Latest news with #BokehCapitalPartners
Yahoo
11 hours ago
- Business
- Yahoo
Broadcom is the right pick 'if you're a nervous AI investor'
Broadcom (AVGO) beat second quarter earnings estimates but disappointed on outlook despite a 46% revenue increase from last year. Kimberly Forrest, founder and chief investment officer of Bokeh Capital Partners, explains why Broadcom's hardware-software mix makes it a confusing artificial intelligence (AI) play. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This has been a big story of the week, Broadcom beating second quarter earnings estimates, but its outlook failing to impress investors. Still, the chipmaker's AI revenue increased 46% from a year prior. Joining us now, we've got Kimberly Forest, Boca Capital Partners founder and chief investment officer. You said the AI trade is back. I mean, did it leave? How are you looking at Broadcom right now? Well, I think that they are a very confusing company if you are an AI-oriented investor because the chip sector in that company or that chip segment, I should say, is relatively small and, but important. We know that, but it's got a lot of weird hardware rolling around the, um, the halls in Broadcom, like everything from mainframe to, uh, VMware, which is this, uh, software that can make virtual machines. So, it's it's an oddball stock and it's kind of reflected in the price today because it isn't the AI pure play that people want it to be. So, given that, Kimberly, can you talk a little bit about what would make a company like Broadcom a pure enough AI play for an investor like you to be a little bit more bullish on it? Sure. Well, they could do something strange like kind of roll out a piece of it, maybe the, uh, chipset, the chip sector into, um, a a trading vehicle where you're you're just spinning that off, but you remain the majority owner of the company. And that could show in a direct way the growth that the company can achieve through AI. God knows they talk a lot about it, but, um, until investors are able to see that pure growth, that is going to limit this company at some point. You know, is there a better kind of longer-term play here that that seems more stable than Broadcom within this AI trade right now? I don't know. I mean, AI there the good thing about Broadcom software exposure is that it does give it stability. Um, yes, the mainframe market isn't growing. VMware's market isn't growing and the other software they have, not really growing at the same rate of AI, but it gives you a lovely annuity-like revenue to be able to invest in things like the chips that it is bringing to market to AI. So, that, if you're a nervous AI investor, maybe Broadcom's for you. Um, you know, the pure play is at this point, Nvidia. Um, they have the chips people want, um, that are willing to pay up for their premium pricing and it looks like there really is no substitute at this point. So, if you want a direct line to, um, all manner of AI, the way to play it is Nvidia right now. And when you think about the growth prospects for Nvidia amid some of the geopolitical tensions, obviously Nvidia getting caught in the crosshairs on chip export curbs between the US and China, how concerned are you about the Chinese market getting cut off from Nvidia as a potential downward catalyst? I'm not particularly concerned, but the company sure is, you know, um, the last time, uh, Jensen Wong was on TV, he was making a direct appeal to the government to allow for export. Um, you know, he always points out 50% of the AI is being developed in China, and wouldn't it be nice to have a US-based, um, hardware platform that it's being developed on. And right now the answer is no for many reasons, and I think probably the biggest reason is are they going to just have consumer oriented AI or does it have military applications, and that's a tough one to get around. So, I think Nvidia making a, uh, a less capable chip for the Chinese environment is probably the best the company and the government can do at this point, and we'll see if, um, that's permitted in the future. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 hours ago
- Business
- Yahoo
Broadcom is the right pick 'if you're a nervous AI investor'
Broadcom (AVGO) beat second quarter earnings estimates but disappointed on outlook despite a 46% revenue increase from last year. Kimberly Forrest, founder and chief investment officer of Bokeh Capital Partners, explains why Broadcom's hardware-software mix makes it a confusing artificial intelligence (AI) play. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Recorder
3 days ago
- Business
- Business Recorder
Chip stocks lift Wall Street as investors await trade negotiations
NEW YORK: US stock indexes rose on Tuesday, helped by gains in Nvidia and other chipmakers, as investors awaited possible negotiations between the United States and its trading partners for more clarity on Washington's tariff plans. President Donald Trump and Chinese leader Xi Jinping are set to speak this week, the White House said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. The Trump administration wants countries to provide their best offer on trade negotiations by Wednesday as officials seek to accelerate talks with multiple partners ahead of a self-imposed deadline in just five weeks, according to a draft letter to negotiating partners seen by Reuters. 'Unless there's a deadline, things don't get done, and he's trying to enforce a deadline,' said Kim Forrest, chief investment officer at Bokeh Capital Partners. 'If the talks are ongoing, that's good enough.' In May, a softening of Trump's harsh trade stance allowed a recovery in risky assets, with the benchmark S&P 500 and the tech-heavy Nasdaq posting their biggest monthly percentage gain since November 2023. The S&P 500 remains about 3% away from its record peak touched in February. At 12:03 p.m. ET the Dow Jones Industrial Average rose 143.83 points, or 0.34%, to 42,449.44, the S&P 500 gained 29.76 points, or 0.51%, to 5,966.11 and the Nasdaq Composite gained 155.31 points, or 0.82%, to 19,399.82. Five of the 11 major S&P 500 sub-sectors fell with real estate stocks leading losses, down 0.8%. On the flip side, information technology stocks rose 1.2%, boosted by a 3.1% rise in Nvidia. Chipmaker Broadcom hit a fresh record high after the company said it has begun to ship its latest networking chip that aims to speed AI, last up 2.4%.
