Welcome back to another edition of the Smart Wealth Newsletter, where Chris McLaughlin and his sons, Trip and Frankie, follow the financial markets, analyze individual companies, track their own investment portfolios, and discuss the strategies they believe can create long-term wealth.

Chris brings decades of experience as an entrepreneur, real-estate investor, and stock-market investor. His philosophy continues to center on owning outstanding companies for long periods of time, taking advantage of market corrections rather than fearing them, and combining stock-market wealth creation with income-producing real estate.

Trip continues his studies at Tulane University’s A. B. Freeman School of Business, where his formal business education complements the real-world investing experience he has gained managing his own portfolio. Trip has developed a particular interest in technology, semiconductors, artificial intelligence, energy, and the infrastructure required to support the extraordinary expansion of AI computing.

Frankie will be attending Georgetown University’s McDonough School of Business this fall. He has already accumulated years of hands-on investing experience through his Schwab portfolio, learning an important lesson early in life: successful investing requires patience through both spectacular rallies and painful corrections.

That lesson has been particularly important in 2026.

Artificial-intelligence stocks have experienced some violent swings this year, but the underlying earnings story continues to strengthen. After another strong earnings season, investors are once again recognizing that the enormous AI infrastructure buildout is translating into real revenue, real cash flow, and, for many companies, extraordinary profit growth.

That brings us to this week’s markets.

Market closing date: Friday, August 14, 2026

Wall Street finished another eventful week near record territory as investors balanced three powerful forces: exceptional corporate earnings, renewed enthusiasm surrounding artificial intelligence, and continuing uncertainty surrounding interest rates, inflation, oil prices, and the Middle East.

The major indexes finished Friday slightly lower, but the bigger picture remained constructive.

The Dow Jones Industrial Average closed Friday at 53,732.41, declining 107.58 points, or 0.20%, during Friday’s session.

The S&P 500 closed at 7,785.76, declining 0.17% Friday after setting another record closing high Thursday.

The technology-heavy Nasdaq Composite closed at 26,729.16, falling 0.28% Friday.

Those are the numbers we want readers to remember because the market continues to trade near historic highs even while investors confront elevated interest rates and substantial geopolitical uncertainty.

The S&P 500 had finished Thursday at a record 7,798.99, while the Nasdaq closed Thursday at 26,803.03.

The market therefore continues to show impressive resilience.

One of the biggest stories of the past month has been the recovery in artificial-intelligence stocks.

Earlier this summer, investors began questioning whether AI valuations had moved too far too quickly. The semiconductor sector experienced a meaningful correction, and investors became increasingly concerned about the staggering amounts of capital being spent on AI data centers.

But something happened that changed the conversation:

The earnings showed up.

Corporate profits are demonstrating that this isn't simply a speculative investment cycle built around promises of what artificial intelligence might accomplish someday.

Companies are making money today.

Second-quarter earnings growth for the S&P 500 has been extraordinarily strong, with technology and AI-related companies providing a major portion of the growth.

That is the central reason this market has remained so resilient.

Investors can debate valuations all day long, but over long periods earnings ultimately drive stock prices.

And corporate earnings are booming.

The artificial-intelligence investment cycle has become far larger than simply buying Nvidia GPUs.

Think about what is required to construct an AI data center.

You need GPUs and accelerators.

You need enormous amounts of High Bandwidth Memory.

You need networking equipment.

You need servers.

You need storage.

You need cooling systems.

You need electrical infrastructure.

You need enormous quantities of electricity.

You need cloud infrastructure.

And then you need software capable of turning all that computing power into something customers will actually pay for.

The result is an enormous economic ecosystem.

Strong forecasts from companies including Microsoft and Amazon have helped reassure investors that the billions being spent on AI infrastructure are producing economic returns.

That distinction is extremely important.

There is an enormous difference between spending billions of dollars because everyone else is doing it and spending billions because customers are demanding more computing capacity than companies can currently provide.

Recent earnings suggest much of the AI infrastructure industry is experiencing the second scenario.

The breadth of recent winners demonstrates just how powerful the AI recovery has become.

CoreWeave surged approximately 19% Wednesday after the AI cloud provider raised its forecasts and demonstrated extraordinary demand for computing capacity. Its revenue backlog reached approximately $104 billion during the second quarter, excluding additional commitments signed early in the current quarter.

Super Micro Computer also surged approximately 19% Wednesday after providing a stronger-than-expected fiscal 2027 revenue forecast. AI data centers need servers to house all those expensive processors, and Super Micro remains one of the most direct ways investors can participate in that buildout.

Nebius Group exploded approximately 34% Wednesday after beating quarterly revenue expectations. Revenue from its core AI cloud operation increased nearly sixfold, providing another striking example of how quickly demand for AI computing is expanding.

