Broadcom (AVGO)

Very successful A.I. play. Stock has tripled over the past year, so valuation is very high right now. Would recommend investors wait before investing. Very strong tech stack, but also has services side of business. Would look for cheaper A.I. options in the markets. 

His recommendation in the semiconductor space.

12-month price target of $193.60. He's been adding as it comes down. Closest competitor to NVDA. Deep pockets, ability to scale. 75% of revenue is in semis, 25% in infrastructure software. Beneficiary of US government $$ giveaway.

A secular grower that grows its dividend reliably.

Is up 47% this year and he's sold a third of his holdings after making big gains. Still trades at a reasonable PE. It's central to AI infrastructure.

She prefers QCOM as a long-term hold, as it's 9/10 on fundamentals, and the pullback in QCOM presents a great entry point.

He expects this to top $1 trillion. AVGO is a little overlooked. It connects Nvidia's chips to the world's networks. Data centres and AI can't work without AVGO. It's starting to integrate VMware, which they bought, and its other businesses will benefit from the new cycle of cell phone-buying. It will split 10-for-1 on Monday, but is wary of the churn that typically happens after a split.

He has owned it for quite a while and would still buy it. They have a 3 1/2% position which they probably bought at 2%. If it goes up he sells some and then buys it back. It is very well managed and takes out competitors. AI is the number 1 player in Broadcom's communication. It is expensive.

Opportunity in A.I. with supply of semi-conductor devices and chips is very profitable. Demand is soaring which is good for profits and cash flow. Dividend growth is strong, and is a good option for yield seeking investors. Good entry price at current share value. 

Very strong results yesterday, especially from AI chips. 10-for-1 stock split improves sentiment in short term. Great, high-quality name. Don't chase, wait for a pullback. Viable alternative to NVDA, but all have done so well, you need to wait.

Note that growth can still be positive, but once the rate itself slows, all these stocks will come down.

They just reported great numbers. It's a large holding of his. They make equipment for data centres

It reports Wednesday and she expects their AI business to be strong and VMware will make a bigger contribution. Software will total 40% of total revenues, positive for gross margins.

Massive company. 12-month price target of $1573. 3/4 revenue from semiconductors, 1/4 from infrastructure software. So very diversified. Yield is 1.7%.

Great, diversified name. #2 player, in dollar terms, in AI semiconductors after NVDA. Partners directly with companies to design company-specific chips. Doesn't see any thesis breakdown on the horizon.