Marcos Milla
Former Analyst at the Federal Reserve, ETF/Stock Newsletter Author
The Virtus VUS ETF could beat SCHD on total return over five years, pairing a 4% dividend yield with mainly technology exposure that aims to move like a growth fund. Its top holdings are Nvidia, Apple and Broadcom, with some high-yield dividend stocks mixed in for income through a systematic search for undervalued US dividend payers. SCHD's dividend growth should still easily crush VUS's. x.com
Low forward earnings multiples across eleven stocks cannot persist indefinitely. Nvidia trades near 17.5x, its lowest in over a decade; Oracle near 15x, its lowest in six years. Uber is at 17x, Broadcom 19x, Vistra 15x, AppLovin 14.5x, TSMC 19x, Forgent Power Solutions 18x, Nokia 19.5x, American Express 17x and Western Digital 14x. x.com x.com x.com x.com x.com x.com x.com x.com x.com x.com x.com
Microsoft's 50% Azure growth and prospect of positive cash flow in 2027 make the stock look bulletproof. Headcount cuts, lower Anthropic spend, a better Copilot routed to cheaper tokens, and coming proprietary chips and model usage add to the case. It should get Apple's multiple plus recognition for cybersecurity. x.com x.com
Rapid revenue growth against forward valuations makes Nvidia and Micron additional calculated risks after the selloff, alongside Meta, Broadcom, IREN, Vistra, Nokia and Oracle. Nvidia grew revenue 106% and guides Q3 to $108B, plus or minus 2%, at 17.5x forward earnings; Micron grew revenue 379% to $54.2B, guides $61.5B next quarter and trades at 5x. The other six retain their growth, contracted-demand or customer-order cases. x.com
Improving earnings and more attractive valuations favor AI infrastructure names Nvidia, Micron, Broadcom and TSMC. Goldman Sachs charts put memory stocks at about 4 times two-year forward earnings versus an 8 times median, and large fabless chip stocks at about 13 times versus 18 times. x.com
Semiconductor leaders look better placed than high-beta stocks with poor company models. TSMC, ASML, Nvidia and memory should lead the sector and belong in the buy basket, with Broadcom not far behind. The CPU basket is only a hold: much of its upside was priced in during Intel and AMD's run. x.com
Micron won't become obsolete because AI models still need memory; chips without external memory, like IBM's NorthPole, suit only smaller models. Micron supplies the custom base die for Nvidia's NVHBM and has locked some 2027 supply at higher prices. The risk is that markets price the end of the HBM shortage early, and if Samsung wins more custom slots, Micron's high-end mix grows slower. Micron should hit $1,400 within six months, but that may be a lasting top unless it diversifies. x.com x.com … Show more
With Alphabet seeing capex increasing significantly versus 2026, per a zerohedge headline, not being long Broadcom and Micron is effectively being short them. x.com
Micron, Intel, AMD, Tesla and SanDisk look overextended and due for a pullback because their share prices have outpaced earnings over five years, and stocks follow EPS over time, as Peter Lynch said. Price versus EPS growth: Micron +1,071% vs +758%, Intel +97% vs -112%, AMD +453% vs -5%, Tesla +78% vs +7%, and SanDisk +4,746% vs +717%. x.com x.com x.com x.com x.com
These ten companies span every layer of AI capex, which Goldman sees surging to $1.2 trillion in 2027, so each should make money. Credo, Broadcom, Micron, Nvidia, TSMC, AMD and Amkor cover connectivity, custom chips, memory, GPUs, foundry and packaging; Broadcom expects AI revenue of about $115B in fiscal 2027. Vistra supplies power under 20-year nuclear contracts. IREN and Nebius rent AI compute, with Nebius targeting $7-9B run-rate revenue by year end. x.com x.com x.com x.com x.com x.com x.com … Show more
Dividend growth stocks have quietly outperformed the S&P 500 for decades, making Broadcom, Visa, S&P Global, Costco, Mastercard, Texas Instruments, Microsoft, PepsiCo, Starbucks and NVIDIA ten to buy and hold forever. x.com x.com x.com x.com x.com x.com x.com x.com x.com x.com