Motley Fool Hidden Gems Investing Move Over, Magnificent 7, There’s a New Stock Basket in Town
13 snips
May 12, 2026 
Matt Frankel, an investing analyst who focuses on valuation and thematic picks, and Travis Hoium, a consumer and gaming specialist, break down Yardeni’s new “AI 11” stock basket and debate baskets versus single-stock bets. They discuss frothy AI hardware valuations, standout semiconductor names, and the changing athletic-wear landscape including Nike, On, and Lululemon.
AI Snips
Chapters
Transcript
Episode notes
AI 11 Is Essentially A Semiconductor Basket
- Wall Street created an "AI 11" basket that largely maps to semiconductor and memory suppliers tied to AI infrastructure growth.
- The list includes Sandisk, Western Digital, Micron, Intel, Samsung, AMD, Marvell, TSMC, Broadcom, SK Hynix, and ASML, showing concentrated hardware exposure.
Combine Baskets With Select Stock Picks
- Use both baskets and individual stock picks when investing themes; baskets reduce single-stock risk while picks can capture outsized winners.
- Travis and Matt recommend baskets for trend exposure but warn individual winners (e.g., AMD) can outperform dramatically and carry higher idiosyncratic risk.
AMD Is A High-Reward But Fragile AI Bet
- AMD is a prominent individual play inside the AI narrative with rapid data-center growth and potential CPU leadership.
- Matt owns AMD and warns it trades around 50x forward earnings, so it's promising but could be fragile if product rollouts falter.