Kevin SimpsonBroadcomAVGOPARTIAL SELLMar 08, 2024

Very strong position in networking components, largest in the space. Hiccups with a product launch, should be resolved by year's end. She prefers smaller companies in the space, and she's positive on the space. Pretty attractive entry point.

They missed their last quarter. He bought it the previous quarter. It bounced a little, and he sold it flat. The stock hit $410, but today is at $346.

Similar chart to other chip companies, can't look at price moves in a vacuum. Moving down in tandem, not company-specific, investors are taking profits. Fantastic performer. Will do well coming out of the slump.

A definite player. In any portfolio, you have to make choices. Nothing wrong with this name. He owns QCOM.

Reported last night. At one point overnight, it was off only $1. Now it's off $15. His team had pared back -- not on fundamentals, but on price action. The favoured one from 2023-25, but now AMD has caught up. Management is very conservative, lowballing growth expectations.

Strong profitability. Valuation high. Buy some here, more ~$340, and then $330. Probably won't get it lower than $320. Loves management and fundamentals, but price action is awkward and you have to pay attention. His firm has ~3-3.5% position.

One of her favourite ways to participate in next AI buildout stage. Critical supplier of AI chips and network equipment. Despite volatility, great upside potential. New chip developed for OpenAI touted to be more efficient than Blackwell. Highlights shift to custom-designed chips for high-tech companies. 

Valuation more reasonable after pullback. A picks-and-shovels play. About 44% upside potential. Ranks 10/10. Yield is 0.70%.

It has $20 EPS power. AVGO's AI semi pipeline is $100 billion. MU is a new position for her, small and volatile, but they have $100 billion in bookings for the rest of the year, a lot of contracts. They're in the sweet spot of the AI memory shortage.

The AI chips are an increasingly competitive space. Earnings went from 40x PE to around 13% with high growth. It's a value play in AI with high growth, though don't expect the recent move to be repeated.

Apple, Google and others want to make their own chips and not depend on Nvidia and pay more for chips.  AVGO is a major player in AI and this will continue.

It was expected to be a major competitor to Nvidia. It is still a designer and doing well in the field. He has a price target of $509 which has decent upside. You could take an initial position at $375 and buy more as it drops.

Still likes it at these levels, he'd put $$ in today. Models quite a bit of upside to over $400. Will continue to benefit from the demand for chips. Expected to grow at more than 60% over next 3-4 years. 

Tried to corner the market by introducing some products that were not as open source, and the market pushed back. That's why it hasn't been able to accelerate its networking business as much as expected. Earnings disappointed. They'll turn it around, more to come on networking. Interesting on this pullback.

She owns players with more upside.

Five of the last six quarters, the name has been down. 90% of analysts like this stock. The price target has jumped from $700 to nearly $1,200 in 30 days. It is priced for perfection.

From a value point of view, NVDA sticks out as cheaper (~22x PE) in the space. But he's been reducing his exposure to the sector. The capex isn't slowing down anytime soon. When the music stops on this, you have to be really wary. Cyclical. Very cautious on semis.