Core Viewpoint - Broadcom's semiconductor chips are positioned as a top investment choice due to their critical role in the AI sector, which is expected to continue growing despite market fluctuations [1][2]. Company Overview - Broadcom has consistently outperformed the S&P 500 and is seen as a strong buy, particularly during market downturns, as demand for AI chips remains robust [2]. - The company specializes in ASIC chips, which are tailored for specific customer needs, differentiating it from competitors like Nvidia, which primarily focuses on GPUs [5][6]. Market Position - Broadcom is a key player in the AI chip market, supplying semiconductors for various applications, including autonomous vehicles and AI models like ChatGPT [3]. - While Nvidia holds a larger market share, Broadcom's focus on customized ASIC chips allows it to maintain a competitive edge with less direct competition [5][6]. Financial Projections - Broadcom's CEO indicated that AI semiconductor revenue is projected to double year-over-year in Q1, reaching $8.2 billion, which will account for over 40% of the company's expected revenue for that quarter [8]. - The company's current market capitalization stands at $1.5 trillion, with a gross margin of 64.71% and a dividend yield of 0.74% [7][8]. Industry Trends - Technology companies are expected to increase their AI investments significantly, with a projected total of approximately $650 billion committed towards AI by 2026 [9]. - The trend of rising AI expenditures is driven by the potential for higher revenue and profits, encouraging tech leaders to invest heavily in AI infrastructure, including Broadcom's ASIC chips [11].

Core Insights - Helix Partners Management LP sold its entire 200,000-share stake in SLM Corporation for approximately $5.54 million, indicating a shift in investment strategy [2][7]. Company Overview - SLM Corporation specializes in providing private education loans and related financial services to students and families in the U.S., generating revenue primarily from interest income and servicing fees [6][10]. - The company reported a total revenue of $1.98 billion and a net income of $744.85 million for the trailing twelve months (TTM) [4]. Financial Performance - SLM Corporation's diluted earnings per share (EPS) for 2025 was $3.46, with a fourth-quarter EPS of $1.12 [7]. - The company has a net interest margin of 5.21% and an efficiency ratio of 34.6%, reflecting solid operational performance [7]. - As of February 12, 2026, SLM shares were priced at $24.76, representing a 14.6% decline over the past year, underperforming the S&P 500 by 27.5 percentage points [9]. Credit Metrics - Delinquencies increased to 4.0% of loans in repayment from 3.7% a year earlier, indicating a normalization of credit conditions [8]. - The company anticipates net charge-offs between $345 million and $385 million in 2026, which may limit growth potential [8]. Strategic Actions - Management has authorized a new $500 million share repurchase program after previously buying back 12.8 million shares for $373 million in 2025, indicating confidence in the company's value [7]. - The reduction of Helix Partners' stake from 3.18% to 0.70% suggests a prioritization of capital returns and credit metrics over short-term trading [11].

Core Viewpoint - The potential threat of AI-powered alternatives does not justify downgrading all software stocks, as some companies like ServiceTitan may remain resilient amidst the "SaaSpocalypse" affecting the SaaS sector [1][2]. Industry Overview - The technology sector is experiencing a significant sell-off, particularly among well-known SaaS companies, due to fears that AI tools could disrupt the enterprise software industry [1][2]. - The iShares Expanded Tech-Software Sector ETF has declined by 20% over the past year, contrasting with a 16% increase in the Nasdaq-100 index [3]. Company Analysis: ServiceTitan - ServiceTitan, a SaaS company focused on specialized software for skilled trades, has seen its stock drop by 39% over the past year, but this decline may be exaggerated due to AI-related fears [4][6]. - The company reported a 25% year-over-year revenue growth in its fiscal 2025 third quarter, with an annual revenue run rate nearing $1 billion and a non-GAAP operating margin of 8.6%, up from 0.8% the previous year [6][7]. - Despite not being profitable yet, ServiceTitan has consistently grown its revenue and exceeded analysts' earnings per share estimates for four consecutive quarters, indicating potential undervaluation by the market [7]. Market Position - ServiceTitan operates in a niche market that is less likely to be disrupted by AI, serving industries such as HVAC, plumbing, and construction, which often lack suitable off-the-shelf software solutions [9][10]. - The company's products provide significant value by addressing everyday business challenges for its customers, suggesting a degree of insulation from AI competition [10]. AI Integration - ServiceTitan executives are optimistic about AI, mentioning its integration into their software platform, which could enhance their offerings rather than threaten them [12]. - Industry experts predict that software companies, including ServiceTitan, can leverage AI to improve their products and profitability, positioning them favorably in the evolving landscape [12]. Investment Outlook - Given its unique market position and growth potential, ServiceTitan may be a worthwhile investment for those willing to adopt a long-term perspective, as it appears set to coexist with AI rather than be replaced by it [13].

