Broadcom (AVGO)

AVGO is like the smaller cousin of NVDA. Built GOOG's AI program, increasingly making waves with Anthropic (owns Claude). Interesting, but not a shoot-the-lights-out opportunity. He'd buy.

MRVL is trying to take a share of the chips that go into GOOG, and is already involved with AMZN cloud. Be careful. It's not a given that it's a capable designer of cutting-edge chips. Coin flip. We've been fooled before.

NVDA is actually more interesting than both.

They have the best platform in XPU. That's why they are partnering with Alphabet, Anthropic and now Meta (to reach consumers). The latter is a real, long-term partnership. He's owned this the past 5 years. Consistently grows.

Leader. His 12-month price target is $470. Extremely high margins as a designer and manufacturer. Whole spectrum of products. Decent dividend. Significant share buybacks. 

Buy here, but leave some space to pick it up a bit lower too. Yield is 0.66%.

Fabulous company, doing very well in chips. Trades around 30x PE, which hasn't declined like its peers.

It make semis and software and doesn't get enough attention. They sell chips to Alphabet, but they need more clients. They're suffering from the software sell-off, which is wrong. They report Wednesday. A good company, but is too hard to own now.

Macro fears of AI overspending, diminishing returns, circular financing, and bubble worries. Stock-specific fears of a highly competitive market, top 5 customers account for 40% of revenues, high debt levels from past acquisitions may impact future M&A.

Stunning rise since 2022. Unprecedented thirst for products. Acquisitions continue to be a growth driver. Big cashflow, very sustainable dividend. Seven analyst upgrades over last 30 days.

Trades at 23x PE 2027 earnings, growing at 34%.

Trimmed late last year. Still likes and holds. Off highs, but he continues to have a good multi-year outlook. At forefront of AI compute chip innovation. It will shine again.

Is down 100 points from its high. They make quarter after quarter and he expects them to again. They have growth in both software and hardware. They do a lot of work with Google. It's one of the cheaper ways to play AI.

She has started buying this. It will be a prime beneficiary of the shift from GPU's to ASIC's. She avoided this before because it grew from buying companies (doesn't like this approach). but likes its ASIC growth.

Let's look at the 1-year chart -- you can see the peak, a selloff, and now it's drifting. We've had a break, but what's more important is that it's gone below $350 and hasn't gone back above. Technically, that's a problem. We've seen this in other AI stocks. If the supportive lows around $300 fail, then stock's in quite a bit of trouble.

He used to own, but rotated out of this name and into other parts of the market. Definite profit-taking in the AI space. To get in, you need to see it establish support and have evidence that it's moving back up. Wait for confirmation of an upturn.

One of the big 4 semi stocks (Nvidia, ASML, Taiwan Semi). You can own all four. Revenue growth over the last 4 quarters is 24%. Returns are 41%. It pulled back the last quarter after beating, which is a buying opportunity.