Federal Reserve flags stretched AI valuations

The Federal Reserve's warning about AI-related risks comes as spending on chips, data centers and software has surged, pushing valuations to levels that may not be supported by fundamentals. When enthusiasm outpaces fundamentals, investors who prioritize solid cash generation and fair prices can find rare entry points. Three cash-rich stocks that screens suggest are priced below their underlying worth are highlighted, and the full screen surfaced 434 more businesses with similar cash flow profiles and valuation gaps. This broader opportunity set allows investors to identify, compare, and analyze potential high-conviction targets on their own terms, using tools like the Undervalued Stocks Based On Cash Flows screener.