Could former NVIDIA CEO Jensen Huang’s corporate and national security scandal be the straw that finally brings down AI valuations across the market?

If so, look out. Our research shows the losses could be huge.  

For starters, unrealized investment gains, fueled by soaring private company AI valuations, are boosting earnings without any corresponding improvement in the underlying businesses. These paper profits can disappear just as quickly as they appeared if valuations fall.

Combined with the hidden costs from off-balance sheet debt, the disconnect between reported earnings and economic reality is 20%.

But with valuations still pricing in extraordinary future growth, investors need to ask a critical question: How much of the market’s earnings growth is real?

The answer matters not just for avoiding overvalued stocks, but also for identifying opportunities the market is overlooking.

While investors chase headlines and speculative growth stories, we continue to uncover fundamentally strong businesses trading at attractive valuations all while exposing the truth behind the Wall Street narratives.

Read our latest research below to see where we’re separating real profits from paper gains, uncovering hidden risks, and finding opportunities backed by economic reality rather than market hype.

Long Idea:

This week’s Long Idea is a Very Attractive-rated ETF that ranks as one the Best Sector ETFs in 4Q26 and improves upon a sector that already earns an Attractive rating.

The AI Unrealized Gains Illusion:

Unrealized gains on investments are boosting earnings. How much could S&P 500 earnings fall without the support of paper gains? How far could the index fall without the paper gains to support valuations?

Earnings Watch Party Live Podcast:

We combined our Monthly Live Podcast and Earnings Watch Party to review of latest research exposing hidden costs and inflated earnings and analyzed the truth behind the latest earnings from Cisco (CSCO), Applied Materials (AMAT), Nebius (NBIS), CoreWeave (CRWV), and Take-Two Interactive (TTWO).

Model Portfolio Updates:

We updated our Exec Comp Aligned with ROIC Model Portfolio.

We also published the 3Q26 performance for all our Model Portfolios.

Danger Zone Podcast:

CEO David Trainer joined Chuck Jaffe to discuss why Anthropic is already back in the Danger Zone this week.

We hope you had a great week!

See a preview of upcoming research below.

Upcoming Research