π Stock Picks
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$AVGO (Broadcom)
π Publicly traded since 1998
π° Specializes in semiconductors and enterprise software
π Headquarters in San Jose, Californiaβ
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Financial Green Flags
Based on Quarterly Earnings Report:
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Net income is up 315% Year-over-Year
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Diluted EPS are up 307% Year-over-Year
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Has exceeded EPS expectations for the last 4 quarters
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Things to Consider
π‘ The company recently announced a massive $10B share buyback program, which is a strong signal that management is confident in company performance in the face of dramatically unstable markets and a 34% YTD stock plunge.
π‘ CEO Hock Tan projects the companyβs addressable AI market will explode from $20B to $60B-$90B by 2027, with JPMorgan analysts conservatively forecasting a 40-50% revenue compound annual growth rate (CAGR).
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The Bottom Line
Amid the stock market turmoil, Broadcom actually climbed more than 25% over the past week. Zooming out a bit, its YTD decline of 23% might make some nervous, but from our POV, right now could be a good entry point to ride the future uptrend.
$ARM (Arm Holdings)
π Publicly traded since 2023
π° Specializes in semiconductors and software design
π Headquarters in Cambridge, England
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Financial Green Flags
Based on Quarterly Earnings Report:
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Net income is up 189% Year-over-Year
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Diluted EPS are up 200% Year-over-Year
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Has exceeded EPS and revenue expectations for the last 4 quartersβ
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Things to Consider
π‘ Semiconductors were spared from the tariff showdown between the US and China....for now. Analysts are saying that semiconductorsβ exemption just means the semiconductor tariffs are going to be handled differently anyway.
π‘ The company has set a goal of securing 50% of the data center CPU market by the end of 2025, a significant jump from their estimated 15% share in 2024.
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The Bottom Line
You might have never heard of this company before, but they are actually a serious competitor to Intel and are slowly eating up more of the CPU market. Arm's financials alone are impressive enough for us to invest, but the fact that they are determined to increase their CPU market share to 50% has got us excited (big plans = big payoffs).