HYT Fund Yields 10.6%, Hedging Against AI Bubble Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Should l Buy GOOGL?
Source: NASDAQ.COM
- Stable Bond Market: According to Coatue Management, the growth in debt issuances for the tech, media, and telecom sectors from 2023 to 2025 is only 0%, 3%, and 9%, indicating that fears of an AI bubble may be overstated, thus providing investors with relatively safe bond investment opportunities.
- Strong HYT Performance: The BlackRock Corporate High Yield Fund (HYT) currently yields 10.6% and has raised its payouts by approximately 11% over the past decade, outperforming the SPDR Bloomberg High Yield Bond ETF (JNK), highlighting its attractiveness in the current market.
- Market Opportunity Emerges: HYT's discount to net asset value has dropped to levels not seen since 2022 and 2023, indicating a potential for price recovery in the short term, allowing investors to capitalize on this value investment opportunity.
- Fading AI Bubble Concerns: As fears of an AI bubble diminish, the reduced demand for corporate bonds has made funds like HYT relatively cheap, enabling investors to position themselves ahead of future market volatility that could drive demand for these bonds.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 309.000
Low
305.00
Averages
374.25
High
400.00
Current: 309.000
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Economic Growth Boost: Taiwan's economy experienced a 70% surge in exports in January, the fastest pace in 16 years, driven almost entirely by AI hardware, further solidifying TSM's market position and profitability.
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See More
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- AWS Recovery: Amazon Web Services (AWS) reported a 24% revenue growth rate in Q4, marking the fastest pace in 13 quarters, indicating a rising demand for generative AI workloads and enhancing its competitive edge in the market.
- Surge in Capital Expenditures: Google anticipates capital expenditures of $175 billion to $185 billion by 2026, while Amazon expects $200 billion, reflecting both companies' commitment to future AI infrastructure despite market concerns about an AI bubble.
- Valuation Comparison: Although Amazon's valuation is relatively lower, both companies are at the top of their respective industries, with projected revenue growth rates for the next 12 months showing Google at 16%, slightly ahead of Amazon's 12%, giving Google a slight edge in investment attractiveness.
See More
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- Global AI Leaders Gather: The India AI Impact Summit in New Delhi from February 19-20 will feature tech leaders like Sundar Pichai of Google and Sam Altman of OpenAI, showcasing India's growing influence in the global AI landscape.
- Trade Agreement Catalyst: The summit coincides with India and the U.S. working towards a new trade agreement, with Modi's government approving approximately $18 billion in semiconductor projects to establish a domestic supply chain, thereby enhancing India's technological prowess.
- AI Market Expansion: OpenAI and Anthropic are setting up operations in India targeting businesses, developers, and government clients, while Google and Meta are expanding data centers to cater to the rapidly growing AI market in the country.
- Nvidia's Market Potential: Despite CEO Jensen Huang's last-minute withdrawal from the summit due to unforeseen circumstances, Nvidia views India as a key growth market, particularly amid U.S. export restrictions on advanced chips to China.
See More
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- Surging AI Revenue: Broadcom reported a 74% year-over-year increase in AI semiconductor revenue for the latest quarter, with projections indicating that first-quarter revenue will double to $8.2 billion, driven by strong demand for custom accelerators and AI Ethernet switches, significantly boosting overall performance.
- Record Backlog: The company's backlog for AI switches has surpassed $10 billion, reflecting robust market demand amid ongoing AI data center buildouts, which further solidifies Broadcom's position in the industry.
- Differentiated Product Offering: Broadcom has launched the industry's first Wi-Fi 8 access point and switch system, designed to enhance security and speed for enterprises utilizing AI, thereby increasing its competitive edge and attracting more customers.
- Unique Market Positioning: Broadcom's XPUs are custom chips tailored for specific purposes, differentiating them from Nvidia and AMD's general-purpose GPUs, allowing the company to carve out a niche in the competitive AI market and enhancing its strategic positioning for future growth.
See More
