The Motley Fool·2025-04-02 10:15Group 1: Broadcom - Broadcom has experienced a significant sell-off, losing all gains from its fiscal 2024 Q4 results, despite initial strong guidance and growth opportunities in AI [3][6] - AI now accounts for over 25% of Broadcom's total revenue, supported by diverse legacy business units such as networking and cybersecurity [4] - The company is optimistic about its XPU accelerator chips, which offer cost-effective performance compared to GPUs, although there are concerns about potential spending slowdowns from hyperscalers [5][6] - Broadcom's revenue is heavily reliant on a few hyperscaler customers, with a projected serviceable addressable market of $60 billion to $90 billion by fiscal 2027 [6][7] - The stock trades at a forward price-to-earnings ratio of 25.7 and offers a growing dividend with a yield of 1.4% [8] Group 2: Trimble - Trimble is positioned for strong secular growth, with its solutions expected to thrive even in a weak economy, supported by its diverse offerings in construction, geospatial, and agriculture [9][10] - The company’s hardware and software solutions enhance productivity by providing precise location-based data and enabling real-time collaboration on projects [11][12] - Trimble's organic annualized recurring revenue grew by 16% in 2024, with management forecasting 13% to 15% growth for 2025, indicating robust growth potential [12][13] Group 3: Invesco QQQ Trust - The Invesco QQQ Trust ETF provides exposure to the top 100 non-financial companies on the Nasdaq, including many in the AI sector, with a low expense ratio of 0.2% [14] - Major holdings include Apple, Microsoft, and Nvidia, with all "Magnificent Seven" stocks among its top positions, reflecting strong growth in the AI industry [15] - Over the past 15 years, the Invesco QQQ Trust has significantly outperformed the S&P 500, with a total return exceeding 1,000% since 2010 [17]