Just like there’s an app for everything, there’s an ETF for every market need. And that’s very good news for investors who, like me, see big technology stocks as three things right now: Iconic, and deservedly so Highly appreciated as a group, though some more than others Very vulnerable to a correction, or worse My old adage is that “any stock can go up in value at any time, for any reason. The difference between one stock and another, or one ETF and another, is the degree to which big-loss poten ...

Core Insights - Astera Lab (ALAB) and Broadcom (AVGO) are key players in the AI infrastructure market, focusing on high-speed connectivity solutions like PCIe and CXL retimers and switches [1][2] - The AI Infrastructure Market is projected to grow from $87.60 billion in 2025 to $197.64 billion by 2030, with a CAGR of 17.71% [2] Astera Lab (ALAB) Overview - Astera Lab is experiencing broad-based demand across its product lines, particularly in Scorpio P-Series fabric switches and Aries PCIe 6 retimers, with the latter contributing over 20% of third-quarter revenues [3][10] - The company is expanding its portfolio to meet the growing demands of AI infrastructure, including plans to deliver custom connectivity solutions using its COSMOS architecture and new photonic chiplet capabilities [4] - UA Link presents a significant growth opportunity, combining PCIe memory semantics with Ethernet speed, expected to generate a multibillion-dollar market opportunity by 2029 [5] - ALAB has a strong partner base, including Microsoft, NVIDIA, AMD, Micron Technology, and Intel, enhancing its market position [6] Broadcom (AVGO) Overview - Broadcom is enhancing its presence in the PCIe retimers market with advanced solutions that improve signal quality and extend PCIe connection reach [7] - The company reported a 65% year-over-year growth in AI revenue for fiscal 2025, reaching $20 billion, driven by AI semiconductors and infrastructure software [8] - Broadcom's AI networking segment has a $10 billion order backlog for AI switches, contributing to a total AI-related order backlog of $73 billion in the fourth quarter of fiscal 2026 [9][10] - Innovative products, such as the Brocade X8 Directors and Brocade G820 switch, are crucial for Broadcom's expansion in enterprise AI applications [11] Stock Performance and Valuation - In the past six months, ALAB shares gained 54.6%, while AVGO shares increased by 36.2%, with ALAB's outperformance attributed to its diversified product portfolio [12] - Both ALAB and AVGO shares are currently considered overvalued, with ALAB trading at a forward Price/Sales ratio of 21.11X and Broadcom at 18.02X [14] - The Zacks Consensus Estimate for ALAB's 2025 earnings is $1.78 per share, indicating a 111.90% year-over-year rise, while Broadcom's estimate is $9.20 per share, reflecting a 34.90% year-over-year increase [16] Conclusion - Both ALAB and AVGO are well-positioned to benefit from the growing AI infrastructure market, but AVGO is seen to have higher growth potential due to its substantial AI backlog and diversified revenue streams [20] - Astera Labs' strong fundamentals and expanding partnerships reinforce its leadership in connectivity solutions, while Broadcom's robust order backlog and innovative products support its market position [20][21]

Core Insights - The stock market has seen significant influence from artificial intelligence (AI) over the past three years, but investor sentiment is shifting as concerns about high valuations and sustainability grow [2][3]. Company Performance - Oracle reported over $450 billion in remaining performance obligations due to its rapidly growing AI cloud services, which cater to companies needing data centers for AI applications [5]. - Despite a strong quarterly earnings report, Oracle's stock has retraced due to concerns about the need for $38 billion in debt to build necessary data centers and lower-than-expected profit margins of 10% to 20% in its AI data center business [6]. - In its most recent earnings report, Oracle's revenue of nearly $16.1 billion fell short of consensus estimates, leading to a decline in stock price and a significant increase in five-year credit default swaps on its debt [7]. Industry Trends - Broadcom reported strong earnings but disappointed investors with guidance indicating a decline in gross margin and concerns about understated AI product backlog [8]. - The overall sentiment in the market is questioning whether the substantial capital expenditures (capex) on AI-related infrastructure will yield adequate returns, with estimates suggesting that building a 1-gigawatt data center requires around $80 billion [11]. - There is a growing belief that the resources required for AI may be limited, and the anticipated returns on investments may not materialize as quickly as investors had hoped [12].

