Consider Palantir (PLTR) following a Citi upgrade to Buy, which set a price target of $235 based on an expected "super cycle" in its government business and accelerating enterprise adoption. The new partnership between Apple (AAPL) and Google (GOOGL) to integrate Gemini AI is a major bullish catalyst for both stocks, solidifying their market dominance. Meta Platforms (META) presents a potential value opportunity as it pivots towards cloud computing, which could lead to a significant stock re-rating from its current valuation. Within the booming semiconductor theme, consider Intel (INTC) as a contrarian long-term investment due to its strategic importance for US manufacturing. Lastly, for a high-growth software play, look at Zeta Global (ZETA), a stock the analyst is personally buying with conviction for its potential to outperform.

Palantir (PLTR)

• Citi upgraded the stock to Buy from Neutral, raising their price target to $235 from $210.
• The analyst believes consensus estimates for Palantir will be significantly higher for the year 2026.
• Recent industry conversations suggest that Palantir's use cases are accelerating within enterprise businesses.
• The analyst also sees a "super cycle" for Palantir's government business, driven by increasing defense budgets and a sense of urgency for modernization.
• Citi forecasts that Palantir could achieve 70% to 80% revenue growth in 2026.
• The host notes that Palantir currently trades at an aggressive valuation and will need to re-accelerate its revenue growth from the current 63% to justify and expand its multiple.
• The company is growing its customer base from 900 and could reach 9,000 over time, which would lead to massive free cash flow.

Takeaways

• Bullish Sentiment: The sentiment around Palantir is highly bullish, driven by a major analyst upgrade and the belief in a "super cycle" for its government contracts.
• Growth is Key: For the stock to continue performing well, the company must meet or exceed very high growth expectations (70%+). The current high valuation prices in a lot of future success, making upcoming earnings reports critical.
• Long-Term Potential: If Palantir can continue its rapid customer acquisition and revenue growth, it has the potential to be a dominant player in the AI and SaaS space for years to come.

Meta Platforms (META)

• The company announced a new top-level initiative called MetaCompute, with plans to build out massive data center infrastructure ("tens of gigawatts this decade").
• This move is interpreted as a potential entry into the cloud computing business, offering its infrastructure as a service to other companies.
• The stock is considered cheap, trading at 18 times forward earnings, because investors have been skeptical of its heavy spending on projects with unclear returns outside of advertising.
• Bull Case: By becoming a cloud provider, Meta could create a powerful new revenue stream, similar to Amazon's AWS or Microsoft's Azure, justifying its massive infrastructure investments.
• Bear Case: The move could be seen as a sign that Meta's internal projects (like the Metaverse) are not using the full capacity, forcing them to sell it off.
• This announcement is seen as a positive catalyst for data center and "neo cloud" companies like Iren (IREN), Cipher (CIFR), and Core Scientific (CORZ), as Meta will likely need to partner with them to build out its infrastructure.

Takeaways

• Strategic Pivot: Meta may be shifting its strategy to include enterprise cloud services, which could fundamentally change how the company is valued.
• Undervalued Potential: If the market begins to see Meta as a future cloud giant in addition to a social media company, its "cheap" stock valuation could re-rate significantly higher.
• Ecosystem Play: Meta's push into cloud infrastructure is bullish for the entire data center supply chain, from builders to energy providers.

Google (GOOGL) & Apple (AAPL)

• Apple and Google have officially announced a collaboration where Apple will use Google's Gemini AI technology to power "Apple Intelligence" on its devices.
• This is seen as a major win for Google, as it secures distribution for its AI on over 2 billion Apple devices, a critical advantage as user interaction shifts from search bars to AI assistants.
• This is also a win for Apple, which gets a best-in-class AI experience for its users without having to bear the massive cost of developing the underlying models from scratch.
• The host notes that Google's market cap hit $4 trillion and questions if it could surpass NVIDIA this year.
• The partnership is a potential setback for competitors like OpenAI, who are now shut out from Apple's massive ecosystem.

Takeaways

• Symbiotic Relationship: This partnership is mutually beneficial and solidifies the dominance of both tech giants. Google gets distribution, and Apple gets cutting-edge AI features with low capital investment.
• Bullish for Both Stocks: Investors could see this as a positive catalyst for both AAPL and GOOGL. It provides a clear AI strategy for Apple and reinforces Google's lead in the AI space.
• Competitive Moat: The deal strengthens the competitive moat for both companies, making it harder for new AI startups or competitors to gain a foothold in the consumer market.

Investment Themes & Other Mentions

Semiconductors

• This is identified as a "massive theme" for the year.
• Fund managers who missed the previous rally are now buying into the sector, believing the demand for AI is real and sustainable.
• Smaller semiconductor companies are seen as having more room to run compared to the mega-cap NVIDIA (NVDA).
• Stocks mentioned as performing well: Micron (MU), Broadcom (AVGO), Lam Research (LRCX), and Amkor (AMKR).
• Onshoring is a key sub-theme, with the US government working to bring more semiconductor manufacturing from companies like TSMC (TSM) to the United States.
• Intel (INTC) is mentioned as a contrarian long idea, based on the thesis that the US government and other major tech players will not let it fail due to its strategic importance for domestic manufacturing.

Space & Defense

• This is another "big theme" for the year.
• Stocks like Rocket Lab (RKLB) and AST SpaceMobile (ASTS) are benefiting from this trend.
• Potential catalysts include a future SpaceX IPO (rumored at a $2 trillion valuation) and talks of a $500 billion increase in the US defense budget.

Data Centers & Energy

• The massive power consumption of AI data centers is putting a strain on the energy grid.
• This is creating an investment opportunity in energy infrastructure modernization.
• Stocks mentioned in this theme include EOS Energy (EOSE), Energy Vault (NRGV), and Bloom Energy (BE).
• Political comments about forcing Big Tech to pay for their energy usage further highlight the importance and potential profitability of this sector.

Financials & Credit Card Companies

• Bearish Sentiment: Stocks like SoFi (SOFI), American Express (AXP), Visa (V), and Capital One (COF) faced selling pressure.
• This was due to political proposals to cap credit card interest rates at 10%.
• The host suggests this could be a temporary overreaction, as the proposal may just be a negotiating tactic and not become actual law.

Zeta Global (ZETA)

• The host disclosed a new personal position in Zeta, which he bought at $18 (now trading at $24).
• He is "getting more and more excited" about the stock and believes it has the potential to outperform for the rest of the year.
• It is noted as one of the few software-as-a-service (SaaS) companies that is performing well.