Nvidia gained approximately 3% Wednesday as enthusiasm returned to semiconductor companies. Nvidia remains the central provider of AI computing power and therefore remains one of the clearest barometers of investor confidence in the AI boom.

Micron Technology gained approximately 4.9% Wednesday and another 4.2% Thursday, followed by an additional gain Friday. Micron has become one of the most important second-order AI beneficiaries because High Bandwidth Memory is essential to advanced AI accelerators.

Sandisk surged approximately 13.7% Thursday, as investors continued moving into companies positioned to benefit from strong memory and storage demand.

Meta Platforms gained approximately 2.8% Thursday, as investors increasingly recognized that Meta's enormous AI spending is improving advertising, engagement, and efficiency across its platforms.

Microsoft also advanced Thursday and remains one of the largest beneficiaries of enterprise AI adoption through Azure and Copilot.

Dell Technologies gained during the week as investors continued looking for additional beneficiaries of the data-center buildout.

IREN and Applied Digital also posted strong gains as AI infrastructure companies rallied.

And Lumentum surged approximately 13.6% Wednesday after delivering better-than-expected results and guidance, showing that the AI boom continues spreading into optical and networking infrastructure.

The key point is that this is no longer simply an Nvidia rally.

The money is spreading throughout the AI ecosystem.

One of the most interesting developments has been the dramatic recovery in memory stocks.

This is important because investors traditionally viewed memory semiconductors as commodities.

Artificial intelligence is changing that.

AI accelerators cannot function efficiently without extremely fast memory sitting close to the processor.

That has made High Bandwidth Memory, or HBM, one of the most strategically important components in an AI server.

Demand has been so strong that memory pricing has strengthened dramatically.

Micron and other memory-related companies have therefore become important beneficiaries of the AI boom.

Instead of trying to predict which company ultimately develops the best AI model, investors can own companies supplying something virtually every advanced AI system requires.

That is exactly why Trip finds Micron so interesting.

Inflation was another important market catalyst.

Consumer and producer inflation reports were less frightening than some investors had feared.

That reduced expectations that the Federal Reserve would need to increase interest rates again immediately.

By the end of the week, markets were assigning roughly a one-third probability to another September rate increase, down substantially from earlier expectations.

That matters enormously to growth stocks.

Higher interest rates reduce the present value of future corporate earnings.

Stable or declining rates generally do the opposite.

If corporate earnings remain exceptionally strong while the Federal Reserve can avoid additional tightening, that could provide an attractive backdrop for equities.

Investors shouldn't conclude that the inflation problem has disappeared.

The Federal Reserve's preferred PCE inflation measures remain above the central bank's 2% target.

Long-term Treasury yields also remain elevated.

That means the Federal Reserve still faces a difficult balancing act.

Raise rates too aggressively and the Fed could damage economic growth.

Remain too accommodative and inflation could become entrenched.

For technology investors, the ideal scenario would be gradually declining inflation combined with continued earnings growth.

That would allow the Federal Reserve to remain patient while companies continue increasing profits.

The geopolitical situation remains one of the largest wild cards facing the market.

The continuing conflict involving Iran has kept energy markets nervous, while traffic through the Strait of Hormuz remains severely constrained.

That matters because the Strait of Hormuz is one of the most important energy transportation routes in the world.

If shipping remains restricted for an extended period, energy prices could rise substantially.

That could create another inflation problem precisely when investors are hoping inflation is coming under control.

Higher oil prices filter through the economy.

Transportation becomes more expensive.

Airline costs increase.

Manufacturing becomes more expensive.

Consumers pay more for gasoline.

And eventually those costs can appear in inflation statistics.

That is why the Middle East remains one of the most important risks investors should monitor.

There is another important lesson from this market.

A company can report excellent results and still see its stock decline.

Why?

Expectations.

When a stock has already doubled or tripled, investors may expect near perfection.

Simply producing excellent results sometimes isn't enough.

We have seen this repeatedly during the AI rally.

That is a useful reminder that even during a powerful bull market, stocks do not move straight upward.

Valuation matters.

Expectations matter.

Entry price matters.

The market continues to provide reasons for optimism, but this is not an environment where investors should abandon discipline.

The S&P 500 is trading close to record highs.

That isn't traditionally where bargains are easiest to find.

But earnings aren't normal either.

Artificial-intelligence infrastructure spending continues expanding.

Memory demand remains extremely strong.

Cloud computing continues growing.

AI servers remain in extraordinary demand.

Companies are reporting enormous backlogs.

And importantly, companies spending billions of dollars on artificial intelligence are increasingly demonstrating how those investments can produce revenue.

That doesn't mean AI stocks cannot correct again.

They almost certainly will.

We have already seen how quickly semiconductor stocks can fall when investors become concerned about valuations.

But the fundamental question isn't whether Nvidia, Micron, Microsoft or another AI stock drops 10% next month.

