Broadcom (AVGO)

Primary reason was guidance. There's also an element of profit-taking, as smart money takes $$ off the table. Look at the chart -- stock's up ~100% in a year. Good company, but he wouldn't be buying here.

Careful. It trades at 32x forward PE, well above its average of 18x. The stock is rising because Alphabet says it will continue to spend; GOOG is 13% of AVGO's overall revenue. AVGO's revenue growth in 2026 is 62%, but this will moderate in 2027 (estimated at 28%) and 2028.

It is second place in the semi conductor space for GPU's and can design them a little cheaper than NVDA. Has owned historically as a good financial model but now more for growth in AI. Has made strong acquisitions and has partnerships with Google and META.

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%.