Nvidia (NASDAQ: NVDA) is moving beyond selling GPUs by helping build the infrastructure that its clients could depend on for decades. Just one AI factory project, for example, creates an intriguing possibility: long-lived facilities that can be upgraded with new generations of Nvidia technology, potentially extending demand far beyond a single chip cycle.

Stock prices used were the market prices of Aug. 21, 2026. The video was published on Sept. 4, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Netflix (NASDAQ: NFLX) has been punished for slowing growth, but profits are moving in the opposite direction. Expanding margins, stronger cash flow, advertising growth, and buybacks could keep earnings compounding even without a return to Netflix's old valuation.

Stock prices used were the market prices of Aug. 21, 2026. The video was published on Sept. 3, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

The U.S. options market is on track for a seventh straight record year. Cboe Global Markets (NYSEMKT: CBOE) and Nasdaq (NASDAQ: NDAQ), leading exchange operators, are already seeing strong growth across their core businesses.

In fact, the single-day high over the past year was more than 110 million contracts. That's almost twice the average daily trading volume seen in 2025.

So, how are the two exchanges positioned to benefit from these trends?

Image source: Getty Images.

Cboe and Nasdaq hit new milestones

Cboe posted another record quarter in the period ending June 30, thanks to strong trading activity across its markets, especially in index options.

In the second quarter of 2026, the company generated a record $732 million in net revenue, up 25% from a year ago, while adjusted diluted earnings per share rose 45% to $3.60.

The biggest driver? Cboe's derivatives business, which saw net revenue climb 30% year over year to a record $413 million. Demand for options was exceptionally strong. In fact, the average daily volume of index options rose 32% to 6.2 million contracts.

Nasdaq, meanwhile, reported $1.5 billion in net revenue over the same period, up 15% year over year. Interestingly, Nasdaq's options business is becoming increasingly important. Its market services net revenue rose 11% while U.S. equity options volumes hit record highs.

Revenue from index options more than doubled year over year for the fourth consecutive quarter. And with index exchange-traded product (ETP) assets under management crossing $1 trillion for the first time, that momentum is only getting stronger.

Cboe and Nasdaq have built strong franchises, but the two exchanges are already developing the next drivers of growth beyond their core businesses.

Cboe and Nasdaq are building the future of trading

Cboe's options business is thriving, but management is already thinking well beyond its core products.

It recently launched Cboe Predicts, the company's prediction-market suite, with binary options on the Mini-S&P 500 Index, allowing investors to trade simple "yes or no" positions tied to market outcomes. Cboe believes these products are simpler and more intuitive for newer investors.

The company is also developing company-specific key performance indicator (KPI) contracts, subject to regulatory approval, that allow investors to trade key business metrics, such as Nvidia's data center revenue, for example, rather than the stock itself.

And behind the scenes, Cboe is preparing to expand U.S. cash equities trading to 23 hours a day, five days a week, with a long-term goal of 24/7 trading.

On the other hand, Nasdaq is preparing to launch event options tied to the Nasdaq-100. The new product is expected to launch in the fourth quarter and will provide the exchange with another growth avenue within its derivatives business.

The exchange is also planning to launch 23/5 trading in December, allowing users to trade 23 hours a day, five days a week. This could help boost trading volumes by allowing investors to react to overseas headlines without waiting for the U.S. market to open.

So, can these initiatives strengthen the bull case for Cboe and Nasdaq?

Can options trading volumes set a new record?

2025 was the sixth consecutive record year for average daily options volume, with roughly 61 million contracts traded per day. Through the second quarter of 2026, daily volume averaged nearly 71 million contracts. That puts 2026 well ahead of last year's record pace. But with the surge in retail trading, activity could rise even further.

Cboe achieved another record fiscal quarter, driven by rising retail trading and demand for options. Meanwhile, Nasdaq continues to see meaningful growth in index options. If volumes continue to pick up, options revenue could keep climbing, driving stronger revenue growth for both exchanges.

And if options trading accelerates further, U.S. options volumes could set a seventh straight record year. That could make Cboe and Nasdaq some of the best ways to invest in that trend.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Cboe Global Markets and Nasdaq. The Motley Fool has a disclosure policy.

Rigetti Computing (NASDAQ: RGTI) is gaining strategic validation from government support and paying hardware customers, but the shareholder equation remains unsettled. The upside could grow substantially if those early signals become repeatable demand, provided capital requirements and dilution do not absorb too much of the value created.

Stock prices used were the market prices of Aug. 24, 2026. The video was published on Sept. 2, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

AMD (NASDAQ: AMD) is shifting its AI strategy toward inference, while Helios, Instinct, high-bandwidth memory, and improving software could expand AMD's share of data center spending. But today's premium valuation raises the bar on execution. The opportunity is substantial if inference becomes a larger profit engine and AMD can convert deployments into sustained earnings growth.

Stock prices used were the market prices of Aug. 20, 2026. The video was published on Sept. 1, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Roblox (NYSE: RBLX) is still growing its user and payer base even as its stock sits roughly two-thirds below its peak. With a large cash balance, an active buyback, and stronger recent cash generation, the upside case now depends less on another viral hit and more on whether per-user spending can stabilize.

Stock prices used were the market prices of Aug. 21, 2026. The video was published on Sept. 1, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Roblox. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Palantir Technologies (NASDAQ: PLTR) is one of the most talked-about names in the defense space right now. But the company has one big problem: it's priced for perfection. Any bad news could be enough to send the stock crashing.

Trading at a 159 times trailing earnings (price-to-earnings) multiple, the company looks exceedingly expensive to many investors. And while I like the business, I'm a little wary of its consistently elevated valuation.

Image source: Getty Images.

So I shopped around in the defense sector to see if there were other candidates offering better value, and, as luck would have it, I found two defense stocks priced for pessimism: Booz Allen Hamilton (NYSE: BAH) and Science Applications International Corp. (NASDAQ: SAIC).

But the question now is, are these low valuations enough to justify a buy, or is the market pricing these companies cheaply for good reason?

Let's find out.

Booz Allen Hamilton: Cheap for a reason, or a hidden bargain?

Booz Allen Hamilton aligns more closely with Palantir's data-heavy approach. It provides consulting, engineering, and data analytics services to U.S. agencies. Notably, the company has won several high-profile contracts, the largest of which is a $1.58-billion deal under the Weapons of Mass Destruction Analysis, Exploitation, and Data Science Support (WAEDS) initiative in 2025.

However, Booz Allen Hamilton hit a speed bump when Treasury Secretary Scott Bessent canceled $21 million in U.S. Treasury contracts with the company in January 2026 over a data leak that occurred between 2018 and 2020.

Combine that with slower federal funding, the government shutdown at the end of 2025, and a 4.2% and 27% decrease in its top and bottom lines in its latest quarter, and the stock hasn't been the same since, falling from over $90 in January to around $76 today.

But there is a silver lining in all these gray clouds. Free cash flow remains strong, and total backlog has increased by 3.2% to $39 billion. COO and President Kristine Anderson adds, "Demand remains strong and funded backlog was up 23%." And despite lower revenue, the company expects a low-single-digit sales growth rate by the end of the fiscal year.

