11/10/2025
By Charles Payne, CEO & Principal Analyst

As the “Mag Seven's” earnings growth slows, other parts of the market will become more attractive to investors.

On that note, we are looking for what we always look for:

Organic top-line growth and margin expansion.

Valuations are rich on a relative and absolute basis, but this is not 1999.

Measuring Froth

Taking valuation and price into account, today’s artificial intelligence (AI) bubble has become cheaper, whereas the dot-com bubble was inflated beyond belief, disregarding the laws of math, science, and common sense.

Financing Today’s Dream

The AI Data Center story is one for the ages, which means it's attracting many doubters, even in rural towns that have voted against it.

I think it’s a missed opportunity for those towns.

Meanwhile, the stock prices of most companies associated with building data centers and transmitting power have seen significant gains.

This is still the “hype phase,” which will be followed by the build-out phase.  I suspect that this entire story, as a premium investment opportunity, has several years to run.

In my book, Unbreakable Investor, I dedicated an entire chapter to comparing Nvidia (NVDA) and Cisco Systems (CSCO), with a focus on the deal-making of the latter. These deals hide slowing core growth and, at the same time, create new liabilities.

The question now: Are Cash Demands Too High?

To read the full report, contact your account representative or email Info@wstreet.com.

Charles Payne
Wall Street Strategies

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