Out Fox The $treet

  Broadcom's AI business is growing rapidly but remains a small portion of its $1.2T valuation, making the stock richly priced for its current AI exposure. AI revenues are forecast to reach $5.1B in FQ3, with custom AI accelerators and networking driving growth, but overall sales growth is less impressive. Despite a $10B buyback and strong margins, future sales growth is projected below 20%, and AI's lower margins limit further profitability leverage. The stock already trades at 14x FY27 sales targets, boosted by AI growing at a 60% clip, though Broadcom appears headed higher in the short term. Broadcom Inc.  ( NASDAQ: AVGO ) ( NEOE: AVGO:CA ) is a massive technology infrastructure company, shifting the focus into AI infrastructure. The company makes promising custom AI chips for industry leaders, but the market is already pricing in a  lot of AI excitement. My investment thesis is Neutral on the stock, with the breakout prior to earnings likely dictating the stock price ...

Update - May 28, 2025 C3.ai reported a FQ4 beat, but subscription revenues only grew 9% with all of the growth coming from prioritized professional services.  -Q4 Non-GAAP EPS of -$0.16 beats by $0.04. -Revenue of $108.72M (+25.5% Y/Y) beats by $1.02M. FY26 guidance is a very wide range with the suggestion the low end is due to geopolitical risks, though those risks have disappeared of late. The guidance suggests revenues of $464 million versus consensus estimates around $466 million for growth of 20%.  Original article posted on May 21 C3.ai, Inc. trades back at yearly lows despite reporting strong growth in the last year. The enterprise AI software company has a ramping set of pilot deals and a surge in potential new agreements due to an AI partnership with Microsoft Azure. Despite current losses, C3.ai maintains a robust cash position and is prioritizing customer acquisition over immediate profitability to capture the generative AI opportunity. AI stock is cheap, trading at...

Update - May 27, 2025 Trump Media is selling $1.5B in stock and issuing $1B in senior convertible notes to buy cryptocurrencies in an odd move, probably due to the social media failing to gain any traction. Investors have no reason to buy this stock for bitcoin, instead of just front running Trump.  -Trump Media and Technology Group ( NASDAQ: DJT )  plans to raise  $2.5B in stock and senior secured notes in a private placement with ~50 institutional investors in which to create the largest Bitcoin treasury of a public company. -“We view Bitcoin as  an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets…and help defend our company against harassment and discrimination by financial institutions,” said Trump Media CEO Devin Nunes. Original Article posted on January 29 President Trump has appeared to focus on meme coins over improving Trump Media, leading to a lack of promotion for Truth Social. Meme coins TR...

Update - May 16, 2025 Archer Aviation has rallied to $14 today on the news yesterday regarding the LA28 Olympics. The stock had rallied nearly 100% in less than a month and probably needs to consolidate here with the market cap topping $7 billion.  -Archer Aviation announced on Thursday that the company was selected as the Official Air Taxi Provider of the 2028 Los Angeles Olympic and Paralympic Games. Through the exclusive partnership, Archer's Midnight eVTOL aircraft will be integrated across the LA Olympic Games in various ways, such as transporting VIPs, fans, and stakeholders transportation, while also electrifying vertiport take-off-and-landing hubs for key venues and providing support for emergency services and security. -The company said it will introduce its Midnight eVTOL aircraft to Los Angeles in partnership with the LA Olympics organization. The event is expected to host over 15 million visitors and broadcast to billions of viewers globally over the course of the Games...

Update - May 6, 2025 The fintech has slipped to $50 despite a big quarter likely due to not hiking guidance.  Q1 GAAP EPS of -$0.03  beats by $0.16 . Revenue of $213.37M (+66.7% YoY)   beats by $12.11M . Upstart signed a forward-flow agreement for $1.2 billion with Fortress Investment Group. The main issue with numbers is likely guidance just generally matching current estimates.  Q2 Revenues of $225 million vs. consensus at $226 million 2025 Revenues at $1.01 billion vs. consensus at $1.01 billion.  The stock dips to a $4 billion market cap at the $42 after-hours price, or 4x sales targets. Upstart just traded down below $40, so the stock likely bounces at this level.  Update - Apr. 5, 2025 Upstart has entered the buy zone on the dip to nearly $30. The AI lending stock has just been crushed after rallying to $90. The company will have to report a serious pullback to lending to warrant this dip.  Original article posted on Mar. 30 Upstart Holdings...

Update - May 1, 2025 Aurora Innovation finally launches, now let's see if the ramp can begin. The stock is likely expensive for the limited revenues of the next few years due to the slow ramp.  -Aurora Innovation (NASDAQ:AUR) announced on Thursday that it launched its commercial self-driving trucking service in Texas. The autonomous technology company began regular driverless customer deliveries between Dallas and Houston this week after completing its safety case. To date, the Aurora Driver has completed over 1,200 miles without a driver. The milestone makes Aurora the first company to operate a commercial self-driving service with heavy-duty trucks on public roads. -Aurora's (NASDAQ:AUR) flagship product, the Aurora Driver, is an SAE L4 self-driving system that is first being deployed in long-haul trucking. The launch customers are Uber Freight (UBER) and Hirschbach Motor Lines, a veteran-owned carrier that delivers time- and temperature-sensitive freight. Both companies have...