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]

Broadcom - Broadcom specializes in chips for connectivity applications such as networking, server storage, and broadband, and has built enterprise infrastructure software into about 40% of its business [15] - The company generated $51.5 billion in revenue in fiscal year 2024, with $19.4 billion (37%) in free cash flow [21] - Broadcom's AI-related revenue totaled $12.2 billion this year, with management expecting substantial growth as AI chip deals progress [20] - Analysts estimate Broadcom will grow earnings by an average of nearly 22% annually over the long term [7] - The company has paid and raised its dividend for 15 consecutive years, with an average hike of 14.7% over the past five years, and the current payout ratio is only 48% of fiscal year 2024 earnings [7] Microsoft - Microsoft is on a 22-year dividend growth streak and has an AAA credit rating, higher than the U.S. government [2][14] - The company has integrated AI throughout its software products to enhance user experience and owns Azure, the world's second-largest cloud computing platform, which is fueled by AI applications [8][14] - Microsoft reached a $3.2 trillion market cap and $254 billion in annual revenue, with analysts estimating earnings growth of 13% annually over the long term [18] - The dividend payout ratio is only 26% of 2024 earnings estimates, providing financial flexibility and security [2][17] Meta Platforms - Meta Platforms initiated its dividend this year and has strong potential for dividend growth, with a payout ratio of only 9% of 2024 earnings estimates [9][10] - The company is heavily investing in AI, including creating an open-source AI model (Llama) and building data centers to support its computing requirements [5] - Meta is the world's best advertising business, generating profits by showing digital ads to 3.29 billion daily users across Facebook, Instagram, WhatsApp, and Threads [19] - Analysts estimate earnings will rise by an average of 17% annually over the long term, supporting high dividend growth with a low payout ratio [6] AI Industry - AI is a transformative technology with long-term investment potential, and some leading AI companies pay dividends, offering both capital gains and passive income [4][13] - Companies like Broadcom, Microsoft, and Meta Platforms are leveraging AI to enhance their core businesses and create growth opportunities, making them strong candidates for long-term wealth compounding [11][12]

Broadcom (AVGO) - Broadcom is a key supplier to Apple and has secured two hyper-scale data center customers, rumored to be Alphabet and Meta Platforms or similar companies like Amazon and Microsoft [1] - The company is considered the second-largest AI semiconductor supplier, making its growth narrative very appealing [11] Nvidia (NVDA) - Nvidia is the largest AI chipmaker, with its Blackwell series AI chips being the highest-performing on the market despite some overheating challenges [3] - Nvidia's H100 and H200 series chips have driven significant growth, with total sales projected at $129.02 billion in fiscal 2025, a 1000% increase from 2020 sales of $10.91 billion [15] - Nvidia's price performance has more than doubled its top-line growth, with FY26 sales projected to increase by 48% to $191.84 billion [9] - YTD performance: +176% [5] Taiwan Semiconductor (TSM) - Taiwan Semiconductor is the world's largest provider of integrated circuit foundries and a key supplier for Apple [14] - The company provides foundries for other companies to produce AI chips, including Nvidia [14] - Taiwan Semiconductor has the cheapest P/E valuation on the list at 29.2X forward earnings and is expected to post double-digit top and bottom-line growth this year and in FY25 [17] - YTD performance: +116% [8] Industry Overview - The global market for artificial intelligence is presumed to be worth trillions in the coming years, making semiconductor stocks like Broadcom, Nvidia, and Taiwan Semiconductor lucrative investments going into 2025 [7] - Semiconductor stocks are particularly targeted due to their role in configuring artificial intelligence [18] - YTD performance of Nvidia: +94% [4]

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]

Core Insights - Stock splits are indicative of a company's health and can signal positive future performance, as companies that split their stock tend to outperform the market over time [1][9] - Employees benefit from stock splits as they make shares more affordable, allowing for easier participation in ownership without straining personal finances [2][9] Broadcom - Broadcom is considering a stock split in 2024, having increased over 400% in the last two years and 30% since the last earnings report, with potential for further growth [3] - The stock is currently trading at $239.68 with a price target of $221.88, and analysts expect it to reach above $500 due to AI-driven growth and strong cash flow [3][10] - Revenue growth is projected near 15% for 2025, driven by custom AI accelerators and the acquisition of VMWare, which is expected to enhance growth significantly [10] Casey's General Stores - Casey's General Stores has maintained a self-funded growth model, allowing for dividends and share buybacks while expanding its convenience store operations [4] - The stock is trading at $403.67, with a price target of $424.00, and is likely to undergo a stock split as it continues to trend higher [4] - The recent acquisition of Fikes is expected to bolster its market presence in the Southwest, contributing to sustained share price growth [4] Costco - Costco's stock is trading at nearly $1000, making it a prime candidate for a stock split due to its high share price [12] - The company is expected to continue its growth trajectory, supported by robust cash flow and a healthy balance sheet, with potential special dividends anticipated by late 2025 or early 2026 [12] - Costco's strong market position and cash build-up are critical for reinvestment and capital returns, further solidifying its financial health [12]

