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 ...

Although OpenAI is not available for public investment, the actively managed Alger AI Enablers & Adopters ETF (ALAI), seeks to invest in companies across the AI ecosystem, including businesses that may help enable and support leading artificial intelligence technologies. The fund's top holdings have poured billions into OpenAI relationships through ownership stakes, infrastructure investments, and cloud services contracts. Microsoft Corp. (MSFT), NVIDIA Corp. (NVDA), and Broadcom Inc. (AVGO), together, repr ...

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) ...

Key Points Broadcom makes custom AI accelerators for hyperscalers. Custom AI chips could become the largest part of its business in 2026. 10 stocks we like better than Broadcom › Reaching a $1 trillion valuation isn't as exclusive as it once was, but the companies with a $3 trillion market cap aren't as big a group. There are only four members right now: Nvidia, Alphabet, Apple, and Microsoft. They are the who's who of big tech, and there's a reason they are so highly valued. However, I think the ...

Key Points This semiconductor company has expanded its market share in recent years thanks to its advanced technology. Its long-term pricing plans demonstrate a long runway of growth ahead and a sustained competitive advantage. The stock trades at a much more attractive value than either Nvidia or Broadcom. 10 stocks we like better than Taiwan Semiconductor Manufacturing › All the advances in artificial intelligence (AI) over the last few years wouldn't be possible without the efforts of a handf ...

Impax Asset Management, an investment management company, released its “Impax US Sustainable Economy Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q3 2025, the portfolio lagged behind the Russell 1000. Similar to the second quarter, the US equity markets favored a risk-on approach, benefiting high-risk, high-momentum, and lower-quality factors. Although the portfolio’s focus on relatively modest, lower-risk, and high-quality factors contributed to the underperform ...

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]

Group 1: Market Position and Potential - Certain Wall Street analysts expect Broadcom and Meta Platforms to join the $2 trillion club, which currently includes Nvidia, Apple, Alphabet, Microsoft, and Amazon [1] - Broadcom is well positioned to benefit from artificial intelligence (AI) due to its leading market position in high-speed Ethernet switching and routing chips, as well as application-specific integrated circuits (ASICs) designed for AI workloads [2][3] Group 2: Financial Performance - Broadcom reported a 22% increase in revenue to $16 billion, driven by strong sales in custom AI and networking chips, and a 36% increase in non-GAAP earnings per share to $1.69 [4] - Meta Platforms experienced a 26% revenue increase to $51 billion, with GAAP net income rising 20% to $7.25 per diluted share [9] Group 3: Future Growth Estimates - Wall Street estimates Broadcom's adjusted earnings will grow at 31% annually through 2028, making its current valuation of 60 times earnings appear reasonable [5] - Meta Platforms' earnings are expected to increase at 16% annually over the next three years, with a current valuation of 28 times earnings [10] Group 4: Analyst Target Prices - Blayne Curtis at Jefferies has set a target price of $480 per share for Broadcom, indicating a 29% upside from its current price of $373 [7] - Scott Devitt at Wedbush has assigned a target price of $920 per share for Meta Platforms, suggesting a 47% upside from its current price of $627 [7]