Broadcom (AVGO) - Get Report delivered classic good numbers. It keeps buying back stock, raised a ton of money just now at incredibly low interest rates, has a great 5G portfolio, and it sells at 16 times earnings with a 3.3% yield. You want to sell that? How could I sell this Broadcom? What's the thesis for selling it? It’s up 6 points.
You want to sell AMD (AMD) - Get Report and Nvidia (NVDA) - Get Report? Those are two of the greatest growth semis of the generation. The whole generation. That's Jensen Huang at Nvidia and Lisa Su at AMD.
Now, think about this. AMD is soon going to acquire Xilinx (XLNX) - Get Report to broaden beyond PCs, data centers and gaming. But what people don't like about AMD? That it's not beyond PCs, data centers and gaming. Lisa Su is answering the question,
How about Nvidia? Well, what do we like about Nvidia? It doesn't have this broad product portfolio that includes all the, say, the Apple (AAPL) - Get Report products or all the data-center products we need. Well, you know what you do? Buy ARM Holdings. ARMH That's right. Then you get a hammerlock particularly with Intel (INTC) - Get Report not doing that well. [That’s] Bob Swan, a very nice guy.
Well, if you’ve got the guts of many devices that are in growth mode, do we sell AMD? No, you buy it. Do we sell Nvidia, which has been going down and people ask me ‘Jim, what’s wrong with Nvidia?’ There's nothing wrong with Nvidia. The stock’s down 11 today. It was one of the great performers last year. I still like it.
We've seen Facebook (FB) - Get Report – how much is that bad boy down today? -- we’ve seen Facebook go from being a menacing social site with a big target on the back of [Chief Executive Mark] Zuckerberg to a creator, backer and sustainer of small and medium-sized businesses. Now what do we know about America? What hackneyed phrase do we know about the American economy? Small and medium-size businesses are the backbone of the economy.
And you know what? The perception of it is entirely changed. It's brought back, by the way, all the big consumer-packaged-goods ads that people were saying, ‘I don’t want to touch that, that's a political liability.’ It's also offered, by the way, the best rates for young online entrepreneurs. I had Paychex (PAYX) - Get Report on the other day on “Mad Money.” People start businesses on Instagram. What's not to like? Facebook? It's a buy.
How about Alphabet (GOOGL) - Get Report on the eve of the return of its biggest ad cohort, travel and leisure. That is going to be raising numbers. Alphabet. Oh, don’t forget, you’ve got Sen. Warren in there. She's like an activist trying to break it up.
How about selling Apple ahead of 5G and accelerating service revenue stream? It put up some good numbers this morning. Don’t even talk about it.