Gamma — Week of April 4, 2026

Palantir is currently the premier 'pure-play' software beneficiary of the AI revolution. Their bootcamps are converting enterprise customers at an unprecedented rate, creating a massive backlog of high-margin SaaS revenue. With the stock recently clearing key resistance levels and entering the S&P 500 (providing a liquidity floor), the next 1-3 months should see a re-rating as analysts adjust 2026 EPS estimates upward following their latest guidance beat.

While Nvidia provides the chips, Vertiv provides the essential 'picks and shovels' for the AI gold rush. Their liquid cooling technology is becoming the industry standard as Blackwell and future GPU architectures generate more heat. The 1-3 month outlook is bolstered by the 'AI infrastructure supercycle' which shows no signs of slowing, and a valuation that—while high—is justified by triple-digit earnings growth potential.

Cloudflare's transition from a CDN/Security provider to a comprehensive AI inference platform is driving a valuation re-rating. They are uniquely positioned to handle localized AI processing, which is increasingly required for low-latency applications. With a 12.2% projected upside from current levels and a series of product launches expected in the next quarter, the stock is a high-conviction growth play for the short-to-medium term.

MicroStrategy has transitioned from a software firm to a levered Bitcoin proxy. As of April 2026, the market is pricing in a 'scarcity premium' that exceeds the actual value of the underlying assets. With interest rates remaining 'higher for longer' in early 2026, the cost of servicing their convertible debt is weighing on cash flow. A 1-3 month short thesis plays on the narrowing of the NAV premium as institutional investors rotate into cheaper spot ETFs.

Carvana’s 2025 rally was driven by aggressive cost-cutting and one-time tax benefits. However, as we enter Q2 2026, these tailwinds are fading. The upcoming earnings report on April 29 is expected to highlight a return to negative free cash flow. The stock is currently priced for perfection in a used-car market that is cooling due to high subprime delinquency rates, making it a prime candidate for a valuation reset.

The 'AI halo effect' has pushed ARM's valuation to levels that disconnect from its 2026 revenue reality. While it remains a dominant player, the licensing model has slower 'ramp-up' times than the market is currently discounting. With the lock-up period long expired and SoftBank needing to monetize assets for new AI ventures, the risk of a large block trade hitting the market in the next 90 days is high.