Another thing that Booz Allen has going for it is its current valuation; the stock trades at a trailing P/E of just 11.88, a massive discount from the sector median of 26.08.

Now, Wall Street still rates the stock a Hold, but at this point, Booz Allen only needs to stay the course, meet its guidance, and work on recovering from recent blunders to give the market a compelling case for a turnaround.

Science Applications International is up almost 27% in 2026

Science Applications International is another interesting pick, but for different reasons than Booz Allen.

Unlike Booz Allen, SAIC is up almost 27% year-to-date. Growth was primarily driven by strong second-quarter numbers, headlined by $1.88 billion in revenue and an expansion in operating margins.

The company also recently won several contracts, including a $400 million recompete deal to support an unnamed U.S. intelligence agency. Like Booz Allen, SAIC provides clients with engineering, technical integration, and mission support services.

And you know what's even better? SAIC is trading at 15 times earnings, again lower than the sector median, making the stock look like a bargain compared to Palantir's 159.

Analysts have a consensus "Hold" rating for SAIC, though with a marginally higher consensus than Booz Allen, suggesting the bar for the company to exceed expectations is already low. And that makes any good news feel like a big surprise.

Are these value plays worth the risk?

Palantir may be the bigger AI and defense story, but its sky-high valuation leaves little room for anything to go wrong. Today, Booz Allen Hamilton and SAIC may offer better opportunities, despite being priced for pessimism.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Booz Allen Hamilton and Palantir Technologies. The Motley Fool has a disclosure policy.

Nebius (NASDAQ: NBIS) has more than $40 billion in contracted demand, but converting that backlog into revenue will mean of the most aggressive infrastructure build-outs in the AI market. Revenue is soaring, customers help fund expansion, and capacity is growing. Now investors have to watch if execution and financing keep pace with the opportunity.

Stock prices used were the market prices of Aug. 24, 2026. The video was published on Aug. 31, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Kratos Defense (NASDAQ: KTOS) could become a key hardware supplier for autonomous combat aircraft as militaries pursue lower-cost ways to add scale without putting more pilots at risk. Economics, international interest, and expanding production capacity create a compelling growth opportunity, but converting that potential into repeat orders will determine how large the business can become.

Stock prices used were the market prices of Aug. 19, 2026. The video was published on Aug. 31, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kratos Defense & Security Solutions. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Oklo (NYSE: OKLO) is targeting one of AI's biggest constraints: power. Its model combines strategic sites, nuclear generation, and infrastructure ownership, potentially giving the company a much larger opportunity than reactor sales alone. But turning that vision into durable value will depend on contracts, construction, commercial execution, and disciplined spending.

Stock prices used were the market prices of Aug. 20, 2026. The video was published on Aug. 30, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Alphabet (NASDAQ: GOOGL) may have a second major growth engine hiding inside Other Bets. Waymo's $126 billion private valuation and 500,000-plus weekly autonomous rides suggest real commercial scale, but the bigger upside depends on whether zero-driver economics improve as the network expands.

Stock prices used were the market prices of Aug. 18, 2026. The video was published on Aug. 30, 2026.

Rick Orford has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

D-Wave Quantum (NASDAQ: QBTS) is moving from demonstrations into live enterprise workloads, where recurring cloud subscriptions could make its commercial model measurable. Production revenue is growing, contracted revenue is building, and customer use cases are expanding. The tension is valuation: investors are already paying for a much larger business than D-Wave has today.

Stock prices used were the market prices of Aug. 18, 2026. The video was published on Aug. 29, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Micron Technology (NASDAQ: MU) is putting $250 million behind four areas it believes could shape AI's future. Its investments may offer an early signal about tomorrow's memory-intensive technologies, while giving investors a different way to evaluate Micron's long-term growth opportunity beyond today's HBM boom.

Stock prices used were the market prices of Aug. 20, 2026. The video was published on Aug. 29, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

It doesn't matter if artificial intelligence (AI) data centers have all the latest GPUs or high bandwidth memory. Without enough electricity, nothing stays online. Consider that a typical 100-megawatt data center can use as much power as about 80,000 U.S. homes. That makes bringing additional capacity online challenging, and two companies, Oklo (NYSE: OKLO) and X-Energy (NASDAQ: XE), are trying to address this problem.

The bet is straightforward: If artificial intelligence is going to keep growing, someone has to generate the electric power.

Image source: Getty Images.

Oklo and X-Energy are racing to put their first nuclear reactors into service. Granted, being first isn't a guaranteed long-term win, but it can secure a meaningful share of early demand, especially when power is the constraint. And that raises the question: Which company will actually produce nuclear power first? Let's get into it, starting with Oklo, a company that's already ahead of the game.

Oklo vs. X-Energy: The race to power AI data centers

Oklo was selected for the Department of Energy's Reactor Pilot Program, which streamlines the testing and licensing for a specific reactor. That reactor is called the Aurora-INL powerhouse, located in Idaho Falls, Idaho, and the company broke ground on the site back in September 2025.

So when will the reactor go online?

On Oklo's second-quarter earnings call, Chief Financial Officer Richard Bealmear said that the company is "gaining greater visibility into opportunities to bring forward critical work that supports Aurora INL's planned 2028 start-up."

There's a pretty clear answer: 2028 is Oklo's target launch for Aurora-INL. That's two short years away.

And you know what makes this a particularly attractive opportunity? An estimated 2,441 data centers are expected to be online by December 2028. That means a huge, rapidly growing market could be waiting for Oklo.

Now, X-Energy isn't in the same boat. There hasn't been any groundbreaking ceremony yet. No construction. No site. So it's easy to dismiss it as the immediate loser in this matchup.

But unlike Oklo, X-Energy isn't signed under the Reactor Pilot Program; it's moving through the Nuclear Regulatory Commission's (NRC) standard licensing path. It's a slower process, sure, but the NRC's path leads to a full commercial operating license.

Translation? Oklo has a good shot at fully operating a single Aurora powerhouse first, but X-Energy could have a more straightforward path to building a fleet of commercial reactors.

Speed vs. scale: Which nuclear strategy wins?

The nuclear strategy boils down to speed vs. scale, and in the context of data center power, that could make or break the story.

By 2028, thousands of data centers will be online, and you can't meet that enormous demand with a single reactor. And even after Oklo successfully starts operations at Aurora-INL, future commercial deployments will still require their own regulatory approvals.

On the other hand, X-Energy's path to obtaining a standard NRC license isn't a walk in the park. The company will have to jump through several hoops to prove its design is safe, secure the necessary approvals, and then build its first reactors.

Which one will win the AI nuclear race?

Ultimately, Oklo appears better positioned to reach power generation first, while X-Energy may have the advantage in scaling that technology into a larger commercial fleet. Both of these offer their own set of advantages, but at the end of the day, we'll only know the answer once the dust settles.

