Sticks To Watch

BROADCOM: THE NEXT NVIDIA? 👀

When people hear the word AI, they usually think of Nvidia right away

However, Broadcom has built an incredibly strong position within the AI ecosystem

Its competitive advantage is based on 3 key pillars

1️⃣ Custom AI Chips for hyperscalers that want to develop their own AI models.

2️⃣ Networking Infrastructure that enables thousands of AI chips to communicate with each other at extremely high speeds.

3️⃣ VMware Software, which generates recurring revenue and creates high switching costs for customers.

At the same time, the numbers are impressive

The company's revenue is expected to grow from roughly $75 billion today to more than $225 billion by 2028, while earnings per share are projected to surge from around $6 to over $25 during the same period

In other words, it's no coincidence that the stock has more than tripled over the past three years

What do you think of Broadcom as an investment?

3 VERY INTERESTING STOCKS 👀

Lately, we keep hearing the narrative that the market is expensive

That said, there are always investment opportunities out there, at least in my opinion

Here are 3 compounding machines that have been growing their free cash flow for years while still trading at EV/EBIT below 15

1️⃣ Booking Holdings ($BKNG)
EV/EBIT: 14.4x
20-Year Free Cash Flow per Share CAGR: 32%
ROIC: 37%

2️⃣ Adobe ($ADBE)
EV/EBIT: 11x
20-Year Free Cash Flow per Share CAGR: 15%
ROIC: 26%

3️⃣ Zoetis ($ZTS)
EV/EBIT: 12x
15-Year Free Cash Flow per Share CAGR: 22%
ROIC: 24%

Of course, this is a very high-level view of these businesses. Each one deserves its own detailed analysis

What do you think about these three stocks?