AI-Driven Market Growth - The global AI boom, especially generative AI, has been the major driver of the stock market rally over the past 24 months, with companies leveraging AI in their products becoming multi-baggers [1] - Generative AI spending is projected to grow from $67 billion in 2023 to $1.3 trillion by 2032, with U.S. tech giants expected to allocate $267 billion in AI-related capital expenditures by 2025, a 33.5% YoY increase [5] - The technology sector's long-term growth is supported by relentless innovation, particularly in generative AI, making it a resilient investment despite overvaluation [2] AI-Centric Stocks with Strong Growth Potential - Five AI-centric stocks recommended for long-term investment (holding period of one year) are NVIDIA Corp (NVDA), Broadcom Inc (AVGO), QUALCOMM Inc (QCOM), Innodata Inc (INOD), and Marvell Technology Inc (MRVL) [3] - NVIDIA is a global leader in generative AI chipsets, with its Blackwell architecture GPUs driving innovation and targeting a $1 trillion market opportunity in AI-powered data centers [11][12] - Broadcom benefits from strong demand for AI accelerators and networking solutions, with AI connectivity revenues growing fourfold due to its Tomahawk and Jericho solutions [15] - QUALCOMM collaborates with Google on generative AI digital cockpit solutions and has introduced powerful automotive platforms, driving growth in the automotive and Android smartphone markets [20] - Innodata provides AI data preparation and engineering services, supporting Big Tech companies in developing generative AI models [24][25] - Marvell Technology sees strong demand in the data center market, with AI-driven demand for PAM products and ZR electro-optics driving 98% YoY revenue growth [27] AI-Powered Data Centers and Energy Demand - AI-powered data centers are a booming industry, with Microsoft planning to invest $80 billion in 2025 to train AI models and deploy cloud-based applications [7] - Major tech companies like Microsoft, Alphabet, Meta, and Amazon are collaborating with nuclear energy producers to meet the massive electricity demands of data centers [8] - The expansion of traditional and AI-driven data centers, along with chip foundries, is expected to increase U.S. electric power demand by 177 TWh from 2023 to 2030, reaching 307 TWh [9] Short-Term Price Upside Potential - NVIDIA has an expected revenue and earnings growth rate of 48.7% and 43.1%, respectively, for the next year, with a short-term price target indicating a potential 64.7% upside [13][14] - Broadcom's expected revenue and earnings growth rates are 18.3% and 29.4%, respectively, with a short-term price target suggesting a 30.8% upside [17][19] - QUALCOMM's expected revenue and earnings growth rates are 8.3% and 9%, respectively, with a short-term price target indicating a 67.3% upside [22][23] - Innodata has an expected revenue growth rate of 34.6% for 2025, with a short-term price target suggesting a 46% upside [26] - Marvell Technology's expected revenue and earnings growth rates are 40.3% and 72.8%, respectively, with a short-term price target indicating a 36.1% upside [30][31]

Core Viewpoint - Wall Street is experiencing volatility at the start of 2025 due to rising inflation fears, uncertainty regarding future Fed rate cuts, and ambiguity over Trump's tariff policies, leading investors to explore dividend investing as a strategy to protect their portfolios from downside risk [1] Group 1: Dividend Investing Strategy - Dividend investing does not provide dramatic price appreciation but serves as a consistent income source, helping investors create wealth when equity market returns are uncertain [2] - Stocks with a history of dividend growth are typically mature companies, less susceptible to market swings, providing a hedge against economic and political uncertainty [3] - These stocks offer downside protection through consistent payout increases, supported by strong fundamentals such as sustainable business models, profitability, rising cash flows, good liquidity, and strong balance sheets [4] Group 2: Selection Criteria for Dividend Growth Stocks - Stocks selected for dividend growth should have a 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [5] - Additional criteria include 5-Year Historical Sales Growth greater than zero, 5-Year Historical EPS Growth greater than zero, and a Next 3-5 Year EPS Growth Rate greater than zero, ensuring companies can sustain dividend payments [6] - A Price/Cash Flow ratio less than the industry average indicates undervaluation, while a 52-Week Price Change greater than the S&P 500 ensures better performance over the past year [7] Group 3: Featured Dividend Growth Stocks - InterDigital, Inc. (IDCC) is a pioneer in advanced mobile technologies with a Zacks Rank 1 and a Growth Score of B, indicating strong potential [8][9] - Fox Corporation (FOX) has a Zacks Rank 1 and an expected earnings growth rate of 13.99% for the fiscal year ending June 2025, with an average earnings surprise of 17.64% in the past four quarters [10] - Broadcom Inc. (AVGO) has a Zacks Rank 2 and an expected earnings growth rate of 29.4% for the fiscal year ending October 2025, with solid earnings estimate revisions [11] - Greenbrier Companies Inc. (GBX) is a leading supplier in transportation equipment with a Zacks Rank 1 and an estimated growth rate of 18.95% [12] - Acuity Brands Inc. (AYI) manufactures lighting fixtures and has a Zacks Rank 2 with an estimated growth rate of 8.35% [13][14]

Berkshire Hathaway's quarterly 13Fs don't tell the full story of what's under the hood.When it comes to widely followed Wall Street money managers, Berkshire Hathaway's (BRK.A 0.64%) (BRK.B 0.94%) CEO Warren Buffett is in a class of his own. In the roughly six decades since taking the reins, the aptly named "Oracle of Omaha" has overseen an aggregate return in his company's Class A shares (BRK.A) of around 5,422,200%, which blows the cumulative total return (including dividends) of 38,751% for the benchmark ...