Core Insights - Helix Partners Management LP has acquired a new position in Cinemark Holdings, purchasing 300,000 shares valued at approximately $6.97 million [2][8] - Cinemark Holdings reported a revenue of $3.15 billion and a net income of $154.80 million for the trailing twelve months [4] - The company has a dividend yield of 1.33% and its stock price was $24.86 as of February 12, 2026, reflecting a 21.1% decline over the past year [4][8] Company Overview - Cinemark Holdings is a leading motion picture exhibitor with a significant presence in the Americas, generating revenue through box office sales, concessions, and advertising [6][9] - The company operates a large theatre network, leveraging its scale and geographic footprint to maintain competitive advantages in the entertainment industry [6] Financial Performance - In Q3, Cinemark reported $858 million in revenue, $51 million in net income, and $178 million in adjusted EBITDA, achieving a margin of 20.7% [7] - The company has eliminated its remaining pandemic-related debt and authorized a $300 million share repurchase program while increasing its dividend by 12.5% [7] Market Position - Cinemark's shares have underperformed the S&P 500 by 34.01 percentage points over the past year, with attendance reaching 54.2 million patrons in Q3 and record concession revenue per cap of $8.20 domestically [8][10] - The investment by Helix Partners suggests a belief in a potential turnaround for Cinemark, despite current stock performance [7][10]

Core View - Helix Partners Management increased its stake in Core Scientific by purchasing 350,000 additional shares, valued at approximately $6.10 million, reflecting confidence in the company's future prospects [2][8]. Company Overview - Core Scientific is a leading provider of digital asset mining and blockchain infrastructure services in North America, utilizing advanced data center facilities and proprietary software to enhance mining efficiency [6][9]. - The company operates a dual business model, generating revenue from both direct digital asset mining and recurring fees from hosting services for institutional clients [9]. Financial Performance - For the trailing twelve months (TTM), Core Scientific reported revenue of $334.18 million, with a net income loss of $768.31 million [4]. - In the third quarter, the company generated $81.1 million in revenue, with high-density colocation revenue increasing to $15.0 million from $10.3 million year-over-year, despite a decline in total revenue [11]. - As of February 12, 2026, Core Scientific's stock price was $17.48, reflecting a 44.58% increase over the past year, outperforming the S&P 500 by 31.68 percentage points [4][8]. Investment Implications - Core Scientific now constitutes 27.41% of Helix Partners Management's assets under management, indicating a strong conviction in the company's potential [8][10]. - The company is pivoting towards high-density colocation services tied to AI workloads, with significant capital expenditures funded by CoreWeave [12].