So which is the better bet? For that, my money's on Oklo. Being first only matters because a working reactor in 2028 doesn't just boost market confidence; it also means generating real revenue and operational data that can accelerate Oklo's path to building a commercial fleet. X-Energy, on the other hand, is still working through approvals. Plus, in a market where thousands of data centers need power now, early customer relationships could prove more valuable than a streamlined licensing process.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Nebius (NASDAQ: NBIS) is turning extraordinary demand for AI infrastructure into billion-dollar contracts, rapid revenue growth, and additional capacity. Its latest quarter provides powerful evidence that commercial momentum is accelerating, but after a massive stock rally, investors must decide whether execution can grow fast enough to support the valuation.

Stock prices used were the market prices of Aug. 18, 2026. The video was published on Aug. 27, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

IonQ (NYSE: IONQ) is evolving from a quantum computing specialist into a broader strategic technology platform. Record growth, vertical integration, and an ambitious hardware roadmap could strengthen its position in the quantum race, but its valuation leaves little room for execution mistakes.

Stock prices used were the market prices of Aug. 17, 2026. The video was published on Aug. 28, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

IREN (NASDAQ: IREN) just gained major validation from Microsoft and Nvidia as its AI infrastructure transformation accelerates. The question is whether these milestones can convince investors to value the company differently, potentially unlocking a much larger upside case, while execution remains the key risk.

Stock prices used were the market prices of Aug. 19, 2026. The video was published on Aug. 27, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

IBM (NYSE: IBM) may have a multiyear opportunity hiding inside the shift to post-quantum security. The upside depends on whether IBM can turn its technical credibility and enterprise footprint into recurring software, consulting, and infrastructure spending before the revenue becomes obvious.

Stock prices used were the market prices of Aug. 17, 2026. The video was published on Aug. 28, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

High-yield dividend stocks are rather common. But there's a big difference between a stock offering a big yield and one that can actually deliver reliable income, year after year. Otherwise, you can just buy any old penny stock with a triple-digit yield and watch your capital pay for your mistake.

That's why it's important to be picky with your high-yield picks. And the good news is, plenty of great companies offer double-digit yields while leaving room for growth.

Image source: Getty Images.

With September just around the corner, here are three stocks that stand out for investors looking to buy and hold for the long haul.

Annaly Capital Management: A 12% yield mortgage REIT

First off is Annaly Capital Management (NYSE: NLY), a mortgage real estate investment trust (mREIT) that works off of mortgage-backed securities and other real estate-related assets. Now, you can read all about the REIT's business model from their website, but the important thing to know here is that the company's strategy has historically produced a high dividend yield. Today, that's around 12%.

Yes, 12%. That wasn't a typo.

Of course, a yield that high doesn't come without trade-offs. Annaly's earnings and book value can be sensitive to interest rates, borrowing costs, mortgage spreads, and broader conditions in the housing and credit markets.

Its dividends can also fluctuate significantly; that's just how REIT dividends go, though they've generally trended upward over the last couple of years.

Plus, for investors looking for a good high-yield pick with decent growth potential, it's tough to beat Annaly's combination of double-digit yields and a consensus "moderate buy" rating.

Ares Capital Corp: 17 years of consistent dividends

Ares Capital Corp (NASDAQ: ARCC) is not a REIT; it's a business development company (BDC) that lends money to small- and mid-sized businesses through debt investments. Ares generates revenue from the interest and fees it collects from its portfolio companies.

For BDCs, diversification is just as important as company quality. I'd say that Ares' portfolio is quite diversified, with an understandable focus on Software & Services. That's historically an attractive sector, after all.

Ares Capital offers just under a 10% forward yield and boasts that it has maintained or increased its dividend payouts for over 17 years. That is not bad at all.

As with Annaly, Wall Street rates Ares Capital Corp a moderate buy, with modest upside.

Blue Owl Capital: A near 8% yield with room to grow

Last but not least is Blue Owl Capital Inc (NYSE: OWL), the alternative asset management company, not to be confused with Blue Owl Capital Corporation, the BDC, though the latter is part of the former's credit platform.

Blue Owl, the asset manager, specializes in private credit, GP (general partner) strategic capital, and real assets. The company has a substantial asset base that generates recurring management fees, providing a relatively predictable stream of revenue.

In terms of dividends, the company pays almost an 8% forward yield. It might be the lowest on this list, but it's practically light years ahead of your typical dividend stock. It's also raised dividends over the last five years, making it a solid pick for those looking for reliable income and dividend growth.

And lastly, a consensus among analysts rates Blue Owl Capital Inc a moderate buy.

Final thoughts

Annaly, Ares Capital, and Blue Owl prove that high yields and quality aren't mutually exclusive. Sure, REIT and BDC picks come with risks, particularly sensitivity to interest rates and broader market conditions. But all three companies currently offer elevated dividend yields backed by diversified portfolios or investment platforms.

For income-focused investors looking to put money to work in September and who aren't squeamish about moderate volatility, these three offer an attractive mix of substantial income and potential growth.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ares Capital. The Motley Fool has a disclosure policy.

I've always kept a close eye on PepsiCo (NASDAQ: PEP), mostly because of its better-than-average dividend yield and its status as a Dividend King, meaning a company that increased its dividend for at least 50 consecutive years.

If you're asking "what is the best dividend stock" to buy right now, PepsiCo is one of the first names worth a good look, especially after its recent sell-off. However, the stock has been battered over the last year, reaching as high as $171 before falling to its current level around $142. Many investors attribute the drop to weaker volume, rising operating costs, and flat earnings growth over the last couple of years.

But several things changed recently, many for the better, and that is enough to make investors take another look at PepsiCo at today's valuation. That brings us to the key question: Is PepsiCo's story pointing to a turnaround, or could it be a value trap, as many fear?

Image source: Getty Images.

PepsiCo's turnaround hinges on international strength, not the U.S.

First, let's look at what is not working in the turnaround story.

PepsiCo Foods North America (PFNA) has not been a standout over the last few years, and that remained true in the second quarter of 2026. Sales volume was flat year over year for the quarter, while core constant-currency operating profit, a non-GAAP measure that removes certain items and currency effects, fell 8%. Meanwhile, PepsiCo Beverages North America (PBNA) reported that operating margin decreased by 90 basis points.

This remains a big deal because the U.S. has historically been PepsiCo's largest market, and weakness there has been one of the primary reasons the stock has been down over the last few years.

But the story is changing.

In the second quarter, the company reported international markets now account for two-thirds of the company's total beverage volume and more than 50% of its total food volume. Management also said the international business is expected to cross $40 billion in revenue this year.

Based on 2025 revenue and management's 4% to 6% top-line growth guidance for 2026, that $40 billion figure would represent more than 40% of the company's total sales. The picture improves further when you consider that international operating margins grew by 100 basis points due to what the company termed "improved efficiency."

And the icing on top? Year-to-date global food volume growth is the company's fastest since 2022.

In other words, PepsiCo's recent numbers suggest it is becoming less dependent on U.S. markets and moving toward broader international exposure. And because international markets were a smaller piece of the pie before, they now have more room to grow.

PepsiCo's dividend looks built to pay you while you wait

The most impressive part of PepsiCo's story is that it has increased its dividend throughout its struggles, one reason it can show up in the conversation when investors debate what is the best dividend stock for long-term portfolios.

In 2026, the company announced a 4% dividend raise, bringing its annualized payout to $5.92. That works out to about a 4.1% forward yield, above the average yield of roughly 2.6% for Dividend Kings.