The important question is whether the underlying earnings opportunity continues expanding over the next several years.

Right now, the evidence suggests that it does.

The AI revolution is moving from the speculative stage toward the earnings stage.

And that may ultimately prove much more important than any single week's stock-market movement.

This week's Smart Wealth Stock Spotlight focuses on one of Trip's newest successful investments:

Micron Technology.

Trip is already up 12.57% on Micron, and the company's recent performance provides an excellent example of why he believes the AI investment opportunity extends far beyond Nvidia.

Micron closed Friday, August 14 at $971.66, gaining another 2.3% during the session.

But understanding Trip's investment requires understanding something much bigger than Micron's recent stock price.

When most investors hear "AI chips," they immediately think Nvidia.

That makes sense.

Nvidia has become the dominant provider of GPUs used to train and operate many of the world's most sophisticated artificial-intelligence models.

But a GPU alone isn't enough.

These processors need access to enormous amounts of information at extremely high speeds.

That requires memory.

More specifically, advanced AI processors increasingly require High Bandwidth Memory — HBM.

HBM is substantially more sophisticated than conventional memory because memory chips can be stacked and integrated to allow enormous amounts of data to move between memory and processors at extraordinary speeds.

As AI models become larger and more complicated, their memory requirements increase.

That puts Micron directly in the middle of one of the most important bottlenecks in artificial intelligence.

For decades, memory was considered one of the semiconductor industry's most cyclical businesses.

Manufacturers would expand capacity.

Supply would exceed demand.

Prices would collapse.

Manufacturers would reduce capital spending.

Demand would eventually catch up.

Prices would recover.

And the cycle would begin again.

AI doesn't necessarily eliminate that cycle.

But it may significantly change its economics.

Advanced memory is becoming a strategic component of AI computing rather than simply another interchangeable semiconductor product.

That is an important distinction.

Trip's investment thesis comes down to a relatively simple economic equation:

AI memory demand is growing faster than the industry can increase advanced supply.

That is usually an excellent environment for manufacturers.

Semiconductor fabrication facilities require enormous amounts of capital.

They cannot simply be constructed overnight.

Advanced HBM is even more difficult to manufacture.

Meanwhile, AI companies need increasing quantities of high-performance memory with each new generation of accelerators.

That imbalance can create pricing power.

And pricing power can create extraordinary profits.

Trip also likes Micron because it provides another way to invest in artificial intelligence without simply buying more Nvidia.

Whether Nvidia, AMD or another company ultimately supplies a particular accelerator, that processor still requires memory.

In that sense, Micron sells one of the essential picks and shovels required for the AI gold rush.

The recent earnings reports from CoreWeave, Nebius and Super Micro provide important supporting evidence.

CoreWeave reported an enormous backlog and said near-term computing capacity is effectively sold out.

Nebius reported that its AI cloud revenue increased nearly sixfold.

Management indicated that demand remains so strong it believes planned 2027 capacity could be sold at current economics.

Super Micro also issued a strong fiscal 2027 revenue forecast.

All three companies need enormous quantities of advanced computing hardware.

That ultimately means more processors.

More processors mean more memory.

And advanced AI processors require increasingly sophisticated memory.

That is the connection investors need to understand.

High Bandwidth Memory could become one of Micron's most important products.

Every generation of AI accelerators becomes more powerful.

Greater processing power creates greater memory requirements.

More memory requirements increase the value of advanced HBM.

That creates a potentially powerful multiyear demand cycle.

Micron isn't simply benefiting from today's AI infrastructure.

It is positioning itself for tomorrow's.

Another reason Trip likes Micron is the enormous operating leverage inherent in semiconductor manufacturing.

Chip factories have substantial fixed costs.

Once those factories are running, increases in selling prices can produce disproportionately large increases in profitability.

The reverse is also true, which explains why memory stocks historically experienced brutal downturns.

But when supply remains tight and demand rises rapidly, the economics can become spectacular.

That is the environment investors are betting on today.

Wall Street remains constructive on Micron because analysts increasingly recognize the structural demand created by AI.

The debate is not really about whether AI requires more memory.

It clearly does.

The debate is about how long current pricing and supply conditions can remain favorable.

The bull case says AI has structurally changed memory demand.

The bear case says memory remains cyclical and eventually Samsung, SK Hynix, Micron and other suppliers will add enough capacity to reduce shortages and pricing power.

Trip believes the evidence increasingly favors the longer-term bull case, although he recognizes that memory will never become completely immune to cycles.

Trip also recognizes that Micron isn't a low-risk stock.

This remains a semiconductor manufacturer.

Competitors aren't going to sit still while Micron earns enormous profits.

They will invest.

Capacity will eventually increase.

Memory pricing will fluctuate.

AI capital spending could eventually slow.