Company Overview - Nvidia is a leader in graphics processing units (GPUs) with over 80% market share in AI accelerators, known for accelerating complex workloads like machine learning and AI applications [2] - Broadcom operates in the semiconductor and infrastructure software sectors, with significant market shares of 80% in networking chips and 60% in custom AI chips [14] Financial Performance - Nvidia reported a 94% increase in revenue to $35 billion for Q3 fiscal 2025, driven by 112% growth in data center sales and 72% growth in automotive and robotics sales, with non-GAAP earnings more than doubling to $0.81 per diluted share [3] - Broadcom's revenue increased by 51% to $14 billion in Q4 fiscal 2024, with non-GAAP earnings rising 28% to $1.42 per diluted share [5] Market Trends - Nvidia's stock has surged 895% since the launch of ChatGPT in November 2022, with 92% of analysts rating it a buy and a median target price of $175 per share, indicating a 30% upside from the current price of $134 [6] - Wall Street anticipates Broadcom's adjusted earnings to grow by 30% in the next four quarters, making its current valuation of 46 times adjusted earnings appear reasonable [11] Strategic Moves - Stanley Druckenmiller sold his entire stake in Nvidia in Q3 and initiated a new position in Broadcom, which raises questions about his insights into market trends [1][4] - Broadcom's acquisition of VMware contributed 40 percentage points to revenue growth, indicating a strategic move to enhance its market position [10] Future Outlook - Nvidia's adjusted earnings are expected to increase by 50% in the next four quarters, suggesting that its current valuation of 52 times adjusted earnings is relatively cheap [13] - Broadcom anticipates a fivefold increase in AI chip sales to major customers over the next three years, with potential new customers including Apple and OpenAI, indicating strong future growth prospects [15]

市值万亿美元的芯片公司又多了一家。 今年 AI 业务收入增长 220% 达到 122 亿美元，帮博通市值突破万亿美元。博通市值上涨的推力和 英伟达一样，都是大型科技公司大力投资 AI 算力中心。 区别在于，英伟达出售 GPU，博通出售自研 AI 芯片方案，正在帮助 Google、Meta、苹果、字节 跳动等公司开发 AI 芯片。字节跳动曾否认与博通合作。今年以来，博通市值上涨 128%，英伟达 上涨 182%。 博通 CEO Hock Tan 接受媒体采访说，他们在硅谷的客户正在匆忙地制定未来 3、5 年的 AI 基础设 施投资计划，到 2027 年会有客户建设百万 AI 芯片的集群。 特朗普找来一批硅谷高管充实班底。 其中两位来自硅谷风投 a16z，包括 a16z 管理合伙人斯科特·库普尔（Scott Kupor）。特朗普提名他 担任人事管理局局长，负责协调招聘工作，并为政府雇员提供资源。库普尔说：这个机会能让他与 埃隆·马斯克（Elon Musk） 等人一起领导政府效率部（DOGE）。 另一位是斯里拉姆·克里希南 (Sriram Krishnan)，a16z 的普通合伙人，在微软、Meta 等公司工作 过 ...

Core Viewpoint - The article emphasizes the importance of investing in stocks with a strong history of dividend growth, particularly in the context of market volatility and economic uncertainty. These stocks are seen as a hedge against risks and provide consistent returns to investors. Group 1: Dividend Growth Stocks - Stocks highlighted in the article have a strong history of dividend growth, indicating they are mature companies less susceptible to market swings [2] - These stocks provide downside protection and act as a hedge against economic and political uncertainty [2][10] - The article identifies four specific stocks from diverse sectors that exemplify these characteristics [3] Group 2: Company-Specific Insights - **Nike**: The company focuses on sports and storytelling to enhance brand distinction, with a long-term earnings growth expectation of 15% and an earnings surprise of 29.8% over the past four quarters. Nike recently announced an 8% year-over-year increase in its quarterly dividend to 37 cents per share, marking its 23rd consecutive year of dividend increases [5][6][18] - **Broadcom**: The company generates significant cash flow, allowing for consistent dividends. It increased its quarterly dividend by 11% year-over-year to 59 cents per share and spent $12.4 billion on share repurchases and $9.8 billion on dividends in fiscal 2024 [7][15] - **Motorola**: The company is positioned for growth in the communications equipment sector, with a recent 11% year-over-year increase in its quarterly dividend to $1.09 per share. Motorola has a long-term earnings growth expectation of 10.1% and has gained 51.6% over the past year [8][9][17] - **Realty Income**: This retail REIT has a compound annual dividend growth of 4.2% since 1994 and a long-term earnings growth expectation of 6.4%. The company focuses on acquiring and managing commercial properties with reliable rental revenues [12][16] Group 3: Market Context - The U.S. equity markets have experienced significant growth, driven by solid economic conditions, a healthy labor market, and an accommodative Federal Reserve stance. This environment has been conducive to stock market momentum [13] - Amid ongoing market volatility, focusing on stocks with a history of dividend hikes and healthy yields is recommended for risk-averse investors [14]