This year also represents PepsiCo's 54th consecutive annual dividend increase. It is worth noting that PepsiCo's payout ratio is around 68%, which is not unusual for food and beverage companies. Even Coca-Cola's payout ratio is around 64% right now.

Meanwhile, the price slump made PepsiCo look more attractive on a valuation basis. Its forward price-to-earnings (P/E) ratio is now around 18.6 times, compared with the sector median of 20.98x.

Growing earnings are always nice, but this tells me PepsiCo does not need to execute perfectly for the story to work at today's price. It simply needs to stay the course and keep proving the business is moving in the right direction while continuing to pay the dividend many investors overlook.

Wall Street is cautious, but the current price changes the risk

Understandably, Wall Street is less forgiving of PepsiCo's recent numbers. It still has a moderate buy rating from a consensus of 23 analysts, but like its stock price, the overall score has trended down over the last three months.

PepsiCo has a lot to prove, particularly in North America. Still, I think the current valuation is enough to make me a buyer. That, and the dividend, of course. Sure, the company is not the fastest-growing Dividend King right now, but at this price, I will be getting paid to wait. That is the kind of overlooked advantage I want in my portfolio, and especially for investors trying to answer the question of which dividend stock offers the most dependable income.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Sometimes, picking a stock or two to buy out of the thousands trading on the U.S. market can be a grueling task. Other times, the answers are right in front of you. Some companies genuinely look like no-brainer buys, with attractive businesses, sizable upside potential, and strong analyst support. That is especially true in today's artificial intelligence (AI) market.

Image source: Getty Images.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

For example, these three companies are no-brainer stock buys for the back half of 2026. They're among the biggest beneficiaries of the AI spending wave. They are helping reshape the sector -- one data center, router switch, and chip at a time. Moreover, they are operating some of the strongest, most profitable businesses in the space, and analysts are largely optimistic about their prospects.

1. Arista Networks is a key AI networking beneficiary

Arista Networks (NYSE: ANET) is a promising contender in the AI space. The company sells connectivity hardware and network management solutions, tools that every cloud provider and data center needs. And with every new facility that goes up, demand for reliable connectivity rises.

Its prospects look even better when you consider that Arista has deep relationships with Microsoft, Meta Platforms, and Oracle.

Most importantly, Arista has a well-documented track record of translating its positioning and partnerships into tangible financial results. The second quarter marked the company's first time booking $3 billion in quarterly revenue, and it did so while making significant improvements on both margins and earnings.

Wall Street is not sleeping on this opportunity. Among the 25 analysts covering the stock, 22 rate it a strong buy (the remaining three call it a moderate buy), with 20% expected upside over the next 12 months based on the average price target. The most optimistic of those analysts sees up to 54% upside.

2. Nvidia still sets the pace in AI chips

You knew this would be on the list, and you likely know why it is here. But let's walk through the reasons anyway.

With a market cap of more than $5 trillion, Nvidia (NASDAQ: NVDA) is the most valuable company in the world. Its technology is the centerpiece of the AI revolution. The stock is up 571,561% since its 1999 IPO. Its processors are selling out faster than its foundry partners can make them.

And with AI infrastructure spending showing no signs of slowing down, Nvidia still has plenty of room to run. But just how high is its ceiling?

Right now, 43 out of 48 analysts covering Nvidia rate it a strong buy, and just one views it as a strong sell. Meanwhile, the average price target of $307.38 suggests a potential upside of 47%, the highest on this list. And the $500 high target price suggests upside of 134%.

Think about that for a second: If Nvidia reaches that high target price, it would become a $12 trillion company.

Ambitious? Perhaps. But stranger things have happened in the market.

3. Amazon's AWS growth highlights its AI momentum

Amazon (NASDAQ: AMZN) is another well-known tech company enjoying meaningful traction in the AI industry. In the second quarter, the company reported a 20% year-over-year jump in revenue, from $168 billion to $200 billion.

Now, the bulk of its revenue still comes from its high-volume, low-margin e-commerce business. However, with 37% top-line growth, the Amazon Web Services segment outgrew both the North America and international commerce segments (up 16% and 15%, respectively) on a percentage basis, suggesting Amazon's AI bet is starting to pay off.

Currently, 49 out of 57 analysts covering Amazon rate it a strong buy, six call it a moderate buy, and just two view it as a hold. And its average price target of $326.49 is 25% higher than where it's trading now. The highest analyst target price of $405 suggests potential upside of 55%.

Your next AI investments

Sometimes the best opportunities really are the ones already sitting in plain sight, especially in the second half of the year, when it pays to focus on the businesses with the clearest momentum.

These three companies offer a compelling case for the idea that you don't need to overthink your next AI investments. Arista Networks, Nvidia, and Amazon each sit at the center of the AI build-out, backed by strong fundamentals and analyst confidence, and they look like the kind of no-brainer buys that investors will want to own in this market.

Rick Orford has positions in Amazon, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Amazon, Arista Networks, Meta Platforms, Microsoft, Nvidia, and Oracle. The Motley Fool has a disclosure policy.

SentinelOne (NYSE: S) may have an overlooked advantage hiding inside the cyber insurance market. Insurance pressure, autonomous AI, and faster incident investigations could make its platform increasingly valuable and harder to replace. The opportunity gets especially interesting if those forces translate into stronger retention, broader adoption, and improving margins.

Stock prices used were the market prices of Aug. 14, 2026. The video was published on Aug. 24, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Broadcom (NASDAQ: AVGO) could emerge as one of the biggest beneficiaries of big tech's custom AI chip push. This video examines why that expanding role could support Broadcom's next phase of AI growth, even as its premium valuation raises the stakes.

Stock prices used were the market prices of Aug. 12, 2026. The video was published on Aug. 24, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Nvidia (NASDAQ: NVDA) is pushing beyond GPUs into the infrastructure that powers, connects, cools, and finances AI factories. If customers increasingly build around its architecture, the company's moat could deepen well beyond chips. The key question is whether the industry adopts Nvidia's blueprint or keeps the stack open.

Stock prices used were the market prices of Aug. 13, 2026. The video was published on Aug. 26, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

NuScale Power (NYSE: SMR) has cleared major regulatory hurdles just as AI data centers are reviving demand for reliable nuclear power. This video examines why its TVA and ENTRA1 opportunity could become the commercial proof investors have been waiting for, what UAMPS revealed about project economics, and how a successful deployment could strengthen the company's long-term growth case.

Stock prices used were the market prices of Aug. 13, 2026. The video was published on Aug. 22, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

SoundHound (NASDAQ: SOUN) is chasing a future where voice replaces more taps, apps, and screens. If its technology becomes the neutral interface inside cars, restaurants, and TVs, the opportunity could expand dramatically. But Apple (NASDAQ: AAPL) has a formidable advantage, making the battle over who controls the next digital interface critical for SoundHound investors.

Stock prices used were the market prices of Aug. 14, 2026. The video was published on Aug. 23, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Sandisk (NASDAQ: SNDK) and Micron (NASDAQ: MU) both look remarkably cheap after historic runs, but the multiple hides questions about durability. I break down why Sandisk's pricing floors provide clearer visibility into future earnings, while Micron's scale, cash, and AI-linked memory exposure offer a different form of protection if the cycle cools.

