Broadcom (AVGO)

A decent runway ahead. He owns this and especially VMware. China is holding their merger hostage as a bargaining chip against Biden, but he expects the deal to close in December.

Good runway to 12-month price target of $996.75. Essentially, a system on a chip. 75% of revenue from semiconductors, 25% from infrastructure software. Owns in separately managed accounts. Not as expensive as some of the other semis.

They report next week. A reasonably valued way to participate in gen-AI; they will grow that AI revenue from 10% in 2022 to 25% in 2024, $1 billion in AI revenue. There could be a strong jump in shares with strong earnings.

He likes it very much. It's going down with Nvidia; they are joined at the hip.  But at $800, not $850.

Extremely well run. Moving into software via acquisition, laying people off to save costs. He's been trimming on the way up, leaving him with a 2% weighting.

Very good exposure to A.I. (GPU for generative models).
Expecting demand for GPU's to grow.
Also sells network equipment to power GPUs.
Excellent company with lower valuation that competitors like NVIDIA.
Has M&A opportunities in pipeline.

A core position. Well diversified. Mostly semiconductor, but also a slow-growing infrastructure software business. Will benefit from AI. Conservative management, estimating AI-related revenues will grow to 25% next year from 10% in 2022. Makes custom chips, multi-billion partnerships. Network chips tap into growth of AI. Yield is 2.11%.

She doesn't own any semis, but likes AVGO, because it took a long time to come back and is starting to break out. Its PE isn't as high as Nvidia's, but much cheaper.

So what if semis have soared 44% this year? AVGO offers consistent, reliable earnings, has a diversified model, has relationships with Alphabet and Apple and is growing at a reasonable price.

Will benefit from the AI rally though it may be early to see this increase. They report next week. Likes it.

Stock's done spectacularly well. CEO has done wonders. Acquisitions have worked out, a couple more are pending approval. Cheap at 16x earnings. Stock's popped on latest AAPL news. Remains a core holding.

Very fairly priced. Wait until they report. Last earnings report EPS was $10.45, beat on top and bottom and gave better guidance. Wait until the $600 level, and try for $575.