And Micron's stock has already appreciated dramatically.

That raises expectations.

Investors buying Micron should therefore be prepared for significant volatility.

A 10%, 15% or even larger correction would not necessarily mean the investment thesis had failed.

That is normal behavior for semiconductor stocks.

Trip isn't trying to predict where Micron trades four weeks from now.

He is looking at the amount of computing infrastructure the world may require over the next five or ten years.

Artificial intelligence is increasingly being incorporated into software, cloud computing, autonomous systems, robotics, defense, healthcare, financial services, search, advertising and virtually every major technology platform.

All that intelligence requires computing.

Computing requires processors.

And processors require memory.

That is the long-term thesis.

Trip rates Micron Technology a BUY.

His 12.57% gain is encouraging, but it isn't the reason he continues to like the stock.

The reason is the fundamental business opportunity.

HBM demand remains extraordinary.

AI infrastructure spending continues expanding.

AI cloud providers report demand exceeding available capacity.

And Micron is one of only a handful of companies capable of producing the sophisticated memory these systems require.

The stock isn't without risk, particularly after its enormous advance.

But Trip believes investors should view Micron not simply as an old-fashioned memory-chip manufacturer, but as an increasingly important supplier to the global AI infrastructure buildout.

If artificial intelligence becomes as important to the world economy as we believe it will, enormous quantities of memory will be required to make that future possible.

Micron intends to supply it.

And that is why Trip owns the stock.

The Smart Wealth portfolios had another strong week as artificial intelligence, semiconductors, power infrastructure and several of our long-term technology holdings continued to benefit from strong corporate earnings and the renewed AI rally.

We begin with Chris's Morgan Stanley portfolio, followed by his Fidelity investments, then move to Trip's Schwab portfolio and conclude with Frankie's Schwab portfolio.

As always, we focus on percentage gains and losses rather than dollar profits or the number of shares owned.

Closing Price: $343.54 | Gain: +99.89% | Average Analyst Rating: Strong Buy | Chris's Rating: BUY

Alphabet is the parent company of Google, YouTube, Google Cloud and Waymo and remains one of the world's most important artificial-intelligence companies.

Chris owns Alphabet because Google remains one of the most dominant franchises ever created, while Google Cloud and AI provide additional avenues for growth. He believes Alphabet's enormous cash generation, data advantage, search dominance and AI capabilities make it an outstanding long-term holding.

Closing Price: $262.65 | Gain: +26.26% | Average Analyst Rating: Strong Buy | Chris's Rating: STRONG BUY

Amazon operates a dominant e-commerce ecosystem while Amazon Web Services remains one of the largest cloud-computing businesses on Earth.

Chris owns Amazon because AWS provides direct exposure to the enormous growth in cloud computing and artificial intelligence while the retail business continues gaining efficiency. He believes Amazon still has multiple engines capable of producing substantial long-term earnings growth.

Closing Price: $305.93 | Gain: +104.08% | Average Analyst Rating: Buy | Chris's Rating: HOLD

Apple owns one of the most valuable consumer-technology ecosystems in history, built around the iPhone, Mac, iPad, Apple Watch and its services business.

Chris continues owning Apple because its enormous installed user base creates extraordinary recurring revenue and customer loyalty. After a gain exceeding 100%, however, Chris believes the current valuation warrants patience rather than aggressively adding shares.

Closing Price: $608.85 | Gain: +73.02% | Average Analyst Rating: Buy | Chris's Rating: HOLD

Deere is the world's premier agricultural-equipment manufacturer and increasingly a technology company through precision agriculture, automation and autonomous farming equipment.

Chris owns Deere because agriculture is essential regardless of economic cycles, while automation can dramatically improve farm productivity. After a strong long-term gain, he views Deere as a quality company worth continuing to hold.

Closing Price: $368.38 | Gain: +271.18% | Average Analyst Rating: Buy | Chris's Rating: BUY

GE Aerospace manufactures commercial and military aircraft engines and operates an enormously valuable maintenance and service network supporting those engines throughout their lives.

Chris owns GE Aerospace because global aviation demand remains strong and the installed base of GE engines creates decades of recurring service revenue. The company's defense exposure and expanding commercial-aircraft market provide additional long-term growth opportunities.

Closing Price: $1,063.25 | Gain: +935.85% | Average Analyst Rating: Buy | Chris's Rating: HOLD

GE Vernova manufactures power-generation equipment, wind turbines and electrical-grid technology and has become one of the major beneficiaries of America's rapidly rising electricity requirements.

This has become one of Chris's greatest investments, with a gain approaching 936%. Chris continues holding because AI data centers are creating extraordinary electricity demand, but after such a massive advance he believes expectations and valuation warrant some caution.