Stock prices used were the market prices of Aug. 15, 2026. The video was published on Aug. 25, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Nebius (NASDAQ: NBIS) is racing to turn massive AI demand into a scaled cloud platform, with Nvidia and Goldman Sachs providing powerful validation. The growth is real, but so are the risks. This video examines the tension between institutional confidence and short-seller skepticism, and what Nebius must deliver for the bullish thesis to keep working.

Stock prices used were the market prices of Aug. 11, 2026. The video was published on Aug. 22, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Nvidia. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

There's often a catch with "high-yield" dividend stocks: a payout that looks tempting, yet is unsustainable. Case in point: The highest-yielding dividend stock right now is Gmex Robotics Corporation, with a forward yield of 9,514.19%. But yield alone doesn't make a stock worth owning.

Now contrast that with Black Hills Corp. (NYSE: BKH). Investors looking for a company with a long history of dividend growth can still find its yield meaningfully attractive, especially if they're prioritizing safety along with income.

Image source: Getty Images.

This unassuming utility provider operates in the Great Plains and Mountain West regions. It sits right in the middle of the biggest market boom in 50 years, delivering impressive returns while paying attractive yields. It's also the highest-yielding dividend stock with a consensus "Strong Buy" rating from Wall Street analysts.

But that begs the question: Is this stock worth owning?

Black Hills' Q2 2026 earnings show steady growth and improving efficiency

Like any good stock story, it starts with the numbers.

In second-quarter fiscal year 2026, revenue rose 3% to $452.8 million. That's modest by most accounts, but considering that GAAP diluted earnings per share jumped from $0.38 a year earlier to $0.50 (+31%), the picture becomes more interesting. It suggests that Black Hills grew earnings far faster than revenue, indicating the company became more efficient and squeezed more profit out of each dollar of sales.

Does the company still have headroom to grow revenue even further? Apparently, yes.

Wyoming's data center demand could extend Black Hills' growth runway

Management has flagged Wyoming as an area of interest because of data center demand. In fact, the state has projected 3 gigawatts of demand, with 600 megawatts already in the company's plans through 2030.

Who's driving that 600-megawatt demand? Microsoft and Meta Platforms, two of the world's biggest artificial intelligence hyperscalers.

That's not to say that all the benefits from Wyoming's demand will happen sometime in the future. According to Black Hills President and CEO Linden R. Evans, the company has "recorded and reliably served 20 consecutive years of increasing peak system loads [in the state], a remarkable 183% increase since we acquired the utility in 2005."

In other words, Black Hills already has a strong foundation for rising electricity demand, and data centers could drive it even higher. That growth has already shown up in the price, which is up 25% in the last year.

At around $72, the stock is trading just 9% below its 52-week high and only 18% below its all-time high, set in 2020.

What Wall Street sees in Black Hills' valuation

Those kinds of numbers tend to spook more conservative investors, but that doesn't seem to be the case here. Right now, Black Hills is trading at a P/E around 18x, compared to the sector median of 19x. P/E, or price-to-earnings, is a valuation metric that compares the stock price to the company's earnings per share. The lower the number, the better. That means Black Hills is a little cheaper than many of its peers in the Utility sector.

Furthermore, Wall Street is rather optimistic about the company, with its rating jumping from Moderate to Strong Buy in the last three months, and the high target price suggests a 21% potential upside in the next 12 months.

Together, we have a strong picture of Black Hills being a good growth investment. But that doesn't necessarily make it a good dividend stock.

The dividend looks attractive, and the payout metrics look manageable

What makes Black Hills a dividend stock worth considering is its 3.8% forward yield and its "Dividend King" status, with more than 50 consecutive years of dividend increases. It also has a reasonable 66% dividend payout ratio, meaning the company pays just over half of its earnings back to shareholders. Those two numbers tell me Black Hills is quite generous, but not so much that it deprives itself of cash to reinvest in the business.

Final take: A safer high-yield dividend stock with a growth narrative

Black Hills Corp shows that safe, high-yield dividend stocks don't always have to be household names to deliver. In this case, earnings are growing faster than revenue, and data centers driving up demand in their key areas point to a long runway ahead.

Sure, the stock price has gone up significantly for a utility company, but it still trades cheaper than its peers, and Wall Street's improving rating is just another sign that the market's starting to take notice.

Rick Orford has positions in Meta Platforms and Microsoft. The Motley Fool has positions in and recommends Meta Platforms and Microsoft. The Motley Fool has a disclosure policy.

Palantir (NASDAQ: PLTR) lost a huge FAA contract, but its explosive commercial growth and improving earnings tell a more complicated story. The stock remains expensive, yet the business may be growing quickly enough to make that valuation easier to justify. Here's what investors need to weigh now.

Stock prices used were the market prices of Aug. 19, 2026. The video was published on Aug. 25, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

For decades, the U.S. has treated spent nuclear fuel as one of the biggest environmental problems left behind by nuclear power, with roughly 94,000 metric tons of spent fuel stored in facilities across the country. And while the materials are safely contained, some of the isotopes in this spent fuel have a half-life of nearly 25,000 years -- so yes, they're dangerous, and an enormous liability.

But Oklo (NYSE: OKLO) is proposing something audacious. The company argues that all that fuel sitting in storage still contains enormous amounts of usable energy. And you know what? The science -- and more importantly, the regulators -- support the premise.

Image source: Getty Images.

This is where Oklo sees the silver lining -- one that could rival some of the world's largest energy reserves. But is all this a pipe dream, or is there an actual business opportunity here? And more importantly, how close is Oklo to taking this opportunity and delivering a real return on investment?

Inside Oklo's $1.68 billion nuclear fuel recycling plan

In 2025, Oklo announced plans to build a fuel recycling facility in Tennessee as part of a larger $1.68 billion advanced fuel center project.

"The recycling facility will recover usable fuel material from used nuclear fuel and fabricate it into fuel for advanced reactors," the company said in its announcement. "This process can reduce waste volumes for more economical, clean, and efficient disposal pathways."

But the even bigger headline here is that the estimated 94,000 metric tons of used nuclear fuel could generate energy equivalent to 1.3 trillion barrels of oil. That's five times Saudi Arabia's estimated oil reserves.

The U.S. Department of Energy itself notes that more than 90% of the potential energy in spent nuclear fuel remains even after it has been used in a conventional reactor. So that's a viable claim.

Oklo CEO Jacob DeWitte highlights the claim, saying, "By recycling used fuel at scale, we are turning waste into gigawatts, reducing costs, and establishing a secure U.S. supply chain that will support the deployment of clean, reliable, and affordable power."

Now, those are some big numbers being thrown around, so let's frame it against the potential scope of this opportunity.

The U.S. operates a once-through nuclear fuel cycle. Uranium is mined, processed into fuel, used in reactors, and then stored as waste. It's not exactly the most efficient or environmentally friendly of processes. Oklo's proposal would move away from that strictly once-through model by recovering usable material from spent fuel.

