Author: Michael Foster, Contrarian Outlook

It’s easily outrun the S&P 500 since 2017, when it was the original buy in my service portfolio.

Trading cheaper than it should be, it pays a 4.2% dividend yield and offers a compelling combination for investors who want a piece of the AI infrastructure buildout without paying premium valuations.

Outperforming the S&P 500 year-to-date, it trades at a 4.1% discount that has only grown despite its strong returns.

It holds undervalued semiconductor names like Micron and NVIDIA as well as a mix of other high-flying tech companies, like privately held quantum-computing firm PsiQuantum, optical-networking gear maker Lumentum Holdings, and even Space Exploration Technologies.

The stall in the tech sector has set up a nice buying opportunity, but don’t expect it to last long.