Closing Price: $56.69 | Gain: +15.35% | Average Analyst Rating: Hold | Chris's Rating: HOLD

Kroger operates one of America's largest supermarket businesses and provides defensive exposure to an essential consumer category.

Chris owns Kroger because grocery demand remains relatively stable regardless of economic conditions. The position provides diversification away from the technology and AI companies dominating much of the portfolio.

Closing Price: $222.02 | Loss: -6.51% | Average Analyst Rating: Buy | Chris's Rating: BUY

Marvell develops advanced semiconductor and networking technology used in data centers, cloud infrastructure and artificial-intelligence systems.

Chris owns Marvell because AI data centers require far more than GPUs, and high-speed networking represents another major component of the infrastructure buildout. The current loss doesn't alter the long-term thesis.

Closing Price: $589.85 | Gain: +1.74% | Average Analyst Rating: Buy | Chris's Rating: STRONG BUY

Meta owns Facebook, Instagram, WhatsApp and Threads and has become one of the world's largest investors in artificial intelligence.

Chris owns Meta because AI can dramatically improve advertising targeting, user engagement and operating efficiency across its enormous platforms. He believes Meta's tremendous cash flow allows the company to finance its AI ambitions while continuing to generate substantial profits.

Closing Price: $971.66 | Loss: -21.77% | Average Analyst Rating: Buy | Chris's Rating: BUY

Micron manufactures DRAM, NAND and High Bandwidth Memory, making the company an increasingly important supplier to AI data centers.

Chris owns Micron because advanced AI accelerators require enormous amounts of high-speed memory, creating potentially structural demand for HBM. The investment reflects Chris's belief that memory will remain one of the critical bottlenecks of the AI infrastructure boom.

Closing Price: $495.40 | Gain: +984.33% | Average Analyst Rating: Strong Buy | Chris's Rating: STRONG BUY

Microsoft is one of the world's dominant software and cloud-computing companies through Azure, Office, Windows, Copilot and its enormous enterprise ecosystem.

This is the crown jewel of Chris's Morgan Stanley portfolio, with an extraordinary gain of approximately 984%. Chris continues owning Microsoft because he believes Azure and Copilot place the company at the center of enterprise AI adoption while Microsoft's recurring software revenue creates one of the strongest business models in corporate America.

Closing Price: $144.55 | Gain: +0.66% | Average Analyst Rating: Buy | Chris's Rating: HOLD

Procter & Gamble owns some of the world's strongest consumer brands across household products, personal care and everyday necessities.

Chris owns P&G because it provides defensive stability, dividends and diversification from the portfolio's technology exposure. It isn't expected to produce AI-like growth, but that is precisely why it serves a useful role in the portfolio.

Closing Price: $262.65 | Gain: +131.19% | Average Analyst Rating: Strong Buy | Chris's Rating: STRONG BUY

Amazon has become an outstanding Fidelity winner, gaining more than 131% since purchase.

Chris owns Amazon because AWS, advertising and e-commerce provide three powerful growth engines within one company. He particularly likes Amazon's position in AI infrastructure through AWS and believes rising profitability can continue supporting earnings growth.

Closing Price: $342.48 | Gain: +105.47% | Average Analyst Rating: Hold/Buy | Chris's Rating: HOLD

American Express operates a premium global payments network with a particularly valuable customer base of affluent consumers and business travelers.

Chris has more than doubled his investment and continues owning the company because its premium cardholders tend to spend heavily while membership fees create recurring revenue. At the current valuation and after the large gain, Chris views AXP primarily as a long-term hold.

Closing Price: $32.82 | Gain: +120.07% | Average Analyst Rating: Buy | Chris's Rating: HOLD

Kinder Morgan owns one of America's largest networks of natural-gas pipelines and energy infrastructure.

Chris owns Kinder Morgan because natural gas should remain crucial to American electricity production, particularly as AI data centers increase power consumption. With the investment already up approximately 120%, Chris is comfortable holding the position and collecting its income.

Closing Price: $48.48 | Loss: -3.89% | Average Analyst Rating: Hold | Chris's Rating: HOLD

Verizon operates one of America's largest wireless communications networks and generates substantial recurring cash flow.

Chris owns Verizon primarily for defensive characteristics, recurring subscription revenue and dividend income. The position has slightly declined, but its purpose in the portfolio is stability and income rather than aggressive growth.

Closing Price: $159.07 | Gain: +89.57% | Average Analyst Rating: Buy | Chris's Rating: BUY

ExxonMobil is one of the world's largest integrated energy companies, spanning oil, natural gas, refining and chemicals.

Chris owns Exxon because global energy demand remains substantial and geopolitical uncertainty reinforces the strategic importance of reliable energy production. The nearly 90% gain demonstrates how traditional energy can complement a technology-heavy portfolio.