Even better, DeWitte says its recycling process can shorten the material's half-life from tens of thousands of years to a few hundred years while also reducing the volume of the material up for final disposal. That plan checks every box on an ESG rating scorecard.

And on top of that, many U.S. leaders view the country's dependence on imported oil as a major strategic vulnerability. One need only look at the havoc caused by the repeated closure of the Strait of Hormuz this past year to see just how vulnerable the global energy market is.

So, Oklo's planned recycling program could potentially become a valuable piece of America's energy-security strategy.

The risks behind Oklo's ambitious nuclear timeline

But there's a caveat here: While the proposal is ambitious, it's also theoretical.

The fuel recycling plant isn't expected to begin producing metal fuel until the early 2030s. It doesn't even have a groundbreaking date set yet.

On top of that, it also needs to work within the company's larger Aurora reactor business, which is still moving through the regulatory and development process.

Granted, Oklo has managed to jump some hoops since the initial announcement. It received a DOE start-up authorization for its Groves Isotope Test Reactor in Texas in July 2026. Then, in early August, it achieved a controlled, self-sustaining nuclear chain reaction at low power -- a criticality in nuclear science terms. This is an important step toward establishing operating experience and demonstrating deployment capabilities that could inform Oklo's future commercial facilities.

But the fact remains that Oklo does not yet have an operating commercial nuclear power reactor, nor is it anywhere close to completing the fuel recycling facility.

So it's a bet, and a long one at that.

And yet, many Wall Street analysts are willing to underwrite that bet, with the stock getting a solid Moderate Buy rating from consensus estimates. So if you're willing to go the distance, Oklo is a viable long-term choice, but it needs to execute and deliver for all this to make sense.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The stock market has no shortage of companies promising explosive growth. And sometimes those promises come true. If you doubt that, just compare the list of trillion-dollar companies from five years ago to today. Finding the next wave, though, is a different challenge altogether.

Some growth stocks are fueled mostly by excitement or legitimate secular tailwinds, but they still haven't proved their businesses can catch up with the hype. Others are supported by strong execution, real revenue growth, and the same forces pushing their industries forward.

That's what makes these three stocks worth a closer look. Arista Networks (NYSE: ANET), Micron Technology (NASDAQ: MU), and Eli Lilly (NYSE: LLY) aren't just good stories, they're recognized leaders with earnings power and plenty of Wall Street attention. Here's why each one could have a strong second half of 2026.

Image source: Getty Images.

Arista Networks: Riding the data center boom

Arista makes networking equipment that helps connect the enormous number of servers, GPUs, and other computing infrastructure packed inside modern data centers. And with data center spending accelerating to record highs, Arista is exactly where it needs to be to take advantage of that momentum.

Its latest quarterly filing proves that claim. The company just delivered its first $3 billion (in revenue) quarter while maintaining a GAAP (generally accepted accounting principles) operating margin of 45%. Lastly, GAAP diluted EPS landed at $.095 per share, up from $0.70 last year.

"As we deliver our first $3 billion quarter in Q2 2026, it is clear that our Arista 2.0 platform strategy is compelling," said CEO Jayshree Ullal. Wall Street seems to agree. According to BarChart, Arista has a consensus strong buy rating with all green marks across the board. Meanwhile, the highest target price suggests up to 57% potential upside.

Micron Technology: Cashing in on the AI memory cycle

Of course, we can't talk about artificial intelligence without mentioning Micron. The memory maker struck gold when it shifted its focus to higher-margin high bandwidth memory (HBM) production to meet hyperscaler demands. It's now one of the top three memory-chip manufacturers in the world, right up there with Samsung and SK Hynix.

That market leadership is reflected in its income statement. In the quarter reported in late June, the company notched $41.5 billion in revenue, representing massive 346% year-over-year growth. The vast majority of this revenue came from its DRAM technology umbrella, under which HBM falls. Meanwhile, diluted earnings per share reached $25.11 compared to last year's $1.91.

Current-quarter guidance makes the picture even rosier. Revenue is slated to hit $51 billion while diluted earnings are expected to reach $32, both on the high end. It may also be why analysts rate Micron a strong buy, with the highest target price suggesting the stock could more than double over the next year.

Eli Lilly: Betting big beyond AI

Rounding out this list is Eli Lilly, which has absolutely nothing to do with the AI supercycle. Instead, it's digging through a different gold rush: diabetes and obesity treatments.

In its recent quarterly report, the company reported revenue growth of 48% to $23 billion. That growth was driven by Mounjaro and Zepbound, Eli Lilly's blockbuster GLP-1 drugs. Mounjaro revenue jumped 91% year over year to nearly $9.9 billion, while Zepbound generated about $4.9 billion, up 46%.

The sheer scale of demand has prompted Lilly to raise its full-year 2026 revenue guidance to $85 billion to $87 billion. At the same time, high target prices indicate a 28% potential upside. That just goes to show that its tirzepatide-based drugs are riding a wave that shows no sign of cresting.

The common thread

All three companies have the scale and brand recognition that come with their market leadership. But the most common thread between them is that secular tailwinds are driving their numbers -- and their stock prices -- higher.

That doesn't make them risk-free. No stock is, even in a market that feels this optimistic. But if you're looking for growth stocks that could outperform in the second half of 2026, Arista, Micron, and Eli Lilly bring a mix of momentum, real earnings power, and narratives that investors continue to reward.

That's the setup for the kind of move that can feel like a "skyrocket" by year-end, even if the path there is not perfectly smooth.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Arista Networks, Eli Lilly, and Micron Technology. The Motley Fool has a disclosure policy.

Nvidia (NASDAQ: NVDA) looks like it's slowing sharply, but the headline growth rate may be hiding what's actually happening. China, tight supply, and a product transition are clouding the picture, while earnings continue to grow much faster than the stock price. The next revenue guide could reveal whether investors are seeing a genuine demand crack or a temporary bottleneck.

Stock prices used were the market prices of Aug. 15, 2026. The video was published on Aug. 20, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Marvell Technology (NASDAQ: MRVL) is targeting one of the biggest emerging bottlenecks in AI: memory. Its new pooling and shared-memory technology could help hyperscalers run increasingly complex AI workloads more efficiently, potentially giving Marvell another major growth engine beyond custom silicon and networking.

Stock prices used were the market prices of Aug. 8, 2026. The video was published on Aug. 21, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Marvell Technology. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Micron (NASDAQ: MU) is racing toward high-value AI memory while China expands conventional DRAM capacity. HBM, advanced data-center products, and long-term customer agreements could create a stronger earnings floor, but ChangXin Memory Technologies (SHSE: 688825), better known as CXMT, threatens the economics underneath Micron's transformation. The outcome could determine whether this memory cycle ends very differently from the last one.

Stock prices used were the market prices of Aug. 8, 2026. The video was published on Aug. 21, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Applied Digital (NASDAQ: APLD) already has about $36 billion in contracted lease revenue, but renewal options could potentially push that figure to $86 billion. The bigger story is why major customers keep returning and whether execution, power access, and its AI Factory model are creating a durable advantage.

