Key Takeaways Credo expects Q3 FY26 revenue of $404-$408M, beating its prior $335-$345M guidance by a wide margin.CRDO saw demand accelerate late in the quarter, driven by hyperscale data centers and connectivity products.Credo projects over 200% FY26 revenue growth, mid-single-digit sequential growth into FY27, and 45% margins.Credo Technology Group Holding Ltd. (CRDO) delivered a powerful surprise to the market with its preliminary revenue results for the third quarter of fiscal 2026.  The company’s perfo ...

As the artificial intelligence (AI) market expands, more companies are upgrading their data centers to handle the skyrocketing usage of AI applications. According to Fortune Business Insights, the global AI infrastructure market will expand at a CAGR of 29.1% from 2025 to 2032. What's the best chip play on the AI infrastructure boom? One of the simplest ways to profit from that secular boom is through Broadcom (NASDAQ: AVGO), which produces custom application-specific integrated circuits (ASICs) for proc ...

Core Insights - OpenAI is not publicly traded, but the Alger AI Enablers & Adopters ETF (ALAI) invests in companies within the AI ecosystem, including those that support OpenAI [1] - Major holdings in ALAI include Microsoft, NVIDIA, and Broadcom, which collectively account for 25.4% of the portfolio and have established significant partnerships with OpenAI [2] Investment Strategy - ALAI has achieved a one-year return of 40.3% in 2025, significantly outperforming the category average return of 17.9% [5] - The fund has attracted $265.4 million in net inflows since its launch in April 2024, managing a total of $283.3 million in assets with a 0.55% expense ratio [5] Company Partnerships - Microsoft holds a 27% stake in OpenAI, valued at approximately $135 billion, and has secured a $250 billion cloud services contract with the company [2][3] - NVIDIA, the largest holding in ALAI at 11.4%, plans to invest up to $100 billion in infrastructure for OpenAI, deploying 10 gigawatts of systems [4] - Broadcom, representing 4.28% of ALAI, is set to develop 10 gigawatts of custom AI accelerators for OpenAI, with deployment expected to start in the second half of 2026 [4]

Key Points Broadcom is a leader in ASIC technology. As customers look to develop custom AI chips, the company has an enormous growth opportunity in front of it. 10 stocks we like better than Broadcom › Spending on artificial intelligence (AI) infrastructure is booming, but there is also a shift in the market. While Nvidia's graphics processing units (GPUs) continue to dominate the market, more and more large companies are turning toward developing AI ASICs (application-specific integrated circuits) ...

Core Viewpoint - The $3 trillion market cap club currently includes only four companies: Nvidia, Alphabet, Apple, and Microsoft, with Broadcom potentially joining this elite group by the end of the year if its stock rises approximately 77% by 2026 [1][2]. Company Overview - Broadcom currently has a market cap of $1.7 trillion and is diversifying its business model, with a significant focus on custom AI accelerator chips, moving away from its traditional offerings [2][5]. - The company has a diverse product range, including mainframe software, connectivity solutions, data storage, and virtual desktop software through its acquisition of VMware [2]. AI Chip Development - Broadcom is developing application-specific integrated circuits (ASICs) tailored for AI workloads, distinguishing itself from competitors that offer multipurpose chips like GPUs [3][4]. - The custom AI chips are designed in collaboration with leading AI companies, enhancing their performance and efficiency for specific tasks [3][4]. Financial Performance - In the fourth quarter of fiscal 2025, Broadcom reported total revenue of $18 billion, with its AI semiconductor business growing 74% year over year to $6.5 billion, representing about one-third of its total revenue [6]. - The growth in the AI semiconductor sector indicates that it could become the largest segment of Broadcom's business by 2026 [7].