Closing Price: $342.27 | Gain: +7.63% | Average Analyst Rating: Buy | Chris's Rating: STRONG BUY

Tesla provides exposure to electric vehicles, energy storage, autonomy, robotics and artificial intelligence. Chris believes Tesla's greatest future opportunities may eventually come from autonomy, energy and robotics rather than automobiles alone, which is why he is willing to tolerate the stock's considerable volatility.

Closing Price: $305.93 | Gain: +174.02% | Average Analyst Rating: Buy | Chris's Rating: HOLD

Apple has produced a tremendous 174% gain for Chris.

He continues owning Apple because of its enormous ecosystem, services revenue and unparalleled customer loyalty. After such a large appreciation, Chris views the stock as a long-term hold rather than something he needs to chase higher.

Closing Price: $225.16 | Gain: +128.05% | Average Analyst Rating: Strong Buy | Chris's Rating: STRONG BUY

Nvidia remains the dominant provider of AI accelerators and one of the central companies powering the generative-AI revolution.

Chris owns Nvidia because he believes AI computing demand remains in the early stages of a multiyear expansion. Despite already gaining more than 128%, he believes Nvidia's technology ecosystem and market leadership justify continued ownership.

Closing Price: $140.00 | Gain: +3.70% | Average Analyst Rating: Developing Coverage | Chris's Rating: BUY

SpaceX provides exposure to commercial space launches, satellite communications and the enormous Starlink network.

Chris owns SpaceX because he believes commercial space and satellite internet could become enormous long-term industries. Because analyst coverage remains less developed than for mature mega-cap companies, Chris places greater emphasis on the company's growth trajectory and competitive position.

Closing Price: $305.93 | Loss: -2.87% | Average Analyst Rating: Buy | Chris's Rating: HOLD

Chris owns Apple for its ecosystem, brand strength, enormous installed customer base and recurring services revenue. The modest current loss doesn't change the long-term thesis, although Chris believes the valuation makes the stock a Hold rather than an aggressive Buy.

Closing Price: $961.10 | Loss: -4.95% | Average Analyst Rating: Buy | Chris's Rating: BUY

Costco operates one of the best membership-based retail models in the world.

Chris owns Costco because membership renewals, customer loyalty and enormous purchasing power create a durable competitive advantage. A roughly 5% decline from his purchase price doesn't concern him because the underlying business remains exceptionally strong.

Closing Price: $111.68 | Gain: +9.60% | Average Analyst Rating: Buy | Chris's Rating: BUY

Cisco provides networking, security and infrastructure products that are increasingly important as AI data centers require faster and more sophisticated networks.

Chris owns Cisco because AI infrastructure requires networking equipment as well as GPUs. Cisco also provides established cash flow and a more mature valuation than many pure AI companies.

Closing Price: $368.38 | Gain: +15.17% | Average Analyst Rating: Buy | Chris's Rating: BUY

Chris owns GE Aerospace because commercial aviation and defense remain powerful long-term markets. The company's enormous installed engine base creates recurring maintenance revenue that can continue for decades.

Closing Price: $87.71 | Gain: +12.74% | Average Analyst Rating: Buy | Chris's Rating: HOLD

Coca-Cola owns one of the world's most valuable consumer brands and an enormous global beverage distribution network.

Chris owns Coke for stability, dividends and defensive diversification. It provides balance against the much faster-growing technology positions elsewhere in the portfolio.

Closing Price: $332.36 | Gain: +21.12% | Average Analyst Rating: Buy | Chris's Rating: STRONG BUY

Lam Research manufactures semiconductor fabrication equipment essential to producing increasingly sophisticated chips and memory.

Chris owns Lam because the AI boom ultimately requires enormous investments in semiconductor manufacturing capacity. Rather than betting exclusively on one chip designer, Lam provides exposure to the equipment required to manufacture the next generation of advanced semiconductors.

Closing Price: $569.29 | Gain: +5.57% | Average Analyst Rating: Buy | Chris's Rating: BUY

Mastercard operates one of the world's dominant electronic-payment networks.

Chris owns Mastercard because the long-term transition from cash toward digital payments remains intact worldwide. Its network economics, international reach and high margins make it one of the highest-quality financial businesses Chris owns.

Closing Price: $135.84 | Gain: +11.60% | Average Analyst Rating: Buy | Chris's Rating: BUY

Merck is one of the world's leading pharmaceutical companies, with a major oncology franchise and extensive drug-development pipeline.

Chris owns Merck to diversify beyond technology while maintaining exposure to a company capable of meaningful earnings growth. Healthcare also provides defensive characteristics during periods when economically sensitive stocks struggle.

Closing Price: $144.55 | Loss: -3.45% | Average Analyst Rating: Buy | Chris's Rating: HOLD

P&G provides Chris with exposure to household necessities and globally recognized consumer brands.