Yahoo
16-05-2025
- Business
- Yahoo
Nvidia customers will push into AI until they 'become irrelevant'
While the Magnificent Seven tech leaders continue to rally this week, artificial intelligence continues to be a core driver of growth within the tech space. Bokeh Capital Partners Founder and Chief Investment Officer Kimberly Forrest comes on the Morning Brief to talk more about the sustainability of the AI trade — namely in key players like Nvidia (NVDA) — and whether momentum behind trader enthusiasm can hold. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
West Australian
07-05-2025
- Business
- West Australian
Wall St edges up on China trade de-escalation hopes
The three main US stock indexes are inching higher as hopes for a de-escalation in trade tensions with Beijing firmed and investors awaited the Federal Reserve's interest-rate decision later in the day. Washington announced late on Tuesday that representatives of the two countries would meet over the weekend in Switzerland for ice-breaker trade discussions. The meetings will follow weeks of tit-for-tat tariffs that roiled financial markets and flagged concerns about global economic growth. Mixed signals from the world's two biggest economies recently on the status of the negotiations have led to uncertainty, pushing many companies to shelve their forecasts. The US central bank, meanwhile, adopted a wait-and-watch approach despite signs of slowing growth. President Donald Trump's administration has said potential deals with major trading partners are underway, but markets are yet to see tangible results on that front. "There's a lot of theatre that's going to go on, but I would think that (moving forward) sooner rather than later is probably what both parties want," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh. "It's become clear that a lot of the tariff talks are more for discussions on how to change trade." In early trading on Wednesday, the Dow Jones Industrial Average rose 221.20 points, or 0.54 per cent, to 41,050.20, the S&P 500 gained 18.42 points, or 0.33 per cent, to 5,625.33, and the Nasdaq Composite gained 43.41 points, or 0.25 per cent, to 17,733.07. Seven of the 11 S&P 500 sectors ticked up, with communication services among top advancers, helped by Walt Disney's 10.4 per cent rise after the streaming firm's quarterly results topped Street expectations. The US Federal Reserve is scheduled to announce its policy decision on Wednesday afternoon, when it is widely expected to hold interest rates steady. Traders are now roughly pricing in a rate cut by July, according to data compiled by LSEG, after a mixed bag of reports last week signaled a slowing US economy and resilient labour market. Commentary from policymakers will be scrutinised for clues on how they plan to approach monetary policy easing this year, given the backdrop of Trump's criticism of Fed Chair Jerome Powell as well as repeated calls for lower interest rates, which spooked investors in April. Wall Street ended lower for the second straight session on Tuesday, but all indexes have recouped declines logged since Trump's announcement of "Liberation Day" reciprocal tariffs on April 2. Advanced Micro Devices was up 2.2 per cent after the chipmaker forecast revenue for the second quarter above Street estimates. Uber dropped six per cent as the ride-hailing company missed quarterly revenue expectations. CrowdStrike dropped 3.9 per cent. The cybersecurity company reiterated its fiscal 2025 and 2026 forecasts and announced a plan to cut jobs. Contract research firm Charles River Laboratories shot up 20 per cent after it said it had reached an agreement with activist investor Elliott Investment Management and raised its 2025 earnings forecast. Arista Networks fell 6.9 per cent after its quarterly report. Advancing issues outnumbered decliners by a 2.37-to-1 ratio on the NYSE, and by a 1.6-to-1 ratio on the Nasdaq. The S&P 500 posted seven new 52-week highs and three new lows, while the Nasdaq Composite recorded 24 new highs and 37 new lows.