Core Insights - The advancements in artificial intelligence (AI) are significantly driven by semiconductor companies, particularly Nvidia and Broadcom, which have seen substantial growth in sales and profits due to high demand for their chips [1][2][3]. Group 1: Nvidia and Broadcom - Nvidia is recognized as a leading AI stock due to its dominant position in GPUs, essential for large language model training and inference [2]. - Broadcom has become a crucial supplier for major tech companies, providing networking chips and custom AI accelerators that outperform Nvidia's general-purpose GPUs [2]. - Both companies have experienced soaring sales and profits, with their stock prices rising even faster than their financial results, reflecting investor optimism for continued growth [3]. Group 2: Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC, which manufactures chips for Nvidia and Broadcom, is regarded as the best in the industry, capturing 72% of all spending on contract manufacturing last quarter [5][6]. - TSMC has implemented price increases for its advanced nodes, with customers facing a 3% to 10% hike depending on contracted volume, and these advanced chips accounted for nearly three-quarters of TSMC's revenue in Q3 [7]. - The company plans to continue raising prices through 2029, indicating long-term supply constraints and a strong growth trajectory, while also expanding capacity with new facilities in Arizona [8][9].

Core Insights - Impax US Sustainable Economy Fund underperformed the Russell 1000 in Q3 2025, returning 7.33% compared to the index's 7.99% due to a focus on lower-risk, high-quality factors [1] - The fund's top holdings include Broadcom Inc. (NASDAQ:AVGO), which has shown significant performance fluctuations [2][3] Fund Performance - The portfolio's performance was impacted by a risk-on market environment favoring high-risk and high-momentum stocks [1] - The fund's Institutional Class returned 7.33% in Q3 2025, lagging behind the Russell 1000's return of 7.99% [1] Broadcom Inc. (NASDAQ:AVGO) Insights - Broadcom Inc. experienced a one-month return of -16.76% but gained 49.91% over the last 52 weeks, closing at $343.77 per share with a market capitalization of $1.63 trillion on January 6, 2026 [2] - The company performed well due to record earnings and high demand for AI semiconductor solutions, bolstered by investor confidence in its leadership in custom AI accelerators and successful VMware integration [3] - Broadcom is primarily held for its exposure to themes such as Resource Efficiency, Digital Infrastructure, and Meeting Basic Needs, as semiconductors are essential for various everyday activities [3] Hedge Fund Interest - Broadcom Inc. ranks 12th among the 30 Most Popular Stocks Among Hedge Funds, with 183 hedge fund portfolios holding its stock at the end of Q3, up from 156 in the previous quarter [4] - While Broadcom is recognized for its potential, some analysts suggest that certain AI stocks may offer greater upside potential with less downside risk [4]

Core Insights - Momentum investing focuses on stocks that are performing well and maintaining their upward trend, particularly relevant as the market approaches 2026 [2] - In 2025, a select group of companies consistently exceeded earnings expectations and demonstrated clear growth visibility, leading to strong investor confidence [3] - The current momentum is distinguished by the quality of underlying fundamentals, with leading stocks benefiting from long-term trends such as AI, healthcare innovation, and infrastructure spending [4] Group 1: Momentum Stocks - NVIDIA Corporation (NVDA) is experiencing strong momentum due to the rising demand for AI and accelerated computing, with fiscal 2027 sales projected to increase by 42.2% and earnings by 52.9% year over year [9][10] - Broadcom Inc. (AVGO) is gaining momentum from AI-focused semiconductors and networking solutions, with fiscal 2027 sales expected to rise by 40.5% and earnings by 39.5% year over year [14] - Eli Lilly and Company (LLY) is benefiting from high demand for obesity and diabetes treatments, with projected sales growth of 22.4% and earnings growth of 41% in 2026 [16] Group 2: Factors Supporting Momentum - Stocks with clear demand drivers and predictable revenue streams tend to maintain momentum longer, even if valuations appear high [5] - NVIDIA's momentum is broadening beyond hyperscalers to include enterprises and governments investing in AI infrastructure [8] - Broadcom's balanced model, combining AI momentum with a stable software portfolio, supports strong free cash flow growth and shareholder returns [13]

