Chip stocks are breaking out on more AI news combined with hopes for an economic soft landing.Shares of most semiconductor stocks including sector leaders Broadcom (AVGO 5.20%), Arm Holdings (ARM 6.18%), and Lam Research (LRCX 4.88%) were rallying today, with these three up 5.2%, 5.3%, and 4.6%, respectively, as of 12:50 p.m. ET on Wednesday.These three chip leaders are players within the artificial intelligence (AI) race, and their stocks have seen solid price appreciation in 2024. But that growth stalled ...

The market expects Broadcom Inc. (AVGO) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended April 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on June 12, 2024, might help the stock move higher if these key numbers are ...

Over the past two years, you couldn’t go wrong investing in Nvidia (NASDAQ:NVDA). The stock that is today synonymous with the artificial intelligence (AI) revolution returned nearly 800% for shareholders since OpenAI‘s generative AI chatbot ChatGPT was introduced. Just $1,000 invested in the chipmaker at the time would now be worth $7,866.But is Nvidia’s run over? Or more precisely, are there better investment opportunities out there? Some on Wall Street seem to think so. While many hedge fund operators con ...

The focus on high-growth stocks often has investors pondering on who the next Magnificent 7 replacements will be. The “Magnificent 7” has set an extremely high bar that few companies have reached. However, with the technological landscape advancing rapidly things can quickly change its course. Identifying these transformative companies will certainly not be easy, but can yield substantial returns. These companies often boast robust financial performance, groundbreaking technologies, and strong moats, making ...

The latest trading session saw Broadcom Inc. (AVGO) ending at $1,321.90, denoting a -0.5% adjustment from its last day's close. This change lagged the S&P 500's 0.11% gain on the day. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq added 0.56%.Coming into today, shares of the chipmaker had gained 3.95% in the past month. In that same time, the Computer and Technology sector gained 7.61%, while the S&P 500 gained 5.06%.The upcoming earnings release of Broadcom Inc. will be of great interest to inve ...

These companies could follow in Nvidia's footsteps in their respective niches.Nvidia (NASDAQ: NVDA) has capitalized on the rapid proliferation of artificial intelligence (AI) technology like no other company, grabbing an almost monopolistic position in the booming market for AI chips and witnessing phenomenal growth in its revenue and earnings that has been rewarded handsomely by the market.Shares of the graphics card specialist have shot up 115% in 2024 as of this writing. More importantly, Nvidia's rally ...

Investors can choose from several dividend investing strategies, including the two most popular ones: growth and income. A dividend growth investing strategy focuses on a stock’s long-term appreciation potential. These stocks can keep up with the market or even outperform it, but they often have low yields. It’s common to see dividend growth stocks with yields below 1%.Dividend income stocks offer high yields but very little upside. Many telecom companies have high yields but don’t offer much upside beyond ...

Artificial intelligence (AI) could create trillions of dollars in economic activity, and that spells opportunity for investors.At the beginning of 2023, semiconductor giant Nvidia (NVDA 0.81%) was a $360 billion company. Its fortunes quickly changed when OpenAI and its artificial intelligence (AI)-powered chatbot, ChatGPT, captivated investors.ChatGPT's ability to accurately answer complex questions and generate text and computer code on command sent some of the world's largest tech giants clamoring to buy ...

Group 1: Company Overview - Broadcom's stock has increased approximately 1,900% over the past decade, showcasing its robust growth and strategic acquisitions [1] - The company has a market capitalization of $650 billion, making it one of the most valuable chipmakers globally, yet it remains significantly smaller than its largest customer, Apple, which has a market cap of $2.9 trillion [1] Group 2: Growth Strategy - Broadcom has expanded its portfolio through numerous acquisitions, including CA Technologies, Symantec's enterprise security division, and VMware, aiming to diversify its revenue sources beyond semiconductors [2] - The semiconductor business accounted for 79% of Broadcom's revenue in fiscal 2023, with plans to reduce this to approximately 50% post-VMware acquisition [2] Group 3: Financial Performance - From fiscal 2016 to fiscal 2023, Broadcom's adjusted revenue grew at a compound annual growth rate (CAGR) of 15%, with adjusted gross margin increasing from 60.5% to 74.7% and adjusted earnings per share (EPS) rising at a CAGR of 21% [3] - Analysts project revenue and adjusted EPS growth of 41% and 11%, respectively, for fiscal 2024, followed by 14% and 22% growth in fiscal 2025 [3] Group 4: Market Position and Valuation - Broadcom's valuation is currently at 30 times forward earnings, influenced by strong demand for AI chips, which saw sales quadruple year-over-year to $2.3 billion in Q1 of fiscal 2024 [4] - AI chip sales are expected to account for 35% of Broadcom's total semiconductor revenue for the full year [4] Group 5: Future Outlook - While Broadcom's growth potential is significant, it is unlikely to surpass Apple in market capitalization by 2040, as Apple's stock would only need to increase by less than 50% to maintain its lead [6][7] - Broadcom could see substantial gains from its current levels as it continues to expand its semiconductor and software businesses, but careful monitoring of its expansion strategies is essential to avoid margin erosion or excessive debt [7]

The semiconductor boom has rewarded many investors who picked them up before the latest AI-fueled surge. Though there’s still value (and room to run) for many of the AI chip stocks, there are also the overheated ones that may be vulnerable to a correction at some point in the near future. Undoubtedly, the AI boom is still on a healthy footing, but as investors, we should always be ready for turbulence, especially after a period of pretty pronounced gains.Though it’s quite the stretch to refer to the followi ...