Broadcom (AVGO) shares have appreciated 32.4% in the past month, outperforming both the Zacks Computer & Technology sector and the Zacks Electronics Semiconductors industry. Over the same timeframe, the sector and industry have returned 0.3% and 18.9%, respectively.AVGO is benefiting from strong demand for its networking products and custom AI accelerators (XPUs). In fiscal 2024, AI revenues jumped 220% over fiscal 2023 to $12.2 billion and represented 41% of semiconductor revenues. The acquisition of VMwar ...

Wall Street witnessed an astonishing bull run in the past 24 months. The major drivers of this rally were the globally booming artificial intelligence (AI) technologies, especially generative AI. Companies that have extensively applied AI in their final products have become multi-baggers. Some stock prices have skyrocketed 300-400% during this period.AI frenzy is likely to continue in 2025. Bloomberg Intelligence estimates that generative AI spending will increase from $67 billion in 2023 to $1.3 trillion b ...

Government Policy and AI Regulation - The Biden administration issued an executive order requiring companies with large AI models to share information with the federal government [1] - President-elect Trump is expected to roll back Biden's executive order, which he criticized for hindering AI innovation and imposing radical left-wing ideas [3] - Trump is likely to promote AI data center infrastructure and encourage AI use for national security, while expanding export restrictions on AI technology to counter China [3] AI-Related Stocks and Chipmakers - Stocks like Marvell Technology (MRVL), Broadcom (AVGO), and QUALCOMM (QCOM) are expected to benefit from the incoming administration's policies [2] - Chipmakers have outperformed other AI-related stocks due to custom designs that extend AI into new devices and industries, alongside robust data storage solutions and design tools [2] Company Performance and Earnings Growth - Marvell Technology (MRVL) has an expected earnings growth rate of 12.6% for the current year, with a 15.4% improvement in the Zacks Consensus Estimate over the past 60 days [4] - Broadcom (AVGO) has an expected earnings growth rate of 45% for the current year, with a 4.5% improvement in the Zacks Consensus Estimate over the past 60 days [5] - QUALCOMM (QCOM) has an expected earnings growth rate of 7.5% for the current year, with a 4% improvement in the Zacks Consensus Estimate over the past 60 days [6]

Network Modernization and IoT - Wireless equipment makers benefit from the growing demand for robust network infrastructure driven by the adoption of connected devices and advanced use cases like retail, warehouse automation, and Cellular Vehicle-to-Everything technology [1] - The proliferation of IoT devices across industries in North America, Europe, the Middle East, and the Asia-Pacific region has propelled net sales growth in the Enterprise Technology segment [12] Datacenter and Cloud Computing - The shift toward cloud computing is increasing the need for datacenters, driving demand for GPUs and benefiting companies like NVIDIA [2] - Datacenter operators like Amazon, Microsoft, and Alphabet are expanding their operations globally, further driving demand for GPUs [2] AI Integration and Digital Transformation - Enterprises across industries are emphasizing digital transformation, with AI becoming a critical component for enhancing efficiency, optimizing supply chains, and improving customer service [5] - NVIDIA's GPUs are rapidly benefiting from the proliferation of AI, expanding its base in untapped markets like automotive, healthcare, and manufacturing [2] - Tech giants have made significant investments in incorporating AI capabilities across their product portfolios to bolster competitive edge [5] Key Companies and Their Growth - NVIDIA Corporation is a leader in visual computing technologies and AI-based solutions, supporting high-performance computing, gaming, and virtual reality platforms [6] - Ubiquiti Inc offers a comprehensive portfolio of networking products and solutions, with significant investments in inventory to meet increasing demand [9][17] - Broadcom Inc provides semiconductor solutions used in various end products, experiencing four times growth in AI connectivity revenues [10][15] - Celestica Inc is a leading electronics manufacturing services company, capitalizing on the growing proliferation of AI-based applications and generative AI tools [13][20] Macroeconomic and Market Trends - Inflationary pressure declined throughout 2024, with a relatively low unemployment rate and interest rate cuts propelling growth in the tech sector [3] - The tech sector was a significant contributor to the stock market's bull run in 2024, driven by AI advancements, cloud computing adoption, and 5G deployment [11] - Flexibility in business models has allowed tech enterprises to navigate geopolitical volatility, with companies like NVIDIA, Ubiquiti, Celestica, and Broadcom delivering solid returns [19] Earnings and Stock Performance - NVIDIA's stock gained 1767% over the past year, with earnings estimates improving to $294 per share for 2025 and long-term earnings growth expectations of 20% [4] - Ubiquiti's stock gained 1442% over the past year, with earnings estimates improving to $73 per share for 2025 and an earnings surprise of 209% in the last reported quarter [23] - Broadcom's stock gained 1166% over the past year, with earnings estimates improving to $628 per share for 2025 and long-term earnings growth expectations of 1778% [24] - Celestica's stock gained 2248% over the past year, with earnings estimates remaining unchanged at $444 per share for 2025 and an earnings surprise of 1321% on average [25]

