quarterly earnings reports.

Savvy investors will take this opportunity to pick up a few shares of the expanding healthcare provider in light of the company’s potential. There’s plenty of upside with CVS.