US tech stocks, especially those linked to AI, are currently overvalued due to overly optimistic assumptions about compute scarcity and capital expenditure growth. The author recommends reducing exposure to these overvalued US tech stocks and instead focusing on undervalued or fairly valued US software companies like Microsoft and Oracle. Additionally, the UK market is seen as a promising alternative for value investments once the US market corrects, while selective Chinese stocks such as JD.com offer opportunities. The portfolio strategy includes 40% cash, 10% Chinese equities, and 50% US equities, with plans to decrease US holdings in favor of UK value stocks during a market downturn.
Microsoft's stock has dropped 11% this year despite its AI business growing over 100% annually and strong Azure cloud growth. Investor Bill Ackman is increasing his Microsoft holdings while reducing Alphabet, seeing value in Microsoft's current price...
A federal jury in Oakland ruled unanimously against Elon Musk in his $150 billion lawsuit claiming OpenAI abandoned its charitable mission by becoming a for-profit entity. Musk alleged that OpenAI and its leaders, including Sam Altman, violated their...
A California jury unanimously ruled that Elon Musk's lawsuits against OpenAI cofounders and Microsoft were filed too late, dismissing his claims of mistreatment and theft related to OpenAI's for-profit affiliate. The trial centered on whether promise...
A jury rejected Elon Musk's 2024 lawsuit claiming OpenAI broke its nonprofit promise, siding with CEO Sam Altman and OpenAI. Musk alleged the AI company shifted to for-profit motives, seeking up to $134 billion in returns and leadership changes. The ...
Microsoft is rated a strong buy due to its undervalued shares trading below fair value at a forward P/E of 24x. The company’s AI product Copilot has reached 20 million paid seats, representing only 3.3% market penetration, indicating significant grow...