Stock Split Stocks and Billionaire Interest - Billionaires are heavily investing in two prominent stock-split stocks as 2025 approaches [1] - Stock splits adjust share prices and outstanding share counts without affecting market cap or operating performance [3] - Forward stock splits are favored by investors as they make shares more affordable for retail investors [9] - Companies completing forward splits tend to out-innovate competitors, often reflected in rising share prices [18] Broadcom (AVGO) - Broadcom is a leading company in AI-networking solutions and completed a 10-for-1 stock split in mid-July [6] - In fiscal 2024, Broadcom generated $12.2 billion in AI sales, with CEO Hock Tan forecasting $60 billion to $90 billion in AI chip spending by its top hyperscale customers over the next three years [7] - Broadcom's AI-networking solutions, including the Jericho3-AI fabric, are preferred by businesses for connecting up to 32,000 GPUs to maximize computing capabilities and minimize latency [11] - Beyond AI, Broadcom generates significant revenue from wireless chips for next-gen smartphones, cybersecurity solutions, and industrial optical components and sensors [15] - Billionaire Philippe Laffont of Coatue Management purchased 1,488,666 shares of Broadcom in Q3 2024, while Stanley Druckenmiller opened a new position of 239,980 shares [14] Super Micro Computer (SMCI) - Super Micro Computer, a customizable rack server and storage-solutions company, completed a 10-for-1 stock split at the end of September [16] - The company reported $15 billion in net sales for fiscal 2024, representing 110% growth from the previous year, with Wall Street forecasting sales to double to $30 billion by fiscal 2026 [4] - Super Micro's customizable rack servers incorporate Nvidia's GPUs, enhancing demand for its products [8] - Philippe Laffont of Coatue Management purchased 241,610 shares of Super Micro in Q3 2024, aligning with his focus on cutting-edge growth stocks [23] - However, the company faces scrutiny due to allegations of accounting manipulation and sanctions evasion, leading to delays in filing its fiscal 2024 annual report and the resignation of its accounting firm [21][17] AI and Market Performance - AI has been the top catalyst for Wall Street's outperformance in 2024, with investor enthusiasm for stock-split stocks playing a significant role [5] - Two of Wall Street's hottest AI stocks, Broadcom and Super Micro Computer, are on the buy lists of top money managers [13] - If an AI bubble were to burst, Broadcom is better positioned than direct players like Nvidia to handle the fallout [25] Market Overview - As of Dec 19, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite gained 12%, 23%, and 29% year-to-date, respectively [22]

Core Insights - The year 2024 has been exceptionally favorable for AI stocks, with many companies experiencing significant gains [1] Company Performance - Broadcom's share price has nearly doubled year to date, although it faced a recent sell-off due to the Fed's cautious stance on rate cuts for 2025 [2] - Wall Street analysts remain overwhelmingly bullish on Broadcom, with 38 out of 43 analysts rating it as a buy or strong buy [3] - Nvidia's stock has seen remarkable growth, soaring nearly 239% in 2023 and over 160% year to date in 2024, despite recent corrections [4] - A significant majority of analysts, 62 out of 64, rate Nvidia as a buy or strong buy, with an average 12-month price target nearly 32% above its current share price [5] Market Opportunities - Broadcom is expected to benefit from the development of custom AI accelerators by large organizations, with management estimating a market potential of $60 billion to $90 billion by fiscal 2027 [7] - Nvidia's upcoming Blackwell chips are anticipated to drive sustained revenue and earnings growth, with demand for these GPUs described as "staggering" by CEO Jensen Huang [6][9] Financial Performance - Broadcom's recent quarterly results have not been outstanding when excluding the impact of its VMware acquisition, yet investor excitement remains high due to AI opportunities [12] - Nvidia's revenue surged by 94% year over year in Q3 to a record $35.1 billion, primarily driven by the demand for data center GPUs related to AI [14] Future Outlook - Analysts express mixed sentiments about the sustainability of the current momentum in AI stocks, with some expecting continued growth for Broadcom and Nvidia into 2025 [11] - Nvidia is viewed as the more favorable AI stock for 2025, with expectations of a potential 30% increase in share price over the next 12 months [10][16]