Chip stocks have fully turned into memes: If you want stability but don't want to miss out on AI, what other U.S. stocks can you buy?

Another positive data point, but chip stocks suffered another bloodbath.

Yesterday, the U.S. Department of Labor reported a June PPI annual rate of 5.5%, significantly lower than the market expectation of 6.2%. Combined with the previous day's CPI also coming in below expectations, these two consecutive reports of cooling inflation should, in theory, have allowed risk assets to continue their rally.

And that was indeed the case at the open. Major U.S. stock indexes opened higher, with many stocks rising on the news.

However, AI chip stocks traced a completely opposite trajectory—SK Hynix closed down 9%, SanDisk closed down 8.12%, and Micron closed down 8.02%. The decline continued in after-hours trading. For trillion-dollar market cap companies to swing wildly by double-digit percentages daily is no longer the script for "blue-chip stocks." It more closely resembles the volatility pattern of meme coins in the crypto space.

The reasons behind this rollercoaster ride for chip stocks have been analyzed multiple times: AI capital expenditure growth may be peaking, stock prices are severely overextended relative to fundamentals, and macroeconomic uncertainties persist… But when a trillion-dollar stock's daily amplitude rivals that of an altcoin, more and more investors are starting to ask a more practical question:

If you don't want to be tormented by the heart-stopping swings of chip stocks every day, what can you buy right now that offers relative stability without missing out on the AI era's dividends?

The 95-year-old "Oracle of Omaha" happened to provide an answer yesterday.

1. Buffett Says: The Market is Becoming a Casino, But This Stock "Can Beat 95% of Recommendations"

On July 15th, Warren Buffett made a rare appearance on CNBC.

Over the past year, the 95-year-old investment legend had remained largely silent. But this time, he chose to speak out against a market backdrop of retail investors flooding in, zero-day options (0DTE) trading volumes exploding, and chip stocks surging and crashing like meme coins:

"When everyone likes to gamble, it's hard to find value."

He likened the current market to a "church with a casino attached," specifically criticizing the explosive growth of 0DTE options trading as pure gambling. He pointed out that humans have an innate love for gambling, making "it more profitable to cultivate gamblers than to cultivate investors."

At the same time, however, he offered a clear contrarian signal—endorsing Alphabet (Google's parent company):

"Alphabet has a better chance of being a winner than 90% to 95% of the stocks Wall Street is pushing, because Wall Street cares about whether they can sell them."

This statement is both an affirmation of Alphabet and a critique of some sell-side analysts who are obsessed with next quarter's data rather than genuine long-term returns.

2. Why Alphabet? The Hard Logic of Fundamentals

Buffett's endorsement of Alphabet isn't based on some technological concept or market sentiment, but on a set of solid data:

Strong Revenue Growth. In the first quarter of this year, Alphabet's revenue grew 22% year-over-year to $110 billion. Notably, Google Cloud revenue jumped 63%—direct proof that AI demand is genuinely translating into revenue.

Ample Cash Flow. Over the past 12 months, the company generated $174 billion in operating cash flow. This means it not only has sufficient funds to support its massive annual capital expenditure plan of $180 to $190 billion but also has substantial remaining cash for shareholder returns after completing its investments.

Significant Position Size. Berkshire Hathaway currently holds Alphabet shares worth over $31 billion, making it the third-largest holding in its stock portfolio, behind only Apple and American Express. Berkshire built its Alphabet position in three phases: starting purchases in Q3 2025 and continuously adding to them until early 2026; and then increasing its stake by another $10 billion in June 2026 through a private transaction linked to Alphabet's $80 billion AI financing. According to SEC filings, Berkshire's average purchase price for Class A shares was $351.81 per share, and for Class C shares, $348.20 per share.

Additionally, Alphabet was just added to the Dow Jones Industrial Average on June 29th, three weeks ago, replacing telecom giant Verizon Communications. This adjustment further expands the index's coverage in high-growth areas like artificial intelligence, cloud computing, and digital advertising.

3. Alphabet's Valuation: Not Cheap, But Not Crazy Either

Boosted by Buffett's endorsement, Alphabet's stock price surged 3.6% on the day to $370.2.

Using a traditional DCF (Discounted Cash Flow) model, Alphabet's current fair value range is roughly between $308 and $355. This means that the current stock price around $370 has indeed exceeded the upper limit of a "conservative valuation" and carries a certain premium.

However, the magnitude of this premium is on an entirely different scale compared to the valuation bubbles in some current AI chip sectors:

• Micron's DCF valuation is around $185-$275, while its stock price once surged above $1,200—a premium of over 400%.
• SK Hynix's P/E ratio once exceeded six times its historical average.
• SpaceX's valuation soared from an issuance price of $135 to over $200, but its DCF valuation is only $50-$60, meaning the stock price lacks earnings support.

In comparison, Alphabet's premium is within a controllable range. It is not a "balloon blown up by narrative" but a giant supported by real revenue, real cash flow, and real progress in AI commercialization. The $370 price tag contains an element of emotion, but it's primarily supported by fundamental weight.

4. July 22nd: The Earnings Report Will Validate Everything

Of course, Buffett's endorsement is not a get-out-of-jail-free card. Whether Alphabet can continue to meet market expectations ultimately depends on the numbers.

After the U.S. market closes on July 22nd, Alphabet will release its latest quarterly earnings report. This will be the key moment to test whether the "Buffett effect" can be sustained. The market will focus on:

• Whether Google Cloud's revenue growth can maintain its high pace.
• Whether AI investments are starting to generate quantifiable returns.
• How resilient the advertising business is.
• Whether there are any signals regarding adjustments to its capital expenditure plan.
• If the earnings report can deliver solid numbers again, Alphabet could become one of the few assets in the current AI wave that "participates in the narrative without severely detaching from fundamentals." For investors who want to capture the AI dividend but cannot tolerate the rollercoaster volatility of chip stocks, this is precisely a rare option.

5. Final Thoughts: Finding a 'True Investment' in a Casino

Buffett says the market is turning into a casino, and this statement is not an exaggeration.

When zero-day options trading volume hits all-time highs, when chip stocks fluctuate wildly by double digits daily, and when retail investors rush into Micron and SpaceX chasing get-rich-quick myths—the speculative atmosphere in the market has indeed reached an extreme point.

But in this environment, Buffett chose to step forward and point to an asset he considers a "true investment." This is not a pump-and-dump call but an attempt, backed by his reputation and a $31 billion position, to convey a message: Even in a casino, some people can find assets worth holding onto through solid fundamentals.

On the BIT Securities platform, users can directly buy real Alphabet stock (GOOGL) listed on Nasdaq. These are not tokenized certificates or price mappings, but underlying shares registered within the DTC system, carrying full shareholder rights. With a 24/7 near-instant USDT deposit channel, you can get your funds in place and establish a position before the earnings report, never missing a critical window. Whether you choose to participate in the volatility game of chip stocks or follow Buffett's path to find an AI giant with solid fundamentals, the BIT Securities platform offers two vastly different choices.

Disclaimer: This article was written by an external author and represents only the author's personal views. It does not represent the official stance of BIT. BIT has not independently verified the data and analysis within and does not constitute investment advice or solicitation. Margin trading involves leverage and short-selling mechanisms, which may lead to losses exceeding the principal and carries the risk of forced liquidation. Promotional interest rates are only applicable during the campaign period; details are subject to the BIT App display, and adjustments may occur after the campaign ends. Eligibility for U.S. stock investment must comply with local jurisdictional regulations. Past performance does not guarantee future results. Please make informed decisions after fully understanding the risks.