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☕️ Still the most undervalued AI stocks on the planet

Sep 08, 2025

Howdy! 👋

All three major indexes are green in early trading as I type.

Good!

The markets require both buying AND selling to work correctly so the back and forth is a sign that things are working normally even though we arguably live in some of the least normal times on record. 🤦‍️

As I noted in last night’s Sunday Short, the path of least resistance is still higher so do NOT get knocked off track. (Watch)

Missing opportunity is always more expensive than trying to avoid risks you can’t control.

Here’s my playbook.

1 – Apple and Nvidia – still two of the most undervalued AI stocks on the planet

I sat down with the venerable Stuart Varney before the market opened to talk about two of my favorite companies: Apple and Nvidia.

Many investors think they’re gonzo at this point.

I’m not one of ‘em. (Watch)

Keith’s Investing Tip: Many investors get hung up on what “might” happen, but the world’s best and more successful investors always focus on what’s “likely” to happen… a very different proposition. Three guesses who is more profitable over time – and the first two don’t count! 😀

At the risk of sounding like a broken record, hopefully you’ve got this covered; and I bring it up again for the simple reason that most investors don’t understand the distinction which is why they never quite get the results they’re after.

The One Bar Ahead® Family, on the other hand, is having quite the opposite experience and if you’d like to join ‘em, I’d be thrilled to toss my hat in the ring.

2 – Uber’s got a Tesla problem

The minute I heard about Tesla’s Robotaxi for the first time during Tesla’s 2019 Autonomy Investor Day, I thought to myself… Uber’s toast.

I said as much on stage and on TV very shortly thereafter and several times since. Naturally and in keeping with the old adage that no-good deed goes unpunished, I got flambéed by scores of folks who took issue with me.

I might have been on to something.

It’s taken a bit, but news is coming outta Texas this morning via Twitter / X and other sources anecdotally that the cost of a Tesla Robotaxi ride is a fraction of an Uber. I haven’t seen Lyft mentioned yet but it’s logical to assume that they’re facing a similar challenge.

If I owned Uber stock, I’d be getting while the gettin’ is good. I don’t because I’ve never liked Uber, but that’s beside the point.

You might, which is why I’m bringing this up.

Meanwhile, I’m taking a hard look at putskies – meaning put options (a bet that a stock declines – in this case Uber).

3 – Tariff refunds?

The Supreme Court will decide on US President Donald Trump’s tariffs with the US being forced to issue massive refunds if they’re rolled off. (Read)

The markets could go either way.

My guts are telling me that the first move would be a knee-jerk run higher because most people don’t understand how companies are using ‘em and the playing field that would get rearranged. So, buyers would rush in.

However, my experience and my guts are telling me the big money would very quickly roll over into a hard, sharp downdraft because the deeper impact is on the US Treasury which would have to issue staggering refunds. Fears would be largely unfounded but nonetheless how that would impact the Fed which is still asleep at the switch literally and figuratively.

The best defense is quality names either way. That and probably turning off the TV and social media as the decision looms. 🤦‍♂️

Keith’s Investing Tip: Many investors focus on increasingly minute data points because they think that’s what they’re supposed to be doing. No! Flip that around… when in doubt, zoom out. Wall Street hates that because it makes you harder to separate from your money!

4 – Musk goes full “carrier”

SpaceX just plunked down $17B for EchoStar’s wireless licenses — half cash, half stock. (Read)

Why?

Starlink’s direct-to-cell 5G is about to erase dead zones and, more importantly, turn Musk into a fourth national carrier with global reach. EchoStar soared +30%. AT&T, Verizon, and T-Mobile slipped.

What people are missing is deceptively simple.

Connectivity is a $1.98T market projected to hit $2.87T by 2030 — a figure that I think is very likely half of what it really is. My research suggests it could be $5T+.

Here’s the thing.

Musk doesn’t give a rip about spectrum like old school analysts think.

MyPOV is that he’s buying future cash flow decades before other players realize they’re getting locked out.

It’s the difference between chess and Go.

You win chess by clobbering your opponent and taking pieces off the board. But you win Go when you control so much (board) territory and so many captured stones that your opponent runs out of options and has no moves left.

Keith’s Investing Tip: Buy vision, not excuses.

5 – Buy Kenvue?

Shares of Kenvue — the maker of Tylenol — tumbled more than 9% on Friday, their worst session since being spun off from Johnson & Johnson in 2023.

The selloff followed reports that Health and Human Services Secretary Robert F. Kennedy Jr. plans to link autism with Tylenol use during pregnancy. (Read)

The 4.50% is mighty tempting, no doubt.

Bank of America says it’s a buy.

MyPOV is tread lightly.

The company’s fundamentals remain compelling with strong gross margins and a diversified portfolio of brands…. but one single link or even restrictions on acetaminophen during pregnancy could gutter it.

The way I see it, Kenvue’s ties to J&J (which still holds an ownership stake), means that it still has broader liability risks. J&J’s talc settlements come to mind, for instance.

I prefer stocks without the drama.

Companies that are driving growth through innovative therapies, blockbuster pipelines, and strong recurring revenue streams — all while throwing off significant cash flow that supports dividends and buybacks.

Many investors don’t grasp how important this is and that works against ‘em over time.

For example, the two names I prefer and have shared with the OBA Family have returned 74.60% and 101.55% over the past 3 years versus –24.56% for Kenvue and 65.15% for the S&P 500 respectively.

Companies facing regulatory scrutiny tend to trade at a perpetual discount — a penalty box that can last years. Examples include Altria with nicotine and Bayer after the Monsanto Roundup fiasco.

The takeaway is simple… don’t confuse a juicy yield with safety.

That’s often Wall Street’s way of selling you risk in a pretty package or to paraphrase an old adage… putting lipstick on a pig and calling it “swine” because it sounds fancy.

Keith’s Investing Tip: It’s always better to own companies creating the future than those defending the past that we talk about regularly in our research journal for individual investors, One Bar Ahead®.