Broadcom(US:AVGO) The Motley Foolยท2025-03-11 10:00Core Viewpoint - The recent decline in the Nasdaq Composite presents a buying opportunity for investors, particularly for stocks that have been unfairly punished despite their resilience against economic challenges [1][2]. Group 1: Shopify - Shopify facilitates e-commerce for merchants and brands, providing an alternative to platforms like Amazon [3]. - The company reported $292 billion in goods and services sold last year, a 24% increase from the previous year, with revenue rising nearly 26% to $8.9 billion [4]. - Shopify's business model includes recurring revenue from rented technology, which remains stable even during economic downturns, potentially benefiting from consistent consumer demand [5][6]. Group 2: Broadcom - Broadcom specializes in telecommunications technology, including fiber optic equipment and networking adapters, and has seen significant growth due to the rise of AI data centers [7][8]. - The company generated $51.6 billion in revenue last fiscal year, with $12.2 billion (up 220% year-over-year) coming from AI-related products [8]. - CEO Hock Tan projected that the AI hardware market could grow to between $60 billion and $90 billion annually by 2027, indicating potential for substantial growth in Broadcom's AI business [9][10]. - Broadcom's extensive patent portfolio positions it favorably in the AI sector, as companies will need its technology to enhance their operations [10][11]. Group 3: Palo Alto Networks - Palo Alto Networks is a comprehensive cybersecurity solutions provider, offering a range of services from firewalls to threat detection, with $2.3 billion in business last quarter, a 14% increase year-over-year [12][13]. - Cybercrime is expected to rise during economic downturns, increasing the demand for cybersecurity solutions as organizations face greater risks [14][15]. - The World Economic Forum reported that 72% of organizations feel their cyber risks are growing, highlighting the need for enhanced cybersecurity measures [15][16].