Invest in artificial intelligence (AI)-powered companies with strong execution capability and impressive revenue visibility ahead of the next market rally.On Oct. 29, the Federal Reserve announced a 25-basis-point cut in benchmark interest rates to 3.75% to 4%. However, the equity markets stumbled as Fed Chairman Jerome Powell highlighted uncertainty about further interest rate easing, especially at the Fed's next meeting in December 2025.While solid earnings performance from a few prominent technology comp ...

Market Overview - U.S. equities showed resilience, with the S&P 500 Index returning 10.9% and the NASDAQ Composite rising 17.7% in Q2, marking a shift from bear markets to all-time highs [3] - The Russell 3000 Growth Index outperformed the Russell 3000 Value Index by over 1,300 basis points, reflecting a strong risk-on sentiment [3] Economic Factors - Initial stock declines occurred after President Trump announced tariffs on April 2, but a 90-day delay in implementation and improved trade relations led to a market recovery [4] - May recorded the best monthly performance for the S&P 500 since November 2023, driven by a positive trade outlook [4] Sector Performance - Information technology (+25.4%), communication services (+24.2%), and consumer discretionary (+14.0%) sectors led performance, with significant contributions from Broadcom and Netflix [7] - The health care sector underperformed (-1.3%) due to tariff concerns on pharmaceutical imports and reimbursement rate pressures affecting UnitedHealth Group and Vertex Pharmaceuticals [9] Portfolio Positioning - The ClearBridge All Cap Growth Strategy added four positions and exited four others in Q2, focusing on companies with strong market positions and growth potential [10] - In health care, Novo Nordisk was added as a competitor to Eli Lilly, while Alnylam Pharmaceuticals was included for its RNA interference technology [11] - In IT, Synopsys and Palantir Technologies were added for their strong growth prospects and high margins [12] Performance Highlights - The ClearBridge All Cap Growth Strategy underperformed the Russell 3000 Growth Index in Q2, with IT being the primary contributor and health care the main detractor [18] - Stock selection positively contributed to performance, particularly in IT and communication services, while sector allocation negatively impacted results due to an overweight in health care [19] - Key contributors included Apple, Broadcom, and Netflix, while detractors were UnitedHealth Group, Microsoft, and Thermo Fisher Scientific [20]

Marvell Technology (MRVL) 2025 Conference Summary Company Overview - **Company**: Marvell Technology (MRVL) - **Event**: 2025 Conference held on June 03, 2025 - **Speakers**: Matt Murphy (CEO), Willem Minkes (CFO) Key Points Industry and Market Dynamics - The demand environment is currently strong despite macroeconomic challenges, with Marvell guiding for the strongest quarter in its history at $2 billion in revenue [4][12] - The data center business is experiencing significant growth, with an annual growth rate exceeding 70% [6] - The overall data center business for Marvell has grown to a scale larger than the entire company was a year ago [6] - There has been a recovery in core business segments such as carrier infrastructure and enterprise networking, with sequential growth rates of over 10% [11] Financial Performance - Marvell has achieved an annualized run rate of $8 billion, indicating substantial growth potential moving forward [12] - The company has doubled its revenue in four years, showcasing strong performance and competitive positioning [5] Custom Silicon and AI Programs - Marvell is ramping up multiple custom silicon programs, with high-volume shipments starting in late 2024 [8] - The company is optimistic about the growth of its custom compute business, with expectations for strong growth in the coming years [17] - The total addressable market (TAM) for custom silicon is estimated to be over $40 billion, with expectations for further growth [30] Competitive Landscape - Marvell maintains a strong competitive position in the electro-optics market, having executed well in the transition to PAM technology [49][52] - The company is confident in its ability to retain market share despite increased competition in the electro-optics sector [52] Strategic Partnerships - Marvell has established a partnership with NVIDIA for NVLink fusion, enhancing interoperability and expanding its custom platform offerings [60][62] - The company is actively participating in the active electrical cable (AEC) market, with expectations for meaningful contributions to revenue in the coming years [64] Future Outlook - Marvell anticipates continued growth in the AI market, with a focus on custom solutions across various applications [67] - The company is preparing to update its market size estimates, reflecting the growing opportunities in the semiconductor space [71] Additional Insights - Marvell's consistent performance has led to modest earnings revisions compared to peers, which may be perceived as a disadvantage in a market that favors larger beats [53][56] - The company emphasizes the importance of long-term consistency and predictability in its business model [58] Conclusion Marvell Technology is positioned for significant growth in the semiconductor industry, particularly in the data center and custom silicon markets. The company's strong financial performance, strategic partnerships, and competitive advantages in technology and execution are key drivers of its future success.