PALO ALTO, Calif., Jan. 15, 2025 (GLOBE NEWSWIRE) -- Broadcom Inc. (NASDAQ:AVGO), today announced the availability of the Brocade G710 24-port 64G switch, the industry's most responsive and efficient top-of-rack SAN switch. Brocade Gen 7 Fibre Channel combines cyber-resilient and autonomous SAN technology into this cost-effective platform that seamlessly integrates into rack-based storage solutions. The Brocade G710 switch extends the industry's most complete and extensive 64G SAN portfolio that includes fi ...

New Gen 7 Entry Switch Delivers Enterprise-Class Capabilities and the Industry’s Only Lifetime Warranty in an Affordable SAN SolutionPALO ALTO, Calif., Jan. 15, 2025 (GLOBE NEWSWIRE) -- Broadcom Inc. (NASDAQ:AVGO), today announced the availability of the Brocade G710 24-port 64G switch, the industry’s most responsive and efficient top-of-rack SAN switch. Brocade Gen 7 Fibre Channel combines cyber-resilient and autonomous SAN technology into this cost-effective platform that seamlessly integrates into rack-b ...

Key TakeawaysZacks Thematic Screens lets you explore 30 investment themes, including Artificial Intelligence stock picks.The AI screen features companies like software and hardware creators, along with those best using this tech.Two top AI picks include Nvidia, thanks to data center demand, and Broadcom, which has seen 44% YOY growth.Zacks Thematic Screens lets you dive into 30 dynamic investment themes shaping the future. Whether you're interested in cutting-edge technology, renewable energy, or healthcare ...

2024 was a phenomenal year for most mega-cap growth stocks, which helped lead broader indexes like the S&P 500 (^GSPC -1.54%) to new heights. Still, some investors may be concerned that the rally is a bit overextended.Even weak companies can see their stock prices rise when investors are optimistic. However, over time, the best-performing stocks are businesses that deliver on investor expectations and continue to innovate. So, with the S&P 500 around an all-time high, ensuring you are investing in quality c ...

If you're looking for a top dividend stock to own, you want to be sure to consider whether it increases its payout and keep track of how quickly it normally does so. The rate of increases can be key to ensuring that inflation isn't eating up your dividend income over time. It also demonstrates to investors just how committed the company is to increasing the dividend.Three stocks that pay dividends and have been among the most generous when it comes to raising their payouts include UnitedHealth Group (UNH -0 ...

Growth investing is a widespread strategy deployed, with investors targeting companies expected to grow their earnings and revenues at an above-average level. It’s a development that commonly follows through to share outperformance.These companies typically reinvest back into the business for expansion, commonly at the forefront of innovation. And for those seeking a group of strong growth stocks, Nvidia (NVDA) , Broadcom (AVGO) , and Palantir (PLTR) could all be considerations.Let’s take a closer look at e ...

Industry Overview - The semiconductor industry experienced a slowdown early last year but has shown strong recovery in recent quarters, driven by advancements in AI technology, data processing, and a resurgence in electronics manufacturing [1] - Global semiconductor sales reached $57.8 billion in November, marking a 20.7% year-over-year increase and a 1.6% sequential growth from October's $56.9 billion [3] - The AI boom, particularly generative AI, has significantly fueled demand for semiconductors across various industries, with NVIDIA leading the charge in the generative AI sector [3] AI-Driven Growth - AI enthusiasm continues to boost semiconductor demand, with tech companies aggressively investing in AI development and integration into products [4] - Microsoft announced plans to invest $80 billion in AI-powered data centers for fiscal 2025, reflecting the growing importance of AI workloads [5] - AI-specific chips and memory components like NAND flash and DRAM are experiencing increased demand due to their critical role in high-performance computing and AI-intensive tasks [7] Key Semiconductor Companies NVIDIA Corporation (NVDA) - NVIDIA is a leading player in the semiconductor industry, particularly in GPUs, which are crucial for data centers, AI, and cryptocurrency mining [8] - The company's expected earnings growth rate for the current year exceeds 100%, with a Zacks Rank 2 [9][10] Broadcom Inc. (AVGO) - Broadcom is a major supplier of semiconductor devices, with a strong focus on AI chips and Ethernet AI solutions, which have seen a 400% year-over-year increase [11] - The company's expected earnings growth rate for the current year is 29.4%, with a Zacks Rank 2 [12] MACOM Technology Solutions Holdings, Inc. (MTSI) - MACOM specializes in analog RF, microwave, and millimeter wave semiconductor devices, serving markets like data centers, industrial & defense, and telecom [15] - The company's expected earnings growth rate for the current year is 31.6%, with a Zacks Rank 2 [16] Semtech Corporation (SMTC) - Semtech designs and manufactures analog and mixed-signal semiconductors for commercial applications, with a product line including Signal Integrity and Wireless Products [17] - The company's expected earnings growth rate for the current year exceeds 100%, with a Zacks Rank 2 [18]