Chris owns the stock for stability, dividend income and portfolio diversification. The modest loss is less important than the defensive role the company plays alongside much more volatile technology holdings.

Closing Price: $174.04 | Gain: +20.89% | Average Analyst Rating: Hold | Chris's Rating: BUY

Palantir develops artificial-intelligence and data-analysis software used by governments, defense organizations and commercial enterprises.

Chris owns Palantir because it has demonstrated that AI can produce real enterprise revenue rather than simply excitement. He believes Palantir could become one of the major software platforms of the AI era, although its premium valuation makes position discipline important.

Closing Price: $364.15 | Gain: +8.91% | Average Analyst Rating: Buy | Chris's Rating: BUY

Visa operates one of the world's dominant electronic-payment networks.

Chris owns Visa because global payment volumes should continue shifting away from cash toward electronic transactions. Its asset-light network model, enormous scale and strong margins make it an attractive long-term compounder.

Trip's portfolio has now generated an overall gain of approximately 78.71%, led by one extraordinary long-term winner and his newest successful investment in Micron.

Closing Price: $1,063.25 | Gain: +955.90% | Average Analyst Rating: Buy | Trip's Rating: HOLD

GE Vernova is Trip's greatest investment, having appreciated an astonishing 955.90%.

Trip continues holding because rising electricity consumption from AI data centers is creating a potentially historic investment cycle in power generation and grid infrastructure. After an almost tenfold gain, however, Trip believes expectations are high enough that HOLD is more appropriate than chasing the stock.

Closing Price: $961.10 | Gain: +108.52% | Average Analyst Rating: Buy | Trip's Rating: BUY

Costco has more than doubled Trip's original investment.

Trip likes Costco because its membership model creates predictable recurring revenue and extraordinary customer loyalty. He believes the company can continue compounding earnings for many years even if the stock experiences occasional valuation-driven corrections.

Closing Price: $102.50 | Loss: -19.82% | Average Analyst Rating: Hold | Trip's Rating: HOLD

Intel remains Trip's primary laggard, down approximately 19.82%.

Trip continues holding because Intel's manufacturing turnaround, foundry strategy and strategic importance to domestic semiconductor production still provide potential upside. He recognizes, however, that the company must execute much better before he would become more aggressive.

Closing Price: $971.66 | Gain: +12.57% | Average Analyst Rating: Buy | Trip's Rating: BUY

Micron has quickly become one of Trip's most important investments and is already up 12.57%, reinforcing the thesis discussed in this week's Stock Spotlight.

Trip owns Micron because AI accelerators require enormous amounts of High Bandwidth Memory and demand is currently expanding faster than supply. He believes Micron gives him another powerful way to participate in the AI infrastructure boom without relying exclusively on GPU manufacturers.

Frankie's portfolio continues to produce exceptional long-term results. The account is now up approximately 141.90% overall, with several investments generating triple-digit returns.

Closing Price: $14.45 | Gain: +94.22% | Average Analyst Rating: Hold/Buy | Frankie's Rating: BUY

Navitas develops next-generation gallium nitride and silicon-carbide power semiconductors used in high-efficiency power applications.

Frankie remains bullish because AI data centers, electric vehicles and advanced electronics all require more efficient power management. The stock remains volatile, but a gain exceeding 94% gives Frankie considerable room to remain patient.

Closing Price: $1,063.25 | Gain: +955.90% | Average Analyst Rating: Buy | Frankie's Rating: HOLD

GE Vernova has become Frankie's greatest investment, producing an extraordinary 955.90% gain.

Frankie continues holding because electricity demand from AI data centers, electrification and grid modernization provides a powerful multiyear growth story. After nearly a tenfold return, however, valuation and position concentration justify a more cautious Hold rating.

Closing Price: $961.10 | Gain: +107.81% | Average Analyst Rating: Buy | Frankie's Rating: BUY

Costco has more than doubled Frankie's investment.

Frankie likes the company's recurring membership revenue, customer loyalty and exceptional operating model. He believes Costco remains the type of high-quality company that can compound wealth over decades.

Closing Price: $277.68 | Gain: +227.57% | Average Analyst Rating: Strong Buy | Frankie's Rating: BUY

Nebius has become another spectacular winner, with Frankie now up approximately 228%.

Frankie owns Nebius because the company provides direct exposure to AI cloud infrastructure and rapidly increasing demand for accelerated computing. The tremendous gain also means expectations are much higher today, so he recognizes that volatility could remain extreme.

Closing Price: $342.27 | Gain: +15.09% | Average Analyst Rating: Buy | Frankie's Rating: BUY

Tesla provides exposure to electric vehicles, batteries, energy storage, autonomous driving and robotics.

Frankie believes Tesla should increasingly be evaluated as an AI, autonomy and energy company rather than simply an automobile manufacturer. Those opportunities could be enormous, although execution and valuation continue to make Tesla one of his more volatile holdings.

