Core Insights - The article highlights the top five best-performing stocks in the S&P 500 over the past decade, showcasing significant growth rates and their involvement in the semiconductor and AI sectors [2][3]. Group 1: Company Performance - Nvidia has seen a staggering increase of 26,927% over the last decade, with a market value of $4.4 trillion and an average annual growth rate of about 75%. The company is heavily involved in AI and data center chips, benefiting from a partnership with OpenAI [3][4]. - Advanced Micro Devices (AMD) has grown by 10,971% over the past ten years, with an average annual growth rate of 60%. AMD is also partnered with OpenAI and is gaining market share in PC CPUs [5][6]. - Broadcom has increased by 3,666% in value, with an average annual growth rate of nearly 41%. The company produces both semiconductor and software products and is expected to benefit from AI growth [7][8]. - Arista Networks has experienced a growth of 3,253% over the past decade, with an average annual growth rate of 42%. The company specializes in networking equipment for data centers [9][10]. - Axon Enterprise has seen a growth of 2,890% with an average annual gain of nearly 41%. The company focuses on public safety hardware and software, including body cameras and drones [11][12]. Group 2: Valuation Insights - Nvidia's stock is considered reasonably valued with a forward P/E ratio of 28, below its five-year average of 39 [4]. - AMD's shares are also reasonably valued, with a forward P/E of 35, slightly above its five-year average of 30 [6]. - Broadcom's stock appears overvalued with a forward P/E of 37, significantly above its five-year average of 19 [8]. - Arista Networks' shares seem overvalued with a forward P/E ratio of 42, above its five-year average of 32 [10]. - Axon Enterprise's shares are viewed as overvalued, with a forward P/E of 83, well above its five-year average of 74 [12]. Group 3: Investment Options - For investors interested in semiconductor and data center stocks, an exchange-traded fund (ETF) like the iShares Semiconductor ETF (NASDAQ: SOXX) is suggested, which includes major companies like AMD, Broadcom, and Nvidia [13].

Core Viewpoint - Axon Enterprise, Inc. (NASDAQ:AXON) is highlighted as a strong investment opportunity due to its consistent growth and market presence in the public safety sector, particularly with body cameras and tasers [1][2]. Group 1: Analyst Insights - Michael Landsberg from Landsberg Bennett Private Wealth Management identifies Axon Enterprise as a top non-tech stock, emphasizing its growth potential and market dominance in public safety products [1]. - Axon Enterprise is noted for its significant growth rate of approximately 30%, indicating robust demand for its products [1]. - ClearBridge Growth Strategy mentions that Axon complements existing defense holdings, suggesting a strategic alignment with growth in aerospace and public safety markets [2]. Group 2: Market Position and Growth Potential - Axon Enterprise is recognized as a dominant player in its industry with substantial opportunities for growth and margin expansion [2]. - The company’s products, such as body cameras, are ubiquitous in law enforcement, reinforcing its market presence [1]. - The investment community acknowledges the potential of Axon, although some analysts believe that certain AI stocks may offer higher returns [2].

Market Trends & Economic Outlook - The market may see a similar situation to a year ago with potential for rising inflation and two-year Treasury yields around 35%, possibly moving higher [1] - Economic growth alongside rising inflation isn't necessarily negative [1] - Small caps are potentially underowned, with futures short on Russell, suggesting lower rates could benefit them [1] Investment Strategies & Portfolio Allocation - The firm suggests not being long bonds and considering a lower bond allocation, with alternatives like gold for balance [1] - Diversification is crucial, with potential opportunities in international markets (e g, China) and small caps [1] - Consider diversifying from the "Magnificent Seven" (Mag 7) due to their concentrated exposure [1] Individual Stock Picks & Sector Focus - Axon, a maker of body cams and tasers, is highlighted as a potentially good investment with 30% type growth [1] - AI is a significant theme for the next 3-5 years, but diversification beyond chip manufacturers is recommended, including data centers, cooling systems, and energy companies [1][2] Valuation & Risk Management - Overconcentration in a few AI chip names carries significant risk [2] - The traditional valuation game may not always work, as seen with Nvidia and Broadcom, where earnings eventually justified high valuations [1] - Stocks hitting highs often continue to make new highs, while stocks hitting lows can potentially go to zero [1]