Map the business model before comparing stocks
An AI label does not tell you how a company earns money. Start with the product, the paying customer and the cost of delivery. The categories below are Quaryn’s research framework; companies can operate in several categories, and the boundaries can change.
Follow the economic relationship through the chain. A large infrastructure purchase can be revenue for a supplier and a cash outflow for its customer. Strong demand in one part of the chain does not automatically mean attractive returns throughout it.
| Business category | What the company may sell | Question to investigate |
|---|---|---|
| Computing hardware | Processors, servers and networking equipment | How durable are demand, margins and customer commitments? |
| Cloud infrastructure | Computing capacity and managed services | Can utilization and customer revenue support the investment required? |
| Software and applications | Subscriptions, usage or workflow products | Are customers paying more, staying longer or adopting a new product? |
| AI within an existing business | An improved product or more efficient operation | Is there evidence of financial impact beyond a product announcement? |
Use company examples to practice source research
NVIDIA’s annual reports provide a starting point for studying accelerated computing and its platform business. Microsoft’s 2025 annual report describes AI offerings across cloud infrastructure and software. AMD’s annual filing library supports research into its processor and data-center businesses. These examples illustrate different exposures; inclusion is neither a recommendation nor a claim that one company offers better value.
For each example, open the most recent available filing and read subsequent updates before making a current comparison. A historical annual report can explain a business model while leaving later product, financial or competitive changes unanswered.
| Illustrative company | Research starting point | Useful comparison question |
|---|---|---|
| NVIDIA · NVDA | Annual reports: business, products and risks | Which customers and products support the reported demand? |
| Microsoft · MSFT | Annual report: cloud, software and infrastructure | How do monetization and infrastructure costs develop together? |
| AMD · AMD | Annual filings: segments, products and competition | Which reported measures support the data-center narrative? |
Source references: NVIDIA — Annual Reports and Proxies · Microsoft — 2025 Annual Report · AMD — Annual SEC Filings
Ask what an AI revenue claim actually measures
A company may discuss AI demand without publishing a separate AI revenue figure. Do not substitute an entire cloud or data-center segment for AI revenue unless the source supports that definition. Keep management’s description, your inference and an explicitly reported measure in separate columns.
Check the unit as carefully as the number. Revenue, bookings, contracted commitments, customer counts and usage are different measures. A customer announcement establishes a relationship; it does not by itself establish recognized revenue, profitability or a recurring payment stream.
- Copy the exact name of the reported metric, then explain it in plain English.
- Record the period and whether the comparison uses the same definition.
- Identify whether the figure is reported, forecast or inferred.
- Leave AI-specific revenue unavailable when the source does not isolate it.
Put growth beside the cost of delivering it
Our worksheet pairs demand with its funding requirements. Compare the revenue story with cash generation, capital expenditure, operating expenses and share count. A business can grow while spending heavily to build capacity, and the timing of those costs affects how its financial statements should be read.
Consider a hypothetical company that reports 30% revenue growth while its shares outstanding rise 10%. Those two figures do not imply 30% growth in revenue per share: 1.30 divided by 1.10 gives approximately 1.18, or 18% growth. This arithmetic example shows why consistent denominators matter; it is not a forecast for any listed company.
Valuation adds another question: how much future success does today’s price require? Write down the assumptions needed for a comparison, including margins and reinvestment. Avoid using a single growth rate as a substitute for understanding the business.
Make AI-related risks specific
A useful risk statement explains an exposure and a possible consequence. Replace a vague note such as ‘competition is a risk’ with a question about which product could face lower pricing, whether customers can switch and what evidence would reveal the change. The checklist below is a starting point to investigate in each company’s own disclosures.
- Customer concentration: How much demand depends on a small group of buyers?
- Supply and capacity: Which components, facilities or energy arrangements are essential?
- Product competition: Could a different design or supplier change pricing or demand?
- Funding: What happens if capacity spending arrives before the expected revenue?
- Legal and operational exposure: What does the company disclose about intellectual property, security or applicable restrictions?
- Portfolio overlap: Could several holdings depend on the same spending cycle?
Build a comparison that preserves uncertainty
Create one row per company using the fields below. Populate it from dated documents, and retain unanswered questions. An incomplete but honest worksheet is more useful than a complete-looking table built from incompatible estimates.
An AI stock and AI stock analysis mean different things: the former describes an investment theme; the latter describes a research process using AI. Neither the theme nor the tool guarantees an investment outcome. Continue to our verification guide to learn how to check generated research.
| Worksheet field | What to write |
|---|---|
| Business exposure | The actual product, customer and payment model |
| Evidence | Filing URL, section, reporting period and metric definition |
| Economics | Growth, profitability, cash requirements and share count on a consistent basis |
| Uncertainty | What is estimated, undisclosed or dependent on management expectations |
| Next question | The evidence that would strengthen or weaken your interpretation |
Sources & corrections
Use the linked primary sources to check definitions and company disclosures. Filings and service details can change; verify the relevant period before relying on a figure.
Found an error? Send a correction with the page, the claim and a supporting source. These guides provide general education; they do not assess your financial circumstances or recommend a trade. Read our research disclosures.