Closing Price: $124.00 | Gain: +36.10% | Average Analyst Rating: Buy | Frankie's Rating: BUY

ServiceNow provides cloud-based workflow and automation software to large enterprises.

Frankie owns ServiceNow because artificial intelligence should make enterprise automation increasingly valuable while deep customer relationships create substantial recurring revenue. His gain has now expanded to more than 36%, considerably higher than when we previously spotlighted the company.

Closing Price: $6.99 | Gain: +79.23% | Average Analyst Rating: Buy | Frankie's Rating: BUY

Aurora is developing autonomous-driving technology with an initial emphasis on self-driving trucking.

Frankie owns Aurora because autonomous trucking could eventually become a massive market by reducing transportation costs and addressing driver shortages. The position remains speculative, but his gain of approximately 79% gives him room to remain patient while the technology develops.

Closing Price: $589.85 | Gain: +2.08% | Average Analyst Rating: Buy | Frankie's Rating: STRONG BUY

Meta operates Facebook, Instagram, WhatsApp and Threads while investing tens of billions of dollars in artificial intelligence.

Frankie owns Meta because AI is already improving advertising efficiency and user engagement across its platforms. He believes Meta's enormous cash flow and global user base give it the resources and distribution needed to become one of the long-term winners of AI.

Closing Price: $495.40 | Gain: +185.81% | Average Analyst Rating: Strong Buy | Frankie's Rating: STRONG BUY

Microsoft has become another spectacular winner for Frankie, with his position now up approximately 186%.

Frankie owns Microsoft because Azure, Copilot and its dominant enterprise-software ecosystem put the company directly at the center of corporate AI adoption. He believes Microsoft's combination of recurring revenue, enormous cash flow and AI leadership makes it one of the highest-quality companies in his portfolio.

This week's market action reinforces an important Smart Wealth principle: the best investment opportunities often emerge from powerful long-term trends rather than short-term predictions.

Artificial intelligence remains one of those trends.

We have now watched the AI trade move from Nvidia and semiconductor stocks into memory, networking, cloud infrastructure, data centers, servers and even electricity generation. The recent results from CoreWeave, Nebius, Super Micro and Micron provide more evidence that companies are spending enormous amounts of money because demand for AI computing remains exceptionally strong.

Our portfolios reflect that theme.

Microsoft has become an extraordinary long-term winner for Chris and Frankie. GE Vernova has produced gains approaching tenfold for Chris, Trip and Frankie. Nvidia remains one of Chris's major AI investments. Micron has already produced a double-digit gain for Trip. Nebius has generated a gain exceeding 200% for Frankie.

But the lesson isn't simply to buy whatever has "AI" attached to its name.

Valuation still matters.

Risk still matters.

Diversification still matters.

And patience matters enormously.

There will be corrections. There will be disappointing earnings reports. There will be periods when today's hottest stocks suddenly become Wall Street's biggest losers.

That is investing.

The objective isn't to avoid every decline.

The objective is to identify exceptional businesses and transformational economic trends, buy them at sensible prices, and give those investments enough time to compound.

As we move deeper into the second half of 2026, we'll continue watching artificial intelligence, semiconductor demand, memory pricing, electricity infrastructure, interest rates, inflation and geopolitical developments.

There will undoubtedly be surprises.

There always are.

But if corporate earnings continue expanding and the AI infrastructure boom continues producing real economic returns, we believe long-term investors will continue to find opportunities — even if the road getting there remains volatile.

The Smart Wealth Newsletter is provided solely for educational and informational purposes and should not be considered investment, financial, tax, accounting, or legal advice. Chris, Trip and Frankie are sharing their personal investment experiences, opinions and portfolio holdings for educational purposes only. References to specific stocks, securities, ratings, price targets, investment strategies or portfolio positions are not recommendations or solicitations to buy, sell or hold any security.

Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results, and the substantial historical gains discussed in this newsletter should not be interpreted as an indication that similar results will occur in the future. Individual stocks — particularly technology, semiconductor, artificial-intelligence and emerging-growth companies — can experience significant volatility and substantial losses.

Analyst ratings, price targets, market prices and other financial information can change at any time and may differ among data providers. Any personal ratings expressed by Chris, Trip or Frankie represent opinions at the time of publication and may change without notice. Readers should independently verify financial information and conduct their own research before making investment decisions.

Every investor has different financial circumstances, objectives, risk tolerances and tax considerations. Before making any investment, tax or financial decision, readers should consider consulting with an appropriately qualified financial advisor, tax professional, accountant or attorney.

The Smart Wealth Newsletter does not guarantee the accuracy, completeness or future performance of any investment, forecast or opinion discussed. All investments involve risk. Invest carefully, remain diversified, understand what you own, and make decisions appropriate for your own financial situation.