Core Insights - Praxis Precision Medicines is focused on developing therapies for central nervous system disorders, with candidates targeting conditions such as depression and epilepsy [1][9] - Affinity Asset Advisors disclosed a new position in Praxis, acquiring 185,000 shares valued at approximately $54.53 million [2][8] Company Overview - As of February 13, 2026, Praxis Precision Medicines had a market capitalization of $8.8 billion and a share price of $317.25, reflecting a 266.1% increase over the past year [4][8] - The company reported a total revenue of $7.46 million and a net income loss of $273.04 million for the trailing twelve months [4] Financial Position - The firm has approximately $956 million in pro forma cash and investments, which is expected to fund operations into 2028 [7] - The recent acquisition by Affinity Asset Advisors represents 3.11% of the fund's reportable assets [8] Strategic Developments - Praxis is in a critical phase, with expectations to submit two new drug applications for ulixacaltamide and relutrigine by mid-February, both of which have received Breakthrough Therapy Designation [7] - The company is leveraging a robust clinical pipeline and strategic collaborations to address significant gaps in neurological and psychiatric care [9] Market Performance - Praxis shares have significantly outperformed the S&P 500 by 254.29 percentage points over the past year [8] - The company is seen as transitioning from a focus on promise to potential commercialization, with an emphasis on regulatory milestones and cash discipline [11]

Core Viewpoint - Vertiv Holdings has demonstrated strong performance in the AI infrastructure sector, reporting significant growth in sales and profits, indicating a robust demand for its services [2][5]. Group 1: Financial Performance - In 2025, Vertiv's sales increased by 28% to $10.2 billion, with operating profit rising 35% to $668 million, and free cash flow growing 66% to $1.8 billion [5]. - The company's backlog surged by 109%, from $7.8 billion at the end of 2024 to $15 billion at the end of 2025, signaling strong ongoing demand [7]. Group 2: Future Outlook - For 2026, management forecasts organic net sales growth of 27% to 29%, supported by the substantial backlog of $15 billion [8]. - The continued demand for Vertiv's critical infrastructure solutions, such as cooling systems and energy storage, positions the company favorably in the AI data center market [5][8].

Core Viewpoint - The investment community is divided on whether to maintain cash reserves for opportunistic investments, but recent market conditions have allowed for new investments, particularly in e.l.f. Beauty, which shows promising growth potential [1][2]. Company Overview - e.l.f. Beauty is a consumer discretionary company that has gained attention due to its strong growth rate and popularity among consumers, particularly for its affordable beauty products [3][5]. - The company expects to grow its fiscal 2026 net sales by at least 22% year over year, with current net sales up 21% after three quarters [5]. Pricing Strategy - On August 1, e.l.f. Beauty raised its prices by approximately 15%, yet its products remain about 20% cheaper than competing mass-market brands, maintaining its position as a low-cost leader [6]. Financial Performance - e.l.f. Beauty has a market capitalization of $4.8 billion and a gross margin of 65.91%. However, profits have declined due to tariffs affecting its gross margin and the recent $1 billion acquisition of beauty brand rhode [8]. - Despite the profit decline, e.l.f. Beauty is still achieving double-digit top-line growth and navigating macroeconomic challenges while delivering profits according to GAAP [9]. Valuation Insights - The stock has seen a significant drop from its highs and currently trades at a price-to-earnings (P/E) ratio of 42, which is below its average valuation since early 2022, indicating potential for future valuation improvement if profits normalize [9][11]. Investment Rationale - e.l.f. Beauty is viewed as a growing business that generates profits and trades at a supportive valuation, making it an attractive investment opportunity for the long term [12].

UiPath could be one of the most important tech stocks in the coming years.The technology sector is loaded with big megacap stocks that dominate their industry. However, if there is one mid-cap stock that could emerge to become one of the most important tech stocks by 2028, it is UiPath (PATH +1.39%).UiPath roots are in robotics process automation (RPA). This is where software bots could perform simple, rules-based tasks, like data entry or customer onboarding, to help automate workflows and save employees f ...

Amazon Web Services is the primary reason investors should own Amazon stock.Quick, what's the first thing you think of when you hear Amazon (AMZN 0.41%)? The vast majority of respondents would likely mention the e-commerce platform. However, while the platform is the most consumer-facing part of Amazon's business, it's far from the most exciting.Instead, Amazon's cloud computing and chip business is by far the best reason to invest in the stock.Although there were some questions surrounding whether Amazon w ...