Where to Invest $10,000: Betting on Chip-Free AI and Protecting Against Volatility. August Ideas
Electricity providers are benefiting from growing demand from data centers and the industrial sector. Photo: entergy.com
The end of July was marked by a plunge in the stocks of chipmakers and AI-related companies: last month, the Philadelphia Semiconductor Index fell by 20%, and has yet to recover those losses; South Korea’s Kospi, in which chipmakers account for a significant share, lost more than a quarter of its value from its June peak; and the tech-heavy Nasdaq 100 entered a correction phase. In such a volatile market, how can investors find a “safe” bet, including in the AI sector? Georgy Timoshin, junior strategist at Freedom Finance Global, provides the answer.
AI — A Focus on the Electric Power Industry
Timoshin says he focuses on sectors that are in demand in the market but have not yet been significantly overvalued.
His selection included Entergy Corporation, which supplies electricity to more than 3 million customers in Arkansas, Louisiana, Mississippi, and Texas. In the second quarter of 2026, its adjusted earnings totaled $483 million (up 3.21% year-over-year), or $1.03 per share (compared to $1.05 in the same period last year). The company reaffirmed its 2026 adjusted earnings per share guidance in the range of $4.25 to $4.45. According to Entergy Corporation CFO Kimberly Fontaine, industrial electricity consumption rose by approximately 10% in the second quarter compared to last year.
“The company’s investment appeal stems from the rapid growth in demand for electricity in the region where it operates, which is developing rapidly thanks to the construction of data centers, liquefied natural gas export facilities, and new industrial sites,” Timoshin believes.
As of August 6, Entergy's stock price had risen by nearly 18% over the past year.
Analysts at Mizuho, Jefferies, and CreditSights believe that this company is better positioned than others to become the primary beneficiary of the surging demand for electricity to power AI.
In March of this year, Entergy announced an agreement with Meta to supply 5.2 GW of electricity to its data centers in Louisiana (for comparison: one gigawatt is enough to power 750,000 homes). Under the 2024 agreement, Entergy is already building several natural gas-fired power plants in Louisiana for Meta’s data centers.
"The partnership with Meta demonstrates the company's 'ability to attract major technology clients and meet their growing energy needs,'" says Timoshin.
He considers the main risks for Entergy to be a potential decline in demand from the company’s large industrial customers, rising costs of investment projects, and changes in regulatory policy in the United States.
The average price target for Entergy shares is $124.21. This implies upside potential of 16.64% from the close of trading on August 6. Eighteen out of 24 analysts recommend buying the stock.
The Card Business — A Bet on Sustainable Growth
American Express is the third-largest global payment network, after Visa and Mastercard. Berkshire Hathaway has held shares in this company for more than 20 years.
Its second-quarter revenue, after adjusting for interest expenses, totaled $19.64 billion (+10% year-over-year), and earnings per share were $4.53 (+11% year-over-year). In addition, cardholder spending rose by 9%. “This is the highest growth rate in the last three years, adjusted for the impact of exchange rates,” said American Express CEO Stephen J. Squire.
“This company’s investment appeal continues to be driven by steady growth in its card business, high customer payment activity, and a stable credit portfolio,” Timoshin concludes.
The company has raised its revenue growth forecast for 2026 to 10% (it will reinvest the additional funds into growth) and also expects adjusted earnings per share for the year to be $17.3–17.9.
Timoshin attributes its main risks to rising expenses, an increased tax burden, and a possible slowdown in consumer activity. American Express’s financial statements showed that its expenses for the second quarter rose 12% year-over-year to $14.5 billion. This was primarily due to cardholders spending more and making greater use of customer benefits, as well as updates to the terms for U.S. Platinum premium cardholders and an increase in operating expenses. The company also reported an increase in its effective tax rate from 18.7% to 23.6%. Last year, American Express benefited from one-time tax breaks that were no longer available this year.
Over the past year, the company’s stock has risen by approximately 16%. Analysts at Freedom Broker maintain a “Buy” rating on the stock with a price target of $385. The average price target is $374.46. At the close of trading on August 6, 2026, the stock was trading at $342.6.
Medical Technology—Betting on Steady Demand
And finally, the third investment opportunity for August is Abbott Laboratories. It is one of the leading players in the medical nutrition, health monitoring, medical equipment, and disease diagnostics sectors.
Timoshin notes that the company's diversified business structure allows it to maintain a steady growth rate even amid changing market conditions.
According to its second-quarter report, Abbott's sales rose 13% year-over-year to $12.6 billion. Nearly half of that came from the medical devices segment.
Sales, including comparable sales, increased in three of the four business segments—diagnostics, pharmaceuticals, and medical equipment. In the diagnostics segment, growth reached an impressive 42.3%.
Sales in the therapeutic and infant nutrition segments, on the other hand, declined in the United States and showed relatively minimal growth in the international market.
Adjusted earnings per share came in at $1.31, exceeding analysts’ expectations ($1.28). The company raised its full-year 2026 forecast for adjusted diluted earnings per share to $5.45–5.6 from the previously expected $5.38–5.58.
Timoshin cites the medical equipment and pharmaceuticals segments for emerging markets as key drivers of Abbott's growth.
The third is the acquisition of the U.S.-based company Exact Sciences, which specializes in cancer diagnostics. Abbott closed the acquisition in March —it cost the company $20.6 billion (almost the entire amount was financed through the issuance of new debt).
Timoshin cites the recovery in sales at the nutrition division following several weak quarters and the launch of new products—including the Libre Duo glucose monitoring system and solutions for minimally invasive cardiology—as additional growth drivers.
According to him, the main risks for Abbott stem from intense competition in the medical device market, potential delays in launching new products, and a slower recovery in the medical nutrition segment.
In addition, Wall Street is now closely monitoring medical technology companies after hospital operator HCA Healthcare reported a decline in the number of surgical procedures and an increase in the number of uninsured patients, according to Reuters. These trends could negatively impact the volume of elective procedures, as some Americans are losing their insurance coverage under the Affordable Care Act.
However, Abbott CEO Robert Ford stated that the company's business focuses on the treatment of diabetes, cardiovascular disease, and cancer, and that patients with these conditions are "less likely to opt out of insurance coverage."
Analysts at Freedom Broker maintain a “Buy” rating on Abbott Laboratories with a price target of $125. The average consensus estimate is $118.42, which is 9.7% above the closing price on August 6. Over the past year, Abbott’s stock has fallen 17.54%.
This article was AI-translated and verified by a human editor