Top-notch dividend-paying AI stocks are available to investors who want a combination of capital gains and passive income.Artificial intelligence (AI) is a new technology with tremendous long-term investment potential. But don't assume that all AI stocks are speculative or high-octane growth businesses. There are plenty of opportunities for dividend investors to add AI exposure to their portfolios, too.Some companies in the best positions to lead the AI industry pay dividends. Their core businesses are enha ...

As we approach the new year, investors will be evaluating the best stocks to consider, with the technology sector certainly of interest.Semiconductor stocks will be targeted in particular, thanks to their reach in configuring artificial intelligence. That said, here are three of the top semiconductor stocks to invest in going into 2025.   Broadcom - AVGO YTD Performance: +116%One company leveraging the demand for AI chips of late is Broadcom (AVGO)  which is a key supplier to Apple (AAPL) . Designing custom ...

NVIDIA - NVIDIA is the dominant player in AI infrastructure and GPUs, with no significant competition yet [1] - The company's GPUs are in high demand for accelerating AI workloads, a trend expected to continue [1] - NVIDIA has a P/E ratio of 53.92 and a projected earnings growth of 40.29% [1][16] - The stock has a 19.8% upside potential and a dividend yield of 0.03% [2][15] - NVIDIA's MarketRank™ is in the 98th percentile, indicating strong market performance [2] Broadcom - Broadcom is NVIDIA's main competitor in AI computing, focusing on ASICs for specific customers [5][17] - The company's Q3 revenue grew by 51%, with AI-driven revenues surging 220% [6] - Broadcom has a P/E ratio of 210.03 and a dividend yield of 0.98% [17] - The stock has a projected earnings growth of 35.88% and a MarketRank™ in the 94th percentile [6][17] - Broadcom acquired three new hyperscaler customers, potentially adding tens of billions in future revenue [6] TSMC - TSMC manufactures approximately 90% of the world's most advanced semiconductors [23] - The company is building facilities in the US to mitigate geopolitical risks, including a potential collaboration with NVIDIA for AI chips [25] - TSMC has a P/E ratio of 32.31 and a dividend yield of 1.09% [9][23] - The stock has a 6.1% upside potential and a projected earnings growth of 27.34% [10][23] - TSMC's MarketRank™ is in the 73rd percentile, with a moderate buy rating from analysts [10] Industry Trends - The AI arms race in big tech is driving demand for advanced semiconductors, benefiting companies like NVIDIA, Broadcom, and TSMC [14] - In 2024, chip stocks returned 182%, 123%, and 97%, reflecting strong market performance [14] - The AI revolution is expected to create real-world impacts by 2025, further boosting demand for advanced chips [3][14]

A stock split has no fundamental impact on a business's health but it is a sign of business health investors should heed. Data from Bank of America shows that companies that split their stock tend to outperform the broad market and deliver leveraged returns over time.  Companies split stocks because their share prices are rising and are expected to continue rising to levels that make ownership difficult for large market portions, including their employees. Their stock prices rise because the businesses are ...

Nvidia (NVDA 0.39%) has led the artificial intelligence (AI) boom that began with the launch of ChatGPT in November 2022. Its share price has advanced 895% since then, and Wall Street is still very bullish. Currently, 92% of the 62 analysts who follow Nvidia rate the stock a buy, and the median target price of $175 per share implies 30% upside from the current share price of $134.However, billionaire Stanley Druckenmiller -- a former hedge fund manager famous for achieving an annual return of 30% over a 30- ...

This year has been outstanding for U.S. equity markets, which charted record-high territories. Buoyed by solid economic strength, healthy labor market conditions, moderating inflationary pressure and an accommodative Federal Reserve stance (albeit in the second half), the outgoing year proved conducive to healthy stock market growth momentum. Moreover, optimism regarding potentially lower taxes and less regulation in President-elect Donald Trump's second innings has proved beneficial.However, the dream run ...