5 Stocks I'm Buying While the Crowd Focuses on AI Disaster
Opportunity now is not in betting on the broader market. It's in individual stocks with catalysts and stories the crowd hasn't figured out yet.
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The February Consumer Confidence number came in at 91.2 versus a consensus of 86.0 and a prior reading of 84.5. The market spiked on the headline, sold off, and is now bouncing to intraday highs.
January Consumer Confidence was described as a "collapse" and the worst reading since May 2014. Bouncing from 84.5 to 91.2 sounds impressive until you realize we are just climbing out of a deep hole. The Present Situation Index, which measures people's views of current conditions, actually fell again. The entire bounce came from the Expectations Index, which measures how people feel about the next six months. That's hope, but we need spending to back it up, and that is still questionable.
The overall market is in better shape Tuesday than Monday's ugly action suggested. Breadth is running about 60% positive and the Russell 2000 is leading, which tells you buyers are showing up and taking on risk. Chip stocks are helping the Nasdaq 100 as traders position ahead of Nvidia's (NVDA) earnings on Wednesday. That report will tell us more about AI sentiment than any economic data point.
Why Apple Is Getting a Boost
Apple (AAPL) is getting a big boost Tuesday after announcing it will bring Mac mini production to the United States for the first time, expanding factory operations in Houston. The company is also expanding advanced AI server manufacturing at the same facility.
CEO Tim Cook said Apple began shipping AI servers from Houston ahead of schedule. Once again, Cook is getting ahead of political pressure.
The AI server expansion is the more important story. That's real infrastructure investment tied directly into Apple Intelligence and the push into enterprise AI and helps them benefit from AI glow.
The one group that isn't participating is the banks. Banks price the economy in real time. When financials can't catch a bid even on a consumer confidence beat, the smart money is telling you something. This is a bounce, not a turn. Keep that in mind.
The Flip Side of the Wrecking Ball
Monday the market got hammered by AI fear. A research report painted a picture of AI destroying everything in its path and the sellers came out in force. I wrote about that in Monday's closing column. What the crowd is missing is that AI isn't just a wrecking ball. It is also a powerful engine of efficiency and growth for companies that know how to use it.
The place I am finding the most compelling opportunities right now is in companies the market hasn't properly valued yet because it is too busy pricing in destruction. I have been building positions in five of them. Three are in healthcare, where AI is transforming drug development and commercial operations. Two are in infrastructure and defense, where AI is creating entirely new demand.
Harrow: Ophthalmic Pharma With a Bullish Setup
Harrow (HROW) is one of my top picks for 2026 and the setup into earnings is compelling. The company pre-announced full-year 2025 revenue of $270 million to $280 million against a consensus of $271 million, so the beat is already known. What matters now is what CEO Mark Baum says on the earnings call. Baum is promotional and bullish by nature and I expect him to deliver.
The story here is execution and expansion. Harrow's OneHarrow initiative consolidates two separate commercial organizations into one, tightening alignment and driving more disciplined execution. The company is doubling the sales force behind Vevye and the surgical sales force supporting Triesence, both driven by growing customer momentum. And the expansion of IHEEZO into office-based procedures opens an addressable market the company estimates at over 2.5 million procedures annually. That is a significant step up.
AI is accelerating the efficiency gains across the business, from drug development to commercial operations. Seven analysts have a Strong Buy consensus with an average price target around $72, and Cantor Fitzgerald is out at $94. The stock is trading around $50.
Earnings drop March 2 after the close.
Xeris Biopharma: A Once-Weekly Breakthrough in a Billion-Dollar Market
Xeris Biopharma (XERS) is another top pick of mine heading into March 2 earnings. The company has developed XP-8121, a once-weekly injectable treatment for hypothyroidism. That might sound like a niche product but the hypothyroidism market exceeds $1 billion annually and it is currently served entirely by daily oral medications. A once-weekly injection changes the game for patient compliance and opens the door to a significant market share grab.
Phase 3 trials are expected in the second half of 2026. AI is accelerating the clinical trial process, compressing timelines that used to take years. That is the efficiency tailwind that most investors aren't pricing in yet. The stock is cheap relative to the potential and March 2 earnings will give us the next look at how the pipeline is progressing.
Vir Biotechnology: A Deal That Changes the Math
Vir Biotechnology (VIR) got a significant vote of confidence when Astellas struck a deal worth $335 million upfront plus $1.37 billion in potential milestones. The lead asset is VIR-5500, targeting prostate cancer. Analyst price targets range from $17 to $24 against a current price around $10. That kind of gap between where the stock trades and where analysts think it belongs doesn't stay open forever.
Like Xeris, Vir is a company where AI-driven drug development is shortening the path from discovery to commercialization. The Astellas deal validates the science and provides the capital to execute.
The market hasn't caught up to the story yet. That is the opportunity.
TeraWulf: Bitcoin Miner Turned AI Powerhouse
While everyone was focused on the AI wrecking ball Monday, TeraWulf (WULF) was quietly doing what it has been doing for months — acting well and building momentum. This is a stock that is running hot right now and the chart looks good.
The story is a compelling one. TeraWulf started as a Bitcoin miner but had the vision to see what was coming. The company is converting its operations into AI and high-performance computing datacenters, positioning itself at the center of the infrastructure buildout that every AI application ultimately depends on.
Morgan Stanley has a $37 price target on the stock. The Google partnership validates the thesis. With 2.8 gigawatts of capacity in development, this is not a small bet on AI infrastructure. It is a serious one.
The market is still figuring out how to value the company's transition from Bitcoin mining to datacenter operations. That confusion is the opportunity. I added to my position Tuesday.
Amprius Technologies: The Holy Grail of Drone Batteries
I also added to my position in Amprius Technologies (AMPX) Tuesday, increasing my stake after introducing the stock in yesterday's midday column. Weakness in a strong story is an opportunity, not a warning.
Amprius Technologies, which I discussed on Monday, makes silicon-anode batteries that allow drones to fly farther and stay airborne longer. About 80-90% of revenue comes from unmanned aerial systems. This is as pure a drone play as you're going to find in the public markets.
Craig-Hallum initiated with a Buy and $17 price target. Needham followed with a Buy and $20 target, calling the technology the holy grail of battery technology. Five analysts average $18.50 against a current price around $10.75. Revenue in Q3 2025 came in at $21.4 million, up 173% year over year.
The company is still burning cash and the CTO recently sold shares. With a beta north of 3 this stock moves fast in both directions. Q4 results drop March 5 and I will trade the reaction when those numbers hit. Respect the risk level with position size.
My Game Plan
The market is finding its footing Tuesday after Monday's brutal session. But this is a bounce off support, not a new leg higher. The banks aren't confirming it and the consumer confidence internals don't support the headline number.
The opportunity right now is not in betting on the broader market. It is in individual stocks with specific catalysts and stories the crowd hasn't figured out yet.
HROW, XERS, and VIR give you healthcare names benefiting from AI efficiency while the market looks the other way. WULF gives you AI infrastructure at a price that doesn't yet reflect the transition. AMPX gives you a defense technology play with a hard catalyst on March 5.
Size all of these to reflect the risk. Let the market come to you. Wednesday is Nvidia and that print will set the tone for everything AI-related heading into March.
At the time of publication, Rev Shark was long HROW, XERS, VIR, WULF, AMPX and NVDA.