Core Insights - Broadcom Inc.'s shares fell 11.4% following its fourth-quarter fiscal 2025 results, despite beating analysts' expectations in earnings and revenue [1][11] Financial Performance - Adjusted earnings per share for Q4 fiscal 2025 were $1.95, surpassing the Zacks Consensus Estimate by 4.3% and increasing 37.3% year over year [9] - Revenues for the quarter reached $18.02 billion, a 28.2% year-over-year increase, also beating the Zacks Consensus Estimate by 2.9% [9] - The company reported organic revenue growth of 24% year over year [9] - The Semiconductor solutions unit's revenues increased by 35% year over year, while the infrastructure software segment saw a 19% rise [10] - As of the end of Q4, Broadcom had cash and cash equivalents of $16.18 billion and long-term debt of $61.98 billion [10] AI Business Insights - Concerns over the profitability of Broadcom's AI business contributed to the share price decline, with management indicating a 100-basis-point sequential decline in gross margin expected for Q1 fiscal 2026 [2][11] - The total AI backlog at the end of fiscal 2025 exceeded $73 billion, but fell short of some analysts' estimates, impacting investor sentiment [3] - Broadcom anticipates its AI semiconductor revenues to double year over year to $8.2 billion in the fiscal first quarter, driven by custom AI accelerators and Ethernet AI switches [5] Market Reaction and Analyst Updates - Following the earnings release, there was a brief rebound in Broadcom's share price, rising 0.5% in pre-market trading on December 15, 2025 [13] - Analysts from Bank of America raised their estimates for Broadcom's pro forma earnings per share for fiscal years 2026-2027 by 8% each [14] Shareholder Returns - During fiscal 2025, Broadcom returned $17.5 billion to shareholders through $11.1 billion in dividends and $6.4 billion in share repurchases [12] ETF Investment Opportunities - Several ETFs provide exposure to Broadcom, including: - iShares Semiconductor ETF (SOXX), with AVGO holding 7.78% of the fund and a year-to-date increase of 39.8% [15] - VanEck Semiconductor ETF (SMH), with AVGO at 8.87% and a year-to-date increase of 46.2% [16] - Fidelity MSCI Information Technology Index ETF (FTEC), with AVGO at 5.20% and a year-to-date increase of 22% [17] - iShares U.S. Technology ETF (IYW), with AVGO at 3.47% and a year-to-date increase of 24.7% [18]

Core Insights - Marvell Technology, Inc. (MRVL) is set to report its third-quarter fiscal 2026 results on December 12, 2025, with anticipated revenues of $2.06 billion, reflecting a year-over-year growth of 36% [1] - The company expects non-GAAP earnings of 74 cents per share, indicating a 74.4% increase year over year [2] Revenue Expectations - For the third quarter, MRVL's carrier infrastructure revenues are projected to reach $169.2 million, showing a significant year-over-year growth of 99.8% [6] - Data center segment revenues are expected to be $1.49 billion, representing a robust 35.5% year-over-year growth [9] - Enterprise networking revenues are estimated at $256 million, indicating a strong year-over-year growth of 66.7% [10] Earnings Performance - MRVL has consistently surpassed the Zacks Consensus Estimate in the past four quarters, with an average surprise of 2.7% [3] - The Earnings ESP for MRVL is +4.54%, suggesting a strong likelihood of an earnings beat this season [5] Market Position and Valuation - Despite a 20.6% decline in share price over the past year, MRVL trades at a forward price-to-sales (P/S) multiple of 5.99X, which is lower than the industry average of 7.54X [11][12] Strategic Initiatives - The company is focusing on AI infrastructure challenges by investing in custom silicon programs and advanced packaging technologies [14][15] - Collaborations with industry leaders like NVIDIA and Coherent Corp. aim to enhance high-speed networking technology for AI workloads [17][18] Competitive Landscape - MRVL faces competition from Broadcom and Advanced Micro Devices, both of which are strong players in the custom silicon solutions market [19][20] Investment Recommendation - The upcoming quarterly results are expected to mark the beginning of a multi-year growth trajectory driven by AI innovations, making MRVL a recommended buy at this time [22]