By STAN CHOE, AP Business WriterNEW YORK (AP) — The U.S. stock market is slipping on Tuesday following mixed data on the economy’s strength, which did little to clear uncertainty about where interest rates may be heading. The S&P 500 fell 0.6% in afternoon trading and remains a bit below its all-time high set last week. The Dow Jones Industrial Average was down 342 points, or 0.7%, as of 12:45 p.m. Eastern time, and the Nasdaq composite was 0.3% lower.Treasury yields eased a bit, following a larger initial ...

Beth Kindig is a veteran technology analyst with more than 14 years of experience covering both the private and public markets. She began her career in Silicon Valley in 2011—just as technology overtook oil as the world’s most valuable industry—and quickly distinguished herself for her prescient, high-conviction calls on emerging tech trends. By 2014, her analysis was being cited in major outlets, and she was invited to speak at leading industry conferences including Android Developers Conference, Advertisi ...

Beth Kindig is a veteran technology analyst with more than 14 years of experience covering both the private and public markets. She began her career in Silicon Valley in 2011—just as technology overtook oil as the world’s most valuable industry—and quickly distinguished herself for her prescient, high-conviction calls on emerging tech trends. By 2014, her analysis was being cited in major outlets, and she was invited to speak at leading industry conferences including Android Developers Conference, Advertisi ...

Core Insights - Marvell Technology (MRVL) is positioning itself as a significant player in connectivity hardware solutions for AI infrastructure and data centers through its Golden Cable initiative, aimed at enhancing the Active Electrical Cable (AEC) ecosystem for quicker AI infrastructure deployment by cloud and hyperscaler customers [1][10] Group 1: Product and Technology Developments - AECs are essential for high-density, short-reach connections within and between racks, supporting next-generation 1.6T connectivity for ultra-fast networks. The Golden Cable initiative will allow MRVL's partners to validate cable architectures and receive support for integration and interoperability [2] - The company is benefiting from the adoption of scale-up switches that connect AI accelerators, which require multi-terabit bandwidth and ultra-low latency, supporting both open standard Ethernet and UALink fabrics [3] - Volume shipments of MRVL's next-generation 200G per lane 1.6T PAM DSPs are contributing positively to the company's performance, alongside the adoption of its Alaska PCIe 6 retimer product line by leading AI and data center infrastructure companies [4] Group 2: Financial Performance - In Q3 of fiscal 2026, MRVL's data center revenues reached $1.52 billion, marking a 37.8% year-over-year increase and a 1.8% sequential rise, driven by strong demand for electro-optic interconnect products and next-generation switch offerings. Carrier infrastructure revenues surged 98% year-over-year and 29% sequentially to $167.8 million [5][10] Group 3: Competitive Landscape - Marvell Technology competes with Broadcom (AVGO) and Credo Technology (CRDO) in the connectivity market. Credo has a diverse portfolio and is experiencing strong growth in its AEC business, while Broadcom maintains a strong position in carrier Ethernet and telecom optical interconnects [6][7] Group 4: Valuation and Market Performance - MRVL shares have increased by 20.4% over the past six months, compared to a 36.8% growth in the Zacks Electronics - Semiconductors industry [8] - The company trades at a forward price-to-sales ratio of 7.35X, slightly below the industry's average of 7.46X. The Zacks Consensus Estimate for MRVL's fiscal 2026 and 2027 earnings indicates year-over-year growth of 81% and 26%, respectively, with upward revisions in estimates over the past 60 days [11]

Group 1 - Option traders are moderately bearish on Broadcom (AVGO), with shares down $15.36, currently priced at approximately $344.57 [1] - Options volume has more than doubled the daily average, with 230,000 contracts traded, and calls leading puts, resulting in a put/call ratio of 0.63, compared to a typical level near 0.7 [1] - Implied volatility (IV30) has increased by 1.4 points, reaching around 43.53, which is below the 52-week median, indicating an expected daily price movement of $9.45 [1] - The put-call skew has steepened, suggesting an increased demand for downside protection among traders [1]

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about Broadcom Inc. (AVGO) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Broadcom Inc. currently has an average brokerage recommend ...

Fears of an AI bubble are likely here to stay. But a strong spending landscape means many semiconductor stocks can still thrive, according to J.P. ...