Trending Stocks, Investing Tips, and Market Insights on Stockchase

In the last 5 years, annualized return was 27% vs. the S&P's 13%.

There is demand for their chips. Claude, ChatGPT, all these AI applications need more chips.

Free cash flow is large and it pays a 3.5% dividend, better than peers. You need a stock like Apple to contrast with the high-beta semis stocks.

He recently sold this at $431, citing lack of momentum--that was not a good trade. He likes the fact that the new CEO is now buying back stock, being aggressive and putting his signature on the company. He bought $10 billion of Alphabet and Home Builders at $7 billion. Sure, some deals will not be good, but to make on omelette you have to crack some eggs.

Was upgraded today. It's the highest-quality healthcare stock. They have more than just the GLP-1 drug; are diverse with their entire drug catalogue. Exceptional execution. Good PE. 

She just bought it now for its cheap valuation at 18x. It's cheaper than Colgate or Hershey which has 3% organic growth, while Nvidia has posted 85% total revenue growth. Look at their backlog and customer base. Gross margins are around 75%. Free cash flow will double next year.

She owns the preferreds. Their industrials business was +24%, data centre +97%, aerospace/defence +45%. It trades at 20x PE and pays a 5.3% dividend. There's growth ahead. You don't have to own the big tech stocks.

It will drift higher to the mid-80s by year end.

Interestingly, the Magnificent 7 are no longer so magnificent. The group is up ~2% from 2 months ago, which trails the S&P 500 (which itself trails the equally weighted S&P 500). Seeing a broadening out of investor interest.

After 4 years of this capital spending arms race, we're starting to see trickle-down benefits flowing broadly into the mainstream economy. The most rabid enthusiasm is still in semiconductors, hyperscalers and memory, but we're starting to see some of the benefits of AI usage trickle down to garden-variety businesses.