Stock prices used were the market prices of Aug. 11, 2026. The video was published on Aug. 20, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Ciena (NYSE: CIEN) could benefit from a problem that faster AI chips can't solve. As computing spreads across larger data center campuses, moving enormous amounts of information between buildings becomes critical. Ciena's optical networking technology may put it in an increasingly important position if AI infrastructure continues scaling this way.

Stock prices used were the market prices of Aug. 7, 2026. The video was published on Aug. 19, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ciena. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Palantir (NASDAQ: PLTR) is benefiting from explosive demand for enterprise AI, but its biggest opportunity may lie in data control rather than in better AI models. With U.S. commercial revenue surging 149%, AI sovereignty could become a powerful growth driver as organizations demand greater control over their proprietary data.

Stock prices used were the market prices of Aug. 12, 2026. The video was published on Aug. 19, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Big tech isn't done with artificial intelligence (AI) spending. Amazon raised its capital expenditures (capex) to $220 billion for 2026. Microsoft is spending $175 billion. Alphabet has raised guidance twice and now has its sights set on up to $205 billion. And Meta Platforms is set to spend $135 billion. Most of this goes toward each company's AI initiatives, and it's no surprise that graphics processing units (GPUs), central processing units (CPUs), data center rentals, and memory manufacturers get most of the spotlight.

Image source: Getty Images.

But another group is actually benefiting from the AI boom: industrial companies.

After all, you can't build an AI data center with just a stack of GPUs. You need buildings, electricity, generators, cooling systems, switchgear, and a whole lot of heavy equipment. That's why certain industrial companies are becoming excellent investments, thanks to a combination of field expertise, established infrastructure, and relationships with the companies driving the AI revolution.

So let's see what these three have to offer.

Caterpillar stock: Data center build-out drives demand for generators, turbines

First up is Caterpillar (NYSE: CAT), which most people would easily associate with excavators, bulldozers, and the like. And yes, those are in demand for data center construction.

But it's the other part of Caterpillar's business that's also getting AI's attention.

AI data centers consume enormous amounts of electricity, and in many places, the existing power grid simply can't deliver it quickly enough. That has created a growing market for on-site and backup power generation, and Caterpillar offers exactly that.

In the second quarter, Caterpillar's Power & Energy segment delivered $8.2 billion in revenue, up 17% year over year and the second-highest contributor to its top line, right behind Construction Industries' $8.3 billion (up 35%). Caterpillar's direct exposure to construction and power generation is giving the company several avenues for growth, and investors are starting to notice.

Eaton stock: Data center revenue surges 65% as total revenue hits record $8.5 billion

Eaton (NYSE: ETN) is an industrial and electrical equipment company that builds the systems that get power where it needs to go.

Eaton posted record second-quarter revenue of $8.5 billion, up 21% year over year, beating the high end of its own guidance. Within that, Electrical Americas, the segment most exposed to data center build-outs, grew 18% organically to $4 billion, a segment record. Within that segment, data center revenue grew 65%.

Meanwhile, the total electrical backlog -- orders booked but not yet recognized as revenue -- rose 43% year over year. Management also isn't letting up, raising full-year adjusted earnings-per-share (EPS) guidance to a $13.50 midpoint and lifting organic growth guidance to a range of 11% to 13%.

GE Vernova stock: Electrification data center orders top $5 billion, doubling 2025's total

GE Vernova (NYSE: GEV) is the energy-focused spinoff of the former General Electric that builds turbines, grid equipment, and electrification technology. The company's second-quarter results included 22% revenue growth and an 88% increase in orders.

Even better, CEO Scott Strazik said that "data center orders reached over $5 billion year-to-date, more than double our 2025 total." The result was management raising full-year 2026 guidance across the board: total revenue to $45.5 to $46.5 billion, Electrification revenue to $14.5 to $15 billion, and free cash flow to $11.5 to $12.5 billion.

At the same time, its Power segment, the turbines that actually generate electricity for those data centers, is now guided to grow organically by 18% to 20%, with gas turbine backlog and slot reservation agreements expected to reach at least 125 gigawatts by year's end.

The takeaway: AI spending still needs real-world industrial infrastructure

Big tech may be spending hundreds of billions on AI, but it can't spend that money without the industrial infrastructure to support it. Caterpillar is supplying the equipment and power generation; Eaton is moving and managing the electricity; and GE Vernova is helping to build the power generation and grid infrastructure behind it all.

GPU and memory suppliers might get all the headlines, but these three industrial companies are quietly collecting the checks.

Rick Orford has positions in Alphabet, Amazon, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Caterpillar, Eaton Plc, GE Vernova, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.

The industrial sector is riding several powerful spending cycles, and RTX (NYSE: RTX) sits right in the middle of two of them: aerospace and defense. Demand looks healthy across its businesses, and its huge backlog gives investors plenty of visibility into what's ahead.

That strength is also why the stock looks priced for a lot of good news. RTX is up about 45% over the past year and now trades just below its 52-week and all-time high of $227.

Image source: Getty Images.

So if you're trying to keep industrial exposure in your portfolio but want something that feels less fully valued, it may make sense to look beyond the usual defense bellwethers. Two interesting options are Vertiv (NYSE: VRT) and Quanta Services (NYSE: PWR). Both are tied to infrastructure spending driven by artificial intelligence (AI), and have the kind of momentum that can matter in this sector.

Vertiv: The data center cooling and power specialist

Vertiv makes power and cooling infrastructure. Data centers generate huge amounts of heat, and hyperscalers desperately need good cooling so their billion-dollar AI investments don't go up in flames. With its deep expertise in thermal management, the company can capitalize on that opportunity.

But that's just part of the story. Are the numbers backing that up?

In the second quarter, the company generated $3.27 billion in total revenue, up 24% year over year, driven by AI data center sales across the Americas and Asia Pacific regions. Adjusted diluted earnings per share (EPS) grew 60% to $1.52.

On the back of those impressive results, management raised its full-year revenue guidance to $14 billion, representing a 37% year-over-year gain, and adjusted EPS guidance to $6.70 at the midpoint, up 60%.

As for the stock, Vertiv is up 122% over the last 52 weeks. You might think it's hypocritical for me to say RTX, with its 45% growth, is already too high when I'm now talking about a triple-digit performer, but the numbers aren't the only consideration here. Wall Street analysts rate the stock a "strong buy," while RTX sits at a "moderate buy."

Second, Vertiv stock is trading nowhere near its 52-week high, let alone its high target price set by analysts. I can't say the same for RTX.

So while Vertiv has already enjoyed a huge run, its strong fundamentals, rising guidance, and favorable analyst sentiment make me more amenable to its growth story.

Quanta Services: The grid builder that AI data centers depend on

Then there's Quanta Services, another industrial company benefiting from the infrastructure spending required to support AI. It specializes in building and upgrading electrical transmission and distribution infrastructure, essentially helping move power from where it's generated to where it's needed.

And like Vertiv, the numbers back up the opportunity. Quanta's second-quarter consolidated revenue grew 41% to reach $9.6 billion, while adjusted diluted EPS went up 71% to $4.24. The company also reported a record backlog of $53.4 billion.

And management reports that it has "significantly increased 2026 financial expectations across all metrics." That's something potential investors love to see. To seal the deal, Quanta also has a "strong buy" rating from Wall Street.

RTX is still strong, but here's why I'd take Vertiv or Quanta

Despite my praise for these two industrial stocks, I want to be clear: I don't think RTX is a bad investment. If anything, the fact that RTX trades at a lower valuation multiple (39x on a price-to-earnings basis) than both Vertiv (66x) and Quanta (78x) makes the stock an even more compelling alternative.

However, Vertiv and Quanta trade at higher valuations because both companies are benefiting from the early stages of what could be a huge multiyear AI infrastructure boom. On the other hand, RTX is already a more established business with much of its current growth tied to a defense and aerospace cycle that the market has clearly recognized.

When deciding, it comes down to paying less for a more mature growth story versus paying more for what I believe could be a longer runway.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Quanta Services, RTX, and Vertiv. The Motley Fool has a disclosure policy.

Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL), and Amazon (NASDAQ: AMZN) are building the digital land beneath the AI economy. Alphabet may lead in efficiency, and Amazon may be investing most aggressively, but Microsoft's enterprise reach and cash generation could give it the most durable path to monetizing AI at scale.

Stock prices used were the market prices of Aug. 18, 2026. The video was published on Aug. 18, 2026.

Rick Orford has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Micron (NASDAQ: MU) and SK hynix (NASDAQ: SKHY) have spent decades building advantages that new memory competitors cannot easily replicate. One offers broader diversification, while the other commands a deeper HBM position. Their contrasting defenses reveal why both could remain essential to AI infrastructure, even when the memory cycle turns.

Stock prices used were the market prices of July 31, 2026. The video was published on Aug. 18, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Nvidia (NASDAQ: NVDA) is helping connect AI infrastructure with more than $500 billion of potential third-party capital. That could make AI compute easier to finance while challenging the idea that NVIDIA's future must remain tied to a cyclical hardware market. This video explores the opportunity, the valuation, and the risks investors need to watch.

Stock prices used were the market prices of Aug. 13, 2026. The video was published on Aug. 17, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Marvell (NASDAQ: MRVL) and Amphenol (NYSE: APH) are attacking one of AI's toughest scaling problems: moving enormous amounts of data between increasingly powerful chips. As bandwidth demands rise, the infrastructure surrounding the processor could become more valuable, creating an intriguing opportunity that many investors may still be overlooking.

Stock prices used were the market prices of Aug. 17, 2026. The video was published on Aug. 17, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amphenol and Marvell Technology. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

For decades, big banks were the center of the U.S. financial system, with JPMorgan Chase (NYSE: JPM) and Bank of America (NYSE: BAC) in the lead. But financial technology, or fintech, companies keep pushing into the same turf with digital-first platforms, aggressive pricing, and simpler ways to borrow, save, and invest.

Image source: Getty Images.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

That creates a real investor question: Do you stick with traditional bank stocks for stability or lean into fintech for potentially better returns during the next several years? The truth is it's not an either-or call for everyone, and the trade-offs are clearer once you separate durability from upside.

Why traditional big bank stocks are still a safe bet

Traditional banks are still among the safest bets today. The biggest U.S. banks, like JPMorgan Chase and Bank of America, have diversified revenue streams, decades of market leadership, and a solid customer base that will be tough to crack.

In fact, both JPMorgan Chase and Bank of America have price-to-earnings (P/E) ratios of about 15, a common metric for gauging whether a stock's valuation is high or low relative to its earnings. The lower, the better.

Now, a P/E of 15 is not necessarily cheap relative to the sector's median of 13, but it still looks reasonable for companies of their size and financial strength.

Overall, the case for big banks boils down to stability, reasonable valuations, and attractive shareholder returns.

Why fintech stocks could be the smarter growth play: SoFi, Block, and Affirm stocks

But consistent and reliable stocks don't always translate to explosive growth -- and that's the key argument for fintech.

Companies like SoFi Technologies (NASDAQ: SOFI), Block (NYSE: XYZ), and Affirm (NASDAQ: AFRM) are trying to capture segments of the financial services sector that banks have traditionally dominated. The sheer excitement around the underdog story is sometimes enough to drive share prices higher. In all three cases, their stock prices have doubled or tripled within the past year.

The problem, however, is that these are speculative growth stocks, so the upside comes with considerably more risk. In fact, all three companies have lost some of those gains, with only Block trading near its recent 52-week high.

But that doesn't discount the fact that these smaller fintech players are reinventing banking. SoFi is a particularly interesting example because it has expanded well beyond its original student-loan business. It now offers personal loans, investing, banking, credit cards, and other financial products through a single platform.

Fintech companies' portfolios are starting to look like traditional banks', but with a digital-first approach that can make it easier to attract today's customers.

The risks of investing in banks over fintech

Of course, neither option is risk-free.

For banks, one of the biggest concerns is credit quality. They're much more sensitive to interest rates, and increased regulation can constrain how aggressively they deploy capital.

Fintechs face a different set of problems. Many still lack the profitability and scale of established banks, making their stocks more vulnerable when investors become less willing to pay a premium for future growth.

Competition is another major issue. Big banks have the resources to offer their services through digital platforms. Fintech companies, meanwhile, don't always have the capacity to open a physical branch. That creates a clear advantage for banks that fintech can't immediately replicate.

Big banks or fintech stocks: Which is the better buy?

So, which one should you spend your hard-earned money on?

For conservative investors focused on stability, income, and shareholder returns, big banks like JPMorgan and Bank of America remain best in class.

But investors willing to accept greater volatility in pursuit of potentially higher growth may find more upside in fintech stocks such as SoFi, Block, and Affirm.

Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block and JPMorgan Chase. The Motley Fool has a disclosure policy.

D-Wave (NASDAQ: QBTS) is moving beyond experimental quantum research and into critical enterprise operations. Its hybrid computing framework and expansion into scientific simulation could open a major new growth phase, but uneven bookings, missed expectations, and an extreme valuation leave little room for error.

Stock prices used were the market prices of Aug. 7, 2026. The video was published on Aug. 16, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Tesla (NASDAQ: TSLA) delivered record revenue and stronger vehicle deliveries, but falling operating profit, negative free cash flow, and slowing disclosed robotaxi momentum complicate the bull case. The numbers reveal a widening gap between Tesla's current earnings power and the enormous future growth embedded in its valuation.

Stock prices used were the market prices of July 29, 2026. The video was published on Aug. 16, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Micron Technology (NASDAQ: MU) benefits directly from booming demand for AI memory, while Teradyne (NASDAQ: TER) profits as advanced chips become harder to test. One may offer greater upside, but the other could own the more durable moat behind AI's hidden quality crisis.

Stock prices used were the market prices of Aug. 14, 2026. The video was published on Aug. 14, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Teradyne. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Nvidia (NASDAQ: NVDA) controls the chips and software powering the artificial intelligence boom, while Meta (NASDAQ: META) is opening models and building custom hardware to reduce that control. Their escalating rivalry could reshape industry economics, yet the biggest surprise may be that each company can win by dominating a different layer of the market.

Stock prices used were the market prices of July 29, 2026. The video was published on Aug. 14, 2026.

Rick Orford has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.